Next Generation Content Is The Product

Three things are changing customer demand and directly affecting how companies need to think about future economies:

    Slowly developing social change is impacting what people demand from their products. It used to be that they thought access to goods (your grandparents) and material wealth (your parents) was enough – now customers demand to be in control, have their voice heard and build social connections on their own terms

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    . (1)

    We are seeing an explosive technological development affecting how people access information, buy from and engage with companies. We are in an era of knowledgable consumers and technology made them more visible, immediate and powerful. (2)(3)

    The third wave of technology washing over us isn’t just changing the organization’s internal value chains (first wave in the 70’s) or the external ones (second wave in the 90’s)
    . But technology is getting under the skin of the products themselves – and changing their nature. Huawei talks about value transformation rather than selling boxes

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    . Products become living organisms/relationships and the core product becomes just infrastructure. (4)(5)

These three changes are impacting companies from three different angles at three different speeds. Leaders are acknowledging a growing complexity gap; making it increasingly difficult to make safe enough bets about the future. There trend is to turn to what is driving the change: People. And the current business culture is using the wrong model of human behavior – it is getting people wrong. (6)(7)

The essence of this talk can be summarized in one quote: “companies are organized around their products. But customers don’t care about the product – they care about the interactions that take place around the product.” In this sense content, services and value transformation become important new terminology. (8)

(1). Shoshana Zuboff, Creating Value In The Age Of Distributed Capitalism, McKinsey Quarterly

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. Kevin Kelly, What technology Wants
(3). McKinsey, The Consumer Decision Journey
(4). Porter and Heppelmann, How Smart, Connected Products Are Transforming Competition
(5). Dr. Jesse JiJun Luc, Huawei Technologies Co. Ltd. @CeBIT2015
(6). IBM Global C-Suite Study 2013
(7). Madsbjerg and Rasmussen, The Moment Of Clarity
(8). Steve Denning referencing Niraj Dawar in Dawar’s book Tilt

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