A bewildering new landscape
For product companies, the new world of smart connected devices can be disorienting. What product to push to smart reinvention? Which product lines to keep to the core? How far should products be pushed into new technologies? At what new experience levels should one aim, and when?
The grid to navigate your route to smart connected products
To help business find the best solutions for them, we have built a framework called the Product Reinvention Grid (PRG). This is a systematic map on which each product’s path to a smart connected future can be charted.
A product can offer higher levels of user experience by adding services, becoming a platform, and creating or joining ecosystems. Climbing this path, it takes on more and more enabling digital technology.
The PRG reflects this at a glance. It is essentially a quadrant built of two axes.
The vertical axis measures a product’s Experience Quotient (EQ)—the degree of sophistication achieved in terms of services levels, a product’s embeddedness in ecosystems or its involvement with platforms.
The horizontal axis measures a product’s intelligence Quotient (IQ)—its degree of technical sophistication, from passive purely mechatronic features and functionalities through to advanced levels of software intelligence leading to near-complete product autonomy.
The Product Reinvention Quotient (PRQ)
Looking at both these paths, businesses can establish their product’s Product Reinvention Quotient (PRQ). This describes your product’s potential in the future smart connected product world and allows you to compare it to competitors or other product categories.
For example, the PRG shows that Google has created an advanced platform for smart homes, but most home devices such as thermostats or lighting systems still have room to add more technology and software intelligence.
On the other hand, fully autonomous agricultural robots built by Bosch have technologically matured to maximum autonomy, but these devices have not yet evolved much towards becoming a market-dominating platform.
PRG as a compass for product development
Using the PRG, a business can decide how much and when to reinvent their product, in IQ or EQ or both.
Maximum EQ and IQ—promises the greatest value. But it is not achievable for all products. Many smart connected hardware devices will still show strong profitability without becoming the central building block of a platform or without reaching full autonomy.
Each product-making business has to go its own way to reinventing its products. Have you started yet?