Search

Servitization is vital to manufacturing enterprises' competitive advantages and financial performance in contemporary digitalisation environments. Enterprises are increasingly relying on industrial Internet platforms to satisfy potential customers' needs as well as to create superior value, but the literature has neglected to explain how enterprises can leverage such digital platform to improve the efficiency and effectiveness of servitization. This study aims at describing how the industrial Internet platform can enable servitization of manufacturers. Based upon the meta-theoretical foundations of service-dominant logic, we identify the 'sense and respond' servitization strategy enabled by the industrial Internet platform. By performing a questionnaire survey, we find that the industrial Internet platform approach based on the connectivity and compatibility architecture can enable manufacturers to improve the efficiency of resource integration and resource reconfiguration, which facilitates the implementation of servitization via market perception. We argue that the industrial Internet platform affects an organisation's ability to sense the market and resource management actions; these operational resource actions are a significant antecedent of the servitization strategy. [ABSTRACT FROM AUTHOR]

The purpose of this study is to investigate how large manufacturing firms can orchestrate their ecosystem for the successful co‐creation of data‐driven digital services and solutions as a way to achieve sustainable industry benefits. An exploratory single‐case study approach has been adopted for this study, which included 23 in‐depth interviews conducted with informants from seven Swedish and international companies involved in a transportation ecosystem. Based on the analysis, this study has developed a multi‐level framework for ecosystem orchestration that contains three main operational levels: individual, organization, and ecosystem, with an integrated sustainable industry benefits section as the outcome of this process. By providing a detailed account of ecosystem orchestration, this study contributes to the successful co‐creation of digital services and solutions. In addition, insights from this research can be used as a continuous evaluation and improvement tool for managers to orchestrate their ecosystem for digital servitization. [ABSTRACT FROM AUTHOR]

Purpose: A digital servitization ecosystem (DSE) is a cooperation model based on the concept of value cocreation. However, capability asymmetry among enterprises can lead to unfair benefit distribution and hinder value cocreation and digital service transformation. This paper aims to investigate the impact of the varying capabilities of enterprises (manufacturers, service providers and digital technology providers) on revenue distribution when these enterprises collaborate on digital servitization transformation. This analysis is performed from an ecosystem perspective to facilitate the stable development of DSEs. Design/methodology/approach: The rise of DSEs has engendered extensive literature, and the distribution of benefits within DSEs is in dire need of new mechanisms to adapt to the new competitive environment. The importance of investment contribution, digital servitization level, digitalization level, risk-taking ability, digital servitization effort level and brand awareness is determined by combining the expert scoring method and the entropy value method to determine different weights for manufacturers, service providers and digital technology providers. The Shapley value is used to design the benefit distribution mechanism for stable cooperation among DSE enterprises, thus providing a more scientific basis for the development of cooperative relationships. Findings: Digital servitization is a collaborative process that involves multienterprise activities, and it is significantly affected by digital servitization level and digitalization level. Moreover, constructing the modified Shapley value benefit distribution mechanism according to the relevant capabilities of digital servitization can promote the stable development of DSEs and value cocreation among members. Originality/value: The main contributions of this study are as follows: First, it summarizes the stability-influencing factors of DSEs on the basis of empirical and literature research on the demand for enterprise digital servitization capabilities and transformation difficulties, delves deeper into the capability composition and cooperative relationship of DSE members and combines the expert scoring method and the entropy value method to determine the weighting to design the benefit distribution mechanism. Second, it reflects system stability and development by studying the revenue distribution of DSE members, thereby expanding the ecosystem construction and business model transformation of digital servitization in the existing research. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to identify the interrelationships among critical factors for digital servitization (DS) implementation. Design/methodology/approach: A multi-method research was used. Critical factors for a successful DS implementation were identified using a systematic literature review and expert interviews. The interpretive structural modeling (ISM) method was used to develop a hierarchical model of the identified factors, followed by the fuzzy Matrice d'Impacts Croisés Multiplication Appliqués à un Classement (MICMAC) analysis to assess their dependence and driving powers. Findings: A total of 23 factors for DS implementation were identified, and the ISM model was developed. Based on MICMAC analysis, the factors were also grouped under four categories (dependent, driving, autonomous and linkage). A conceptual framework is proposed, highlighting that DS implementation relies on three main layers of critical factors: crafting alignment, scaling the change and achieving results. Originality/value: The ISM and fuzzy MICMAC methods used in this study provided valuable insights into the interrelationship among the identified DS factors through a conceptual framework. To the best of the authors' knowledge, the study is one of the first to identify critical factors influencing DS implementation and develop hierarchical relationships among them. [ABSTRACT FROM AUTHOR]

