Description
This episode provides a comprehensive overview of digital servitization, which describes the convergence of servitization (the shift from product-centric to service-centric business models) and digitalization (the adoption of digital technologies). We explore how product companies utilize digital technologies, such as the Internet of Things (IoT), to expand their service offerings and achieve revenue growth. This episode illustrates company growth paths—including examples like Siemens, IBM, and Apple—and discussing paradoxes related to investing in both services and digital assets. We explain digital servitization through the lens of four theories of the firm (resource-based view, power approach, organizational identity, and transaction cost approach) to analyze various business model configurations, emphasizing the necessity of adopting an ecosystem perspective to manage complexity across organizational boundaries. Both texts identify research gaps and propose future academic agendas for studying digital servitization in business-to-business markets.
Key themes
Digitalization, Servitization, Ecosystems, Business Models, IoT/Data, Capabilities
