For more information on Carnival’s medallion, see Brooks Barnes, “Coming to Carnival Cruises: A Wearable Medallion That Records Your Every Whim,” New York Times, January 4, 2017, https://www.nytimes.com/2017/01/04/business/media/coming-to-carnival-cruises-a-wearable-medallion-that-records-your-every-whim.html.
For more details on the examples in the sidebar on e-scooter and battery sharing, see Bérénice Magistretti, “Gogoro Raises $300 Million for Its Battery-Swapping Technology,” VentureBeat, September 19, 2017, https://venturebeat.com/2017/09/19/gogoro-raises-300-million-for-its-battery-swapping-technology/; and Karen Hao, “The Future of Transportation May Be about Sharing Batteries, Not Vehicles,” Quartz Media, September 25, 2017, https://qz.com/1084282/the-future-of-transportation-may-be-about-sharing-batteries-not-vehicles/. Bike sharing and e-scooter sharing are also discussed in one of the podcasts on our book website, connected-strategy.com.
For more details on the sidebar on the Pandora of the art world, see Molly Schuetz, “New York’s Artsy Is Making It Even Easier to Buy Art Online,” Bloomberg, March 27, 2018, https://www.bloomberg.com/news/articles/2018-03-27/new-york-s-artsy-is-making-it-even-easier-to-buy-art-online. For more details on the art classification scheme that Artsy has developed, see “The Art Genome Project,” Artsy, accessed June 18, 2018, https://www.artsy.net/categories; and Shahan Mufti, “Artsy’s ‘Genome’ Predicts What Paintings You Will Like,” Wired, November 23, 2011, https://www.wired.com/2011/11/mf_artsy/all/1/.
A thorough discussion of direct-to-consumer companies, and the observation that customer acquisition costs are the new rent, see Tom Foster, “Over 400 Startups Are Trying to Become the Next Warby Parker. Inside the Wild Race to Overthrow Every Consumer Category,” Inc., May 2018, https://www.inc.com/magazine/201805/tom-foster/direct-consumer-brands-middleman-warby-parker.html.
For data on Kickstarter, see “Stats,” Kickstarter, accessed November 23, 2018, https://www.kickstarter.com/help/stats.
For data on DonorsChoose.org, see “Impact,” DonorsChoose.org, accessed November 23, 2018, https://www.donorschoose.org/about/impact.html.
For more information on Crisis Text Line, see Alice Gregory, “R U There? A New Counselling Service Harnesses the Power of the Text Message,” New Yorker, February 9, 2015, https://www.newyorker.com/magazine/2015/02/09/r-u. For access to data collected by Crisis Text Line, see “Crisis Trends,” Crisis Text Line, accessed November 23, 2018, https://crisistrends.org/.
Chapter 8
For average spending on dental care, see Health Policy Institute, “U.S. Dental Expenditures: 2017 Update,” American Dental Association, accessed June 18, 2018, https://www.ada.org/~/media/ADA/Science%20and%20Research/HPI/Files/HPIBrief_1217_1.pdf?la=en.
For more information on Abilify, see “FDA Approves Pill with Sensor That Digitally Tracks If Patients Have Ingested Their Medication,” US Food and Drug Administration, November 13, 2017, https://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm584933.htm.
For more information on Fitbit, see Stephanie Baum, “Fitbit Plans to Submit Sleep Apnea, AFib Detection Tools for FDA Clearance,” MedCity News, February 27, 2018, https://medcitynews.com/2018/02/fitbit-plans-to-submit-sleep-apnea-afib-detection-tools-for-fda-clearance/.
In the context of the limits of traditional revenue models, we found the work by Karan Girotra and Serguei Netessine very insightful. In their book on business model innovation, they outline how to create a business model that is more robust in an uncertain environment. The authors discuss how value can be created by overcoming these inefficiencies. See Karan Girotra and Serguei Netessine, The Risk-Driven Business Model: Four Questions That Will Define Your Company (Boston: Harvard Business Review Press, 2014).
For the study concerning reimbursement of retinal photographs, see David A. Asch, Christian Terwiesch, and Kevin G. Volpp, “How to Reduce Primary Care Doctors’ Workloads while Improving Care,” Harvard Business Review, November 2017.