Digital platforms are transforming almost every industry today and are expected to revolutionize future value creation. Digital platforms require collaboration, but this is challenging especially in the manufacturing industry where sensitive data need shared and high investments are required. Therefore, the purpose of this study is to enhance the understanding of how to successfully collaborate on digital platforms in the manufacturing industry by developing a contingency framework. The study is an explorative single case study of a digital platform. More specifically, the study examined the development process of a digital twin platform created by a large high-technological company and its collaborative actors. The results are based on 21 semi-structured interviews and reveals that actors on digital platforms can face five types of challenges that hinder a successful collaboration: disadvantages of dependency, uncertainty regarding data management, varying customer needs, insufficient work methods, and unsuitable payment models. The analysis also reveals four strategies that can be used to address the challenges: transparency strategy, incentive model strategy, servitization strategy, and control strategy. Moreover, these findings are summarized in a contingency framework that explains which types of challenges that can be addressed with which strategies based on the specific prerequisites of each collaboration. [ABSTRACT FROM AUTHOR]

Background Digital servitization is a strategic transformation where companies adopt a service-focused approach in response to the prevailing trend of digitalization. Utilizing digital technology, businesses manage product and service operations and develop new value propositions. Further research into digital servitization is essential for maintaining competitiveness and meeting evolving market demands globally. This study aims to comprehend the evolution of digital services from theoretical and practical viewpoints and examines how these challenges are tackled. Methods Utilizing a systematic literature review methodology, the study adopts the PRISMA approach to identify 26 pertinent articles from a pool of 340 papers obtained through a SCOPUS database search. These papers were published between 2019 and 2024 and were retrieved using the keywords (‘digitalization OR digital AND servitization OR servitization’). The selection process involved scrutinizing titles, abstracts, and keywords based on predefined criteria. Results The findings reveal that current digital servitization research emphasizes five determinant variables: digitization, servitization, manufacturing servitization, process innovation, and product innovation. Additionally, response variables influenced by digital servitization were identified, including firm competitiveness, firm performance, financial performance, firm profitability, and sustainable performance. Discussion The results of this review point to inconsistencies, underscoring the necessity for additional research into the factors influencing digital servitization across companies beyond the manufacturing sector. This highlights the importance of gaining a deeper understanding of digital servitization strategies and their impacts across various industries. By expanding the scope of research to include a broader range of sectors, researchers can provide more comprehensive insights into the complexities and nuances of digital servitization adoption. This broader perspective enables a more thorough examination of the challenges and opportunities associated with implementing digital servitization strategies, ultimately contributing to a richer understanding of its implications for businesses across diverse industries.

