Life and innovation cycles of digitised and connected products: case Tesla

Increasing digitisation and connectivity of products calls for re-examination of the traditional product lifecycle model. Digitised and connected products are composed of physical and digital components and are connected to communication networks and cloud-based support infrastructures. Unlike physical components, the functioning of digital components can be modified throughout their lifetime by supplying them with a new version of software. This possibility of modifying the functionality produced by digital components allows the introduction of novelty and variety into manufactured products throughout their lifecycle. To conceptualise the implications of this open-endedness to a product lifecycle model, the paper discusses two complementary routes in the production of novelty and variety, namely, modularisation and (re-) programming. Subsequently, the product lifecycle model that consists of the beginning-of-life, middle-of-life and end-of-life phases is extended by adding a parallel element that incorporates continuous design and production of computer- controlled functionality in the model. In doing so, this paper contributes to the literature of product innovation management by proposing a lifecycle model that conceptualises the gradual design and production of digitised and connected products and that extends beyond the beginning-of-life phase. The validity of this extension is demonstrated using summary statistics and descriptive narrative from a single case study on the Tesla Model S. Concurrent engineering enables the synthesis of concerns from later phases in the product lifecycle to be brought forward to the earlier phases through prototyping and negotiation. However, these concerns are still bound within the design phase. Our findings show how digitisation and connectivity are transforming product and innovation practices and strategies throughout the entire lifecycle. The paper further proposes avenues for future research to better understand how to leverage and manage the open-endedness of digitised and connected products