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(One Pager Summary) How Smart and Connected Products Are Transforming Competition

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• Smart, connected products offer exponentially expanding opportunities for new functionality, far greater reliability, much higher product utilization, and capabilities that cut across and transcend traditional product boundaries.
• The phrase “internet of things” has arisen to reflect the growing number of smart, connected products and highlight the new opportunities they can represent.
• What makes smart, connected products fundamentally different is not the Internet, but the changing nature of the “things.” It is the expanded capabilities of smart, connected products and the data they generate that are ushering in a new era of competition.
• The first wave of IT, during the 1960s and 1970s, automated individual activities in the value chain, from order processing and bill paying to computer-aided design and manufacturing resource planning.
• The second wave of IT enabled coordination and integration across individual activities. It allowed firms to closely integrate globally distributed supply chains
• The third wave, IT is becoming an integral part of the product itself. Embedded sensors, processors, software, and connectivity in products, coupled with a product cloud in which product data is stored and analyzed and some applications are run, are driving dramatic improvements in product functionality and performance.
• Smart connected products have three element: Physical, Smart, and Connectivity. Physical components comprise the product’s mechanical and electrical parts. Smart components comprise the sensors, microprocessors, data storage, controls, software, and, typically, an embedded operating system and enhanced user interface. Connectivity components comprise the ports, antennae, and protocols enabling wired or wireless connections with the product.
• Smart, connected products require that companies build an entirely new technology infrastructure,

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