Note: Page numbers in italics followed by f, t, and w refer to figures, tables, and worksheets, respectively.

• Abilify, 176, 204
• accessibility, 52–55
• Adherium SmartInhaler, 106
• advertising revenue, 190–191
• AdWords, 190
• Airbnb
• crowd orchestrator architecture, 13, 38, 163–164, 171, 221
• customer experience, 70
• Alexa (Amazon), 196, 209
• Alibaba, 28, 29f
• alternatives, identification of, 206–208, 209t
• Amazon
• Alexa, 196, 209
• AmazonFresh, 24
• Amazon Go stores, 29
• Amazon Web Services, 186
• connection architecture, 13, 154, 156, 158, 171
• customization by, 102
• drone delivery, 213
• Marketplace, 158, 171
• Prime, 189–190
• respond-to-desire customer experience, 6, 70
• analyzing technologies, 227
• Angie’s List, 159, 183
• Apple, 12, 99, 115, 205, 210, 211
• Art Genome Project, 160
• artificial intelligence (AI), 84–85
• Artsy, 160
• Asch, David, 11
• asthma inhalers, repeat loop with, 106
• AstraZeneca, 106
• attributes, product, 52–53
• augmented reality, 14, 42, 228
• automatic execution
• characteristics of, 8, 77–79, 78f
• information flow in, 81t, 83
• limitations of, 236
• use cases for, 87–88, 88t
• with video games, 80
• automatic hovering, 11, 83, 87, 109
• Avis Budget Group, 155

• Bad Ass Mom Box, 154
• BareMinerals Made-2-Fit foundation, 73
• BarkBox, 154
• Bell Labs, 210
• Betterment, 153–154
• BigBasket, 27
• BlaBlaCar, 11, 40–41
• blockchain technology, 39, 227
• Blue Apron
• competitive advantage of, 42–43
• curated offering, 71, 154
• disruptive potential of, 47
• efficiency frontier in, 24–26, 27f, 29f
• BMW, 151
• bottom-up innovation, 209–213
• bracelet monitoring devices, 208, 215
• See also Disney MagicBand
• brainstorming, 51–52
• Brandenburger, Adam M., 11
• Brother Refresh program, 79
• Brynjolfsson, Erik, 11
• business-to-business connected strategies, 16
• Busy Bee Stationery, 154

• cab operations, 32–35, 37
• Cambridge Analytica, 46
• Car2go, 150–151
• Careem, 29
• Carnival, 152–153
• car-sharing services, 150–151, 155
• See also ride-hailing industry
• Chinese grocery market, 28–29
• Clash of Clans, 187
• classification trees, 206–208, 207f
• coach behavior
• characteristics of, 7–8, 73–76, 75f
• information flow in, 81t, 82–83
• use cases for, 87, 88t
• competition, ranking, 55–58
• competitive advantage, 42–43
• See also repeated interactions
• complementary products, revenues from, 167
• connected customer relationships
• See customer relationships
• connected delivery model
• See delivery model
• connected market makers, 157–161, 158f, 171
• connected producers, 148–153, 149f, 170–171
• connected retailers, 153–157, 153f, 171
• connected strategy, definition of, 15
• connected-strategy.com website, 17, 49
• connected strategy framework, 1–4, 3f
• connected strategy matrix
• benefits of, 14, 172
• components of, 168–170, 169f
• mapping, 218–220, 223w
• strategy development with, 220–222
• worksheets for, 219w, 223w
• connection architecture
• connected market makers, 157–161, 158f, 171
• connected producers, 148–153, 149f, 170–171
• connected retailers, 153–157, 153f, 171
• crowd orchestrators, 161–165, 162f, 171–172
• definition of, 4
• need for, 147–148
• peer-to-peer network creators, 165–168, 168f, 172
• role of, 10–11
• See also connected strategy matrix
• consumption utility, 52
• cost of ownership, 52–55, 54w
• cost reduction
• competitive advantage and, 42–43
• with deeper connections, 31–35
• diagnostic questions, 50–51
• dynamic pricing strategies, 35–41
• with new connections, 35–41
• potential for, 46–47, 51–52
• See also efficiency frontier; revenue models; willingness-to-pay
• Couchsurfing, 41
• Coup, 156
• Crisis Text Line, 165
• crowd orchestrators
• connection architecture for, 161–165, 162f, 171–172
• not-for-profit, 164–165
• curated offering customer experience
• characteristics of, 7, 70–73, 72f
• information flow in, 81t, 82
• use cases for, 87, 88t
• Curb app, 33
• customer experiences
• artificial intelligence and, 84–85
• automatic execution, 8, 77–80, 78f, 81t, 83, 87–88, 88t
• brainstorming strategies for, 51–52
• coach behavior, 7–8, 73–76, 75f, 81t, 82–83, 87, 88t
• competitive advantage, 42–43
• connections, benefits of, 35–41, 38t
• curated offering, 7, 70–73, 72f, 81t, 82, 87, 88t
• diagnostic questions for, 50–51
• disruptive potential of, 46–47
• domains of application, 86–88, 88t
• fulfillment costs, 136–141
• Goodr case study, 39
• information flow, 79–83, 81t, 131–133
• pain points, 31–35, 34t, 126–130, 136–141
• respond-to-desire, 5–6, 67–70, 69f, 81t, 82, 86–87, 88t
• summary of, 89–90
• unified experiences across episodes, 98–101
• See also customer journey; efficiency frontier; trust; willingness-to-pay
• customer journey
• mapping, 122–125
• pain points, 31–35, 34t, 126–130, 136–141
• phases of, 63–67, 66f
• worksheet for, 125w
• See also willingness-to-pay
• customer relationships
• components of, 1–3, 3f
• definition of, 64
• goals of, 122
• importance of, 8–9
• See also customer experiences; repeated interactions
• customization
• customer-level learning, 101–103, 103f, 134–136
• levels of, 110–111, 111t, 113, 118–119
• population-level learning, 103–107, 107f
• why-how ladder, 107–110, 109f, 133–134
• See also curated offering customer experience

