Reinventing the Product: How to transform your business and create value in the digital age

Imagine standing at the edge of a vast ocean of change, where the waves of digital transformation crash relentlessly against the shores of traditional industry. We are witnessing a profound shift where digital technology no longer merely supports products but becomes the very essence of their value. For centuries, products were defined by their physical form — the metal, the mechanics, the tangible parts that users could see and touch. But today, the tide is turning. Software, connectivity, and data are emerging as the true drivers of value, reshaping how products are designed, delivered, and experienced.

Consider a car, once a marvel of mechanical engineering. Historically, 90% of its value lay in hardware components like the engine and chassis. Now, software and digital experiences are rapidly catching up, projected to make up half of the vehicle's value. This transformation is mirrored across industries, from consumer electronics to industrial machinery.

But this shift is not just about technology. It demands a wholesale reinvention of business models and operations. Companies must embrace six digital imperatives: transforming their core functions to be digital at heart, focusing on delivering seamless experiences rather than mere features, building or joining ecosystems of partners to co-create value, innovating new business models such as as-a-service offerings, cultivating a digitally skilled workforce, and managing the delicate balance between legacy operations and new ventures.

Take, for example, a global tire manufacturer that moved beyond selling tires to offering mobility and safety as a service, using sensors embedded in tires to monitor performance and proactively schedule maintenance. This approach transformed their relationship with customers from a transactional one to a continuous partnership focused on outcomes.

Yet, the journey is fraught with challenges. Industries face varying degrees of disruption; some are already deeply transformed, while others are just beginning to feel the waves. The key is not to resist but to build windmills — to harness the power of change and innovate relentlessly.

Digital transformation is not a distant future; it is happening faster than most realize, and the companies that adapt will thrive while others risk obsolescence. As we move forward, we will explore how products themselves are evolving — becoming smarter, more connected, and ultimately, more alive.

Let us now dive deeper into this new product world, where intelligence and experience converge to create unprecedented value.