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My office is located on 116th Street in Fishers, right in the municipal city center.
Anyone who knows me knows coffee is my lifeblood.
Luckily, there are multiple options all within walking distance: The Well, Sureshot, McDonalds, but I almost always find myself at Starbucks.
Each of these places serve what I am looking for: coffee. There is no precipitous drop in quality across any of these venues In fact, The Well and Sureshot offer higher-end beverage options. So why do I always end up answering the siren call of Starbucks, which also happens to be the farthest away?
Because at Starbucks I can place my order on an app, walk over, pick up my prepared drink, apply rewards to my gold card account, and continue on with my day.
We have been preaching about the coming of the data economy for a long time now, but hopefully this example drives home just how much of a market differentiator a digital product can be. The coffee is no longer the only “valuable product” customers like myself seek, but instead, the experience and ability to customize the product to my liking takes precedence.
Take yourself back to 2008. Imagine telling yourself that one day, you will jump into an unmarked car driven by a total stranger, have them take you to a destination, and exit the car without handing over any form of payment.
Imagine telling yourself you would snap a photo of your newborn and share it instantly with Grams, your uncle, and your sister.
Imagine telling yourself you would never have to wait in line at Musicland to get that new Usher album because you could pre-order it to download on all your devices the instant it became available.
Uber, Instagram, Spotify. These are just a few examples of how companies realized the product was no longer the most valuable thing; its delivery of the product was just as important.
Customers aren’t just paying for transportation when they take an Uber; they are paying for convenience.
They aren’t just “finding a place to stay” on Airbnb; they are picking a living situation that suits their comforts and needs.
They aren’t just hearing a song; they are streaming music on demand.
What does this mean for you and your company?
It means you have to figure out how you can do what you do better. New Balance makes shoes that, at the core, do the same thing as Nike shoes, but Nike has created a fully integrated data service around the product, all delivered via mobile app.
Whatever your product is, there is a way to capitalize on its data value through the creation of a digital twin that expands the potential value of your physical asset.•
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McDonald is the CEO of Fishers-based ClearObject and chairman of the Indiana Technology and Innovation Policy Committee. Send comments to ibjedit@ibj.com.
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