IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v13y2023i1p21582440231159281.html
   My bibliography  Save this article

The Role of Internet-of-Things for Service Transformation

Author

Listed:
  • Andreas Eigner
  • Christian Stary

Abstract

The Internet of Things (IoT) is increasingly becoming a key technology for service transformation, that is, the transition from pure product sales to so-called “bundles†of customer-focused combinations of products and services. These combinations are termed product-service systems. They aim to add value for the customer. However, the role of IoT in this context is not quite clear. In this contribution, therefore, we examine the role of IoT in the context of service transformation. Our structured analysis of transformation processes reveals IoT as essential enabler of digital service transformation. We explain IoT-relevance on a strategic and operational level of IoT-capable business models. IoT not only can supplement a portfolio of products on a strategic level, but also completely replace a product. At the operational level, capabilities such as remote monitoring or remote control play a crucial role. IoT also plays a crucial enabling role when the convergence between service transformation and Industry 4.0 is targeted. However, when realizing service transformation, the various IoT capabilities are mutually dependent. Hence, implementation follows in some way a waterfall-like process in which certain results are required to trigger the next development step. We describe these dependencies, and thus facilitate decision making when IoT is used for service transformation processes. Organizations can then take appropriate development actions.

Suggested Citation

  • Andreas Eigner & Christian Stary, 2023. "The Role of Internet-of-Things for Service Transformation," SAGE Open, , vol. 13(1), pages 21582440231, March.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:1:p:21582440231159281
    DOI: 10.1177/21582440231159281
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440231159281
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440231159281?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
    ---><---

    References listed on IDEAS

    as
    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    3. Jörg Firnkorn & Martin Müller, 2012. "Selling Mobility instead of Cars: New Business Strategies of Automakers and the Impact on Private Vehicle Holding," Business Strategy and the Environment, Wiley Blackwell, vol. 21(4), pages 264-280, May.
    4. Federico Adrodegari & Nicola Saccani, 2017. "Business models for the service transformation of industrial firms," The Service Industries Journal, Taylor & Francis Journals, vol. 37(1), pages 57-83, January.
    5. Georg Weichhart & Christian Stary & François Vernadat, 2018. "Enterprise modelling for interoperable and knowledge-based enterprises," International Journal of Production Research, Taylor & Francis Journals, vol. 56(8), pages 2818-2840, April.
    6. Marco Ardolino & Mario Rapaccini & Nicola Saccani & Paolo Gaiardelli & Giovanni Crespi & Carlo Ruggeri, 2018. "The role of digital technologies for the service transformation of industrial companies," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2116-2132, March.
    7. Paiola, Marco & Schiavone, Francesco & Grandinetti, Roberto & Chen, Junsong, 2021. "Digital servitization and sustainability through networking: Some evidences from IoT-based business models," Journal of Business Research, Elsevier, vol. 132(C), pages 507-516.
    8. Dimitris Mourtzis, 2020. "Simulation in the design and operation of manufacturing systems: state of the art and new trends," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 1927-1949, April.
    9. Dijkman, R.M. & Sprenkels, B. & Peeters, T. & Janssen, A., 2015. "Business models for the Internet of Things," International Journal of Information Management, Elsevier, vol. 35(6), pages 672-678.
    10. Gebauer, Heiko & Fleisch, Elgar & Friedli, Thomas, 2005. "Overcoming the Service Paradox in Manufacturing Companies," European Management Journal, Elsevier, vol. 23(1), pages 14-26, February.
    11. Payam Barnaghi & Wei Wang & Cory Henson & Kerry Taylor, 2012. "Semantics for the Internet of Things: Early Progress and Back to the Future," International Journal on Semantic Web and Information Systems (IJSWIS), IGI Global, vol. 8(1), pages 1-21, January.
    12. Saarikko, Ted & Westergren, Ulrika H. & Blomquist, Tomas, 2017. "The Internet of Things: Are you ready for what’s coming?," Business Horizons, Elsevier, vol. 60(5), pages 667-676.
    13. Gianmarco Bressanelli & Federico Adrodegari & Marco Perona & Nicola Saccani, 2018. "Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies," Sustainability, MDPI, vol. 10(3), pages 1-21, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhen Liu & Yixin Liu & Mohamed Osmani, 2024. "Integration of Smart City Technology and Business Model Innovation," Sustainability, MDPI, vol. 16(12), pages 1-30, June.

