From product to solution providers

Apart from the way the term gets thrown around by almost every consultancy it actually means something. Organisations talk about becoming a “solution provider” which is slang for saying that their hardware is just a means to an end. In other words, companies now focus on achieving outcomes for their clients, rather than just selling them equipment.

From transactional to circular relationships

The way people buy has changed for good. We have new expectations as consumers. We prefer outcomes over ownership. We prefer customization, not standardization. And we want constant improvement, not planned obsolescence. We want a new way to engage with business. We want services, not products. The one-size-fits-all approach isn't going to cut it anymore. And to succeed in this new digital world, companies have to transform.


Out with the old model

On the left you find the old model. Companies used to focus on "getting a product to market" and selling as many units of that product as possible: more cars, more pens, more razors, more laptops. They did this by getting their products into as many sales and distribution channels as possible. To get a customer on the other end of the line buying this stuff they bought ad space. Smart messaging that convinced consumer to buy their product.

In with the new way

Successful companies start with the customer. They focus on the jobs to be done and make sure they get it done better, cheaper and faster. They talk to their customer and learn from them, the more information obtain the better they can tailor (innovation) their solution and the more valuable the relationship becomes.

That is digital transformation: from linear transactional models to a circular relationship.

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