Professional Documents
Culture Documents
Information Technology & Systems: Internet of Things: Smart, Connected Products
Information Technology & Systems: Internet of Things: Smart, Connected Products
Systems
Session 14
Internet of Things: Smart, Connected Products
Nest Thermostat (Google: $3.2B: Jan 2014)
Source: 12/2/22
Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 13
Capabilities of Smart Connected Products
Source: 12/2/22
Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 15
Amazon Silver Eco
https://youtu.be/YvT_gqs5ETk
12/2/22 ITS S14 | Vimal Kumar M | IIM Calcutta 16
Capabilities of Smart Connected Products
Source: 12/2/22
Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 17
Capabilities of Smart Connected Products
Source: 12/2/22
Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 18
Capabilities of Smart Connected Products
https://youtu.be/tZ0bq-jIg-o
12/2/22 ITS S14 | Vimal Kumar M | IIM Calcutta 19
Capabilities of Smart Connected Products (SCPs)
Complements: Responsibility:
1. In smart home, control is in single-user, whereas multiple-user 1. Product selection based on value
reside in the same house. Enabling access to multiple-user is the first proposition
complement. Home App (Apple: 2018) is enabled with this 2. Adoption and exploitation
complement.
2. Interoperability is another complement (Philips, Syska, Nest, Wipro)
12/2/22 ITS S14 | Vimal Kumar M | IIM Calcutta 20
How smart, connected products
are transforming competition?
+
Less dependence on
mechanical components,
new suppliers
Rise of new suppliers
Higher utilization and product
Threat of Substitutes sharing, substitute for product
ownership
22
Redefining Industry Boundaries
12/2/22
Source: Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 23
Amazon Go
12/2/22
Source: Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 27
Smart connected Objects: Implications for strategy
6. How does the company manage ownership and access rights to its
product data?
7. Should the company fully or partially disintermediate distribution
channels or service networks?
8. Should the company change its business model?
9. Should the company enter new business by monetizing its product
data through selling it to outside parties?
10. Should the company expand its scope?
12/2/22
Source: Porter and Heppelmann, 2014, HBR. ITS S14 | Vimal Kumar M | IIM Calcutta 28
Mistakes to Avoid
• Adding functionality that customers don’t want to pay for
• Underestimating security and privacy risks
• Failing to anticipate new competitive threats
• Waiting too long to get started
• Overestimating internal capabilities