Smart-Connected Value Chain

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Student Learning Journal (SLJ) 2-Semester 2 2015 Part A The Internet of things 1. In lecture, we’ve learned about several examples of the Internet of Things and got a general overview of it. Through weekly and outside reading, I have a deeply knowledge about the Internet of Things and the Porter’s value chain. By analyzing the value chain, I find that the Smart and connected products—the third wave of IT differs a lot from the ‘Old Economy’ products. . Figure 1: Porter’s generic value chain A value chain is a set of activities that organizations carry out to create value for their customers. Porter proposed a general-purpose value chain that companies can use to examine all of …show more content…

So the Smart, connected products require a whole set of new design principles to achieve the changes of product types. (3) Marketing These two are the processes you use to persuade your clients to purchase from you instead of your competitors. As a newly developed function, the connection function should absolutely be focused on. Whether on marketing or sales. You should advertise a lot about the functional advantage. You also need to introduce the trend of the third wave of IT so that customers may understand how wonderful the Smart Connected product is. What’s more, the Smart, connected products allow companies to form new kinds of relationships with customers, requiring new marketing practices and skill sets. As companies accumulate and analyze product usage data, they gain new insights into how products create value for customers, allowing better positioning of offerings and more effective communication of product value to customers. (4) Service and sales It is the activity of maintaining the value of the product to customers after it has been purchased. To the ‘Old Economy’ products, when you meet some obstacles of using or some quality problems, you have to meet after sales service personnel, either go to the service center or the personnel comes to visit you. It is really a large cost on time and energy. However, to the Smart Connected products, the personnel can help you to solve the problem by using the remote function which brings a lot of

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