For more information on Rolls-Royce’s revenue model, see “ ‘Power by the Hour’: Can Paying Only for Performance Redefine How Products Are Sold and Serviced?,” Knowledge@Wharton, February 21, 2007, http://knowledge.wharton.upenn.edu/article/power-by-the-hour-can-paying-only-for-performance-redefine-how-products-are-sold-and-serviced/.
The work by Marco Iansiti and Roy Levien further discusses the idea of moving the focus from the supply chain to the ecosystem. See Marco Iansiti and Roy Levien, “Strategy as Ecology,” Harvard Business Review, March 2004, 68–78, 126.
For a great discussion on when and how freemium models work, see Vineet Kumar, “Making ‘Freemium’ Work,” Harvard Business Review, May 2014, 27–29.
For more detail on Tencent and WeChat, see Eveline Chao, “How WeChat Became China’s App for Everything,” Fast Company, January 2, 2017, https://www.fastcompany.com/3065255/china-wechat-tencent-red-envelopes-and-social-money.
For data on in-app purchases, see “These 25 Wildly Popular Android Games Are Raking in the Most Cash from In-App Purchases,” ZDNet, April 17, 2017, https://www.zdnet.com/pictures/25-wildly-popular-android-games-raking-in-the-most-cash-from-in-app-purchases/26/.
For the number of Amazon Prime members, see Heather Kelly, “Amazon Reveals It Has More Than 100 Million Prime Members,” CNN Tech, April 19, 2018, http://money.cnn.com/2018/04/18/technology/amazon-100-million-prime-members/index.html.
For the prices of Google AdWords, see Elisa Gabbert, “The 25 Most Expensive Keywords in AdWords—2017 Edition!,” WordStream Blog, last updated September 12, 2018, https://www.wordstream.com/blog/ws/2017/06/27/most-expensive-keywords.
Chapter 9
The product development book by Karl T. Ulrich and Steven D. Eppinger explains several approaches to deconstruction (the authors talk about decomposition). In its chapter on concept generation, the book provides an excellent guide for how to generate a large number of concepts in response to a given set of needs. See Karl T. Ulrich and Steven D. Eppinger, Product Design and Development, 6th ed. (New York: McGraw-Hill Education, 2015).
For more details on the sidebar on applying the STAR approach to a new schizophrenia drug, see Kanika Monga and Olivia Myrick, “Digital Pill That ‘Talks’ to Your Smartphone Approved for First Time,” ABC News, November 15, 2017, http://abcnews.go.com/Health/digital-pill-talks-smartphone-approved-time/story?id=51161456.
In table 9-1, we note that one “job to be done” is to “[a]ssess delight of user with coffee brand using physiological measurements.” For work in this direction, see Cipresso Pietro, Serino Silvia, and Riva Giuseppe, “The Pursuit of Happiness Measurement: A Psychometric Model Based on Psychophysiological Correlates,” Scientific World Journal 2014 (2014): 1–15, http://dx.doi.org/10.1155/2014/139128.
The computer network textbook by Andrew S. Tanenbaum and David J. Wetherall provides a detailed discussion of the stack framework, especially the Open Systems Interconnection model. See Andrew S. Tanenbaum and David J. Wetherall, Computer Networks, 5th ed. (Upper Saddle River, NJ: Prentice Hall, 2010). See also Norman F. Schneidewind, Computer, Network, Software, and Hardware Engineering with Applications (Hoboken, NJ: Wiley-IEEE Press, 2012).
The classification tree framework is also inspired by Ulrich and Eppinger, Product Design and Development. It provides an effective method for exploring a broad array of design approaches for a given design problem. In his book Design: Creation of Artifacts in Society (Philadelphia: University of Pennsylvania, 2011), Karl T. Ulrich further examines the power of exploring a design space with a tree-based approach.
Christian Terwiesch and Karl Ulrich, in Innovation Tournaments: Creating and Selecting Exceptional Opportunities (Boston: Harvard Business School Press, 2009), distinguish between two types of innovation techniques, internal and external search. External search is about scanning the environment for new ideas, oftentimes benefiting from domain arbitrage. A technology might be well established in one industry but still not be used at all in another industry.
