INTRODUCTION TO TECHNOPREUNERSHIP Organizational Innovation

IDEA vs INNOVATION ➢ It refers to the implementation of new

administrative systems, structures, or
IDEA practices within a company that
➢ Conceptual or theoretical. enhances its operations. This
innovation focuses on improving
➢ Unproven and untested.
efficiency, enhancing collaboration,
➢ Potential solution or insight.
and optimizing the overall structure of
➢ Abstract and creative in nature. a business.
INNOVATION EXAMPLES: Microsoft adopted a flexible
➢ Action-oriented. structure to improve agility, cutting
➢ Involves development, testing, and down on bureaucracy after the
execution. complexity of Windows Vista slowed
development. By reorganizing in 1999,
➢ Creates measurable impact or value.
they became more efficient, allowing
➢ Can be a product, process, service, or
for faster innovation.
business model.
A. Product Innovation
How are they related?
➢ It introduces a new or significantly
➢ Ideas inspire innovation. improved product or service. This could
➢ Innovation starts from an idea but involve developing new features,
requires action to turn that idea into improving existing technologies, or
something valuable. introducing a completely new offering
➢ Not all ideas become innovations, but that meets the evolving needs of
innovation cannot exist without the consumers. Product innovations are
seed of an idea. often more visible and can directly
➢ The potential for innovation lies impact customer satisfaction and market
within ideas when they are developed positioning.
into practical applications
EXAMPLES:
INNOVATION FROM EXPERT’S POINT OF VIEW o Tesla’s Electric Car
o 3D Printer
Peter Drucker (Systematic Innovation) o Netflix
B. Process Innovation
➢ Drucker, often referred to as the
➢ It is the implementation of new or
father of modern management, defined
significantly improved production or
innovation as “the specific instrument
delivery methods. This could involve
of entrepreneurship” the means by which
adopting new technologies, optimizing
they exploit change as an opportunity
workflows, or automating tasks to
for a different business or a different
increase efficiency, reduce costs, and
service.
improve quality. Process innovations
Joseph Schumpeter (Creative Destruction) are generally less visible to consumers
but can have a profound effect on a
➢ For him, innovation is the driving company's operations and profitability.
force behind economic development, EXAMPLES:
characterized by a process he called o Unionbank’s Digital Banking
creative destruction. This involves the Platform
process by which innovation o Jollibee’s RFID Order Pickup
continuously revolutionizes the System
economic structure, destroying the old C. Marketing Innovation
one and creating new models and ➢ A marketing innovation is the
businesses. implementation of a new marketing
method (marketing idea or strategy)
Steve Jobs (Human-Centric Innovation) that differs significantly from the
➢ Steve Jobs, co-founder of Apple, viewed previous marketing method used by the
innovation as a blend of technology and enterprise and that has not been
liberal arts that should focus on previously used by the enterprise.
understanding and anticipating customer Key Aspects of Marketing Innovation
needs without relying on market
research. 1. Product Design and Packaging:
Innovating the way a product is
Types of Innovation
 presented can significantly impact oBench’s Online-to Offline
customer perception. Integration
EXAMPLES: o Puregold’s “Sari-Sari Store” App
o Minimalist Design of Apple 8. Sustainability and Ethical Marketing:
Products Innovating marketing by incorporating
o Eco-friendly Packaging of Lush sustainability, environmental
Cosmetics consciousness, or ethical business
o Jollibee's "LanghapSarap" practices.
experience EXAMPLES:
o San Miguel Beer's "Pack in a Box" o Unilever Philippines’ “Sachet
2. Promotion and Advertising: Introducing Economy” Campaign
new promotional tactics or using o The Coffee Bean & Tea Leaf’s Eco-
emerging platforms like social media friendly Initiatives
and influencer marketing.
