The Harvard Business Review article, How Smart, Connected Products Are Transforming Competition, identifies ten strategic choices manufacturers must make to capitalize on the Internet of Things.
In this sixth installment of a series of video interviews, the article’s co-author Jim Heppelmann explains three key aspects to data ownership and access rights that manufacturers should consider.
How does the company manage ownership and access rights to its product data?
When you think about how your company manages ownership and access rights to product data, you should realize that manufacturers have a responsibility to manage and protect the data. There are three key aspects to data ownership and access rights that manufacturers should consider.
First, security is essential. And it’s different from traditional IT security, because there’s more at stake, it’s easier to attack, and it’s harder to defend.
Second, consumers have changing expectations around privacy. They no longer tolerate these long and obscure legal click-through agreements. What consumers are asking for is more transparency about what data you’re collecting and what value exchange they get out of providing that information to you.
Third, there are regulations that are emerging in different industry verticals. These regulations might be related to safety, or risk mitigation. For example, what could happen if somebody hacks into a medical device. These regulations might differ by country, culture, or industry, which can really complicate the data flow of a solution.
So our recommendation is that you research and embrace new design principles, such as design for security and design for privacy. We recommend that you provide transparency and a clear value proposition to your customers. And that you establish a data sharing framework for sharing product data with different parties, who may receive benefit from access to that information.
In their upcoming October 2015 Harvard Business Review article, How Smart, Connected Products Are Transforming Companies, co-authors PTC CEO, Jim Heppelmann, and Harvard Business School Professor, Michael Porter, will focus on the impact of smart, connected products on companies’ operations and organizational structure. Reserve your copy››
- Your IoT Plan: Which Product Capabilities Should You Pursue?
- Embed IoT Functionality in the Product or Cloud?
- Open or Closed System for Your IoT Strategy?
- Should You Develop or Outsource Your IoT Infrastructure?
- What IoT Product Data Should You Capture and Analyze?
- Should You Change Your Business Model with Connected Products?
- IoT Choices: When to Disintermediate a Channel or Service Partner
- Monetizing Connected Product Data for New Business
- Creating New Value with Connected Products and Systems