We are in the midst of yet another shift in business models because of digital. This time the force for change is not mobility; it's data and the Internet of Things. The more devices that connect to each other, the more digital creates a personal ecosystem, called Digital Context. Digital Context is as distinct a shift in business strategy from omni-channel as omni-channel was from the first multi-channel business models. Companies need strategies grounded in consumer behavior to guide the development of business models, brand experiences, and customer journey work. Based on two years of in-depth research on consumers, Digital Context 2.0, provides seven lessons on how to prepare your business for the next wave of technologies—and make your customers happier.Lesson 1: A Watch is not a WatchA watch is not a watch. An IoT-enabled razor is not a razor. An IoT-enabled hearing aid is not a hearing aid. They can each do the basic functionality that the name implies but they do much more and will be hired by consumers to do more than what the name of the item suggests. The consumer hires the tool to do much more than what you originally intended the product to do. The more tools that connect to each other the more each tool becomes a part of an ecosystem that supports other activities. That ecosystem will change your business model.Lesson 2: Over Time All Channels Become QueuesCritical to every business model are the marketing, transactional, and customer service channels that ensure that you can share your offerings with your customers. We have progressed from a world of single channels, to multi-channels, to omni-channels, and now to Digital Context. Along the way the channel has become smart and when channels become smart they queue things.Lesson 3: Consumers Get that Context Requires DataDespite the constant hacks and security breaches, most consumers share their data with companies freely if they understand and agree to the purpose for sharing the data.
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