How Smart, Connected Products are Transforming Competition: Executive Summary

Eric Snow

SVP, Corporate Communications

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April 9, 2015

Smart, connected products will give rise to the next era of IT-driven productivity growth at a time when the impact of earlier waves of IT has largely played itself out.

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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?”

HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION

ANNUAL MEETING OF THE WORLD ECONOMIC FORUM

Harvard Business Review Private Breakfast

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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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How Smart , connected Products Are Transforming Competition

—Michael E . Porter and James E . Heppelmann

1 智能连接产品的提出

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2 技术框架

3 产业结构重建（基于波特五力）

4 重新定义行业界限

5 十大竞争战略

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