8CIOReview | | DECEMBER - JANUARYBy Cynthia Kellam, Global Head of Digital, CX and Marketing Data/Insights/Analytics, TE ConnectivityPhysical products have been at the heart of many companies for a long time and, especially at companies that design and manufacture products, there are typically well-established organizational structures, domain knowledge, processes and practices that have been built up around product portfolios. And rightly so, what is a company without a product?But the world is changing. Prominent thought leaders and consultancies, such as McKinsey and Deloitte, have long proclaimed that all companies, regardless of their industry, are transforming into software companies. This notion has become increasingly evident in the last decade due to the rapid development of the Internet of Things (IoT) and Industrial IoT (IIoT). Today, many previously unconnected and static products, such as toasters, cat food bowls, doorbells, and factory machinery, have been transformed into connected data-generating nodes. These products now provide valuable data for local decision-making and aggregate insights (e.g. toast preferences by zip code) for manufacturers. This is software that must be imagined, designed, built, managed and continuously improved over time as an integral part of the physical product. Despite the widespread technological advancements taking place, there are still many companies that fail to recognize the significance of this shift. It is true that not every product will be connected and require its own software. For instance, if you bake cakes, manufacture individual components, or develop new pharmaceuticals, your products may not require a software component. However, the shift towards software orientation is not solely about the products sold by a company. It encompasses the way a company operates on a day-to-day basis, including its external engagement with customers. Today, customers prefer digital channels at every phase of the buying journey, which is why it is crucial for companies to adopt a software mindset. Additionally, internal operations, such as managing prices, supply chain decisions, defining customer and market strategies, and recruiting talent, all require a software-centric approach.In today's world, the digital realm has a significant influence on the lives of both customers and employees of every company. As a result, it is imperative for companies to embrace digital transformation to keep pace with this trend. For most companies that were not established in the digital era, this involves a shift in the way they approach product management. Modern product management, which originated from the software and tech industry, involves managing all aspects of a company's interactions with and services to customers. This approach considers customer experience as a product, and digital capabilities are an integral part of this process. Therefore, a company's digital capabilities and customer experience are intertwined, and it is essential to adopt a digital-centric approach to succeed in today's marketplace.ELEVATING CUSTOMER EXPERIENCE AS A PRODUCTWITH MODERNPRODUCTLEADERSHIPCynthia KellamIN MY OPINION
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