Exploring digital servitization trajectories within product-service-software space

Purpose This study shows various pathways manufacturers can take when embarking on digital servitization (DS) journeys. It builds on the DS and modularity literature to map the strategic trajectories of product-service-software (PSSw) configurations. Design/methodology/approach The study is exploratory and based on the inductive theory building method. The empirical data were gathered through a workshop with focus groups of 15 servitization manufacturers (with 22 respondents), an on-site workshop (in-depth case study), semi-structured interviews, observations and document study of archival data. Findings The DS trajectories are idiosyncratic and dependent on design architectures of PSSw modules, balancing choices between standardization and innovation. The adoption of software systems depends on the maturity of the industry-specific digital ecosystem. Decomposition and integration of PSSw modules facilitate DS transition through business model modularity. Seven testable propositions are presented. Research limitations/implications With the small sample size from different industries and one in-depth case study, generalizing the findings was not possible. Practical implications The mapping exercise is powerful when top management from different functional departments can participate together to share their expertise and achieve consensus. It logs the states that the manufacturer undergoes over time. Originality/value The Digital Servitization Cube serves as a conceptual framework for manufacturers to systematically map and categorize their current and future PSSw strategies. It bridges the cross-disciplinary theoretical discussion in DS.

Automated summary

This study explores various pathways for manufacturers in their digital servitization journeys, emphasizing the strategic trajectories of product-service-software configurations to help them balance choices between standardization and innovation. Findings show that DS trajectories depend on the design architectures of PSSw modules, with software system adoption linked to the maturity of industry-specific digital ecosystems, and decomposition and integration of PSSw modules facilitating DS transition.