HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION
ANNUAL MEETING OF THE WORLD ECONOMIC FORUM
Harvard Business Review Private Breakfast
Davos, Switzerland | January 22, 2015
AT A PRIVATE HARVARD BUSINESS REVIEW breakfast sponsored by Tata Consultancy Services, Harvard Business School professor Michael Porter—the world’s leading expert on competitive strategy— described how the Internet of Things is fundamentally transforming the competitive landscape. Porter drew from his recent Harvard Business Review article, “How Smart, Connected Products Are Transforming Competition,” to go beyond the buzz about the Internet of Things to explain how profound technological changes are driving changes in how companies compete. Competing by merely producing physical products or using technology to automate aspects of the value chain will no longer be adequate. In all industries, companies will increasingly compete by producing smart, connected devices that are part of software-enabled systems or platforms. This transformation, which is already underway, is forcing companies to rethink everything they do. This includes which capabilities are most important, what talent is most essential, what functionality is most critical to customers, how best to differentiate, which business models to pursue, and even bet-the-company questions such as “What business are we in?”
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