The concept of a selection table is disc
ussed in Product Design and Development by Ulrich and Eppinger in the context of product development. The underlying approach of comparing a set of decision alternatives along a number of criteria is often referred to as multiattribute decision making and has a long tradition in decision sciences.
For a history of voice recognition, see Melanie Pinola, “Speech Recognition through the Decades: How We Ended Up with Siri,” PCWorld, November 2, 2011, https://www.pcworld.com/article/243060/speech_recognition_through_the_decades_how_we_ended_up_with_siri.html.
In Innovation Tournaments, Terwiesch and Ulrich discuss how innovation can sometimes be triggered by an unmet need but also can occur when a new solution approach is invented. In their work, the authors define innovation as a novel match between solution and need.
For information on digital twins, see Michael Grieves, “Digital Twin: Manufacturing Excellence through Virtual Factory Replication,” white paper, 2014, http://innovate.fit.edu/plm/documents/doc_mgr/912/1411.0_Digital_Twin_White_Paper_Dr_Grieves.pdf.
For more background on Heller’s application, see “Appsolute Efficiency,” Siemens, accessed October 24, 2018, https://www.siemens.com/customer-magazine/en/home/industry/manufacturing-industry/heller-appsolute-efficiency.html.
For more information on the sidebar on delivery via drones, see “Lifesaving Deliveries by Drone,” Zipline, accessed June 19, 2018, http://www.flyzipline.com/.
An interview with a Volocopter executive can be found on our book website, connected-strategy.com.
For the origins of the bracelet monitoring device, see Matt Allyn, “Spider-Man Created the Electronic Bracelet?!,” Esquire, May 4, 2007, https://www.esquire.com/news-politics/news/a2164/spiderman022007/.
Chapter 10
For an excellent discussion of the various business uses of augmented reality for both sensing and responding, see Michael E. Porter and James E. Heppelmann, “Why Every Organization Needs an Augmented Reality Strategy,” Harvard Business Review, November–December 2017, 46–57.
For the impact of blockchain technology on trust, see Kevin Werbach, The Blockchain and the New Architecture of Trust (Cambridge: MIT Press, 2018).
For the possible economy-wide impact of 3-D printing, see Richard D’Aveni, The Pan-Industrial Revolution: How New Manufacturing Titans Will Transform the World (Boston: Houghton Mifflin Harcourt, 2018).
INDEX
Note: Page numbers in italics followed by f, t, and w refer to figures, tables, and worksheets, respectively.
Abilify, 176, 204
accessibility, 52–55
Adherium SmartInhaler, 106
advertising revenue, 190–191
AdWords, 190
Airbnb
crowd orchestrator architecture, 13, 38, 163–164, 171, 221
customer experience, 70
Alexa (Amazon), 196, 209
Alibaba, 28, 29f
alternatives, identification of, 206–208, 209t
Amazon
Alexa, 196, 209
AmazonFresh, 24
Amazon Go stores, 29
Amazon Web Services, 186
connection architecture, 13, 154, 156, 158, 171
customization by, 102
drone delivery, 213
Marketplace, 158, 171
Prime, 189–190
respond-to-desire customer experience, 6, 70
analyzing technologies, 227
Angie’s List, 159, 183
Apple, 12, 99, 115, 205, 210, 211
Art Genome Project, 160
artificial intelligence (AI), 84–85
Artsy, 160
Asch, David, 11
asthma inhalers, repeat loop with, 106
AstraZeneca, 106
attributes, product, 52–53
augmented reality, 14, 42, 228
automatic execution
characteristics of, 8, 77–79, 78f
information flow in, 81t, 83
limitations of, 236
use cases for, 87–88, 88t
with video games, 80
automatic hovering, 11, 83, 87, 109
Avis Budget Group, 155
Bad Ass Mom Box, 154
BareMinerals Made-2-Fit foundation, 73
BarkBox, 154
Bell Labs, 210
Betterment, 153–154
BigBasket, 27
BlaBlaCar, 11, 40–41
blockchain technology, 39, 227
