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Adding value through utility

Mohanbir Sawhney, Sirdhar Balasubramanian & Vish V. Krishnan

Product-focused companies need to understand that customers really only want utility. Smart companies are branching out into utility-adding services to expand their markets. The starting point is to classify potential services along two dimensions: first the temporal dimension, for services that add new activities to a primary activity (e.g. visiting a car dealer's showroom); and second the spatial dimension, for services that add new activities to an adjacent chain (e.g. when car buyers visit a showroom but later buy car insurance from a separate company).