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Will you be a platform “ enhancer ,” a developer of new technologies on the platform , selling them primarily to enablers and engagers ? Or will you develop a business that combines two or three of these roles ?
If you become an enabler , building out your own platform , three elements will help you stay ahead of competitors . First , digitize your own enterprise — the platforms at GE and Siemens began as in-house services for their own operations . Second , continually work on gaining efficiencies , improving the technologies that you already have . Third , build cost reduction into that continuous improvement ; use sensors and analytics , for example , to raise the quality and performance of your products and thus lower costs . These abilities take time and acumen to develop , and they will become core distinctive elements of your platform .
3 . Design for customers . Because the next industrial revolution is driven by large-scale digital technology , it ’ s easy to overlook the way it could affect human relationships . The new infrastructure is a web of connections among people : Producers and consumers , in particular , are much more closely connected than they used to be . Through smartphones and social media , consumers can connect directly to primary producers of the products and services they buy . Through sensors and data analytics , producers can be thoroughly attuned to the needs , habits , and long-term interests of the people who buy products and services . As a designer of the new platforms , or a business leader participating in them , you have an unprecedented opportunity to build a customer-centric enterprise , one that connects with what people genuinely want and need from your company , thus generating commitment that will last a lifetime .
For many large businesses , this represents a dramatic change . Apparel companies , for example , are building new connections between the retail store and the factory , so that retail customers ’ preferences rapidly translate into new clothing designs . A few farsighted companies , such as Inditex ( Zara ) and H & M , have pioneered this approach in their own operations . Now , the platforms of the Industrial Internet make it much easier for any apparel manufacturer to follow suit . Banks , power utilities , and telecommunications providers are making similar transitions : They are cleaning up their user interfaces , offering new types of services , and solving customer problems in faster , friendlier , more responsive , and more effective ways .
When you design for customercentricity , you translate your desired relationship and mutual commitment into the look and feel of your enterprise . A true omnichannel customer experience connects every touch point : all face-to-face contact , every retail environment , all online activity , anything connected through a smartphone , and all the other myriad connections between you and your customer . In the new infrastructure of your business , there are far more touch points to work with . Customers live in an interactive world . Their behavior is aggregated into data you can consult to make business decisions . Your behavior , in turn , is more evident and transparent to them than it has ever been before .
For example , consider a simple shopping transaction . A customer places an order online for a shirt , trying it on in a virtual showroom , and then picks it up in a local store . Can he or she move seamlessly from the smartphone to the pickup point ? Is it obvious how to try it on and pay for it without waiting in line ? Is it easy to pay ? Does the store , abetted by analytics , show the customer other items that would look good with that shirt ?
The next industrial revolution is driven by large-scale digital tech , so it ’ s easy to overlook the way it could affect human relationships . You will need new levels of design acumen to succeed . People will interact with your company through online automated systems , and perhaps through robots in the physical world . Are these machines appealing or frustrating ? Do they draw upon knowledge of ergonomics and human sensitivity ? ( Does it mimic the sequence and pacing of human interaction ?) Equally important , are your systems adaptable ? The more easily professionals and customers can change and customize their systems — without having to be an IT professional — the more effective they will be .
Embracing New Practices
4 . Raise your technological acumen . No matter what industry you ’ re in , you live in a programmable world , and software will be key to your competitiveness . Take the German auto industry , for example . For years it has traded on a worldwide reputation for excellence in mechanical and powertrain engineering . But from now on digital excellence will be at least as important . This change is forcing some hard thinking about future industrial strategy , in a country that is known , according to the Financial Times , for relative weakness in IT . “ In the future , 50 to 60 percent of the value of a car will consist of digital devices and tools ,” said German federal chancellery chief of staff Peter Altmaier , one of Angela Merkel ’ s senior advisors , at a panel debate in November 2016 . “ And
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