EXAMPLES: Skills Required for Marketing Innovation
o Old Spice's Viral Campaign 1. Creativity and Open-Mindedness
o Influencer Marketing by Glossier 2. Analytical Skills
o MCDonald’s Digital Marketing 3. Technological Savviness
o Globe Telecom’s Online Ads 4. Risk-Tolerance
3. Pricing Models: Developing innovative 5. Customer-Centric Approach
pricing structures like subscription 6. Collaboration and Communication Skills
models, freemium services, or dynamic
pricing. Advantages
EXAMPLES:
o GCash’s Freemium Services ➢ Enhanced Customer Engagement
o Uber’s Dynamic Pricing ➢ Competitive Advantage
o PLDT Home Prepaid Wi-Fi ➢ Improved Brand Perception
4. Distribution Channels: Leveraging new ➢ Increased Efficiency
distribution methods such as e- ➢ Better Data Insights
commerce, directto-consumer (DTC)
models, or digital marketplaces. Disadvantages
EXAMPLES:
o Lazada and Shopee’s Ecommerce ➢ High Costs
Integration ➢ Market Risk
o Amazon’s Drone Delivery Plans ➢ Complexity and Integration Issues
o SM Supermalls’ “Click and ➢ Over-Reliance on Technology
Collect” Service ➢ Potential for Negative Impact
5. Customer Engagement and Experience: D. ECO Innovation
Innovating in customer interaction, ➢ Eco-innovation refers to the
whether through personalized marketing, development and implementation of new
chatbots, or immersive experiences like products, services, or processes that
augmented reality (AR). contribute to environmental
EXAMPLES: sustainability.
o Starbucks' Mobile Ordering and
Payment App Key Aspects of Eco Innovation
o Sephora’s Use of Augmented 1. Environmental Impact Reduction: The
Reality primary goal is to reduce negative
o PayMaya’s Rewards System environmental effects such as
o ABS-CBN’s Digital Transformation pollution, waste, and carbon emissions.
6. Digital and Social Media Integration: EXAMPLES:
Leveraging digital platforms and social o Electric Vehicle
media to innovate in how brands reach o Biodegradable Plastics
and interact with their audience. 2. Resource Efficiency: Eco-innovations
EXAMPLES: often focus on using resources more
o Coca-Cola’s "Happiness Machine" efficiently, which can include energy,
Social Campaign water, and raw materials.
o Netflix’s Data-Driven EXAMPLES:
Personalization o Hydroponic Farming
7. Omnichannel Marketing: Offering a o Energy-Efficient Appliances
seamless experience across multiple 3. Sustainability: These innovations
channels (both online and offline) support long-term environmental
EXAMPLES: sustainability by promoting practices
o Nike’s Omnichannel Strategy
 that are viable and beneficial for streamline operations, reduce costs,
future generations. and increase productivity.
EXAMPLES: ➢ Customer Experience: Leveraging
o Bamboo Flooring technology and new strategies to
o Patagonia’s Worn Wear Program enhance customer interactions and
4. Technological Advancements: Many eco- satisfaction.
innovations involve the development and ➢ Business Models: Developing new
application of new technologies or the business models or adapting existing
improvement of existing ones to achieve ones to create additional value or tap
environmental goals. into new markets.
EXAMPLES: EXAMPLES:
o Solar Panels o Apple’s continous innovation
o Wind Turbines o Intoduction of GCash
5. Consumer Engagement: Eco-innovations o Jollibee's advanced inventory and
often involve educating and engaging supply chain management systems
consumers about sustainable practices. o Netflix’s algorithm in
EXAMPLES: Personalization
o Unilever’s Sustainable Packaging
o Ecolab’s Water Conservation Government
Programs
6. Integration with Business Models: Eco- ➢ Public Services: Utilizing technology
innovations can be integrated into to improve the delivery of services,
existing business models or lead to the such as e-government platforms for
creation of new ones that prioritize easier access to information and
sustainability. services.
EXAMPLES: ➢ Policy Making: Implementing data-driven
o Interface Carpets policies and strategies to address
o Rivian R1T complex social and economic issues.
➢ Transparency and Accountability: Using
Skills Required for Eco Innovation innovations like blockchain for
transparent record-keeping and reducing
1. Technical Expertise corruption.
2. Project Management ➢ Infrastructure: Investing in smart
3. Innovation & Creativity infrastructure projects that use IoT
4. Business Acumen and other technologies to improve urban
5. Sustainability Management planning and management.
6. Collaboration and Communication Skills EXAMPLES:
Advantages o PhilSys Digital ID
o (PhilGEPS) improves procurement
➢ Environmental Benefits transparency
➢ Cost Savings o Smart traffic management systems
➢ Market Differentiation o Singapore’s Urban Planning
➢ Regulatory Compliance NGOs
➢ Innovation Leadership
➢ Social Impact: Developing innovative
Disadvantages programs and solutions to address
➢ High Initial Costs social issues, such as health,
➢ Market Uncertainty education, and poverty.
