The era of intelligent products and services has arrived

The era of intelligent products and services (IP&S) has arrived, bringing potential to greatly improve everyone’s daily lives. We are seeing this across every industry, from connected cars to industrial automation to consumer wearables and more. Companies that fail to innovate and scale new intelligent products and services risk losing market share to more nimble competitors – some may even find themselves completely irrelevant. An entire industry went extinct due to not understanding the consumer tsunami that replaced hand-held cameras with cell-phone selfies.

How can an organization accelerate intelligent product and services maturity to capture new profitable revenue streams and leapfrog the competition?

A new Capgemini Research Institute report surveyed 1,000 traditional maker organizations across  sectors including auto, consumer products, med tech, industrial, high tech, and energy with annual revenues ranging from $1 billion to $50 billion, to understand the benefits and challenges of implementing intelligent services.

The potential opportunity is enormous:

• Nearly nine in 10 organizations expect to enjoy revenue from intelligent services in the next three years
• 43 percent of organizations expect more than 20 percent of their revenue to come from intelligent services
• 46 percent expect to gain up to 20 percent of their revenue from intelligent services.

While most of these organizations are enthusiastic about new revenue and market share gains, they are also at early stages of intelligent products and services maturity. We found that just 7 percent of organizations implement IP&S use cases at scale, with 31 percent getting to partial scaling of use cases. Roughly half (48 percent) are stuck in the pilot and PoC stages for one or two products, with the remaining 13 percent in the use-case identification stage.

There are many steps on the journey from concept to scale. We have identified five critical ones to help you successfully transition to an intelligent portfolio.

• Step 1: Define: Develop a holistic intelligent strategy that embraces open innovation.
• Step 2: Organize: Acquire critical talent capabilities and align governance with operations by centralizing governance and subsequently federating implementation.
• Step 3: Design: Focus on adaptive, human-centered design. Put CX at the heart of the design of intelligent products and services. Coach agility as a key ingredient in the design process. Revamp architecture to support product development.
• Step 4: Scale: Start small, augment with technology, and foster a culture of autonomy – as big-bang transformations rarely work. Set up specialized roles for scaling initiatives. Unlock the power of intelligent testing for improved time to market. 
• Step 5: Evolve: Harness the power of data to continuously improve. Leverage performance and usage data to improve and update intelligent products and services. Implement digital continuity to gain visibility across the product lifecycle.

The time to act is now. Adopt best practices that you can put into action to drive speed to value.

Learn more: https://bit.ly/3RnE5QW