Reinventing the Product
Reinventing the Product
A few organizations actually still have a 20th century method of getting things done. They need to sell similar sort of items individuals were purchasing 50 years back and work simply as they did two generations prior. Tragically for them, the times of customary item making are no more. For around 200 years, making and selling an item was a direct cycle of sourcing crude materials, dealing with work and assembling, and afterward selling your item. In today’s world, the point of sale is just the beginning of an ongoing relationship between businesses and their customers. As authors Eric Schaeffer and David Sovie see it, businesses today need to offer not just any products, but Product 3.0s – digitally-connected smart products that deliver valuable customer experiences.
You need to hang up a bit of art in your office. You could purchase a drill and all the materials to do it without anyone else’s help. In case you’re a handyman/woman, that may be the best approach. However, it could be expensive and costly way to do it. A superior option may be to recruit an organization that as of now has all the materials and vows to hang your new artwork rapidly and impeccably. These kinds of organizations speak to what’s to come. As opposed to selling items, they sell final results. Your whole plan of action should be centered around making encounters and supporting long-term client connections, rather than looking at the point of sale as the end goal. One of the most important ones is to shift your focus away from products as we’ve traditionally understood them and toward the ongoing journey of the customer experience.
When a deal is made, there are a lot more encounters to consider: What’s it like to open the package once you’ve got it delivered? What’s it like to really utilize the item and to share that experience to other people? In case you’re selling cameras, how simple is it to share photographs? Think of Tesla cars and how the company is constantly updating the software that runs the car, and how that continual stream of improvements can make a years-old Tesla more valuable than it was when it was originally purchased. This is the kind of shift in business plan that today’s companies need to make in order to compete with the best. Nowadays it’s more likely that customers rely on a certain brand for a long time once they’ve found it a working and a good product / company that gives the customer some extra value. Businesses should start thinking of their products as services and become more platform-oriented. You may have heard terms as SaaS, LaaS, PaaS and so on. PaaS for example is an abbreviation from Platform as a Service. You could make up your own abbreviations with your services or products. Netflix, Tesla, Uber, Apple, and many more of the presents most successful companies all sell items that are basically services, and this is a pattern that will increase as more organizations see approaches to keep consumers occupied with the long term.
There are a few important factors when transforming into a product-as-a-service company. The first two are identifying a clear and viable strategy for your product and shifting your operating model to fit today’s digital ecosystem. For example, companies that sold medical testing devices are shifting to selling software that analyzes medical data. Some would describe this product-as-a-service model as more comprehensive way to offer goods to the costumer. The third is changing the way you approach research and development. This is important because, in the experience economy, it’s less about a customer owning a product and more about the ongoing relationship that comes with them using that product. The service you’re providing needs to be constantly improving in todays fast paced digital business.
For most app-based companies, the main platforms are App Stores by Google an Apple. Big tech-companies like Alibaba and Amazon also have platforms that allow them to gain both value and exposure by bringing businesses together as part of a powerful ecosystem. This is made possible with a mutual understanding between the companies an their different functions. Data-sharing is a big question in the future as it enables companies to work even closer and more effectively with each other, benefitting more and more.
Amazon founder Jeff Bezos advocates for smaller, enabled and experimental-minded groups. From his perspective, twice as much testing will prompt twice the same number of thoughts. Amazon additionally has a “two pizza” rule – if your group can’t be taken care of by two pizzas, it’s too large. If I think this rule as for myself, my team would be just you and me. And in some cases, just me.
As of our application project, there are some important point that Sovie and Shaeffer underline.
1. Define your vision and the value you’re offering. What kind of experience is your product providing?
2. Outline your product experience and how it relates to your business operations. How much data are you getting from customers that interact with your product or service? Is there enough storage for that data? And, maybe the most important of all, is your data secure enough?
3. Track the results and be willing to constantly adjust course.
4. The last one might be my favourite; There is no time like the present, so start your digital journey now!
A lot of written books, articles or videos are in English regarding application-related products, so it’s rather hard to find information of this topic in Finnish. It also helps to understand more details and different kind of angles of product development, since Finland is typically not in many examples and our way of working, our laws and different regulations. Mostly the examples come from bigger nations such as the U.S. It’s interesting to learn how things work in other countries, but how do Finnish, new, unexperienced entrepreneurs proceed in Finland. There’s very little information about that journey to success.