that companies often fail because they focus so narrowly on products and services that they forget to keep in mind the bigger picture: what consumers actually want. Levitt called this problem “marketing myopia,” and it remains a problem to this day. Increasingly, however, companies are struggling with a new affliction, which I callDigitally myopic firms insist upon looking to products, services, and industry attributes for competitive advantage.
But they don’t. Consumers who’ve bought cars, after all, need roads, gas stations, and independent service providers. Consumers who’ve bought light bulbs need sockets, wiring, and electricity. In the past, legacy business models rarely took such product complements into account, because doing so didn’t make business sense. But sensors and the Internet of Things have created opportunities for firms to expand their scope by doing just that.
Boosting operational efficiencies has its advantages, it’s clear, but if firms believe that operational-efficiency enhancements are the only — or the best — use of modern digital technologies, they may fall into the operational-efficiency trap. And if that happens, they’ll underutilize their production ecosystems.
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