Digital Value Creation in sociotechnical Systems: Identification of challenges and recommendations for human work in manufacturing SMEs

Abstract

Digital value creation poses a challenge for many organizations. In line with our research, value is created by combining hybrid service bundles into product service systems. Companies combine resources and human performance to create and distribute goods and services. In doing so, they create sociotechnical systems of value creation. The human factor within sociotechnical systems is a significant contributor to value creation. This study compares the contribution of organizational and human factors in developing digital product service systems. A computer-assisted telephone interview (CATI) with 200 German companies was conducted to understand how organizational structure, business model innovation (BMI) processes and employer qualification influence BMI. Results show that human factors have the strongest impact on developing digital networked business models. Hereby, the form of equipping the workforce plays a crucial role. As a result, organizations should focus on qualification of work to equip themselves and their employees for digital value creation.