From products to smart solutions: A value-creation approach

Abstract

Smart solutions comprise a synergy of products, services, software, connectivity, data, and intelligence. This study examines the evolution of a manufacturer into a smart solution provider, highlighting the role of value-creation capabilities, activities, and practices. Through a longitudinal, in-depth single-case study of a leading technology provider, we scrutinize the value-creation capabilities, activities, and practices that enable a manufacturer to convert its product-focused capabilities and activities into those of a smart solution provider. Particularly, we uncovered three key value-creation-related capabilities that are crucial for the successful transition, namely: 1) visualization capability, 2) integration capability, and 3) scaling capability to revamp the business model for the adoption of smart solutions logic. The findings highlight the role of sensing, seizing, and transforming in a product manufacturer's transition. For managers, our study provides a framework that helps identify, manage, and alter a firm's capabilities and activities when steering the firm toward smart solutions.