➢ Technological Limitations ➢ Funding and Resource Management: Using
new approaches to fundraising, such as
➢ Complex Implementation
crowdfunding and digital campaigns, to
➢ Limited Availability of Materials of
enhance financial sustainability.
Resources
➢ Collaboration: Leveraging technology to
Applications of Innovation collaborate with other organizations
and stakeholders more effectively.
Business ➢ Data Collection and Analysis: Utilizing
advanced data tools to better
➢ Product Development: Innovating new understand and address the needs of the
products or improving existing ones to communities they serve.
meet changing consumer needs and EXAMPLES:
preferences. o Gawad Kalinga Community
➢ Operational Efficiency: Implementing Management
new technologies or processes to o Online Donations
 o PBSP’s social development ➢ A Filipino-American engineer and
projects entrepreneur, Dado Banatao is known for
o UNICEF’s data analytics his contributions to the semiconductor
industry. He co-founded several
Private Sector (Residential) successful tech companies and is
➢ Smart Homes: Integrating technology recognized for his development of the
like IoT devices to enhance home first single-chip graphical user
automation, security, and energy interface accelerator, which
efficiency. significantly improved computer
graphics.
➢ Sustainability: Adopting innovative
practices and technologies to improve Dr. Maria Orosa
energy efficiency, reduce waste, and
promote sustainable living. ➢ A food technologist and chemist, Dr.
➢ Real Estate: Utilizing data analytics Maria Orosa was renowned for her
and technology to better understand contributions to food preservation and
market trends and customer preferences, nutrition. She developed several
leading to more informed property innovative products, including a
investments and developments. variety of processed foods, and was
➢ Community Building: Leveraging digital instrumental in addressing food
platforms to foster community security and nutritional needs in the
engagement and enhance the residential Philippines.
experience.
EXAMPLES: Aisa Mijeno
o SMDC Smart Homes ➢ Aisa Mijeno is the founder of
o Solar-Powered Houses Sustainable Alternative Lighting
Famous Innovators (SALt), a social enterprise that
developed an innovative lamp powered by
Alexander Graham Bell saltwater. This invention aims to
provide affordable and sustainable
➢ Inventor of the telephone, Alexander lighting solutions to off-grid
Graham Bell’s innovation revolutionized communities in the Philippines and
communication by enabling voice other developing countries.
transmission over long distances. His
work laid the groundwork for the Research and Development
development of modern
telecommunications. Research

Mark Zuckerberg ➢ involves a structured investigation

intended to uncover new knowledge. This
➢ Co-founder and CEO of Facebook (now knowledge can then be used to create
Meta Platforms), Mark Zuckerberg played new products, services, processes, or
a significant role in transforming techniques, or to make improvements to
social media and online communication. existing ones.
Facebook's development and expansion
into other technologies like virtual Why do we conduct research?
reality have had a profound impact on 1. A tool for building knowledge and
how people connect and share efficient learning
information globally. 2. Means to understand various issues
Nikola Tesla 3. An aid to Business Success
4. A way to prove lies and to support
➢ An inventor and electrical engineer, truths
Nikola Tesla made groundbreaking 5. Means to find, gauge, and seize
contributions to the development of opportunities
alternating current (AC) power systems,
Development
which revolutionized electricity
distribution. He also worked on ➢ Development is the translation of
wireless communication, radio waves, research findings or other knowledge
and various electrical inventions that into a plan or design for a new product
laid the foundation for many modern or services or for a significant
technologies. improvement to an existing product or
Dado Banatao services.
➢ It includes the conceptual formulation, teams, they use technology, unique
design, and testing of product processes, or business model
alternatives, construction of innovations to gain a competitive
prototypes, and operation of pilot advantage.
plants.
