Many industries are examining their business models and are adjusting to new realities as connected technology enables consumers to find new ways to purchase, operate and share their experiences with nearly everything they buy. We always assumed that market demand determined the value of the products and services we delivered. That holds true today, but with a disturbing accent; the demand and perceived value for our products and services is now scalable and evolving extremely fast, due to the impact of connected mobility on consumer preference and expectations.
Entire industries are being disrupted, and a strategic threat is posed to companies that fail to change, or do so incorrectly. For instance, the century-old automotive industry is shifting from a unit-sales model to one that offers “transportation services” that include ridesharing, user-based ownership and partnerships that create non-car-related revenue streams. The insurance industry is moving away from the use of decades-old actuarial tables and toward delivering one-of-a-kind products using data analytics to pinpoint consumer needs based on exact behaviors. The medical industry has been digitizing for a decade, and is now poised to shed the practice of conducting your yearly in-person physical in favor of tracking your wellness in real-time every day, only to have you visit the hospital in the event that this tracking diagnoses the absolute first signs of health problems – and only then proactively treating the issue.
These industries are not only trying to innovate and compete – they are trying to survive.