    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. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    2. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2019. "PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model," Sustainability, MDPI, vol. 11(22), pages 1-30, November.
    3. Shen, Lei & Sun, Wanqin & Parida, Vinit, 2023. "Consolidating digital servitization research: A systematic review, integrative framework, and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    4. 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).
    5. Siri Jagstedt & Magnus Persson, 2019. "Using Platform Strategies In The Development Of Integrated Product-Service Solutions," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-36, May.
    6. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    7. Bernhard Dachs & Sabine Biege & Martin Borowiecki & Gunter Lay & Angela Jäger & Doris Schartinger, 2014. "Servitisation of European manufacturing: evidence from a large scale database," The Service Industries Journal, Taylor & Francis Journals, vol. 34(1), pages 5-23, January.
    8. Green, Maxwell H. & Davies, Philip & Ng, Irene C.L., 2017. "Two strands of servitization: A thematic analysis of traditional and customer co-created servitization and future research directions," International Journal of Production Economics, Elsevier, vol. 192(C), pages 40-53.
    9. Vinit Parida & Joakim Wincent, 2019. "Why and how to compete through sustainability: a review and outline of trends influencing firm and network-level transformation," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 1-19, March.
    10. Marie-Anne Le-Dain & Lamiae Benhayoun & Judy Matthews & Marine Liard, 2023. "Barriers and opportunities of digital servitization for SMEs: the effect of smart Product-Service System business models," Service Business, Springer;Pan-Pacific Business Association, vol. 17(1), pages 359-393, March.
    11. Zhou, Dan & Yan, Tingting & Dai, Weiqi & Feng, Junzheng, 2021. "Disentangling the interactions within and between servitization and digitalization strategies: A service-dominant logic," International Journal of Production Economics, Elsevier, vol. 238(C).
    12. Karatzas, Antonios & Daskalakis, George & Bastl, Marko & Johnson, Mark, 2022. "Risky business? Shareholder value effects of service provision," International Journal of Production Economics, Elsevier, vol. 244(C).
    13. Chankook Park, 2022. "Expansion of servitization in the energy sector and its implications," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(4), July.
    14. Yong Chen & Zhengjie Wu & Wenchao Yi & Bingjia Wang & Jianhua Yao & Zhi Pei & Jiaoliao Chen, 2022. "Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions," Sustainability, MDPI, vol. 14(14), pages 1-26, July.
    15. Emilia Ingemarsdotter & Ella Jamsin & Gerd Kortuem & Ruud Balkenende, 2019. "Circular Strategies Enabled by the Internet of Things—A Framework and Analysis of Current Practice," Sustainability, MDPI, vol. 11(20), pages 1-37, October.
    16. Jovanovic, Marin & Raja, Jawwad Z. & Visnjic, Ivanka & Wiengarten, Frank, 2019. "Paths to service capability development for servitization: Examining an internal service ecosystem," Journal of Business Research, Elsevier, vol. 104(C), pages 472-485.
    17. Lena Ries & Markus Beckmann & Peter Wehnert, 2023. "Sustainable smart product-service systems: a causal logic framework for impact design," Journal of Business Economics, Springer, vol. 93(4), pages 667-706, May.
    18. Luna Leoni & Sara Poggesi, 2017. "The relationship between servitization and product-service system: insights from the literature," ESPERIENZE D'IMPRESA, FrancoAngeli Editore, vol. 2017(1), pages 29-51.
    19. Gebauer, Heiko & Saul, Caroline, 2014. "Eine bibliometrische Analyse des Forschungsstandes und der zukünftigen Forschungsfragen für die Transformation vom Produzenten zum Dienstleister," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(4), pages 229-249.
    20. Pedro E. Minaya & Lucía Avella & Juan A. Trespalacios, 2023. "The effects of digital servitization on business competitiveness: A case study of Spanish manufacturers," Journal of International Entrepreneurship, Springer, vol. 21(2), pages 180-213, June.

    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:sae:sagope:v:13:y:2023:i:1:p:21582440231159281. 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: SAGE Publications (email available below). General contact details of provider: .

    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.