Here's Why Every Company Is A Service Provider In The Internet Of Things Era

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WOLF M., Here's Why Every Company Is A Service Provider In The Internet Of Things Era, Forbes, 09.09.2014

Type Article
Abstract
Link http://www.forbes.com/sites/michaelwolf/2014/09/09/heres-why-every-company-is-a-service-provider-in-the-internet-of-things-era/
Topics Business Model

Notes

In a not-connected world, relationship between good manufacturers and customers is "pretty straightforward": you design a product, manufacture it, market it, sell it in a store; "[a]fter the sale there would be some after sale support as you made good on your warranty – your’s is that kinda company, after all – but for the most part, the relationship with the consumer post-sale was tenuous and mostly non-existent".

On the contrary, in the IoT era, "the nature of the relationship between company and consumer changes, going from one that is largely transactional to one built around an on-going service relationship. While this may seem like more work at first, the opposite is true. By maintaining ties with your customer and providing an ongoing service relationship over the life of a product, chances are you’ll see benefits in lower overall support costs, higher customer retention, and better product understanding (which ultimately means better product creation)".