In this HBR IdeaCast, Professor Vijay Govindarajan explores a transformative concept: moving from planned obsolescence to "Products That Grow." This approach emphasizes crafting products that evolve alongside customers’ needs. Govindarajan argues that this strategy benefits both companies and consumers, fostering loyalty, enhancing environmental sustainability, and ultimately boosting profits. He provides a range of industry examples to illustrate how adaptable products, through continual hardware and software updates, can generate lasting value and new revenue opportunities. The key takeaway is to selectively choose which products should be adaptable, ensuring that this flexibility adds real value without frustrating customers or incurring unnecessary costs.
