As it becomes cheaper to add sensors and microchips to products, and to connect them to the internet, their manufacturers will know lots more about how end-consumers are using them. This will help them develop their products more rapidly, fix any faults more quickly and tailor products more snugly to an individual buyer’s needs. General Electric, for example, uses sensors to monitor how its jet engines are performing in the air and to diagnose emerging problems.
Michael Porter of Harvard Business School predicts that the rise of wirelessly connected products and the resulting entry of manufacturers into the battle for customer loyalty will bring a “new era of competition.”
Read the full story on economist.com.