How the #InternetofThings Is Transforming the Meaning of Product

Citation:
At one point Steve Jobs offered to buy Dropbox, explaining to the founders that their cloud-based file system was really a feature, not a product. In my view Jobs was right with respect to Apple’s definition of a product. But what he failed to understand was that the Internet had fractured the meaning of the word product. Dropbox and many other companies have proved it is possible to build a great business around a simple service. Dropbox may or may not be a product the way Jobs used the word, but it certainly is a business.
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In the industrial sphere, companies that make devices have for decades made large amounts of revenue selling parts and servicing equipment after the sale. Selling parts and offering Break/Fix services are the most basic types of services offered by manufacturers. But now a much larger group of companies is finding that when they connect their devices to the Internet, they have a flow of data about how the product is working and who is using it. As Jim Heppelmann, CEO of PTC puts it, “Vendors no longer have to act as if the products are on the dark side of the moon after they are in use.” The products send lots of data back home to the manufacturer, and this data can be used to create new types of applications that help operate and maintain the devices, but also create value in new and unexpected ways.

Image of Jim Heppelmann, President and CEO of PTC

#InternetofThings   #Manufacturing  

Posted by +Dan Durrant 

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