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Remote monitoring technology and servitised strategies – factors characterising the organisational application

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  • Tonci Grubic
  • Ian Jennions

Abstract

This paper introduces factors that characterise the organisational application of remote monitoring technology (RMT) for servitised strategies. Factors were developed through in-depth case studies of four manufacturers operating in aerospace, industrial equipment, marine and transportation sector. They suggest a very complex, multi-levelled, multifaceted and circular relationship between RMT and servitisation. When unfolding this relationship we need to consider: the value proposition, nature of the product and its hierarchical position in the customer’s business, RMT functionality, type and amount of data required, and a number of other factors that either complement or constrain the use of RMT. By providing the necessary lenses, the proposed factors can help in exploring this complexity. One such exploration questions our understanding of outcome-based contracting.

Suggested Citation

  • Tonci Grubic & Ian Jennions, 2018. "Remote monitoring technology and servitised strategies – factors characterising the organisational application," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2133-2149, March.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:6:p:2133-2149
    DOI: 10.1080/00207543.2017.1332791
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    1. Grubic, Tonci & Jennions, Ian, 2018. "Do outcome-based contracts exist? The investigation of power-by-the-hour and similar result-oriented cases," International Journal of Production Economics, Elsevier, vol. 206(C), pages 209-219.
    2. Tim Gruchmann & Nadine Pratt & Jan Eiten & Ani Melkonyan, 2020. "4PL Digital Business Models in Sea Freight Logistics: The Case of FreightHub," Logistics, MDPI, vol. 4(2), pages 1-14, May.
    3. Rahman Dwi Wahyudi & Moses Laksono Singgih & Mokh Suef, 2022. "Investigation of Product–Service System Components as Control Points for Value Creation and Development Process," Sustainability, MDPI, vol. 14(23), pages 1-23, December.
    4. Vinit Parida & David Sjödin & Wiebke Reim, 2019. "Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    5. Li-Min Chuang & Yu-Po Lee, 2023. "Dilemmas and Strategies of Digital Servitization: A Multiple Case Comparative Study," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(5), pages 1-2.
    6. 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).
    7. Kohtamäki, Marko & Parida, Vinit & Patel, Pankaj C. & Gebauer, Heiko, 2020. "The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    8. Kohtamäki, Marko & Rabetino, Rodrigo & Einola, Suvi & Parida, Vinit & Patel, Pankaj, 2021. "Unfolding the digital servitization path from products to product-service-software systems: Practicing change through intentional narratives," Journal of Business Research, Elsevier, vol. 137(C), pages 379-392.
    9. Jonas Wirth & Mirko Schneider & Leon Hanselmann & Kira Fink & Stephan Nebauer & Thomas Bauernhansl, 2024. "An Exploratory Analysis of the Current Status and Potential of Service-Oriented and Data-Driven Business Models within the Sheet Metal Working Sector: Insights from Interview-Based Research in Small a," Sustainability, MDPI, vol. 16(7), pages 1-19, March.
    10. David Hidalgo-Carvajal & Ruth Carrasco-Gallego & Gustavo Morales-Alonso, 2021. "From Goods to Services and from Linear to Circular: The Role of Servitization’s Challenges and Drivers in the Shifting Process," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    11. Mirosław Matusek, 2022. "Exploitation, Exploration, or Ambidextrousness—An Analysis of the Necessary Conditions for the Success of Digital Servitisation," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    12. Truant, Elisa & Broccardo, Laura & Dana, Léo-Paul, 2021. "Digitalisation boosts company performance: an overview of Italian listed companies," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    13. Korkeamäki, Lauri & Kohtamäki, Marko & Parida, Vinit, 2021. "Worth the risk? The profit impact of outcome-based service offerings for manufacturing firms," Journal of Business Research, Elsevier, vol. 131(C), pages 92-102.
    14. Bahareh Nikmehr & M. Reza Hosseini & Igor Martek & Edmundas Kazimieras Zavadskas & Jurgita Antucheviciene, 2021. "Digitalization as a Strategic Means of Achieving Sustainable Efficiencies in Construction Management: A Critical Review," Sustainability, MDPI, vol. 13(9), pages 1-12, April.
    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.

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