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cover of episode The Case for Selling Products that Adapt

The Case for Selling Products that Adapt

2024/12/17
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HBR IdeaCast

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A
Alison Beard
V
Vijay Govindarajan
Topics
Alison Beard:探讨了企业从计划报废转向产品适应性的转变,并以iPhone为例说明了产品既能随着用户需求增长而更新迭代,但也存在着计划报废的现象。她提出,产品适应性将成为未来驱动消费者支出和忠诚度以及企业价值的关键。 Vijay Govindarajan:详细阐述了产品适应性的概念,指出其核心在于产品能够随着客户需求的演变而适应、改变和进化。他以印度一家生产可扩展儿童鞋的公司和Huffy公司1949年推出的可转换自行车为例,说明了产品适应性的优势。他认为,企业需要将设计理念从计划报废转变为产品成长,从用后即弃转变为用后即长,从设计即消亡转变为设计即适应。他进一步分析了适应性产品对客户和企业的双重价值,指出适应性产品能够同时满足客户价值、环境可持续性和企业利润这三个目标,成为企业的竞争优势。他还探讨了适应性产品如何简化客户反馈和创新流程,以及如何创造额外的收入来源,例如品牌社区订阅和增值服务。他指出了适应性产品设计中的一些挑战,例如安全风险和缺乏专业知识,但他认为这些挑战是可以克服的。最后,他总结了设计适应性产品的四种方法:预先配置硬件、预先配置软件、硬件可适应性和软件更新,并以特斯拉、约翰迪尔、劳斯莱斯、霍尼韦尔等公司以及一些初创公司为例,说明了适应性产品策略的成功案例。他还提出了衡量适应性产品成功的三个指标:客户参与时长、每位客户的收入和环境影响减少。 Vijay Govindarajan: 详细解释了为什么企业应该从计划报废转向产品适应性。他指出,计划报废模式虽然在20世纪推动了商业发展,但其带来的环境成本日益增加,企业需要减少环境损害。同时,客户价值也至关重要,适应性产品能提升客户价值,并能保持甚至提高利润率。他以一双可以扩展三个尺码的鞋子为例,说明了适应性产品如何通过提高单价来保持利润率,即使销售量减少。他还探讨了适应性产品如何简化客户反馈和创新流程,以及如何创造额外的收入来源,例如品牌社区订阅和增值服务。他以带有传感器的网球拍、可生长的支架和Vue公司的智能玻璃为例,说明了适应性产品如何创造额外的收入来源。他指出了适应性产品设计中的一些挑战,例如安全风险和缺乏专业知识,但他认为这些挑战是可以克服的。他强调,并非所有产品都适合采用适应性设计,企业需要根据产品特点和市场需求做出战略决策。他以Radio Flyer和Fairphone为例,说明了适应性产品策略可以带来销售额和利润的增长。最后,他总结了设计适应性产品的四种方法:预先配置硬件、预先配置软件、硬件可适应性和软件更新,并提出了衡量适应性产品成功的三个指标:客户参与时长、每位客户的收入和环境影响减少。

Deep Dive

Key Insights

Why are companies shifting from planned obsolescence to products that adapt?

Companies are moving towards adaptable products to meet customer value and environmental sustainability demands. This shift reduces waste and enhances customer loyalty while maintaining profitability.

What are some examples of products that grow with the consumer?

Examples include shoes that expand in size for children, a bicycle with adjustable parts that grows with the child, and a tennis racket that provides feedback to improve the player's performance.

How does the 'products that grow' strategy benefit companies financially?

While companies may sell fewer units, they can charge higher prices for adaptable products, maintain gross margins, and create additional revenue streams through services and brand communities.

What are the challenges associated with making products that adapt?

Challenges include security concerns from software updates, the need for continuous customer engagement, and the potential for overcharging or annoying customers with excessive functionality.

How does the design process change for products that grow?

Design processes focus on pre-configuring hardware or software to adapt to future customer needs, making products modular, and using software updates to enhance functionality over time.

Which companies are leading examples of the 'products that grow' strategy?

Leading companies include Tesla, John Deere, Rolls-Royce, Honeywell, and startups like Areto (shoe company), Fairphone (modular smartphones), and Vue (smart glass).

What business results have companies seen from adopting this strategy?

Companies like Radio Flyer and Fairphone have seen significant revenue growth, with Radio Flyer's profits growing at 10% compounded annually, and Fairphone increasing sales by 50% in one year.

What metrics should companies track to measure success in the 'products that grow' strategy?

Companies should track customer engagement duration, revenue per customer over time, and environmental impact reduction to quantify the benefits of avoiding planned obsolescence.

Chapters
This chapter explores the shift from planned obsolescence, where products are designed for single use, to product adaptability, where products grow with customer needs. It uses examples like iPhones and Huffy bicycles to illustrate how products can be designed to adapt and extend their lifespan.
  • Companies are shifting from planned obsolescence to product adaptability.
  • Products that adapt change and evolve as customer needs evolve.
  • The paradigm shift is from use and throw to use and grow, and from design to die to design to adapt.

Shownotes Transcript

Many companies make money by selling goods that need to be constantly replaced; think fast fashion, or tech devices that come out in new versions each year. But according to Vijay Govindarajan, professor at Dartmouth's Tuck School of Business, smart organizations are increasingly eschewing that strategy for one focused on products that grow with the consumer through creative design or software updates. He shares several examples and explains how this approach can deliver more value for the buyer – and for the business – over the long term. Govindarajan is the coauthor of the HBR article "Design Products That Won't Become Obsolete."