HBR article review: Four Strategies for the Age of Smart Services

Image result for HBR

Four #Strategies for Age of #SmartServices by Glen Allmendinger and Ralph Lombreglia; a little bit dated but still quite relevant and meaningful insights on what strategy one company should adopt to migrate from pure product centric approach to service based selling and solutioning.

Highlights: 
  • “the business is actuarial science now”; 
  • "any asset that costs more than ten times its purchase value to use is a clear candidate for networking"; 
  • "Embedded innovators that decide to add connectivity to their products may have a hard time levying additional charges in relationships where everything was previously included" 
  • Solutionist is the one that provides extra solution around the standard operating procedure of the device such as GE Healthcare offers for MRI machines
  • Aggregators: Controls the application’s actual data collection and central-processing power; and there will be synergists, whose devices contribute valuable data or functions that are controlled by the application
  • Synergist: "It is possible to succeed in the age of smart services simply by providing intelligent devices that play well with others" 

Link to the full article: https://hbr.org/2005/10/four-strategies-for-the-age-of-smart-services

Comments