IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v141y2019icp341-351.html
   My bibliography  Save this article

Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective

Author

Listed:
  • Frank, Alejandro G.
  • Mendes, Glauco H.S.
  • Ayala, Néstor F.
  • Ghezzi, Antonio

Abstract

Servitization and Industry 4.0 are considered two of the most recent trends transforming industrial companies. Servitization is mainly focused on adding value to the customer (demand-pull) while Industry 4.0 is frequently related to adding value to manufacturing process (technology-push). Although some scholars address them as complementary concepts, the literature lacks evidences about what are the interfaces and connection between the two trends. Thus, we aim to develop a conceptual framework that connects Servitization and Industry 4.0 concepts from a business model innovation (BMI) perspective. Our framework is based on three Servitization levels (i.e. smoothing, adapting and substituting) and three levels of digitization (i.e. low, moderate and high levels). We show that matching these levels results in nine possible configurations classified in manual, digital and industry 4.0-related services, which can focus on smoothing, adapting or substituting services. We use reported cases from the literature to support and illustrate these configurations. We also discuss different levels of complexity for the implementation of these configurations. The study hence provides a foundation for the growing research on the interface between Servitization and Industry 4.0.

Suggested Citation

  • Frank, Alejandro G. & Mendes, Glauco H.S. & Ayala, Néstor F. & Ghezzi, Antonio, 2019. "Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 341-351.
    • Handle: RePEc:eee:tefoso:v:141:y:2019:i:c:p:341-351
    DOI: 10.1016/j.techfore.2019.01.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162518311156
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2019.01.014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lee, Sunghee & Yoo, Shijin & Kim, Daeki, 2016. "When is servitization a profitable competitive strategy?," International Journal of Production Economics, Elsevier, vol. 173(C), pages 43-53.
    2. Bogers, Marcel & Hadar, Ronen & Bilberg, Arne, 2016. "Additive manufacturing for consumer-centric business models: Implications for supply chains in consumer goods manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 225-239.
    3. Yongxin Liao & Fernando Deschamps & Eduardo de Freitas Rocha Loures & Luiz Felipe Pierin Ramos, 2017. "Past, present and future of Industry 4.0 - a systematic literature review and research agenda proposal," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3609-3629, June.
    4. Reynolds, Elisabeth B. & Uygun, Yilmaz, 2018. "Strengthening advanced manufacturing innovation ecosystems: The case of Massachusetts," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 178-191.
    5. Müller, Julian Marius & Buliga, Oana & Voigt, Kai-Ingo, 2018. "Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 2-17.
    6. Reischauer, Georg, 2018. "Industry 4.0 as policy-driven discourse to institutionalize innovation systems in manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 26-33.
    7. Fosso Wamba, Samuel & Akter, Shahriar & Edwards, Andrew & Chopin, Geoffrey & Gnanzou, Denis, 2015. "How ‘big data’ can make big impact: Findings from a systematic review and a longitudinal case study," International Journal of Production Economics, Elsevier, vol. 165(C), pages 234-246.
    8. Ayala, Néstor Fabián & Paslauski, Carolline Amaral & Ghezzi, Antonio & Frank, Alejandro Germán, 2017. "Knowledge sharing dynamics in service suppliers' involvement for servitization of manufacturing companies," International Journal of Production Economics, Elsevier, vol. 193(C), pages 538-553.
    9. Fernando F. Suarez & Michael A. Cusumano & Steven J. Kahl, 2013. "Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry," Management Science, INFORMS, vol. 59(2), pages 420-435, November.
    10. Caputo, Francesco & Scuotto, Veronica & Carayannis, Elias & Cillo, Valentina, 2018. "Intertwining the internet of things and consumers' behaviour science: Future promises for businesses," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 277-284.
    11. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    12. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    13. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov & Frank Werner & Marina Ivanova, 2016. "A dynamic model and an algorithm for short-term supply chain scheduling in the smart factory industry 4.0," International Journal of Production Research, Taylor & Francis Journals, vol. 54(2), pages 386-402, January.
    14. Rong, Ke & Hu, Guangyu & Lin, Yong & Shi, Yongjiang & Guo, Liang, 2015. "Understanding business ecosystem using a 6C framework in Internet-of-Things-based sectors," International Journal of Production Economics, Elsevier, vol. 159(C), pages 41-55.
    15. Wei, Zelong & Song, Xi & Wang, Donghan, 2017. "Manufacturing flexibility, business model design, and firm performance," International Journal of Production Economics, Elsevier, vol. 193(C), pages 87-97.
    16. Opresnik, David & Taisch, Marco, 2015. "The value of Big Data in servitization," International Journal of Production Economics, Elsevier, vol. 165(C), pages 174-184.
    17. Michael A. Cusumano & Steven J. Kahl & Fernando F. Suarez, 2015. "Services, industry evolution, and the competitive strategies of product firms," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 559-575, April.
    18. Frank, Alejandro Germán & Dalenogare, Lucas Santos & Ayala, Néstor Fabián, 2019. "Industry 4.0 technologies: Implementation patterns in manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 15-26.
