Relational Transformation for Digital Servitization

Abstract

To benefit from digitalization, providers and customers are moving away from transactional product-centric models to relational service-oriented engagement. This trend is referred to as digital servitization, and requires providers and customers to transform their relationship to co-create value and maximize benefits. This chapter integrates insights from literature on digitalization and servitization with the theoretical perspective of the relational view, and presents a relational transformation framework for digital servitization. The framework highlights four relational components (complementary digitalization capabilities, relation-specific digital assets, digitally enabled knowledge-sharing routines, and partnership governance) which evolve across three phases of provider–customer relationships (foundational, intermediate, advanced). By providing relational insights into the interdependence of activities throughout the transformation phases, we contribute to the emerging literature on digital servitization, and offer guidance for managers involved in digital servitization initiatives.