Forbes, UK: Europe Head of Cognizant’s Center for the Future of Work Says Smart Product Strategies will be Game-Changing but Challenging for Retail

“Smart products are undoubtedly a game-changer because they integrate an explosion of product data into a monolithic industrial model built for the 20th century,” says Euan Davis. "We predict a high level of market disruption for many industries over the next several years and those companies that can adapt quickly and can forge a new product model with data mastery at its core will benefit from significant rewards.”

He adds, “While the economics of the short-term strategy may be hard to pin down, smart products have caught the attention of CEOs as a result of the shifting market dynamics created by the Internet of Things. However, as there is so much fluidity, all business leaders, not just CEOs, need to lay the groundwork for the huge opportunities presented by the simple process of making products smart.”

Citing a study by Cognizant and The Economist Intelligence Unit, Forbes writes: “Smart product strategies will deliver game-changing innovation and enriched customer experiences but businesses are uncertain how to respond to the disruption they may cause….Whilst the data generated by a smart product is expected to bring many benefits ranging from unprecedented customer insight and innovation to new cost efficiencies, opinion is divided about the longer term impact on market structures and revenue opportunity, researchers found.

"Although current interest fixates on “smart things” such as wearables, washing machine sensors, virtual reality and the like, the study reveals the market actually pivots around manufacturing process improvements, new waves of product innovation and using smart products to deliver enriched customer experiences.

"The data provided by a smart product unleashes in-depth understanding of customer needs, wants and desires and offers finer, more personalized segmentation for sales, marketing and product development, the study showed. The cost of after-sales support can also be radically reduced by using smart products: 40% of respondents are using or aiming to use them to automate customer services."

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