This study explores how digital servitization, which integrates technology-based services with traditional products, enables the transformation of industrial companies, making them more competitive. The provision of services supported by Industry 4.0 technologies significantly enhances the competitiveness of their traditional products. The analysis of 98 Spanish manufacturing companies shows that digital services increase their market performance. This work identifies the benefits and challenges of digital servitization and offers practical recommendations for adopting this strategy. [ABSTRACT FROM AUTHOR]

This study, through a systematic literature review spanning 1990 to 2023, interrogates how servitization, and nowadays digital servitization, enhances manufacturing competitiveness. It introduces the DASOBI (Drivers, Actors, Strategies, Obstacles, Benefits, and Impact) framework for navigating the digital servitization transition, emphasizing strategic adaptability and technological alignment. Analysis of 157 articles reveals a significant increase in research, highlighting digital servitization's role in competitive enhancement and customer engagement. The DASOBI framework offers manufacturers a novel approach for managing this transition, marking a unique contribution by distilling extensive literature into actionable insights for both theory and practice in the evolving field of digital servitization. [ABSTRACT FROM AUTHOR]

Background Digital servitization is a strategic transformation where companies adopt a service-focused approach in response to the prevailing trend of digitalization. Utilizing digital technology, businesses manage product and service operations and develop new value propositions. Further research into digital servitization is essential for maintaining competitiveness and meeting evolving market demands globally. This study aims to comprehend the evolution of digital services from theoretical and practical viewpoints and examines how these challenges are tackled. Methods Utilizing a systematic literature review methodology, the study adopts the PRISMA approach to identify 26 pertinent articles from a pool of 340 papers obtained through a SCOPUS database search. These papers were published between 2019 and 2024 and were retrieved using the keywords (‘digitalization OR digital AND servitization OR servitization’). The selection process involved scrutinizing titles, abstracts, and keywords based on predefined criteria. Results The findings reveal that current digital servitization research emphasizes five determinant variables: digitization, servitization, manufacturing servitization, process innovation, and product innovation. Additionally, response variables influenced by digital servitization were identified, including firm competitiveness, firm performance, financial performance, firm profitability, and sustainable performance. Discussion The results of this review point to inconsistencies, underscoring the necessity for additional research into the factors influencing digital servitization across companies beyond the manufacturing sector. This highlights the importance of gaining a deeper understanding of digital servitization strategies and their impacts across various industries. By expanding the scope of research to include a broader range of sectors, researchers can provide more comprehensive insights into the complexities and nuances of digital servitization adoption. This broader perspective enables a more thorough examination of the challenges and opportunities associated with implementing digital servitization strategies, ultimately contributing to a richer understanding of its implications for businesses across diverse industries.

Purpose: The purpose of this study is to disclose ontology of DSI as a novel concept in servitization community, explore the research context and themes (i.e. technological and industrial sectors) where DSI emerges, unveil methodological complexities of the research on digital servitization and DSI and provide guidelines for future research avenues regarding DSI. Design/methodology/approach: Bearing in mind the relative novelty of DSI as a concept in servitization literature, the authors adopted a systematic literature review approach to identify 111 peer-reviewed articles published in English language and available in business and management disciplines via scholar databases (Scopus). The analysis of literature discloses descriptive and thematic insights regarding digital servitization and DSI. Findings: The study provides valuable insights from the descriptive and thematic analyses where classification of articles per publication year, citations, methodology/type of the paper, geographical location of data collection, as well as industrial sector and technological contexts are discussed. Moreover, the unique value of this study is observed through its specific focus on the characteristics of DSI-related literature. Originality/value: The study is among the first of its kind to provide extensive descriptive and thematic insights on the available literature dealing with digital servitization and DSI, mapping out prior research across a wide spectrum of publication outlets and illustrating the chronological evolution of research on digital servitization and DSI. [ABSTRACT FROM AUTHOR]

