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As even mundane consumer products become smart and connected—new kinds of clothing, for instance, can now react to weather conditions and track mileage and vital signs—data-enabled learning will be used to enhance and personalize more and more offerings. However, their providers won’t build strong competitive positions unless the value added by customer data is high and lasting, the data is proprietary and leads to product improvements that are hard to copy, or the data-enabled learning creates network effects.
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