Key Characteristics of IDE
Relation of Research to Development
➢ Targeting regional and global markets,
➢ Research and development are these companies are built on
fundamentally intertwined, as innovation— whether in technology,
development relies on the continuous business processes, or models—that
quest for knowledge and skills to allows them to expand beyond local
address and overcome barriers to boundaries
economic and social progress. ➢ They create "tradable jobs”, which can
➢ Proper development planning depends on be performed remotely or in various
this systematic search for knowledge, locations, not restricted to a specific
which helps identify the most effective area.
strategies and solutions. ➢ A diverse ownership base is common, as
➢ For development to thrive, research founders prioritize high growth and
must be both relevant and inclusive, financial returns, typically adopting a
ensuring that it addresses real-world team-oriented approach.
issues and involves the perspectives of ➢ Exponential growth comes over time,
all stakeholders involved. following initial investments of time,
effort, and resources.
Research and Development ➢ Revenue growth is slower to respond
➢ Research and development represents the when investments are made, unlike in
activities companies undertake to small and medium enterprises where the
innovate and introduce new products and impact is more immediate.
services or to improve their existing EXAMPLES:
offerings.
➢ An ongoing effort to develop or improve o NETFLIX
products and services, often undertaken o GOOGLE
by teams of highly skilled scientists o TESLA
and engineers. o APPLE
➢ Research and development allows a o AIRBNB
company to stay ahead of its o GCASH
competition by catering to new wants or o MICROSOFT
needs in the market.
Small Medium Enterprises (SME)
➢ Companies in different sectors and
industries conduct research ➢ Small Medium Enterprises (SME) Small
developments — software and technology, and medium-sized enterprises (SMEs) are
automotive, life sciences, and often started by one person and may
pharmaceuticals spend the most. grow into a medium-sized business over
ADVANTAGES: time. Rewards typically include
personal independence and a steady cash
➢ Facilitates innovation flow. The revenue and jobs created are
➢ Expands knowledge and talent pool usually linked to the financial
➢ Increased consumer choice and brand resources invested in the business.
loyalty Key Characteristics of SME
DISADVANTAGES:
➢ Local markets are their primary focus,
➢ Financial investment limiting their reach to nearby
➢ Takes time customers.
➢ Shifting market trends ➢ They create "non-tradable jobs, " which
must be performed locally.
Innovation Driven Enterprise (IDE) ➢ Family ownership is common, with
founders aiming to maintain control
➢ Innovation-driven enterprises (IDEs) rather than pursue rapid growth, often
are focused on pioneering new ideas. consisting of individual-driven teams.
They are ambitious, risk-taking ➢ Growth occurs at a linear rate, as
ventures that target markets beyond investments lead to a swift and
their local region. Led by founding positive response in revenue.
EXAMPLES: ➢ Competitive Advantage - May give an
advantage over competitors by providing
o Laundry Shops exceptional or distinctive products or
o Hair Salons services.
o Gyms EXAMPLES:
o Coffee Shops o New Product Development –
o Carinderia FACEBOOK
o Sari-sari Stores o Market Expansion – APPLE, GOOGLE
Organization - Driven idea o Competitive Response
o Product Customization
➢ Organization Driven Ideas derive from
its own internal resources, knowledge, Products and Services
and strategic objectives. These Products
concepts frequently center on utilizing
existing resources to produce new ➢ Anything that can be offered to a
products and services. market for attention, acquisition, use,
or consumption that might satisfy a
Key Characteristocs of Organization - want or need.
Driven idea: ➢ A bundle of attributes that deliver a
➢ Internal Factor - mostly determined by particular value proposition to
internal elements including resources, consumers.
company culture, and values. Leveraging ➢ Any item or service that a consumer
➢ Existing Assets - Make frequent perceives as fulfilling a need, which
utilization of the employees, can range from necessities to luxury
technology, and infrastructure items.
currently in place within the company. EXAMPLES:
➢ Strategic Alignment - Comply with the o Car
overall business plan and objectives of o Electronic Devices
the organization. Efficiency and Cost- o Clothes
o Furniture
➢ Effectiveness - By utilizing current
resources, it is possible to be more Characteristics of Product
economical and efficient.
EXAMPLES: ➢ Tangibility - Products are physical
o Product Line Extensions – APPLE, items that can be touched, seen, and
SAMSUNG, GOOGLE measured.
o Process Improvements – WATSONS, ➢ Quality - Determines a product's value
AMAZONS to the customer.
➢ Design - This includes its shape,
Market - Driven idea appearance, and usability.
