On the road to digital servitization : The (dis)continuous interplay between business model and digital technology
Chen, Yihua; Visnjic, Ivanka; Parida, Vinit; Zhang, Zhengang (2021-08-13)
Academy of Management
13.08.2021
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021090845630
https://urn.fi/URN:NBN:fi-fe2021090845630
Kuvaus
vertaisarvioitu
© Yihua Chen, Ivanka Visnjic, Vinit Parida and Zhengang Zhang. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
The authors gratefully acknowledge the help and excellent comments provided by the International Journal of Operations & Production Management editorial team and Servitization 2.0 Special IssueEditors: Rodrigo Rabetino, Marko Kohtamäki, Christian Kowalkowski, Tim S. Baines and Rui Sousa. Yihua Chen and Zhengang Zhang acknowledge financial support from the Major Project of National Social Science Fund of China (No. 18ZDA062). Ivanka Visnjic acknowledges financial support from the Spanish Ministry of Science, Innovation and Universities, Reference: PGC2018-2010;101022-A-100“SERSISTEMICS”. Vinit Parida acknowledges financial support from Vinnova and PiiA Process Industrial IT and Automation. The authors are also very grateful for the insightful and constructive comments from the anonymous reviewers.
© Yihua Chen, Ivanka Visnjic, Vinit Parida and Zhengang Zhang. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
The authors gratefully acknowledge the help and excellent comments provided by the International Journal of Operations & Production Management editorial team and Servitization 2.0 Special IssueEditors: Rodrigo Rabetino, Marko Kohtamäki, Christian Kowalkowski, Tim S. Baines and Rui Sousa. Yihua Chen and Zhengang Zhang acknowledge financial support from the Major Project of National Social Science Fund of China (No. 18ZDA062). Ivanka Visnjic acknowledges financial support from the Spanish Ministry of Science, Innovation and Universities, Reference: PGC2018-2010;101022-A-100“SERSISTEMICS”. Vinit Parida acknowledges financial support from Vinnova and PiiA Process Industrial IT and Automation. The authors are also very grateful for the insightful and constructive comments from the anonymous reviewers.
Tiivistelmä
Purpose
The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.
Design/methodology/approach
The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.
Findings
To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.
Research limitations/implications
By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.
Practical implications
Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.
Originality/value
A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.
The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.
Design/methodology/approach
The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.
Findings
To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.
Research limitations/implications
By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.
Practical implications
Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.
Originality/value
A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.
Kokoelmat
- Artikkelit [2820]