{"id":13374,"date":"2018-09-17T11:00:30","date_gmt":"2018-09-17T19:00:30","guid":{"rendered":"http:\/\/www.palada.net\/index.php\/2018\/09\/17\/news-7141\/"},"modified":"2018-09-17T11:00:30","modified_gmt":"2018-09-17T19:00:30","slug":"news-7141","status":"publish","type":"post","link":"https:\/\/www.palada.net\/index.php\/2018\/09\/17\/news-7141\/","title":{"rendered":"Sail the Blue Ocean with new digital business models"},"content":{"rendered":"<p><strong>Credit to Author: Cyril Perducat| Date: Mon, 17 Sep 2018 13:57:36 +0000<\/strong><\/p>\n<p><strong>\u00a0<\/strong>If you build it, <em>will<\/em> they come? That is, a new digital business model? Will it attract customers for the long haul in the digital economy?<\/p>\n<p>This is a question every company facing digital transformation is urgently trying to answer. In <a href=\"https:\/\/blog.schneider-electric.com\/building-management\/2018\/07\/16\/artificial-intelligence-is-the-honeymoon-over\/\">my recent blog post on AI<\/a>, I mentioned that creating new digital business models that leverage AI applications, IoT, cloud, and other digital advancements is critical for a company\u2019s successful digital transformation.<\/p>\n<p><a href=\"https:\/\/www.schneider-electric.com\/en\/work\/campaign\/life-is-on\/case-study\/entrade.jsp\">Entrade has found an answer<\/a> by launching an IoT-based mobile utility service to monitor and manage its micro grid remotely from anywhere in the world. This digital business model is a major enhancement of Entrade\u2019s core business as an OEM that builds micro power plants that can turn biomass such as wood chips, nut shells, or kitchen waste into green energy. This year <em>Fast Company<\/em> ranked Entrade the most innovative energy generation company in the world.<\/p>\n<p><span style=\"color: #3dcd58\"><strong>A digital balancing act <\/strong><\/span><\/p>\n<p>Let\u2019s take a closer look at how other companies trying to create a new digital business model can succeed. When you embark on your digital product R&amp;D and innovation strategy, balancing three layers at once is essential:<\/p>\n<ul>\n<li>Creating connected, intelligent products<\/li>\n<li>Creating the ways to deliver the product and capture its business value<\/li>\n<li>Creating an amazing digital customer experience<\/li>\n<\/ul>\n<p>The digital experience is the glue to parts 1 and 2 and, by extension, your customer-driven business at large. There is no point in delivering the product if the user experience is poor. As IIoT expert at Accenture Jean Cabanes says, \u201cOne of the key aspects for creating new digital business models is the way digital companies innovate. Today you need to leverage digital to move from traditional product development to understanding the full digital customer experience. This customer-centric mindset must be embedded in innovation itself.\u201d<\/p>\n<p>Indeed, customers form the foundation upon which every digital business model must be built. From there, three steps advance digital transformation for business growth:<\/p>\n<p><span style=\"color: #3dcd58\"><em>Step 1. Start small and focused<\/em><\/span><\/p>\n<p>To most businesses, launching a digital journey may feel like boiling the ocean. With so many challenges to tackle, focusing on the \u201cright ones\u201d is critical and often daunting. For example, a hospital customer needed to protect uptime (a must-have) while also optimizing infrastructure maintenance (a nice-to-have). It\u2019s very important to keep in mind that you don\u2019t have to solve every problem at the same time, allowing the \u201cmust-haves\u201d to rise to the top of your efforts.<\/p>\n<p>Start small and be very specific. For instance, when we launched a customer-led project to develop a digital power monitoring offer and service, we focused on just critical buildings in the hospital segment in one geographical location. From there, we were able to iterate, by listening to the voice of the customer, before expanding across segments and geographies.<\/p>\n<p><span style=\"color: #3dcd58\"><em>Step 2: Design the business model along with the product <\/em><\/span><\/p>\n<p>As I said, when we design an offer, we design the business model at the same time. Working directly with our OEM customers, for example, we understood among their top priorities how important it is for them to be able to track, monitor, and maintain their highly specialized machines cost-effectively, addressing:<\/p>\n<ul>\n<li>How can I track where my machines are going and their customers\u2019 operating context to better monitor risk of failure?<\/li>\n<li>How do I optimize maintenance costs for a globally widespread fleet of highly specialized and tailored machines?