Product-service hybrids are becoming ever more critical in an increasingly competitive and globalizing business landscape. It is almost impossible to imagine the digital age without them. Traditionally, businesses solved problems by providing either a product or a service, but new technologies have enabled and stimulated product and service integration.
Over the years, it has become evident that product-service hybrids create opportunities to generate higher profits and increased customer loyalty while at the same time generating increased customer value. Solutions that are customer-centric and technology-enabled are key success drivers. However, developing and maintaining hybrid solutions can be tricky. Developers of product-service hybrids do not only face the challenge of how to find the best combination of a product-service offering, but also of how to innovate such offerings. To overcome this challenge, opportunities to generate increased revenue and support an overall positive customer experience needs to be identified. Luckily, Apigee is there to help you create new revenue streams and make your offerings discoverable and consumable. You can read here how Apigee is able to benefit your hybrid offering mix.
First, it may be helpful to explain what a product-service hybrid is. Hybrid offerings often consist of a mix of complementarity and independence. A common example of a flexible offering is the Chromebook product combined with the Google Chrome service. This hybrid-approach is highly complementary because the value to the customer is increases when the product and the service are used together. At the same time, the hybrid offering is independent since it is possible to use the product without the service and vice versa. Another example of a hybrid offering is Plantsome, an online plant store that delivers plants and provides you with a plant management app that sends notifications when your plant needs water or nutrition. This so-called ‘peace-of-mind bundle’ appeals to customers that are searching for a complete, best-of-breed offering.
Let’s see how Apigee has helped Autodesk discover and innovate the perfect combination of a product-service hybrid.
“We could get what we needed – from the first touch of the customer to the end touch of the API. Things like security, scalability, resiliency – all of these were key factors.”
— Shawn Gilmour, Director of PaaS Strategy
Autodesk, an American multinational software corporation that designs software for desktops, discovered that it had to make a shift in its product offering from desktop technology to cloud offerings. Autodesk had to make sure that it would not be left behind in the move to digital transformation. This insight brought about the decision to move its software to the cloud and investing in Application Programming Interfaces (APIs) to enable new, data-driven revenue streams. As a consequence, Autodesk launched the Autodesk Forge cloud platform. The Forge platform is a developer platform that offers Autodesk cloud technology via APIs, cloud services, and developer sources.
The Apigee API platform allows Autodesk to establish and manage the policies to access Autodesk’s internal and external APIs. Thanks to the interoperability of Apigee with Autodesk’s systems, Autodesk was able to incorporate its features into the platform. “Apigee is an end-to-end solution. We could get what we needed – from the first touch of the customer to the end touch of the API. Things like security, scalability, resiliency – all of these were key factors”, says Shawn Gilmour, Director of PaaS Strategy, Autodesk.
So what makes the Forge platform service in tandem with the Autodesk software products a product-service hybrid? The Forge platform customizes the Autodesk products and allows customers to integrate their Autodesk SaaS products. In this way, customers can get the most value out of their Autodesk products. Moreover, Forge APIs can be combined with Autodesk’s software products. This enables customers to innovate and get more out of their data. Altogether, the combination of Autodesk products and the Autodesk Forge platform service follow a similar hybrid-approach. Customers could easily buy the products or platform service separately. If they choose to combine the two, the value of both the Autodesk products and the Forge platform service can be significantly enhanced.
Apigee has made it possible for Autodesk to design and create the Autodesk Forge cloud platform by helping Autodesk develop their API strategy and bring new APIs to the market. This enables Autodesk and its partners to innovate and use the company’s software applications and resources to create new applications. The hybrid has not only created new revenue streams but also expanded its reach to a new set of customers which include those who consume but who will never buy a complicated design product.
Therefore, Apigee can help you foster hybrid innovations and create more profits, increased customer loyalty, dependency, and value. Interested to learn how you can manage your API's optimally, and lay the foundation for an optimal user experience (UX) and successful hybrid offerings? Please visit our page on Apigee for more information.