Purpose: This paper studies the Digital Service Innovation (DSI) concept by systematically reviewing earlier studies from various scholarly communities. This study aims to recognize how recent advances in DSI literature from different research streams complement and can be incorporated into the growing digital servitization literature to define better and understand DSI. Design/methodology/approach: After systematically identifying 123 relevant articles, this study employed complementary methods, such as author bibliographic coupling, linguistic text mining/textual analysis and qualitative content analyses. Findings: This paper first maps the intellectual structure and boundaries of the DSI-related communities and qualitatively assesses their characteristics. These communities are (1) Innovation for digital servitization, (2) Service innovation in the digital age and (3) Adoption of novel e-services enabled by information system development. Next, the composition of the DSI concept is examined and depicted to comprehend the notion's critical dimensions. The findings discuss the range of theories and methods in the existing research, including antecedents, processes and outcomes of DSI. Originality/value: This study reviews, extends the understanding of origins and critically evaluates DSI-related research. Moreover, the paper redefines and clarifies the structure and boundaries of the DSI-concept. In doing so, it elaborates on the substance of DSI and identifies the essential themes for its understanding and conceptualization. Thus, the study helps the future development of the concept and allows knowledge accumulation by bridging adjacent research communities. It helps researchers and managers navigate the foggy emerging research landscape. [ABSTRACT FROM AUTHOR]

For manufacturers, remaining competitive depends on their ability to digitalize their business models (i.e., offer digital and digitally enhanced products and services). To achieve this, they must engage with new digital partners and help their existing suppliers, partners, and other stakeholders to digitalize. Orchestrating this growing ecosystem is challenging. Manufacturers struggle with this endeavor because of specific barriers associated with their existing legacy business model and related to their lack of digital vision, product-centric value chains, and a bias toward firm-centered profit formulas. To overcome these barriers, leading manufacturers have developed new approaches to ecosystem orchestration. [ABSTRACT FROM AUTHOR]

Manufacturing firms struggle to break away from their pre-existing business models, offerings, routines, and capabilities. The present study used path dependency as a theoretical lens to investigate a single longitudinal case study of a leading manufacturing company based on in-depth interviews with senior executives and managers. The analysis contributes to extending the digital servitization and path-dependence literature by proposing four path-breaking mechanisms: (1) organizational reconfiguration, (2) reconfiguration of value offerings, (3) opportunity exploration, and (4) knowledge reconfiguration. The framework developed based on these mechanisms generated valuable insights for manufacturing firms seaking to to break away from their dominant paths. [ABSTRACT FROM AUTHOR]

Framing of the research. The agrifood industry needs to embrace digitalization by strategically innovating toward ecological transition and sustainable growth. A conceptual framework, empirically informed, is proposed, and a mixed-methods approach in the Italian wineries' context is adopted. Purpose of the paper. This paper aims to analyze how the sustainability of agribusinesses, especially wine producers, could be improved by implementing precision agricultural systems in place of conventional ones with the support of a digital service provider. Methodology. A sequential mixed methods approach based on both secondary and primary data was conducted. The quantitative analysis focused on a cost-benefit comparison between conventional versus 4.0 wineries. The qualitative analysis was performed through a multiple case study, focusing on the interplay between the service provider and the wineries. Ten interviews were conducted with both actors. Results. The results contribute to the literature by enriching the conceptual framework proposed and updated with empirical evidence. It describes dimensions and relationships that enable the actors involved in reaching higher sustainability outcomes at the firm and network levels. Research limitations. The limited investigated sample, based on a low number of interviews, does not allow a consistent generalization of the results. Managerial implications. Evidence from the case studies can inform both practitioners and policymakers about best practices and process innovation activities, which can increase shared value creation in the agrifood ecosystem. Originality of the paper. This is one of the first studies to take into consideration a relevant topic, still poorly investigated, by deepening how a digital service provider supports the wineries' innovation toward sustainable outcomes. [ABSTRACT FROM AUTHOR]

