In the 1985 film Fletch, Chevy Chase—impersonating an airplane mechanic—tells suspicious technicians, “It’s all ball bearings these days.” It’s a throwaway joke, but there’s a truth hidden in the absurdity. It hints at how even complex systems tend to rely on the same fundamental components. In today’s world, that foundational component is increasingly code.
Today, it’s not ball bearings—it’s software.
Whether it’s a refrigerator, a hearing aid, or an electric vehicle, more and more of what drives purchasing decisions in physical goods isn’t the object itself; it’s the code running underneath. And while we’re not quite at the point where every sale is a software sale, we’re barreling toward that horizon.
1. Control: Convenience Becomes a Competitive Advantage. When you’re physically near an asset, control is easy. But life isn’t lived next to your machines and appliances. That’s where software steps in.
Remote access, simplified workflows, and seamless mobile interfaces aren’t bells and whistles—they’re table stakes. The differentiator? Ease of use. A smart oven with a complex UI won’t win hearts (or wallets). The value of software hinges on whether it enhances or frustrates the user. In the case of smart assets, the value of the appliance can be maximized or diminished as well. Simple wins. Every time.
2. Oversight: Empowering Every Level of the Org Chart. A well-designed platform doesn’t just centralize visibility—it democratizes it. Field technicians should be able to respond in real-time. So should operations managers, regional directors, or even the COO.
The power here isn’t just transparency; it’s multi-tiered access that lets each user engage with the asset according to their role. This kind of oversight fosters trust, drives responsiveness, and reshapes how organizations approach operational agility. Broader access also mitigates the impact of the unforeseen. When someone is absent or leaves unexpectedly, shared access ensures that others can step in without missing a beat.
3. Optimization: Software That Works Harder Over Time. A physical product is a depreciating asset. But one that evolves through configurable settings, diagnostics, or predictive insights becomes more valuable over its operational life.
Whether it’s Tesla adjusting ride height on the fly or a smart HVAC system fine-tuning itself for off-peak hours, optimization saves time, cuts costs, and lengthens the life of the equipment. And it’s not just reactive, it’s proactive maintenance and performance enhancement, powered by intelligent software.
4. Intelligence: AI Makes Products Context-Aware AI supercharges all of the above.
Why should a washing machine behave the same in a humid Florida basement as it does in a dry Denver garage? It shouldn’t. With AI, manufacturers can tailor software to real-world conditions and real-time usage patterns, allowing each use case to dictate unique performance parameters. Hearing aids can adapt to environmental noise. Adaptive fitness equipment can provide diverse experiences tailored to the individual needs and preferences of users. One size can truly fit all. This is why “digital twins” are becoming mainstream: products that learn, adapt, and perform differently in each context because they understand their environment.
The Shift Isn’t Coming—It’s Here. Most products are still sold based on their physical characteristics: size, weight, speed, and design. However, buyers are increasingly asking more informed questions about apps, integrations, configurability, and support. And that means product marketers, engineers, and executives need to treat software like a strategic asset – a differentiator – rather than a line item on a feature list.
It’s not all software just yet. But much like Fletch’s tongue-in-cheek wisdom, it’s becoming increasingly true that the key to differentiation—in cars, cookware, or communication tools—is the experience that lives beyond the hardware. We’re seeing a change not just in products, but in expectations. Buyers now ask how their devices will evolve—how they’ll improve, adapt, and integrate. That makes software not just a feature, but a future promise.
I’m curious to know where you’re seeing this shift most. Is it in your industry or even your own home? Drop it in the comments. Let’s compare notes.
