Rise of The Connected Economy
Can you remember the last time you were completely offline? Was it last month when you were on your spring break vacation? Or, last night while you were asleep? If you’re like me, you might never really disconnect because your phone, like mine, is always near you. And connected.
Across Industries, Right Now
From our mobile phone to connected home equipment, connected car and industrial machinery, our world has become a tightly knit web of digital interactions. Data flows in real-time creating new value and driving new breeds of services and value for consumers and businesses alike. We call it the Connected Economy.
There’s a Word for This: Servitization
It is not just that industrial companies and traditional manufacturers are topped by services and technology firms in rankings such as Fortune 500. The very core of manufacturing companies are also shifting toward services.
At Covisint, we pride ourselves for being the platform powering OnStar for GM, linking over 12 milion GM car owners with their vehicle for services around safety, convenience, intelligent driving. As we helped build this system, we realized how quickly the business model for automakers was shifting from one-time sales of physical assets – the cars – to a more diversified portfolio of recurring services, delivering higher customer value in a more personalized way.
Connecting Digital Ecosystems
For the Connected Economy and Servitization to materialize, you need to connect this complex ecosystem of People, Systems and Things. This is where IoT meets digital transformation.
Ample industry research has been published over the past years and shows unambiguously that adapting to fast-changing customer behaviors (55%) and developing new market opportunities (53%) are leading change factors. When companies invest in IoT, they do so almost equally between:
- Creating new connected products and building new customer experiences (45%), and
- Re-engineering processes and asset management for greater velocity efficiency and compliance
And you, are you getting ready for the Connected Economy?