Title: Reinventing the Product: How to Transform your Business and Create Value in the Digital Age
Authors: Eric Schaeffer, David Sovie
Year: 2019
Category: Disruptive Innovation

Introduction: The New Age of Intelligent Products

The book “Reinventing the Product” by Eric Schaeffer and David Sovie explores how the digital revolution is transforming products and enabling unprecedented levels of connectedness, intelligence, and personalization. It aims to guide companies in strategizing and executing the reinvention of their products to thrive in the digital age. The authors emphasize the importance of adopting intelligent technologies and rethinking product development, operations, and customer engagement.

Action: Evaluate current product portfolio for opportunities to integrate digital technologies and enhance their value.

1. The Rise of Smart Products

The book starts by discussing the rise of smart products—those equipped with sensors, connectivity, and smart capabilities. Traditional products evolve into smart products by incorporating technologies like IoT, AI, and data analytics.

Example: Philips Hue smart lighting system that allows users to control lights using smartphones and integrate with smart home systems.

Action: Digitalize traditional products by incorporating sensors and connectivity elements, leveraging IoT platforms for data collection and analysis.

2. The Connectivity Revolution

Connectivity is a vital component of modern products. It’s the foundation enabling products to communicate with each other and the broader ecosystem, thereby enhancing user experiences and creating new business models.

Example: Tesla’s vehicles with over-the-air software updates providing new features and performance improvements.

Action: Invest in robust and secure connectivity infrastructure; ensure products are able to communicate seamlessly and update themselves autonomously.

3. Digital Twins and Virtual Development

Digital twins—virtual replicas of physical products—allow companies to simulate, predict, and optimize performance throughout the product lifecycle. This technology enables continuous improvement of product designs and operations.

Example: GE’s use of digital twins for its jet engines to predict maintenance needs and improve efficiency.

Action: Implement digital twin technology to create and maintain virtual versions of products, facilitating testing, and innovations.

4. Agile Development and Continuous Improvement

In a rapidly changing digital landscape, agile development practices replace traditional methodologies, allowing for continuous iteration and evolution of products.

Example: Agile software development in companies like Spotify, which reconfigures teams around new feature development constantly.

Action: Adopt agile methodologies such as Scrum or Kanban; focus on iterative improvements and customer feedback loops.

5. Data as the New Oil

Data generated by smart products becomes a crucial asset. Companies can use this data for predictive analytics, personalized services, and new revenue streams.

Example: John Deere’s use of data from its connected farming equipment to offer precision agriculture services.

Action: Establish data collection and analytics capabilities; explore how data from products can be monetized or used for process optimizations.

6. Product-as-a-Service (PaaS)

Instead of one-time sales, selling products as a service (PaaS) ensures continuous revenue and stronger customer relationships.

Example: Rolls-Royce’s “Power-by-the-Hour” model where customers pay for engine uptime rather than the engine itself.

Action: Develop service-based pricing models; focus on long-term service contracts rather than one-time product sales.

7. Automotive Sector

In the automotive industry, digital technologies are transforming vehicles into software platforms, facilitating autonomous driving, connectivity, and personalized services.

Example: BMW’s connected services providing real-time traffic data, concierge services, and remote control functionalities via an app.

Action: Integrate advanced software platforms and IoT systems into vehicles; offer connected and autonomous features to enhance customer experience.

8. Consumer Electronics

Consumer electronics are becoming smarter and more interconnected, often working in concert with other devices to create seamless user experiences.

Example: Apple’s ecosystem of products, where devices like the iPhone, Apple Watch, and HomePod interact to offer a cohesive user experience.

Action: Enhance product interconnectivity; ensure products can seamlessly interact within a broader ecosystem.

9. Embracing Digital Culture

A cultural shift towards embracing digital transformation and innovation is essential. Companies need to cultivate a mindset open to continuous learning and development.

Example: Google’s fostering of a workplace culture that encourages experimentation and innovation.

Action: Promote a culture of digital readiness; invest in training and development programs focused on new technologies and innovation.

10. Collaboration and Ecosystem Development

Collaboration with other players in the ecosystem—start-ups, academic institutions, and other companies—is crucial for advancing product innovation.

Example: Amazon’s extensive ecosystem of suppliers, third-party developers, and cloud services partners supporting its vast range of products and services.

Action: Build strong partnerships and alliances; participate actively in industry consortia and innovation hubs.

The book concludes with a call for action, urging companies to adopt a holistic approach to product transformation. Organizations must harness the full potential of digital technologies, embrace new business models, foster innovation, and cultivate an agile and collaborative culture to succeed in the digital age.

Action: Conduct a strategic review of business goals; ensure alignment with a digital-first, customer-centric approach.

Overall Takeaways:

By following these concrete steps and integrating the strategies from “Reinventing the Product,” businesses can effectively navigate the complexities of the digital age and achieve long-term growth and success.