Harvard Business Review – How Smart Connected Products are Transforming Competition

HHarvard Business Review - How Smart Connected Products are Transforming Competitionarvard Business Review – ‘How Smart Connected Products are Transforming Competition’ by Michael Porter and James E. Heppelmann.

We thought we would share with you one of the best Harvard Business Review articles that we have read.  Porter, the renowned Harvard Business School professor, and Heppelmann, the widely respected CEO of PTC, write a masterful article on the ‘third wave of IT-driven competition’.  The article expands on Porters Five Forces and provides a future-looking blueprint for companies seeking to disrupt their industry, redefine industry boundaries and gain sustainable competitive advantage over their competitors.

To grasp a glimse of the future, Porter and Heppelman provide a view of how companies migrate from smart products, to smart connected products to product systems and ultimately to creating systems-of-systems.

Redefining Industry Boundaries - How Smart Connected Products are Transforming Competition

Source: Harvard Business Review

The example above, provides a view of how a farm management system can be created by integrating farm equipment systems, weather data systems, seed optimization systems and irrigation systems.

The article provides mini-case study insights on Joy Global, Tesla, Bobolat, Ralph Lauren, Medtronic, Sonos, Philips Lighting.

The authors sagely highlight that for companies to move beyond ‘operational effectiveness’ (best practices which can be copied), they must strike out to a new ‘strategic position’ by doing things differently.  If your company has become entrenched in mastering big data and developing predictive analytics, this Harvard Business Review article will surely stretch your thinking.  It is one to save, review with your management team and re-read for years to come.

To read this excellent article on the PTC web site, click here.

By Nick Mavrick

You can find Nick Mavrick on Google+

Intelligent Response specializes in operationalizing Predictive Analytics, Market Research, Quantitative Marketing and Digital Advocacy in Washington DC.

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