    19. Scuotto, Veronica & Del Giudice, Manlio & Peruta, Maria Rosaria della & Tarba, Shlomo, 2017. "The performance implications of leveraging internal innovation through social media networks: An empirical verification of the smart fashion industry," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 184-194.
    20. Martinez, Veronica & Neely, Andy & Velu, Chander & Leinster-Evans, Stewart & Bisessar, Dav, 2017. "Exploring the journey to services," International Journal of Production Economics, Elsevier, vol. 192(C), pages 66-80.
    21. Belk, Russell, 2014. "You are what you can access: Sharing and collaborative consumption online," Journal of Business Research, Elsevier, vol. 67(8), pages 1595-1600.
    22. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    23. Sung, Tae Kyung, 2018. "Industry 4.0: A Korea perspective," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 40-45.
    24. Rymaszewska, Anna & Helo, Petri & Gunasekaran, Angappa, 2017. "IoT powered servitization of manufacturing – an exploratory case study," International Journal of Production Economics, Elsevier, vol. 192(C), pages 92-105.
    25. Weller, Christian & Kleer, Robin & Piller, Frank T., 2015. "Economic implications of 3D printing: Market structure models in light of additive manufacturing revisited," International Journal of Production Economics, Elsevier, vol. 164(C), pages 43-56.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Culot, Giovanna & Orzes, Guido & Sartor, Marco & Nassimbeni, Guido, 2020. "The future of manufacturing: A Delphi-based scenario analysis on Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    2. Büchi, Giacomo & Cugno, Monica & Castagnoli, Rebecca, 2020. "Smart factory performance and Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    3. Frank, Alejandro Germán & Dalenogare, Lucas Santos & Ayala, Néstor Fabián, 2019. "Industry 4.0 technologies: Implementation patterns in manufacturing companies," International Journal of Production Economics, Elsevier, vol. 210(C), pages 15-26.
    4. Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro G., 2020. "Industry 4.0 innovation ecosystems: An evolutionary perspective on value cocreation," International Journal of Production Economics, Elsevier, vol. 228(C).
    5. Lee, Changhun & Lim, Chiehyeon, 2021. "From technological development to social advance: A review of Industry 4.0 through machine learning," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    6. Gillani, Fatima & Chatha, Kamran Ali & Sadiq Jajja, Muhammad Shakeel & Farooq, Sami, 2020. "Implementation of digital manufacturing technologies: Antecedents and consequences," International Journal of Production Economics, Elsevier, vol. 229(C).
    7. Benitez, Guilherme Brittes & Ghezzi, Antonio & Frank, Alejandro G., 2023. "When technologies become Industry 4.0 platforms: Defining the role of digital technologies through a boundary-spanning perspective," International Journal of Production Economics, Elsevier, vol. 260(C).
    8. Meindl, Benjamin & Ayala, Néstor Fabián & Mendonça, Joana & Frank, Alejandro G., 2021. "The four smarts of Industry 4.0: Evolution of ten years of research and future perspectives," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    9. Münch, Christopher & Marx, Emanuel & Benz, Lukas & Hartmann, Evi & Matzner, Martin, 2022. "Capabilities of digital servitization: Evidence from the socio-technical systems theory," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    10. Mariani, Marcello & Borghi, Matteo, 2019. "Industry 4.0: A bibliometric review of its managerial intellectual structure and potential evolution in the service industries," Technological Forecasting and Social Change, Elsevier, vol. 149(C).
    11. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    12. Ricci, Riccardo & Battaglia, Daniele & Neirotti, Paolo, 2021. "External knowledge search, opportunity recognition and industry 4.0 adoption in SMEs," International Journal of Production Economics, Elsevier, vol. 240(C).
    13. Li, Ai Qiang & Kumar, Maneesh & Claes, Björn & Found, Pauline, 2020. "The state-of-the-art of the theory on Product-Service Systems," International Journal of Production Economics, Elsevier, vol. 222(C).
    14. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    15. Cugno, Monica & Castagnoli, Rebecca & Büchi, Giacomo, 2021. "Openness to Industry 4.0 and performance: The impact of barriers and incentives," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    16. Kahle, Júlia Hofmeister & Marcon, Érico & Ghezzi, Antonio & Frank, Alejandro G., 2020. "Smart Products value creation in SMEs innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    17. Kohtamäki, Marko & Einola, Suvi & Rabetino, Rodrigo, 2020. "Exploring servitization through the paradox lens: Coping practices in servitization," International Journal of Production Economics, Elsevier, vol. 226(C).
    18. Laubengaier, Désirée A. & Cagliano, Raffaella & Canterino, Filomena, 2022. "It Takes Two to Tango: Analyzing the Relationship between Technological and Administrative Process Innovations in Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    19. Bustinza, Oscar F. & Vendrell-Herrero, Ferran & Baines, Tim, 2017. "Service implementation in manufacturing: An organisational transformation perspective," International Journal of Production Economics, Elsevier, vol. 192(C), pages 1-8.
    20. Kumar, Mukesh & Raut, Rakesh D. & Mangla, Sachin Kumar & Chowdhury, Soumyadeb & Choubey, Vikas Kumar, 2024. "Moderating ESG compliance between industry 4.0 and green practices with green servitization: Examining its impact on green supply chain performance," Technovation, Elsevier, vol. 129(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:141:y:2019:i:c:p:341-351. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.