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  <title>How smart, connected products are transforming com</title>
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   <publisher>Harvard Business School Publications</publisher>
   <dateIssued>Oktober 2015</dateIssued>
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  <extent>p. 96 - 114</extent>
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 <note>The&#13;
evolution of products into intelligent, connected devices is revolutionizing&#13;
business. In a November 2014 article, “How Smart, Connected Products Are&#13;
Transforming Competition,” Harvard Business School professor Michael Porter and&#13;
PTC president and CEO James Heppelmann looked at how this shift is changing the&#13;
structure of industries and forcing firms to rethink their strategies. In this&#13;
companion article, the authors look at the effects inside firms, examining the&#13;
impact that smart, connected products have on operations and organizational&#13;
structure. The new capabilities and vast quantities of data that smart,&#13;
connected products offer are redefining the activities of the core functions of&#13;
companies—sometimes radically. As software and cloud-based operating systems&#13;
become integral to products, new product-development principles emerge,&#13;
manufacturing components and processes change, and IT security becomes the job&#13;
of every function. Companies need different skills and expertise, which creates&#13;
new imperatives for HR. In the marketing function, the ability to track a&#13;
product’s condition and use shifts the focus to maximizing the product’s value&#13;
to the customer over time. Customer relationships become continuous and&#13;
open-ended, service becomes more efficient and proactive, and new business&#13;
models are enabled. The rich data on location and environment that products&#13;
provide take logistics to a whole new level. Smart, connected products also&#13;
alter interactions between functions, in ways that hold major implications for&#13;
organizational structure. Intense, ongoing coordination becomes necessary&#13;
across multiple functions, including design, operations, sales, service, and&#13;
IT. Functional roles overlap and blur. Entirely new functions—unified data&#13;
organizations, dev-ops, and customer success management—begin to emerge. What&#13;
is under way is the most substantial change in the manufacturing firm since the&#13;
Second Industrial Revolution, and the effects are spreading to other&#13;
industries, like services, as well. [ABSTRACT FROM AUTHOR]&lt;br&gt;&lt;br&gt;&lt;br&gt;</note>
 <note type="statement of responsibility"></note>
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