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. Continue reading