Analyzing the risks of digital servitization in the machine tool industry

Abstract

The machine tool industry plays a major role in the execution of high-quality and efficient complex manufacturing processes. The adoption of digital technologies can transform production systems into more connected, adaptive, efficient, and potentially sustainable systems. A key enabler of this transformation is servitization, a business model that builds on digitalization and data capture to deliver value through services. Digital services for machine tools typically use data obtained through highly connected manufacturing environments, providing visibility of complex lifecycles, and enabling better decision-making. However, an understanding of digital servitization to support the machine tools industry is still emerging and for most industrial actors the potential risks are unclear. The findings of this study describe potential applications of digital servitization in the machine tool industry, synthesize the identified risks from practitioners’ perspectives, and provide mitigation and contingency activities. This study contributes to bridging the gap between theory and practice by clarifying companies’ needed considerations before implementing digital services in the machine tool industry.