• Daimler, 10, 150–151, 171
• da shang, 187–188
• data payments, 190–193
• data privacy, 44–46, 144
• dating platforms, 41
• deconstruction
• business application of, 225–228
• dimensions of, 198–201, 202t–203t
• worksheet for, 226w
• deep learning, 84–85
• delivery model, 3–4, 3f
• See also connection architecture; revenue models; technology infrastructure
• diagnostic questions, 50–51
• Didi, 29
• digital twins, 212
• Disney MagicBand
• competitive advantage of, 2, 235
• connection architecture, 6–7, 100–101, 152–153, 170
• as innovation of existing technology, 208, 215
• revenue model, 14
• rewards of, 34
• Dollar Shave Club, 174
• DonorsChoose.org, 164
• Dragon Dictate, 210
• drone delivery, 213
• Dropbox, 186
• dynamic pricing, 35–41, 178

• Earnest, 149–150
• EasyTaxi app, 33
• eBay, 164
• economies of scale, 114–115
• ecosystem, 184–185
• education, efficiency frontier in, 94–98, 95f
• efficiency frontier
• competitive advantage and, 5, 42–43
• concept of, 22–24, 23f
• disruptive potential of, 47
• in education, 94–98, 95f
• in grocery retailing, 24–29
• Pareto dominance and, 30, 241
• in ride-hailing industry, 29, 31
• sketching, 55–59
• worksheet for, 56w
• See also willingness-to-pay
• eHarmony, 41
• episodic interactions
• See repeated interactions
• e-scooter industry, 156
• European Union General Data Protection Regulation, 117, 193
• Expedia, 158–159, 171
• external search, 248

• Facebook, 13, 46, 159, 161, 190, 192
• fees-at-risk revenue model, 184
• financial services
• connected producers, 149–150
• crowd orchestrators, 161–162
• customer needs in, 147–148
• peer-to-peer network creators, 165–168
• fit attributes, 52–53
• Fitbit, 83, 176–177
• Ford, Henry, 91
• freemium revenue models, 186–187
• friction, 53
• See also cost reduction
• fulfillment cost
• definition of, 23
• in education, 95, 95f
• in meal-kit delivery services, 25–26
• reduction of, 136–141
• See also efficiency frontier

• gaming industry, 80, 187
• General Data Protection Regulation, 117, 193
• General Motors, 151
• GetTaxi app, 33
• Gillette, 174
• Gobble, 154
• Gogoro, 156
• Goodr, 39
• Google
• AdWords, 190
• connection architecture, 152, 159, 161
• Nest thermostat, 196
• revenue models, 186, 188, 190
• voice recognition technology, 210–211
• Grab, 29
• Green Chef, 154
• grocery retailing
• efficiency frontier in, 22–24, 23f
• willingness-to-pay, 27–29
• See also meal-kit delivery services

• haggling, 178
• health care space, revenue models for
• See revenue models
• Heller, 212
• HelloFresh, 24, 43, 154
• Hema app (Alibaba), 28, 29f
• hidden Markov chains, 210
• hierarchy of needs, 108, 112–114, 142, 144, 152, 189, 232
• HomeAway, 38
• Homeplus app (Tesco), 28, 29f
• hovering, automatic, 11, 83, 87, 109
• HP Instant Ink program, 77, 79