In today's digital era, households are empowered by digital servitization, which could potentially impact their ability to become entrepreneurs. Using data from the China Family Panel Studies (CFPS) and the National Bureau of Statistics of China, we construct the digital servitization index to analyze the impact of digital servitization on household entrepreneurship. The results show that the utilization of digital servitization by households significantly increases the likelihood of them engaging in entrepreneurial endeavors. This result remains robust after a series of robustness tests. We also find that digital servitization can help households identify entrepreneurial opportunities and access entrepreneurial resources by alleviating information and financial constraints, and increasing social capital. Further, the effect is more among households with rural residences, low material assets, elderly household heads, and household heads with low cognitive abilities, which means that digital servitization can promote underdog entrepreneurship. In conclusion, this paper provides micro-level evidence supporting the idea that digital servitization can foster household entrepreneurship, particularly among underprivileged groups. Ultimately, this paper highlights the potential of digitization as an essential resource to drive economic growth and help households in need become successful entrepreneurs.

Frame of the research: Firms often face the digitalization paradox. Digital servitization may be the key to unlocking the value of investing in digital technology. More research is needed on the enabling factors of such processes. Notably, the extant literature suggests that dynamic capabilities can play a role. Hence, we suggest that ACAP, as a particular type of dynamic capability, positively influences the relationship between Industry 4.0 adoption and digital servitization. Purpose of the paper: The study investigates how the firm's absorptive capacity allows to appropriate value from Industry 4.0 by enabling digital servitization. Methodology: A single case study based on semi-structured interviews with key informants. Findings: The business model innovation process towards digital servitization started with the value proposition to affect the value creation and value capture dimensions. Significant changes exist in product/service development, human resources competencies, and business relationships with customers and suppliers. The firm's absorptive capacity represents a significant enabler of such a process. Research limits: A single case study suffers from limitations related to the external validity of results, which may be overcome by a multiple case study. Besides, increasing the number of interviews and collecting data from other actors (e.g. customers, suppliers, etc.) would allow a broader view. Practical implications: Developing absorptive capacity might help manufacturing firms in overcoming the digitalization paradox. Managers should encourage exploratory, transformative, and exploitative learning that can facilitate the provision of value-added services that allow the firm to appropriate value by enhancing its bargaining power and expanding its market. Originality of the paper: The study primarily contributes to the digital servitization literature by providing empirical evidence on its enabling factors. It also contributes to the knowledge management field and the literature on absorptive capacity. [ABSTRACT FROM AUTHOR]

Abstract Digital servitization is a business model transformation process enabled by the use of digital technologies to create or improve industrial services and product‐service offerings by creating value and competitive advantage increasing customer satisfaction and loyalty as well as company revenue streams. 5G networks can enable digital servitization of manufacturing by providing faster, more secure, and more reliable communications between machines, devices, and humans. This paper explores the impact of adopting 5G technologies on servitization and identifies the services that can benefit most from 5G networks. The research consists of two parts: a literature review of the technologies currently used in the design and provision of industrial services that could benefit from 5G networks and an exploratory survey involving manufacturing companies that have started the digital servitization journey. The main results emerging from the research suggest that 5G can profoundly impact services supported by Augmented Reality, Cloud computing, and Cyber‐physical systems, mainly concerning maintenance, workforce training, machine diagnosis and monitoring.

Servitization is a well-recognised phenomenon in the manufacturing industry. Business potentials are demonstrated mainly from the marketing perspective on servitization. However, increased digitalisation makes servitization interesting to other research areas. This paper applies the resource-based view (RBV) to argue how to value the data and explore its potential and impact on servitization. We examine the evolving role of information technology (IT), particularly of the Internet of Things (IoT), and the role of data in the servitization journey. This research is based on a longitudinal study of a product-oriented manufacturing company's transformation towards servitization. The engagement with the company also includes the development of an IT platform that consolidates IoT and enterprise data, which enables managers to explore new data-based insights. Our goal is to investigate the organisation and in particular cross-functional effects of data-based insights and their impact on supporting strategic decision-making. The action design research (ADR) approach is applied to unfold the servitizing activities inside the organisation and extract the lesson learned into the joint domains of servitization and information systems research. First, we argued that exploring the value of data is becoming a more complex process. Rather than having one design perspective, technical concerns, business considerations, and operational purpose must be aligned to frame the value of data to support decision-making. Second, we discuss the emerging managerial implications, especially the role of IT in the transformation. A cross-functional team is a prerequisite to exploring complex transformation projects. Thus, managers must recognise the problematic situation and bootstrap the available organisational resources. Finally, we provide empirical evidence on how scholars and practitioners can address mutual interests by applying the ADR approach to a transformation project. In summary, servitizing a product-centric manufacturing firm to have a digital services business model is a transformation involving complex social and organisational relations. This study advocates resource-based analysis as a lens and demonstrates how IT and data as heterogeneous and imperfectly mobile resources create value for a product-oriented manufacturing company. However, a critical question remains on how to manage the expanding operational condition of a servitizing organisation and its business system to sustain its competitive advantage and win the digital market. [ABSTRACT FROM AUTHOR]