Blue Apron
competitive advantage of, 42–43
curated offering, 71, 154
disruptive potential of, 47
efficiency frontier in, 24–26, 27f, 29f
BMW, 151
bottom-up innovation, 209–213
bracelet monitoring devices, 208, 215
See also Disney MagicBand
brainstorming, 51–52
Brandenburger, Adam M., 11
Brother Refresh program, 79
Brynjolfsson, Erik, 11
business-to-business connected strategies, 16
Busy Bee Stationery, 154
cab operations, 32–35, 37
Cambridge Analytica, 46
Car2go, 150–151
Careem, 29
Carnival, 152–153
car-sharing services, 150–151, 155
See also ride-hailing industry
Chinese grocery market, 28–29
Clash of Clans, 187
classification trees, 206–208, 207f
coach behavior
characteristics of, 7–8, 73–76, 75f
information flow in, 81t, 82–83
use cases for, 87, 88t
competition, ranking, 55–58
competitive advantage, 42–43
See also repeated interactions
complementary products, revenues from, 167
connected customer relationships
See customer relationships
connected delivery model
See delivery model
connected market makers, 157–161, 158f, 171
connected producers, 148–153, 149f, 170–171
connected retailers, 153–157, 153f, 171
connected strategy, definition of, 15
connected-strategy.com website, 17, 49
connected strategy framework, 1–4, 3f
connected strategy matrix
benefits of, 14, 172
components of, 168–170, 169f
mapping, 218–220, 223w
strategy development with, 220–222
worksheets for, 219w, 223w
connection architecture
connected market makers, 157–161, 158f, 171
connected producers, 148–153, 149f, 170–171
connected retailers, 153–157, 153f, 171
crowd orchestrators, 161–165, 162f, 171–172
definition of, 4
need for, 147–148
peer-to-peer network creators, 165–168, 168f, 172
role of, 10–11
See also connected strategy matrix
consumption utility, 52
cost of ownership, 52–55, 54w
cost reduction
competitive advantage and, 42–43
with deeper connections, 31–35
diagnostic questions, 50–51
dynamic pricing strategies, 35–41
with new connections, 35–41
potential for, 46–47, 51–52
See also efficiency frontier; revenue models; willingness-to-pay
Couchsurfing, 41
Coup, 156
Crisis Text Line, 165
crowd orchestrators
connection architecture for, 161–165, 162f, 171–172
not-for-profit, 164–165
curated offering customer experience
characteristics of, 7, 70–73, 72f
information flow in, 81t, 82
use cases for, 87, 88t
Curb app, 33
customer experiences
artificial intelligence and, 84–85
automatic execution, 8, 77–80, 78f, 81t, 83, 87–88, 88t
brainstorming strategies for, 51–52
coach behavior, 7–8, 73–76, 75f, 81t, 82–83, 87, 88t
competitive advantage, 42–43
connections, benefits of, 35–41, 38t
curated offering, 7, 70–73, 72f, 81t, 82, 87, 88t
diagnostic questions for, 50–51
disruptive potential of, 46–47
domains of application, 86–88, 88t
fulfillment costs, 136–141
Goodr case study, 39
information flow, 79–83, 81t, 131–133
pain points, 31–35, 34t, 126–130, 136–141
respond-to-desire, 5–6, 67–70, 69f, 81t, 82, 86–87, 88t
summary of, 89–90
unified experiences across episodes, 98–101
See also customer journey; efficiency frontier; trust; willingness-to-pay
customer journey
mapping, 122–125
pain points, 31–35, 34t, 126–130, 136–141
phases of, 63–67, 66f
worksheet for, 125w
See also willingness-to-pay
customer relationships
components of, 1–3, 3f
definition of, 64
goals of, 122
importance of, 8–9
See also customer experiences; repeated interactions
customization
customer-level learning, 101–103, 103f, 134–136
levels of, 110–111, 111t, 113, 118–119
population-level learning, 103–107, 107f
why-how ladder, 107–110, 109f, 133–134
See also curated offering customer experience
Daimler, 10, 150–151, 171
da shang, 187–188
data payments, 190–193
data privacy, 44–46, 144
dating platforms, 41
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