Product Relationship Management (PRM): What Every Connected Business Needs
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The document discusses the importance of product relationship management (PRM) in a digital business environment where technology convergence drives market disruption. It emphasizes that companies must transform their business models to focus on experiences and data-driven decisions, urging a shift from traditional product sales to service-oriented and insight-based offerings. Furthermore, it highlights the need for organizations to securely manage the vast amounts of data generated by connected devices, as emphasized by industry leaders.
Product Relationship Management (PRM): What Every Connected Business Needs
- 1. Product Relationship Management (PRM): What Every Connected Business Needs +
- 2. Speakers Ray Wang Founder & Chairman @rwang0 Matthew Duffy Vice President of Marketing @MattDuff Guy Courtin Vice President & Principal Analyst @gcourtin
- 3. 2 52% of the Fortune 500 firms since 2000 are gone
- 4. Digital creates winner takes all markets Overall Market Share Percentage of Profits
- 5. “A digital divide exists between the organizations who have built digital business models and everyone else.” (2013)
- 6. Tech convergence powers digital disruption Mobile Social Cloud Big Data IOT 3D Printing Design Thinking Inspired User Experience
- 7. Within the next four years, there will be more connected “things” than PCs, Smartphones, Tablets, and connected TVs combined. Personal Computers (Desktop and Notebook) Smartphones Tablets Internet of Things Smart TVs Wearables 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E Exponential Growth of the IoT
- 8. Perfect Storm for IoT The perfect storm for IoT emerges Computational power Connectivity Cloud technologies
- 9. The battle for experiences and outcomes 8
- 10. “We move from selling products and services to keeping brand promises in an attention economy.”
- 11. • Product companies give away product for service revenues. • Service based businesses sell experiences at varying price points and service levels. • Experience based businesses selling business models • Business model companies sell peace of mind. 10 IOT and digital accelerates business model transformation
- 12. Disrupt or be Disrupted
- 13. The future is big data business models built on insight Information based differentiation Drive demand Create new service offerings Improve c-sat Drive lower cost models Information brokering Raw information Analysis and insights Benchmarking Information based business platforms Marketplaces Deal making Advertising © 2011 - 2013 R Wang & Insider Associates, LLC. All rights reserved.
- 14. 13 GE Power knows when a transmission line will go down 8 to 10 days before it does
- 15. Companies are making it real 12% 39% 29% 20% No Interest Loger term interest/still learning Planning to deploy IoT within 2 years Actively Using IoT Source: Xively/Machina Research
- 16. Cars are more than transportation
- 17. Virgin’s New Connected Boeing 787 “Literally every piece of that plane has an internet connection, from the engines, to the flaps, to the landing gear.” -David Bulman, Virgin Atlantic IT Director
- 18. But it’s not easy to manage "The challenge is what do you do with that amount of data when you are getting terabytes of data a day off your various airplanes? We are getting to the stage right now where we cannot deal with that much.” “If you are talking that level of data you can't just chuck ten disks into your data centre anymore, you have to look at cloud based solutions and how you can store data.” -David Bulman, Virgin Atlantic IT DIrector
- 19. So How Will Companies Create These Connections & Manage the Inflows of Data? PRODUCT COMPANY Connection Data
- 20. CRM Systems Are Mostly Built to Handle Small Quantities of Heavy Data CUSTOMERS COMPANY
- 21. Introducing PRM
- 22. Five steps to getting started with PRM Design new experiences and outcomes Smart enable things with the 9C’s of engagement Apply new business models and technologies to existing infrastructure Move from gut to data driven decisions Co-create and co-innovate with new partners 5 4 3 2 1 © 2011 - 2014 R Wang & Insider Associates, LLC. All rights reserved.
- 23. Besides security, the FTC's reports identify three additional areas that companies should focus on: data minimization, notice, and choice. Data minimization means that companies should protect their users' privacy by not collecting any more data about its customers than is necessary. Limiting data collections helps reduce the chance that unauthorized parties will access private information about customers. The FTC wants all your internet connected things to be secure
- 24. “Every industrial company will become a software company.” (2014) Jeffrey Immelt Chairman/CEO of GE
- 25. Thank you!
- 26. Q&A
Editor's Notes
- #3: Sources: 1. Machina 2. Intelligent Office & Google, 3. Forrester, 4. Gartner The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. Read more: http://www.businessinsider.com/growth-in-the-internet-of-things-2013-10#ixzz34Esn5FeL
- #4: Can you imagine three years ago? Fortune 500 Firms in 1955 vs. 2011; 87% Are Gone 52% of the Fortune 500 firms since 2000 are gone 2010 – Blackberry’s had a 45% market share vs Apples’ 25% vs Microsoft’s 15% vs Android’s 7% vs Palm’s 5.7% This is a seemingly innocent question. But to truly answer this question, you have to Imagine what’s happened in the past 24 months. Raise your hands if you felt in control or any semblance of control over your profits, revenues, idea creation, new products were introduced, collaboration points, your community, or customer experience? Were you able to effect and affect change? Did you have the right tools to create the conditions to manage the change ahead? Now put yourselves in the mindset of an enterprise or brand. How can you improve your business outcomes? Why do I ask this? Well customers no longer buy technologies. They no longer buy software. They are buying outcomes from you. That’s what they want. Peace of mind outcomes.
