The exponential development of technology is making data integral to all businesses, which is blurring industry boundaries faster than ever before.
Being a data-led company requires being open to reexamining your entire way of doing business and understanding where the new frontiers of value are.
Business must change its approach to data in order to make it a true source of value.
From using data for :
Improving efficacy or optimize operations.
Optimizing customer service.
Assisting in forecasting.
To explore new value propositions, extend your company’s business model and find new ways to create and capture value from data.
From Product to Data Platforms is the concept I want to share today.
I use John Deere as an example of how data can be used to extend the business model and value proposition of the company.
Data enabled John Deere to make the switch from product to data platform.
As a company specializing in agricultural machinery, John Deere has transitioned to using data, and digital technology to build a platform that assists farmers in enhancing agricultural production.
This data platform includes :
1. Weather Data System
Weather info & maps.
Rain, humidity, temperature sensors.
2. Seed Optimization Systems
Digital solutions to help farmers optimize their fertilizer use.
3. Irrigation System
Provided predictive maintenance.
It is true that data can be used to optimize a system, but our belief is that this is not enough. We believe data has the ability to reshape the business model and extend the value proposition.
What are the ways in which you are using data to extend your business model in your company?