Value Creation Strategies
The further development of today’s products into smart products can be based on various strategic goals. These value creation strategies can be linked to the characteristics of smart products.
Echterfeld and Gausemeier summarize the different characteristics of the literature into eight main characteristics, which form the value creation strategies for the course of the project. They are described as follows:
- Connectivity: The smart products are connected with other products and devices and are able to send and receive information.
- Autonomy: The product is able to solve complex tasks independently the user.
- Extensibility: A smart product is extensible along its lifecycle, e.g. by updates.
- Multifunctionality: By the use of information and communication technology, the products fulfill multiple functions.
- Adaptivity: The smart product is able to interact with its environment and adapts itself automatically.
- User-friendliness: Different users’ behaviors could be taken into account by the product and are translated into adapted actions.
- Robustness: Unexpected situations, which were not considered by the developer, could be managed by the smart product.
- Foresightedness: An anticipation of the effects of different factors is possible by knowledge gain through experience.
The eight value creation strategies represent the purpose of the development of the smart product. They can be pursued individually or in combination. They are assigned to the various use cases. Which strategy should be pursued depends on the initial situation and vision of the company, which are specified with the value proposition canvas and the questionnaire.
The values of the Value Strategies are between 0 and 4, whereby 0 means a low level of this Value Strategy and 4 a very high level.