In the 1970s, when e-commerce was first developed, few marketers thought it would be a viable business model. However, the growth of the internet in the 1990s brought forth a new, digital method of shopping and searching for products for consumers.
According to the latest report on Global Equipment Aftermarket Trends from the newswire, The size of the equipment market is anticipated to increase by $3,220.15 billion from 2021 to 2022, representing a 10.3 percent compound annual growth rate (CAGR).
eCommerce is becoming more and more popular. But where will they carry it out?
The three leaders in e-commerce and innovation are Amazon, Google, and Apple. Over the past three decades, these businesses have forged distinctive routes in the industry. But what can OEMs learn from these industry leaders to build a robust ecosystem, and how will this help the equipment manufacturers and dealers?
OEMs Are Becoming Aware Of The Massive Expansion That Digital Ecosystems Enable
With all these dynamic changes occurring, equipment OEMs are starting to see the need to assist and enable software innovators to create the most appealing products, deliver the best customer experiences, and hasten the growth of their top and bottom lines.
This new shift in perception is occurring for numerous reasons:
- Product Complicatency
Vehicles are at a turning point in their development to join the “smart computing edge,” becoming more and more software-controlled and software-defined, which forces OEMs to choose between complementary and core competencies and encourages the growth of partnerships and ecosystems.
- Expansion Of Reach
By enabling scalable communication between current partners and customers, digital ecosystems can expand the reach of OEMs. However, they can also give unidentified parties a way to collaborate and exchange ideas.
- Accelerated Growth
OEMs must change from being value-chain-structured companies that trade with well-known partners and add value incrementally to becoming a member of a faster and more dynamic networked digital ecosystem with revenues tied to digital goods and services rather than hardware.
This shift in perspective through openness, transparency, and a two-way dialog with OEMs regarding access to remote data and controls, access to in-vehicle accessories, and controllers possibly in the future, creates many opportunities for innovation and creativity.
Lessons Learned From Apple, Google, And Amazon That OEMs Can Use
The Method Used By Apple To Create A Successful Platform
Ron Johnson, the project’s main architect, understood that Apple was committing a grave error as it was ready to open its first physical location. While traveling to the pre-launch meeting, he informed Steve Jobs that the design was flawed. The corporation was shifting from a singular focus on items to a holistic lifestyle encompassing television, music, movies, and more, but the store didn’t represent that change. So they had to begin again.
A few minutes later, Jobs was the one to declare that they would be starting over with their strategy for retail. But, of course, it was entirely Johnson’s responsibility to make it happen, and what he delivered radically altered the retailing of technology.
OEMs must realize a significant distinction between making a sale and delivering an experience. There is a significant benefit to developing a long-lasting business where people want to spend their time, not just their money, beyond pop-up stores and marketing gimmicks. This is true even for eCommerce experiences.
Amazon: Try New Things, But Always Adhere To The “Two-Pizza Team” Rule
The work environment at Amazon is “experiment-friendly.” Start small if you want large ideas to succeed. The “two-pizza team” principle is followed by Amazon, which states that innovative ideas should be carried out by a team that can be fed with two pizzas. Internal testing was nonexistent within the corporation’s walls; instead, the goal was to deploy as soon as possible, even if it meant publishing a barely viable product.
If the launch is successful, Amazon doubles down on the initiative and launches it again at scale, enabling the business to identify problems with the initial concept quickly. This strategy is ideal for OEMs looking to break into the eCommerce market via a developer environment. OEMs can invest little and test their ideas most safely if they start with a small team of industry specialists and clear objectives. Then, when you achieve the desired outcomes, you might choose to scale up production and move forward quickly. Hiring tech specialists for consulting services can be a terrific approach to determining your ideal goals and building your developer ecosystem from the ground up while staying within the allocated budget if you don’t know where to start.
Google’s “Keeping It Simple” Strategy
Make the consumer experience straightforward. Undoubtedly, Google’s primary motivator from the beginning has been usability. A clear, uncluttered interface that serves a clear function is a search bar with a button to activate after entering the search term. The outcomes are also uncluttered. Everything is incredibly helpful.
Consider this question, along with many others of a similar nature: Are all those pages and pages on your website merely unnecessary clutter, or are they helpful to users in purchasing decisions?
Doing something correctly just once is insufficient to earn praise and, ideally, money. Therefore, Google is constantly looking for ways to improve, whether it’s the way its doodles are created and presented, a change to Gmail, or the advancements made in the machine translation of Web sites utilizing Big Data techniques. Institutional unhappiness with the current situation is the only way to maintain the improvement ethos. OEMs must decide what risks they should be willing to take to deliver incremental success especially when huge outcomes are what you’re chasing.
Today, all OEM’s have essentially a blank canvas from which to design their dreams, systems and outcomes. If you’re curious about new solutions your customers are looking for, we’d love to chat!
About EquipmentFX
Over the years, the services we offer have evolved to meet each client’s unique needs. We like to lead with our proprietary A3 assessment to really understand the gaps and opportunities. From there we can discuss follow-on services that we can customize together.
After each assessment, the two questions clients usually ask us are “Can you just do this stuff for us?” followed by “We have marketing people—how can we make them and our processes more efficient?” And sometimes we simply deliver the road map and provide support as needed.
At the end of any engagement, you will have a formal framework and internal audit process to improve your program or build a program from scratch to create more new customers and sell more to existing ones.
To find out more about the EquipmentFX A3 assessment, digital marketing, or technology consulting services, please contact us.
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