- #5: The Bottom Line: Digital Darwinism Is Unkind To Those Who Wait Unfortunately, in almost every segment, the top three competitors control 43 to 71 percent of the market share and 53 to 77 percentage of the profits. In the technology space only 80 companies since 2000 have made the billionaire’s club. Meanwhile, intense competition, short-term shareholder and management thinking, and minimal investment hamper the pace of investment and innovation required by business leaders to survive today’s competitive landscape. While boards have not been complacent about addressing change, the past five years have shown the difference between those who invested in digital transformation and those who have not. The corporate digital chasm is massive among market leaders, fast followers, and everyone else. Astute board members realize they must invest in transformational change for face a vicious Digital Darwinism. Apple vs Blackberry Amazon vs Borders Netflix vs Blockbuster
- #7: Cloud – impacting business model Data – not just “big” data IoT – extending the customer relationship 3D printing – moving beyond prototyping The disruptive technologies that impact the enterprise have come from what we’ve all known as the consumerization of IT. These consumer forces will impact the enterprise well into the next decade. Mobile is about the interface. How many of you have a smartphone. 2. 3. okay, everyone look around you, those are the real geeks in the room! Social – network and who we engage – how many of you are on twitter? Facebook? Linkedin? Cloud – information store Big Data – that’s the brains Video/ UC – that’s how we share, interact
- #8: Sources: 1. Machina 2. Intelligent Office & Google, 3. Forrester, 4. Gartner The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. Read more: http://www.businessinsider.com/growth-in-the-internet-of-things-2013-10#ixzz34Esn5FeL
- #10: Buying behavior, evolving pricing strategies and industry benchmarks What are the customer buying patterns for CES and CES services? What are the Key Vendor selection criteria across various service offerings? Any suggestions to segment and target our customers better in general; lessons from recent deals that the market has witnessed, that we can leverage? What are the various pricing strategies in the CES space and how are they evolving –especially outcome based?
- #12: Mobile plays a key role
- #14: Google maps w/ trafffic Tracing and package order satus Crowdsource pricing Paryoll data Ad platforms – sentiment Contnend delivery entworks Differentiated Business Offerings – New business models abound everywhere. Drive demand Augment demand with contextual relevant information Create new service offerings Real time traffic updates are another add-on Increase customer satisfaction build networking opportunities, add a new touch point of engagement Introduce a low cost model take out the middle man, deliver the information direct and tailored Information Brokering Information, either raw or processed, can be sold as a product or service. ‘Raw’ information Stock quotes Analysis Tesco for example, is a retailer which sells customer preferences derived from its loyalty programme to third parties (other retailers, FMCG producers). Information Platforms Information can also be used to create a platform which is used by targeted audiences. This platform can be offered to third parties who can use this to their own benefit. Market places Create lead gen opps Dealmaker use information to connect deals Advertising Glam Networks. Facebook for instance offers advertisers tools to profile customer groups based on the content of their posts, which enables them to target preferred audiences.
- #16: Sources: 1. Machina 2. Intelligent Office & Google, 3. Forrester, 4. Gartner The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. Read more: http://www.businessinsider.com/growth-in-the-internet-of-things-2013-10#ixzz34Esn5FeL
- #17: NHTSA – V2V could reduce accidents by 80% World Health Organization (worldwide) 50million injuries 1.2 million deaths More than 20% of vehicles sold worldwide in 2015 to include embedded connectivity solutions; More than 50% of vehicles sold worldwide in 2015 to be connected (either by embedded, tethered or smartphone integration); Every new car to be connected in multiple ways by 2025. - GSM Associates
- #18: http://www.computerworlduk.com/news/infrastructure/3433595/boeing-787s-create-half-terabyte-of-data-per-flight-says-virgin-atlantic/
- #19: http://www.computerworlduk.com/news/infrastructure/3433595/boeing-787s-create-half-terabyte-of-data-per-flight-says-virgin-atlantic/ With RFID tags to track cargo and, in the future, baggage, large demands are being placed on the airline’s IT infrastructure. According to Bulman a scalable cloud solutions will be required to deal with the increase in data, which the company has seen double in the past two years, a rate that is likely to quicken in the future.
- #20: Sources: 1. Machina 2. Intelligent Office & Google, 3. Forrester, 4. Gartner The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. Read more: http://www.businessinsider.com/growth-in-the-internet-of-things-2013-10#ixzz34Esn5FeL
- #21: Sources: 1. Machina 2. Intelligent Office & Google, 3. Forrester, 4. Gartner The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. Read more: http://www.businessinsider.com/growth-in-the-internet-of-things-2013-10#ixzz34Esn5FeL
- #22: Sources: 1. Machina 2. Intelligent Office & Google, 3. Forrester, 4. Gartner The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. Read more: http://www.businessinsider.com/growth-in-the-internet-of-things-2013-10#ixzz34Esn5FeL
- #23: Designing new experiences Developing a culture of digital DNA Applying new technologies to existing infrastructure Moving to data driven decisions Co-creating and co-innovating with new partners