What if your organisation could guarantee the outcome most desired by your customers? Instead of peddling the dream in order to sell a product, why not sell the dream itself?
Business models need to change
The idea of selling the outcome (rather than the product), is it the heart of ‘servitization’. It means selling the result of your product, rather than the product itself. Furthermore, it means intertwining product and service together, while taking away all the stress and risk for the customer.
For businesses to move from purely making and selling a product or service to guaranteeing the outcome (for example, the usability of the product for the next decade), requires a seismic shift in thinking and planning. Questions naturally arise:
- If organisations alleviate the risk for the customer, how do I avoid burdening themselves with it?
They need new relationships with insurers.
- How do organisations find out the outcome most desired by customers?
Organisations need to interpret vast sets of data, sometimes streaming in from smart devices and customer interactions with digital products.
- How do we even start making this seismic shift?
Business models need to change.
At INDEX, our collaborative research and development facilitate new ways of thinking. We consider how innovative digital technologies can help with: customer engagement, identifying suitable outcomes, making use of vast amounts of data that organisations capture, regulation, enhancing business model design and adoption, and the organisation and cultural change that must occur.