The Transformers: Companies That Have Successfully Digitized their Offerings
  • Netflix: Back in 2007, the company began by streaming videos of TV shows and movies over the internet. Today, it streams video content to TVs, desktops and mobile devices. Streaming now accounts for majority of revenue (vs. shipping DVDs) – about 80% of 2013’s $4.3 billion in revenue.15
  • General Motors Corp.: Starting in the mid-1990s, GM’s OnStar subsidiary has offered subscription-based communications for drivers, providing security, navigation, remote diagnostics and roadside assistance. OnStar has also worked with law enforcement to thwart car thieves, using its satellite-based technology to locate stolen vehicles or to send a signal that makes it impossible to restart a car once it is stopped. GM provides insurance discounts to good drivers, whose performance is monitored via OnStar. It will soon offer mobile wi-fi connectivity, turning a vehicle into a hotspot on wheels.16
  • Nike: Since 2012, the $24 billion seller of footwear and athletic apparel has been selling a $149 FuelBand, an activity-tracker worn on the wrist that measures consumers’ physical activity and provides data on steps taken and calories burned. “When you buy a product, traditionally, this is the end of the relationship,” Stefan Olander, Nike’s VP of digital sport, told a publication in 2012. “Our strategy now is: begin the relationship with the purchase of a product. If we can give you the ability to tap into a platform that offers services that mean something to you, now you are going to come back automatically because there’s value. And that creates a much more interesting cycle for both the consumer and the brand because we now have the opportunity to connect on a regular basis.”17
  • General Electric: In 2013, GE launched a cloud service for customers of its jet engine, medical technology, power turbine and other industrial equipment. The cloud service gives those customers access to analytics software which they can use to improve the way they use GE’s products – e.g., utility companies can run simulations on water and gas turbines supplied by GE. That, in turn, helps electricity plant managers better deal with spikes in demand, reducing emissions and fuel costs.18
Most Companies have brought a Digital Product or Service to Market
Digital Offerings by Region