➢ Originate from external factors, such ➢ Durability - Products can be durable
as customer feedback, market trends, or (longlasting) or non-durable (consumed
competitor analysis. These ideas came quickly)
from a deep understanding of the target ➢ Functionality - Products are designed
market, their needs, preferences, and to fulfill a specific purpose or
behaviors. By carefully listening to perform a function.
customers and analyzing market data, ➢ Availability - How accessible the
businesses can identify opportunities product is to customers, whether it's
to create products or services that widely available or limited to specific
resonate with their audience. regions or stores.
➢ Branding - This includes the name,
Key Characteristics of Market - Driven logo, and overall reputation which
idea helps differentiate products in the
market.
➢ External Focus - Mainly influenced by
external factors such as consumer Services
feedback, market developments, and
competitor analysis. ➢ An activity, benefit, or satisfaction
➢ Customer-centric - Gives the target offered for sale that is essentially
market's demands and wants. intangible and does not result in the
➢ Market Opportunities - Takes advantage ownership of anything.
of gaps in the industry or new trends. ➢ A transaction in which no physical
goods are exchanged; instead, skills,
 expertise, or assistance are provided price, and style. Shopping product
to fulfill customer needs. marketers usually distribute their
➢ Provides value to consumers through products through fewer outlets but
performance or action, often involving provide deeper sales support to help
direct interaction between the provider customers in their comparison efforts.
and the customer. 3. Specialty Product
EXAMPLES: o Specialty products are consumer
o Home Service products and services with unique
o Doctor Consultation characteristics or brand
o Car Maintenance identifications for which a significant
o Hotel Reservation group of buyers is willing to make a
o Airline Travel special purchase effort.
4. Unsought Product
Characteristics of Services: o Unsought products are consumer products
that a consumer either does not know
➢ Intangibility - Services cannot be
about or knows about but does not
touched, seen, or owned.
normally consider buying. Most major
➢ Perishability - Services cannot be new innovations are unsought until
stored or inventoried for future use. consumers become aware of them through
Once a service is provided, it cannot marketing.
be used again. 5. Industrial Products
➢ Customer Participation - Many services ➢ The name “Pandesal” comes from the
require customer involvement or Spanish “pan de sal, ” which translates
participation during delivery. to “salt bread.” It is made of simple
➢ Lack of Transferability - Services ingredients: flour, yeast, sugar, oil,
cannot be transferred to another and salt.
person.
➢ Variability - The quality of services Types of Consumer Products:
can vary greatly depending on who
provides them, when, where, and how 1. Materials and parts
they are delivered. o These include raw materials as well as
➢ Not Owned - Unlike products, customers manufactured materials and parts. Raw
do not own a service after it is materials consist of farm products
provided. They only experience or (wheat, cotton, livestock, fruits,
benefit from the service for a limited vegetables) and natural products (fish,
period. lumber, crude petroleum, iron ore).
Manufactured materials and parts
Classification consist of component materials (iron,
yarn, cement, wires) and component
Consumer Products parts (small motors, tires, castings).
2. Supplies and Services
➢ These are products and services bought
o These include operating supplies
by final consumers for personal
(lubricants, coal, paper, pencils) and
consumption. Consumer products include
repair and maintenance items (paint,
convenience products, shopping
nails, brooms). Supplies are the
products, specialty products, and
convenience products of the industrial
unsought products.
field because they are usually
Types of Consumer Products: purchased with a minimum of effort or
comparison
1. Convenience Product 3. Capital items
o Convenience products are consumer o These are industrial products that aid
products and services that customers in the buyer’s production or
usually buy frequently, immediately, operations, including installations and
and with minimal comparison and buying accessory equipment
effort. Convenience products are
usually low priced, and marketers place Products and Services
them in many locations to make them
Products:
readily available when customers need
or want them. ➢ Can be touched, seen, and stored
2. Shopping Product ➢ Can be used repeatedly or consumed once
o Shopping products are less frequently ➢ Can often be returned or refunded if
purchased consumer products and unsatisfactory
services that customers compare ➢ Production and consumption are separate
carefully on suitability, quality,
➢ Distributed through physical or digital Different pricing strategies like
channels and can be sold in stores, skimming (high initial price) or
online, or through distributors penetration pricing (low initial price)
can be used depending on the product
Services: and market conditions.
