Connected Products: Building Services Beyond the Sale
The shift from selling products to delivering connected experiences creates opportunities for recurring revenue, deeper customer relationships, and data-driven innovation.
Product manufacturers face a strategic inflection point. As hardware becomes increasingly commoditized, the real value shifts to the services, data, and experiences enabled by connectivity. Organizations that master this transition will capture disproportionate value in their markets.
The Connected Product Opportunity
Connected products generate continuous data streams that enable predictive maintenance, usage-based pricing, feature upgrades, and personalized experiences. This data also provides insights that drive product innovation and create network effects that strengthen competitive moats.
Building the Business Model
Subscription Services
Transform one-time sales into recurring revenue through feature subscriptions, consumables, and service plans.
Outcome-Based Pricing
Shift from selling products to selling outcomes, aligning pricing with customer value realization.
Data Monetization
Create value from anonymized, aggregated usage data through benchmarking services and market insights.
Platform Ecosystems
Enable third-party developers and partners to build on your connected product platform.
The transition to connected products requires changes across the organization—from R&D and manufacturing to sales and service. But the organizations that make this shift successfully create more valuable, defensible businesses.
Transform Your Product Strategy
Connected products represent the future of manufacturing. The question isn't whether to make this transition, but how quickly you can move. Let's discuss your path forward.
