Intangibilizing

Intangibilizing refers to the process of transforming something concrete and physical into an intangible form, or rendering something less tangible. This often involves the conversion of physical assets, processes, or concepts into digital, conceptual, or abstract representations. It signifies a shift from the tangible world of material goods to the intangible realm of services, experiences, information, or intellectual property. intangibilizing can encompass the dematerialization of products, the digital transformation of workflows, the emphasis on service over goods, and the increasing reliance on information and knowledge-based value creation. The purpose is to often achieve scalability, efficiency, accessibility, and enhanced value by extracting value from a previously tangible process. The process can also encompass a shift in customer preference for experience over material ownership.

Intangibilizing meaning with examples

• The rise of cloud computing is a prime example of intangibilizing. Businesses are increasingly moving their data and software from physical servers to virtual, cloud-based systems. This shift reduces infrastructure costs, improves accessibility, and allows for scalable storage solutions. This process streamlines operations, improving IT efficiency and freeing up capital that could be spent on hardware and personnel, improving productivity.
• In the music industry, intangibilizing has occurred through the shift from physical CDs to digital downloads and streaming services. Consumers now access music without owning a physical product, enabling them to build playlists based on the intangible experience they are after. This transformation has altered the industry's distribution models, and affected artists and their means of generating income.
• Many companies are intangibilizing their customer service by offering online chat and virtual assistants. They offer customer services from physical stores, allowing customers to solve issues without needing to visit a physical location or speak to a live representative. By improving accessibility and response times, this strategy enhances customer satisfaction and can free up human agents to tackle complex problems.
• The concept of property ownership is being partially intangibilized through the rise of shared services. Instead of owning a car, you can subscribe to a car-sharing service; instead of owning office space, you can use a co-working facility. This process of consuming a service rather than buying the object is the process of intangibilizing the tangible process of owning these assets.
• As businesses build loyalty programs, they are essentially intangibilizing the customer relationship. They offer rewards, personalized experiences, and access to information, all of which are intangible benefits. This shift strengthens brand loyalty and builds closer relationships with consumers and can be difficult for competitors to duplicate due to its intangible nature.