Business model reinvention: Connected physical products

Transitioning analog or digital products into connected physical products to create additional value to customers using IoT enabled data insights, while generating new revenue streams

Organizations that integrate their products and services within a connected ecosystem realize the value of their investments.

Enhanced customer experience and satisfaction

By integrating physical products with digital capabilities, organizations can provide a more interactive and personalized experience for customers that can lead to increased customer satisfaction, loyalty, and ultimately, repeat business.

Data-driven insights and operational efficiency

Connected products generate valuable data that organizations can leverage to gain insights into customer behavior, product performance, and operational efficiency. This data can be used to optimize operations, improve product design, and develop targeted marketing strategies, leading to cost savings and improved decision-making.

Competitive advantage and new revenue streams

Entering the connected physical products space allows organizations to differentiate themselves by offering innovative and technologically advanced solutions. This can attract new customers, create a competitive edge, and open opportunities for new revenue streams through value-added services, as a service models, partnerships, and ecosystem development.

Know the triggers, find the value

How can a connected physical products strategy impact our business model? 

A connected physical products strategy can enable organizations to shift from a traditional product-centric business model to a more service-oriented model. This can open new revenue streams through subscription-based services, data monetization, and value-added offerings.

As you build new resources, capabilities, and profit formulas, there are significant tax considerations. We help optimize tax strategies, leading to substantial tax savings. This provides organizations with the opportunity to reinvest the savings back into their business growth initiatives, fueling further expansion and success.

What are the key challenges in implementing a connected physical products strategy? 

Some challenges organizations may face include ensuring data security and privacy, integrating new technologies with existing infrastructure, managing the complexity of interconnected systems, and addressing potential resistance to change from employees or customers.

Our cybersecurity offerings help clients control and secure points of vulnerability, ensuring the protection of their connected products and systems from potential threats.

How can we ensure a seamless customer experience with connected physical products? 

To ensure a seamless customer experience, organizations can focus on designing intuitive user interfaces based on informed commercialization and go-to-market strategy, providing reliable connectivity, offering personalized services, and implementing effective customer support systems. Regular updates and maintenance are also crucial to address any issues promptly.

PwC's customer-focused holistic approach, paired with deep market insights helps you define clear product visions, understand customer needs, and identify market opportunities quickly. By embracing innovation and disruption, we assist you in exploring emerging technologies and fostering a culture of innovation.

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