4 Ways to Future
- Rahul K.
- Aug 9, 2017
- 3 min read
This morning, I was browsing my mobile phone and I had to delete some stand-alone applications, occasionally used, to free-up some space for the necessary updates to be installed.This March, I was shopping for a television with Neil and the choice she made was a smart TV, though it costed more than estimated budget.
I notice people preferring a multiplex that also has shopping arena against visiting standalone theaters. Phones sell more than watches, laptops sell more than TVs or desktops.
Such trends are not limited to any product or service, but are omnipresent. But have you ever thought that what does these trends refer to?
With changing preferences and increase in the number of millennials forming largest user category, the future of successful products and services can be defined in four ways:
1. CONSOLIDATION is the KEY
Business world has been experiencing consolidation of product and services. Earlier where the phone was just a communication device has now become a scheduler, a laptop, a tracker, a video-camera, a music player, a compass, a tablet and what not - This is the reason why Apple Phones succeeded while others failed. Television has turned into desktop and desktop computer has lost its market among home users.
On observing the service side of business, in our day to day life, we will notice that we tend to resonate to consolidations. Majority prefers shopping in multi-brand showrooms against dedicated brand stores, this has been a major influencer spurring the growth of e-commerce. Mobile apps that have multi-purpose usage are accessed more than any standalone application.
Focus, now, must be on delivering much more beyond core values of the product.
Products like pager, analogue watches, simple calculators have lost their relevance to market due to unified usage.
2. CONSUMER CENTRICITY of the offering
During past decade consumer preferences have changed and the driving power has shifted from manufacturers and retailers to consumers. Gone are the times of just product centric success, now children don’t eat everything i.e. on the shelves, one doesn’t shop in a store just because it’s cheap. Any consuming behavior, now, is influenced by several factors alongside fulfillment of desired need and cost-benefit parameters. These factors include, and are not limited to, convenient location, timing, demography, age group, compatibility with existing lifestyle etc.
For a player to win among competition, it must know and work with all direct as well as indirect drivers and inhibitors to buying decision.
Xerox’s loss of home printer market to Canon is an example of being purely product focused.
3. CONVENIENCE and AUTOMATION
Whether it be a product search, shopping (online or offline) or consumption experience, the consumers now go with what’s simple, easy and fast. Earlier where a manufacturer’s responsibility was limited to manufacturing the product, now it has extended to educating consumers about product and then ensuring speed of fulfillment and ease of usage.
A product or service that succeeds in the marketplace should consume least time, of Consumers, in selecting, procuring and then in delivering the promised outcome. Using automation in every aspect of a product/service, will help achieve speed and greater reliability.
Extinction of typewriter is a perfect example of poor convenience and lack of automation.
4. INNOVATE beyond core offering
Today’s consumers tend to get bored very quickly. It’s very important to keep consumers engaged, to understand their taste and innovate. Gone are those days, when a product life-cycle used to be years long.
Now a product life-cycle can be as brief as a few months and so it becomes extremely important to innovate for standing relevant in the market place.
Failure of Nokia, Nintendo are the best examples of failure to innovate beyond core offering.
Businesses need to go beyond their core products and must look for enhancement to create a future perfect solution for staying relevant in marketplace. Strategy is not only about doing new or doing different, but it's also about understanding before consumers do so.
Analyze and understand to innovate, automate and consolidate, this is what we are doing at EndGate.
