Again. Having read the few words from yesterday, it’s probably difficult to follow. So, let me try a bit more structured to write up on the points I was trying to make are:
- Product and Service Business are different cultures.
- Both have established methods.
- Digitisation requires Digital Transformation.
- Digital Transformation won’t happen without a conscious decision.
- Digitised Products need to consider both.
Product vs. Services Business
This is the part with the margins. While the first lives off high enough margins in the retail chain, the later lives off customer satisfaction, with basically very thin margins.
Things require a stock and supply chain. A service requires time to response and time to resolution. Or response time, for interactive services. And so do physical projects require different management methods than services do.
Digitisation requires Digital Transformation
Putting a chip in it is not the single answer to achieve Digital Transformation. It requires to combine product and services business and that process is the actual transformation people are looking at.
Digital Transformation won’t happen without a conscious decision
Very much as #3, just putting a chip into a product will not be sufficient, because the product will work so much different than before and the customers expectations will not be the same either. However, it requires a component that contradicts traditional management behavior as well as financial expectations. Therefore, somebody high enough will have to take a decision and carry it until Digital Transformation happens.
Digitised Products need to consider both
And so, finally, a digitise product needs to be managed with services and the tangible parts in mind. While a product is produced, a service is operated. The product will have development cycles that are much longer and the supply chain needs to be managed, while at the same time the service attached to the product needs to work to the customers expectations and evolve much different.