EXAMPLES:
➢ Cannot be touched or owned
a) PLDT Home
➢ Consumption can be episodic or b) Cebu Pacific
continuous. c) Mang Inasal
➢ Cannot be returned but refunds may be 2. Product Life-Cycle Strategy
offered if service is unsatisfactory
➢ Production and consumption often occur
simultaneously
➢ Typically directly to the consumer at a
specific location or through digital
platforms
Strategies in Marketing ➢
EXAMPLES:
1. Segmentation, Targeting, and a) MAX’S RESTAURANT
Positioning (STP): b) Greenwhich
o Segmentation: Dividing the market into c) Nokia
distinct groups of buyers with 3. Distribution Strategy
different needs or behaviors. ➢ Choosing the right channels to
o Targeting: Choosing specific segments distribute products (online, retail,
to focus direct sales) based on the target
o Positioning: Creating a distinct image market. Effective distribution
of the product in the minds of the strategies ensure that the product is
target consumers through effective available to customers where and when
communication. they need it.
Examples: EXAMPLES:
➢ Jollibee a) Shopee
➢ Bench b) Puregold
➢ Ayala Land c) 7-11
2. Product Differentiation: 4. Integrated Marketing Communications
o Differentiating the product from ➢ Integrated Marketing Communications
competitors through unique features, Coordinating various promotional tools
design, quality, or innovation. This such as advertising, public relations,
helps create a competitive advantage direct marketing, and sales promotion
and appeal to specific customer to create a unified message across all
preference. marketing platforms. This ensures
EXAMPLES: consistency and reinforces the
➢ San Miguel Beer product’s positioning.
➢ Selecta Ice Cream EXAMPLES:
➢ Goldilocks a) Coca-Cola
3. Branding b) Nestle
o Building a strong brand identity and c) KFC
equity to establish a loyal customer 5. Customer Relationship Management (CRM)
base. Strong branding also helps in ➢ Focusing on building long-term
differentiating the product from relationships with customers through
competitors and creating emotional loyalty programs, personalized
connections with consumers. communications, and post-sale services.
EXAMPLES: This increases customer retention and
➢ Globe lifetime value.
➢ Milo EXAMPLES:
➢ Penshoppe a) SM Advantage Card
b) BDO Credit Card
Skills Required for Marketing Innovation c) Lazada
6. New Product Development and Innovation:
1. Pricing Strategy ➢ Emphasizing the importance of
➢ Kotler emphasizes value-based pricing continuous innovation and responding to
over cost-based pricing. This involves customer feedback for new product
setting prices based on perceived value ideas, improving existing products, and
to the customer rather than just costs. staying competitive in the market.
 EXAMPLES: usage, with the company managing the
a) JOLIBEE product lifecycle and maintenance.
b) CHOWKING EXAMPLES
c) MERALCO a) Uber
b) Converge
Hybrid Models Combining Products and 6. Outcome-Based Hybrid Model
Services for Enhanced Value ➢ This model focuses on delivering a
➢ Refers to a business approach that specific outcome or solution for the
integrates both tangible products and customer, with products and services
complementary services to create a combined to achieve that result.
unified offering that enhances customer Customers pay for the outcome rather
value. than the product or service itself
1. Product-Centric Hybrid Model EXAMPLES
a) Philips
➢ In this model, the product is the
b) Siemens
primary offering, and services are
added to enhance the product's
functionality, performance, or
lifespan. The focus is on improving
customer satisfaction and loyalty
through post-sale services like
installation, maintenance, or support
EXAMPLES
a) Apple
b) Toyota
2. Service-Centric Hybrid Model
➢ This model revolves around a primary
service offering, with products
provided to enhance the service
experience. In this case, products are
secondary to the service but are
necessary to optimize the service
delivery.
EXAMPLES
a) Netflix
b) Globe
3. Subscription-Based Hybrid Model:
➢ In this model, a product is bundled
with an ongoing subscription or
service. Customers receive a physical
product upfront, but the primary value
is delivered through continuous
services like content, updates, or
usage
EXAMPLES
a) Amazon
b) Spotify
4. Experience-Based Hybrid Model
➢ This model emphasizes creating a
complete customer experience by
combining products and services to
deliver a holistic experience. The
service adds value to the product by
providing customer engagement or a
unique usage environment.
EXAMPLES
a) Starbucks
b) IKEA
5. Product-as-a-Service (PaaS) Model
➢ In this model, the product is offered
as part of a service rather than a
standalone good. Customers don’t own
the product but instead pay for its