• IBM, 152, 186, 210
• in-app purchases, 187
• Indian grocery market, 27
• information, limitations in, 178, 180
• information flow
• dimensions of, 79–83, 81t
• identifying and documenting, 131–133
• worksheet for, 132w
• infrastructure-as-a-service revenue model, 186
• innovation, 209–213, 236–237, 249
• Instacart, 26–27, 171
• Instagram, 192
• Instant Ink program (HP), 77, 79
• Internet of Things, xi, 10, 77, 212
• iRobot Roomba, 196
• IronPlanet, 159, 160

• JD, 29
• Jobs, Steve, 205, 208

• Kayak, 38–39
• Khan, Salman, 92, 95–96
• Khan Academy, 92
• Kickstarter, 161–162, 171

• learning analytics
• customer-level learning, 101–103, 103f, 134–136
• population-level learning, 103–107, 107f
• repeat dimension and, 110–115, 112f
• LendingTree, 157
• LinkedIn, 167, 186–187, 190
• loan providers
• See financial services
• L’Oréal, 76
• Love, Jack, 215
• Lyft, 5, 10, 31, 70, 115
• Lynda.com, 93, 102, 107

• Mack Institute for Innovation Management, 10, 262–263
• MagicBand
• See Disney MagicBand
• market makers, connected, 157–161, 158f, 171
• Markowitz, Harry, 241
• Match.com, 41, 167
• McAfee, Andrew, 11
• McGrath, Rita Gunther, 11
• McGraw-Hill, 2, 7–9, 102
• McMillan, Ian C., 11
• meal-kit delivery services
• curated offering, 71
• efficiency frontier in, 24–29, 27f, 29f
• membership revenues, 166–167
• micropayment revenue models, 187–188
• Microsoft, 186, 210
• Mint, 191
• MyTaxi app, 33

• Nadi X pants, 76
• Nalebuff, Barry J., 11
• needs, recognition of
• See recognition of needs
• Nest thermostat, 196
• Netflix, 71, 82, 113, 155, 171
• Netsuite, 186
• network effects, 115
• neural networks, 85
• New York City cab operations, 32–35, 37
• Niantic, 14
• Nike, 7, 167, 170, 186
• Nintendo, 14
• not-for-profit crowd orchestrators, 164–165

• Ola, 29
• OnDeck, 149–150
• OpenTable, 38, 159
• Organisation for Economic Co-operation and Development, 117
• ownership, cost of, 52–55

• P2P
• See peer-to-peer (P2P) network creators
• pain points
• identification of, 126–130, 136–141
• in ride-hailing industry, 31–35
• worksheets for, 130w, 139w
• Pareto dominance, 30, 241
• PatientsLikeMe, 41
• pay-as-you-go revenue model, 185–188
• pay-for-data revenue model, 192–193
• pay-for-performance revenue model, 183–184
• pay-with-data revenue model, 190–193
• PeachDish, 154
• peer-to-peer (P2P) network creators, 165–168, 168f, 172
• performance, pricing contingent on, 183–184
• performance attributes, 52
• personalization
• See customization
• PillsyCap, 176
• platform-as-a-service revenue model, 186
• platform strategies, 12–13
• population-level learning, 103–107, 107f
• Porter, Michael E., 11, 57
• posted prices, 178
• power purchase agreements (PPAs), 184
• Priceline, 158–159, 171
• pricing
• dynamic, 178
• posted prices, 178
• surge, 35–41
• See also revenue models
• privacy concerns, 44–46, 116–118, 144
• producers, connected, 148–153, 149f, 170–171
• product handoff function, 208
• Progressive Insurance, 151–152
• Prosper, 161
• Purple Carrot, 154

