ACCA Applied Knowledge · Business and Technology · Technological factors
Kestrel Ltd sells kitchen appliances. It now fits sensors that send usage data to Kestrel, which uses the data to offer paid maintenance subscriptions and personalised recipes. Which impact of technology on products is MOST clearly shown?
Kestrel is adding value by combining physical appliances with data-driven services such as maintenance subscriptions and personalised recipes. Sensors generate usage data that supports new revenue streams. The scenario does not describe standardisation, a zero product life cycle or offshore production.
- AProduct standardisation to cut production costs
- BAdding value by combining physical products with data-driven servicesCorrect
- CReduction in the product life cycle to zero
- DTransfer of production to overseas suppliers
Explanation
Embedded sensors turn a physical product into a platform for related services, creating extra value and new revenue streams. Nothing in the scenario concerns standardisation or outsourcing, and the life cycle does not fall to zero.
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