IoT Disrupts Traditional Business Models

The internet of Things changes everything. Existing businesses will be disrupted and their business models will be changed forever.

Blue Ocean Strategy

Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value often while decreasing costs.

The following guidelines may be proposed to companies seeking to create blue oceans:

Identify the key features/ dimensions that currently define a product/ service.

  • Identify a group of customers who only value a subset of these features. These customers may be currently using lower end alternatives, or may be very different from the current customers while having needs that are similar at some fundamental level.
  • Make the product or service not as good on the dimensions less valued by new target customers. This step is counter-intuitive but necessary in order to create value while decreasing cost.
  • Consider making the new product or service better on the dimensions valued by the new target customers and/ or introducing new features targeted to these new customers.

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