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PD fallacy #2: manufacturing is the hardest challenge
Other aspects have gained importance and these new priorities need to be incorporated. We should focus on lifetime value rather than only BOM and manufacturing costs.
Few things are more satisfying than putting your hands on a new product that you plan to use for the foreseeable future. Whether it’s your new mobile phone, a computer, a smart TV or a car, the fact is that we’re physical beings in a physical world and we like physical things.
Rationally, we may realize that having access to products as a service may be more economical, and it for sure is more convenient, but western culture is about ownership. Just reflect on the number of mechanisms we have in place to keep track of who owns what. Banks are keeping track of who owns what amounts of money and investments. Government institutions keep track of who owns the title to various pieces of real estate, who owns what vehicles and who owns what animals. These records form the basis for an enormous network of legislation to manage ownership, transfer of ownership and violation of ownership rights.