Various software solutions have dramatically changed how companies conduct business. However, there are many companies that haven’t yet taken the step, and many are still unaware of what is possible. Today there is the opportunity to use software to almost completely redefine – or at least significantly expand – a company’s mission, thereby creating new revenue models.
The challenge of seeing new opportunities
A major challenge for many companies is recognizing and seizing the opportunities that technology presents. This often requires a shift from traditional views of products and services to a focus on what customers truly need and how these needs can be innovatively met.
This shift often involves some type of servicification, where a company goes from only selling goods to its customers, to also solving their challenges and problems through the use of digital services. Learn more about digital servicification.
Redefining a product
Tesla is an example of a company that has successfully redefined its products through digital services. In the traditionally stagnant car industry, Tesla introduced an innovative business model that elevated the functionality and status of the automobile. By integrating software in their product, Tesla doesn’t just sell cars – they've created a service that creates revenue opportunities long after the car purchase has been made. For example, the car's safety, performance, and features can all be updated remotely – just like on a mobile phone.
This demonstrates the potential in not only seeing cars as a means of transport but as integrated technology platforms – a shift that has forced other car manufacturers to reevaluate their own business models and cemented the fact that the role of software in the car industry is here to stay.
Developing existing offerings
Tesla's success is a clear example of how a company can take an existing product range and transform it into something much bigger. By integrating technology, they have not only created something entirely new to offer their customers, they also created a new way to generate revenue for the business. Similar transformations are possible in many other industries, where companies can find new ways to deliver value by leveraging digital tools and technology.
Other companies that have made similar journeys include:
In other words, the potential for companies to discover untapped opportunities within their industries is huge. And who knows, maybe your company could lead the way in your industry in setting new standards where software plays a central role?
Watch the video below to see Meta Bytes' founders Henrik and Oskar discuss how companies can undergo a business transformation where they succeed in finding new customers or creating a completely new service that generates new revenue.
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