Six Principles for Successful Data-Driven Service Innovation in Industrial Companies

Abstract

Data-driven services play an important role in innovative business models of successful manufacturing companies: They hold great potential for the creation of unique selling points and improve the differentiation of manufacturing companies in highly competitive markets. However, the large number of newly invented digital services that fail shortly after launching implies that companies struggle with the invention and implementation of data-driven service solutions, which ends in a waste of resources. The following paper introduces guideline principles for successful innovation processes for data-driven services. The principles were identified during in-depth case studies with manufacturing companies. They contribute to a necessary paradigm change for manufacturing companies in terms of data-driven services for machines. The six identified principles emphasize new aspects regarding the new dimension of data-driven solutions and improve the life cycle management of products and services. They demonstrate how the rules of agile development can lead to successful and more efficient service innovations in the industrial sector.