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

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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.

  • “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