2. 1
IT driven competition
First wave 1960-1970
Automation individual activities, computer aided design,
manufacturing resource planning
1
Second wave 1980-1990
The rise of internet, coordination and integration across
Individual activies
2
Third wave
Smart, connected products
3
6. Reshaping Industry Structure
• Bargaining power of buyers
• Rivalry among competitors
• Threat of new entrants
• Threat of substitutes
• Bargaining power of suppliers
5
8. 7
Competitive Advantage
From operational effectiveness to new set of
best practices
• Design
• After-sale service
• Marketing
• Human resources
• Security
9. 8
Implications for Strategy
• Which set of smart, connected
product capabilities and features
should the company pursue?
• How much functionality should be
embedded in the product and how
much in the cloud?
10. 9
Implications for Strategy
• Should the company pursue an
open or closed system?
• Should the company develop the full
set of smart, connected product
capabilities and infrastructure
internally or outsource to vendors
and partners?
11. 10
Implications for Strategy
• What data must the company
capture, secure, and analyze to
maximize the value of its offering?
• How does the company manage
ownership and access rights to its
product data?
12. 11
Implications for Strategy
• Should the company fully or
partially disintermediate distribution
channels or service networks?