Value Creation Framework and Roles for Smart Services

Abstract

For several years now, the two megatrends of servitization and digitalization have had a major impact on business in manufacturing. Servitization means the addition of complementary services to products aiming for increased revenues, margins, and differentiation from competitors. Digitalization refers to the rapidly evolving information and communication technologies, enabling intelligent and interconnected products. The convergence of the two megatrends leads to so-called smart services; digital services that generate additional value from data of smart products. Smart services enable new promising business models going far beyond traditional services. Consequently, the value creation in manufacturing is shifting drastically. Manufacturing companies striving to offer smart services need to plan for their future value network (VN) and must define their position in it. However, this is not a trivial matter. Manufacturing companies must extend their often historically grown value creation with new mechanisms, such as processing machine data, and structures, such as digital platforms. Hence, the complexity of the underlying VN of a successful smart service business is far greater than traditional VNs in manufacturing. To tackle these challenges, our research aims for a design support for smart service VNs. The research follows the guiding principles of design science research, utilizes the design research methodology, and integrates a systematic literature review. This results in a framework giving a general understanding of smart service value creation. The framework is supplemented by 44 value creation roles for smart services, which help planning the VN and positioning of the focal company in it. Hence, we empower managers to design their companies’ future value creation for smart services. The framework and roles further extend the scientific knowledge base regarding the understanding of value creation through and with smart services.