The Future of Competitive Strategy

6

Introduction

©2022 MIT. This excerpt is from The Future of Competitive Strategy by Mohan Subramaniam, published by The MIT Press.

Interactive Data

Web-Based Sensors

App-Based Sensors

Physical Sensors

Example: Miniaturized

Example: Websites of newspapers that track readers’ preferences and interests

Example: Apps provided by banks that track spending habits and preferences

electronic chips in tennis rackets that track playing skills

help firms pinpoint the subjects for which they wish to develop after-­ the-fact insights. Here we may consider two such subjects from the Ford example: car components, such as engines, and drivers. Ford cre- ates distinct profiles for each engine by accumulating data separately from hundreds of sensors in the engine. Similarly, it aggregates data from several sensors to develop profiles for each individual driver. This allows Ford to analyze the performance of each engine individually to (among other things) predict when it is likely to fail. It also allows Ford to understand several attributes of every individual driver, such as how frequently the driver charges the electric car, or how safely she drives. The more widespread the adoption of sensor-equipped products, the more subjects a firm can build after-the-fact insights on. The accumulating sensor data also help companies develop intricate insights for each profile. Caterpillar knows whether its customers use their motor graders to move heavy dirt or lighter gravel. Sleep Number mat- tresses know how well you sleep each night. Allstate knows how safely a subscriber to its services is driving. Nike, similarly, could know whether a running shoe customer uses a shoe primarily for running or walking. Figure 0.1 Sensors generate interactive data. Note: Digital platforms, such as Amazon or Uber, typically use only web-based or app-based sensors. Legacy firms can use web-based, app-based, and physical sensors.