Page 54 - The Fourth Industrial Revolution

the assumptions of their operating teams and find new ways of doing things.

In short, they have to innovate continuously.

Four major impacts

The fourth industrial revolution has four main effects on business across
industries:

– customer expectations are shifting
– products are being enhanced by data, which improves asset productivity
– new partnerships are being formed as companies learn the importance of

new forms of collaboration, and
– operating models are being transformed into new digital models.

3.2.1 Customer Expectations

Customers, whether as individuals (B2C) or businesses (B2B), are
increasingly at the centre of the digital economy, which is all about how they
are served. Customer expectations are being redefined into experiences.
The Apple experience, for example, is not just about how we use the
product but also about the packaging, the brand, the shopping and the

customer service. Apple is thus redefining expectations to include product
experience.

Traditional approaches to demographic segmentation are shifting to
targeting through digital criteria, where potential customers can be
identified based on their willingness to share data and interact. As the shift

from ownership to shared access accelerates (particularly in cities), data
sharing will be a necessary part of the value proposition. For example, car-
sharing schemes will require the integration of personal and financial
information across multiple companies in the automotive, utility,

communications and banking sectors.

Most companies profess to be customer-centric, but their claims will be

tested as real-time data and analytics are applied to the way they target and
serve their customers. The digital age is about accessing and using data,
refining the products and experiences, and moving to a world of continual

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