including bitcoin and other cryptocur-rencies, blockchain, and security-related
technologies.
If a consumer appliance such as a washing machine is connected to a distributed
ledger, the data could be recorded and
made accessible – securely – to a range of
users who would then be in a position to
develop new business models and hence
drive productivity.
This benefits different parties. The de-
signers of the appliance -- as well as mon-
itoring usage and controlling their IP --
could check their products’ performance
and collect data that could be used to im-
prove future designs. Product comparison
firms could rate aspects of performance
such as energy use and noise levels. Sales
firms could value an appliance remotely
by looking at its age, usage and repair his-
tory, and set up an auction. Regulators
could check that the appliances meet
safety standards. Custom design firms
could develop bespoke parts and appli-
ances to meet the needs of particular de-
mographics, such as the elderly or visually
impaired. Rental firms could rent them,
offering servicing and upgrades. These
connected technologies can also help re-
duce environmental impact.
Solving the productivity paradox is going to be critical if economies around the
world are to increase the value of their
manufacturing and deliver economic
growth. The development of digital technologies is creating plenty of opportunities to increase productivity but until
firms are able to re-invent their business
models we are unlikely to see the real productivity benefits at a national level. For
individual firms, those that recognize that
technological and business model innovation need to go hand in hand are most
likely to derive the benefits from the next
production revolution M
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There is
potential for
wholesale dis-
ruption of the
conventional
manufactur-
ing model in
which prod-
ucts are made
close to the
consumer.
Sector Old business model New business model Future business model
Factory automation
Online shopping
Taxi service
Distribution
Sharing economy
(eg Uber)
Predictive analytics
recommends prod-
ucts to customers
and anticipates
orders
Predictive analytics
recommends prod-
ucts to customers
and anticipates or-
dersTaxi service
Predictive matching
algorithm matches
customers and
drivers and adapts
pricing to match de-
mand and supply
Distributed manufac-
turing which combines
intelligent products
with additive manu-
facturing at the point
of sale
Fully automated
fulfilment systems
including the use of
autonomous delivery
vehicles
Autonomous taxis
The Evolution of Business Models
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