<\/li>\n<\/ul>\n<p>Then we embarked on solving these challenges. Partnering with OEMs in our R&amp;D cycle, we created a solution around a subscription digital business model with the digital service EcoStruxure<a href=\"https:\/\/www.schneider-electric.com\/en\/work\/services\/field-services\/industrial-automation\/oem\/machine-advisor.jsp\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/11\/72x72\/2122.png\" alt=\"\u2122\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\" \/> Machine Advisor<\/a>. This service enables OEMs not only to track and monitor machines remotely but also to offer an ongoing service subscription to their customers via an \u201cuptime-as-a-service\u201d business model. This approach keeps OEMs from having to send their specialist engineers on the road to maintain or fix machines all over the world.<\/p>\n<p><span style=\"color: #3dcd58\"><em>Step 3: Leverage an ecosystem to scale the model with speed and agility<\/em><\/span><\/p>\n<p>It\u2019s clear today that no company can transform alone. Leveraging an open ecosystem \u2013 <a href=\"https:\/\/blog.schneider-electric.com\/energy-management-energy-efficiency\/2018\/07\/13\/the-rise-of-the-extended-enterprise-in-todays-digital-economy\/\">extending your enterprise<\/a> \u2013 is the way to go faster. In fact, it\u2019s essential for seizing digital\u2019s business value while being able to scale innovation more efficiently with each deployment. Co-innovation helps you cut through digital\u2019s complexity and the market\u2019s volatility and changing demands.<\/p>\n<p>We launched a Digital Services Factory to boost innovation. \u00a0Innovating with customers as part of the process has reduced our time-to-market from the classical 2-3 years, to just one year, delivering both top- and bottom-line value from this collaborative approach.<\/p>\n<p><iframe loading=\"lazy\"  src=\"https:\/\/www.youtube.com\/embed\/Bio7D8b_iro?feature=oembed\" width=\"100%\" height=\"420\" frameborder=\"0\" ><\/iframe> <\/p>\n<p><span style=\"color: #3dcd58\"><strong>How digitally mature are you? <\/strong><\/span><\/p>\n<p>Every competitive company must become agile and fast to thrive in the digital economy. Digital innovation and our co-innovation ecosystem, which our CEO Jean-Pascal Tricoire and Chief Digital Office Herv\u00e9 Coureil <a href=\"https:\/\/blog.schneider-electric.com\/energy-management-energy-efficiency\/2018\/07\/13\/the-rise-of-the-extended-enterprise-in-todays-digital-economy\/\">both have written about recently<\/a>, allow us to tackle the <a href=\"https:\/\/blog.schneider-electric.com\/sustainability\/2018\/08\/30\/scanning-the-periphery-of-digital-disruption\/https:\/blog.schneider-electric.com\/sustainability\/2018\/08\/30\/scanning-the-periphery-of-digital-disruption\/\">imperatives for digital transformation<\/a>. After all, digital transformation is about bringing digital maturity to the core of your business, building on your customer-centric foundation to drive long-term growth.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/sustainability\/2018\/09\/17\/sail-the-digital-blue-ocean-with-new-digital-business-models\/\">Sail the Blue Ocean with new digital business models<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"https:\/\/blog.schneider-electric.com\/sustainability\/2018\/09\/17\/sail-the-digital-blue-ocean-with-new-digital-business-models\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: Cyril Perducat| Date: Mon, 17 Sep 2018 13:57:36 +0000<\/strong><\/p>\n<p>\u00a0If you build it, will they come? That is, a new digital business model? Will it attract customers for the long haul in the digital economy? This is a question&#8230;  <a href=\"https:\/\/blog.schneider-electric.com\/sustainability\/2018\/09\/17\/sail-the-digital-blue-ocean-with-new-digital-business-models\/\" title=\"ReadSail the Blue Ocean with new digital business models\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\/sustainability\/2018\/09\/17\/sail-the-digital-blue-ocean-with-new-digital-business-models\/\">Sail the Blue Ocean with new digital business models<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.schneider-electric.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[12515,6269,10495,12427],"class_list":["post-13374","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-industrial-internet-of-things","tag-internet-of-things","tag-iot","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/13374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=13374"}],"version-history":[{"count":0,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/13374\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=13374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=13374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=13374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}