What if your business model would be disrupted by a NETWORK effect !

…. and not a network of people but an intelligent network of things….

Many of us have or will get into first contact with the Internet of Things (IOT) through gadgets like Fitbit sports/ health bracelets. Yet all of us should think about how the Internet of Things will most likely radically change the industry we work in by fundamentally  affecting our business model.

I have posted below two articles that I think capture best the rapid evolution of digitalisation. Companies often see a digital transformation primarily behind an efficiency / cost driver. Digitalisation however can also introduce major innovation when one is ready to fundamentally rethink the business model.

Products as a service

Mike Kuniavsky recently posted network a good recap of how many of our industries will change due to digitalisation (read – From Selling Products to Managing Service) . I totally adhere to his view that the physical world slowly but surely erodes to become more digital, creating as he nicely says  “shadows in the cloud”.

By doing so it is allowing products to move away from being box moving / one shot sales to being sold “as a service”. This obviously brings along a totally new customer relationship.

There is however another advantage of the move to digitalisation. As more and more products will become digital we will start thinking more and more of products acting like elements of an (IT) network. Over time, the more diverse elements join the network the more intelligent the network will become and thus in turn the more intelligent the products can become.

The question is, who will build the master network. That’s why I like to post the other article on Google’s recent new car… somebody that fully understand the power of intelligent network..

The power of intelligent network effect – the Google Car

google carThe most recent example where a “product as a service meets a “network effect” is the recent announcement of the first Google car (read article ).

Google is mapping the world as we know today with it’s Google maps. Google Now has shown how they are starting to build a quasi artificial intelligent Personal Assistant that can learn from its “digital environment”, give you contextual support in the context of where you are NOW but more and more start to anticipated your personal events.  The power of Google Now lays in the network effect, where different digital worlds enrich the power of the information.

The Google car is a first step where there is a link of the digital network with a real physical world product, ie.e the car. This is again showing that Google in my view is much more than a search and Android company (read earlier post).

Enjoy !

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