Fandom

The IT Law Wiki

Outcome economy

32,196pages on
this wiki
Add New Page
Talk0 Share

Ad blocker interference detected!


Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.

Definitions Edit

The outcome economy is

an economy where buyers are looking to buy an outcome and the sellers are selling a promise of an outcome.[1]
[a] marketplace where businesses compete on their ability to deliver quantifiable results that matter to customers rather than just selling products or services, e.g. energy saved, crop yield or machine uptime.[2]

Overview Edit

"The outcome economy is a shift from competing by selling products and services to competing by selling measurable results important to the customer."[3] "Delivering customer outcomes requires sellers to take on greater risks. Managing such risks requires automated quantification capabilities made possible by the Industrial Internet."[4]

It is the digital age that makes the outcome economy possible. With the proliferation of connected sensors, the physical world is moving online, becoming increasingly quantified and accessible. Similar to the data logs that show web trails, sensory data streams from connected machines contain detailed traces about product usage and customer behaviours. By applying advanced analytics to such data, along with the right external data and domain models, companies can gain a better understanding of interactions among input variables, and optimize what it takes to achieve desired business outcomes. . . .

The outcome economy will have many implications for businesses. Companies will need more and better data to calculate costs, manage risks and track all the factors required to deliver the promised value. Provider risk will increase, too, as markets move to value based on outcomes, but so will the reward. New financial instruments and forms of insurance will emerge to help enterprises manage the risks associated with guaranteeing outcomes. Pricing practices will also change, as it becomes possible to model the probability of delivering outcomes. Success in this environment will require greater cooperation among businesses than ever before, which will call for a far more connected world, comprising new market ecosystems and technology platforms that can support and serve the Industrial Internet economy.[5]

References Edit

  1. Mary K. Pratt, "The outcome economy is upon us -- is your business ready?", TechTarget (full-text).
  2. Industrial Internet of Things: Unleashing the Potential of Connected Products and Services, App. B: Glossary.
  3. Mary K. Pratt, "The outcome economy is upon us -- is your business ready?", TechTarget (full-text).
  4. Industrial Internet of Things: Unleashing the Potential of Connected Products and Services, App. B: Glossary.
  5. Id. §3.2.

Also on Fandom

Random Wiki