Purpose—The sale of physical products has been manufacturing companies' main revenue source. A trend is known as servitization for earning revenue comes from services. With the convergence of servitization and digitization, many manufacturing organizations are undergoing digital servitization. In parallel, the digitization of industry is pushing new technological solutions to the top of the business agenda. Artificial intelligence can play a substantial role in this digital business transformation. This evolution is referred to in this paper as Servitization 5.0 and requires substantial changes. Aim—This paper explores the applications of artificial intelligence to Servitization 5.0 strategies and its role, particularly in changing organizations to EverythiA.I.ng as a Service. The paper underlines the contribution that A.I. can provide in moving to a human-centric, sustainable, and resilient servitization. Method used—The basis of the work is a literature review supported by information collected from business case studies by the authors. A follow-up study defined the models. The validity of the model was tested by collecting ten experts' opinions who currently work within servitization contracts sessions. Findings—For manufacturing companies, selling services requires completely different business models. In this situation, it is essential to consider advanced solutions to support these new business models. Artificial Intelligence can make it possible. On the inter-organizational side, empirical evidence also points to the support of A.I. in collaborating with ecosystems to support sustainability and resilience, as requested by Industry 5.0. Original value—Regarding theoretical implications, this paper contributes to interdisciplinary research in corporate marketing and operational servitization. It is part of the growing literature that deals with the applications of artificial intelligence-based solutions in different areas of organizational management. The approach is interesting because it highlights that digital solutions require an integrated business model approach. It is necessary to implement the technological platform with appropriate processes, people, and partners (the four Ps). The outcome of this study can be generalized for industries in high-value manufacturing. Implications—As implications for management, this paper defines how to organize the structure and support for Servitization 5.0 and how to work with the external business environment to support sustainability. [ABSTRACT FROM AUTHOR]

In recent years, interest has grown in servitization strategies as business models for selling combined packages of goods and services to create competitive advantage to provide great customer value. Various studies have examined the benefits servitization offers to both businesses and their customers; however, there is very little research on the moderating role played by the digital enablers of Industry 4.0 on servitization. It is this research gap that the present study aims to fill. Using a framework developed from the extant literature, case studies, with an exploratory objective, were conducted to the aim of identifying and analyzing the challenges and opportunities that could be presented in those companies that decide to develop digital servitization. To achieve it, this study focuses on a deep analysis of the experience in five manufacturing companies, and, from that, we draw significant conclusions (both for further research and for business practice) about the strategy of servitization and the moderating role of Industry 4.0 on business competitiveness. We first carried out detailed interviews with key personnel from companies, complementing that with additional information from various sources before analyzing the results to identify emerging topics. The qualitative study allowed us to highlight how the different kinds of digital technologies supported servitization and product innovation. In addition, it provides empirical evidence about the different servitization strategies and Industry 4.0 digital enablers, which, in combination, allows companies achieving increased competitiveness, generate greater returns, find new customers, access new markets, and develop new business ideas. [ABSTRACT FROM AUTHOR]