• QQ Show, 187

• reacting technologies, 228
• recognition of needs
• in repeated interactions, 98–101
• role of, 3, 64–67, 66t, 199
• STAR approach to, 200–201, 203t–204t
• why-how ladder, 107–110, 109f, 133–134
• referral fees, 191
• reinvestment into relationships, 189–190
• Rent the Runway, 155
• repeated interactions
• competitive advantage and, 110–115, 112f
• customer-level learning in, 101–103, 103f, 134–136
• data-protection policies, 116–118
• examples of, 91–94
• improving customer experiences with, 141–144
• population-level learning in, 103–107, 107f
• recognition of needs in, 107–110
• role in connected strategy framework, 3–4, 199
• STAR approach to, 200–201, 202t–203t
• summary of, 118–119
• unified customer experiences across, 98–101
• worksheet for, 143w
• See also trust
• requests
• role in connected strategy framework, 3, 64–67, 66f, 199
• STAR approach to, 200–201, 202t–203t
• strengthening through repeated interactions, 101–103
• respond-to-desire customer experience
• characteristics of, 6–7, 67–70, 69f
• information flow in, 81t, 82
• use cases for, 86–87, 88t
• response
• role in connected strategy framework, 3, 64–67, 66f, 199
• STAR approach to, 200–201, 202t–203t
• strengthening through repeated interactions, 103–107, 107f
• See also respond-to-desire customer experience
• retailers, connected, 153–157, 153f, 171
• retinal photographs, insurance reimbursement of, 181–182
• revenue models
• complementary products, 167
• creation of, 222, 224
• definition of, 174
• ecosystem for, 184–185
• examples of, 173–177
• fees for information, 167
• limitations of, 179–181
• pay-as-you-go, 185–188
• pay-for-data, 192–193
• pay-for-performance, 183–184
• pay-with-data, 190–193
• reinvestment into relationship, 189–190
• role in connected strategy framework, 4, 14
• summary of, 193–194
• traditional, 178–179
• transaction or membership revenues, 166–167
• value creation, 181–183
• See also cost reduction
• ride-hailing industry
• competitive advantage in, 42–43
• cost reduction in, 35–41
• customer experience in, 5
• disruptive potential of, 47
• efficiency frontier in, 29, 31
• network effect, 115
• pain points in, 31–35, 34t
• surge pricing in, 35–41
• Robert Bosch, 156
• Rolls-Royce, 16, 183–184
• Roomba, 196

• Salesforce, 152, 186
• search, external, 248
• selection tables, 198, 248
• sensing technologies, 225, 227
• Sensoria, 76
• sensors, wearable, 76
• Shiseido, 73
• Siri, 210
• SmartInhaler, 106
• software-as-a-service revenue model, 186
• South Korean grocery market, 27–28
• Square, 104–105
• stack framework, 201, 205–206
• STAR (sense-transmit-analyze-react) approach, 200–201, 202t–203t
• Stuart, Harborne W., Jr., 11
• Sun Basket, 154
• supply chain, 184
• surge pricing, 35–41
• Sweeten, 159

• Target, 45–46
• technology infrastructure
• classification trees for, 206–208, 207f
• deconstruction of, 198–201, 202t–203t, 225–228
• design alternatives for, 206–208, 209t
• identification of, 228–231
• importance of, 14–15
• innovation in, 209–213, 236–237
• role in connected strategy framework, 4
• sample scenarios for, 195–198
• stack framework, 201, 205–206
• visionary thinking for, 213–215
• worksheet for, 229w–230w
• Tencent, 187–188
• Tesco, 27–28, 29f
• textbooks, smart, 2, 7–9, 34, 92–93, 102
• three-dimensional printing technology, 73, 228
• tipping, virtual, 187–188
• traditional revenue models, 178–179
• training neural networks, 85
• transactional friction, 179, 180
• transaction costs, 53
• See also cost reduction
• transaction revenues, 166–167
• TransferWise, 166
• transmitting technologies, 227
• TripAdvisor, 190
• true personalization, 73
• trust
• data-protection policies, 116–118, 144
• importance of, 44–46, 236
• revenue models and, 178–180
• why-how ladder, 107–110, 109f, 133–134

• Uber
• competitive advantage, 5, 32, 43
• connection architecture, 10, 12, 170–171
• efficiency frontier, 29
• respond-to-desire customer experience, 70
• See also ride-hailing industry
• Uberization, 170

• Vacation Rental by Owners (VRBO), 38
• value creation, 181–183
• Venmo, 165–166
• voice recognition, 209–211
• Volkswagen, 151
• Volocopter, 213
• Volpp, Kevin, 11

• Wallaby Financial, 157–158
• Wawa, 208
• Wealthfront, 153–154
• wearable sensors, 76
• Wearable X, 76
• WeChat, 188
• Weinman, Lynda, 93
• why-how ladder, 107–110, 109f, 133–134
• willingness-to-pay
• definition of, 22
• drivers of, 52–55
• in education, 95, 95f
• identifying drivers of, 126–130
• in meal-kit delivery services, 25
• in ride-hailing industry, 31–35
• worksheets for, 54w, 130w
• See also efficiency frontier
• worksheets
• connected strategy matrix, 219w, 223w
• customer journey, 125w
• deconstruction, 226w
• efficiency frontier, 56w
• information flow, 132w
• pain points, 130w, 139w
• repeated customer experiences, 143w
• technological solutions, 229w–230w
• why-how ladder, 134w
• willingness-to-pay drivers, 54w, 130w
• World of Warcraft, 80
• Wozniak, Steve, 205, 208

• Xerox PARC, 208

• Yandex, 29
• YouTube, 167

• Zalando, 105, 155
• Zipcar, 11, 155–156
• Zipline, 213
• ZocDoc, 38