On the road to digital servitization – The (dis)continuous interplay between business model and digital technology

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...

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Detalles Bibliográficos
Autores: Chen, Yihua, Visnjic, Ivanka, Parida, Vinit, Zhang, Zhengang
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:Universitat Ramon Llull (URL)
Repositorio:DAU Arxiu Digital de la Universitat Ramon Llull
OAI Identifier:oai:dau.url.edu:20.500.14342/5030
Acceso en línea:http://hdl.handle.net/20.500.14342/5030
http://doi.org/10.1108/IJOPM-08-2020-0544
Access Level:acceso abierto
Palabra clave:Digital servitization
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spelling On the road to digital servitization – The (dis)continuous interplay between business model and digital technologyChen, YihuaVisnjic, IvankaParida, VinitZhang, ZhengangDigital servitizationPurpose: 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.info:eu-repo/semantics/publishedVersionEmerald Group Publishing Ltd.Universitat Ramon Llull. Esade202520252021info:eu-repo/semantics/article29 p.application/pdfhttp://hdl.handle.net/20.500.14342/5030http://doi.org/10.1108/IJOPM-08-2020-0544reponame:DAU Arxiu Digital de la Universitat Ramon Llullinstname:Universitat Ramon Llull (URL)InglésInternational Journal of Operations and Production Management© L'autor/aAttribution 4.0 Internationalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:dau.url.edu:20.500.14342/50302026-06-21T06:40:37Z
dc.title.none.fl_str_mv On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
title On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
spellingShingle On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
Chen, Yihua
Digital servitization
title_short On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
title_full On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
title_fullStr On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
title_full_unstemmed On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
title_sort On the road to digital servitization – The (dis)continuous interplay between business model and digital technology
dc.creator.none.fl_str_mv Chen, Yihua
Visnjic, Ivanka
Parida, Vinit
Zhang, Zhengang
author Chen, Yihua
author_facet Chen, Yihua
Visnjic, Ivanka
Parida, Vinit
Zhang, Zhengang
author_role author
author2 Visnjic, Ivanka
Parida, Vinit
Zhang, Zhengang
author2_role author
author
author
dc.contributor.none.fl_str_mv Universitat Ramon Llull. Esade
dc.subject.none.fl_str_mv Digital servitization
topic Digital servitization
description 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.
publishDate 2021
dc.date.none.fl_str_mv 2021
2025
2025
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.14342/5030
http://doi.org/10.1108/IJOPM-08-2020-0544
url http://hdl.handle.net/20.500.14342/5030
http://doi.org/10.1108/IJOPM-08-2020-0544
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv International Journal of Operations and Production Management
dc.rights.none.fl_str_mv © L'autor/a
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv © L'autor/a
Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 29 p.
application/pdf
dc.publisher.none.fl_str_mv Emerald Group Publishing Ltd.
publisher.none.fl_str_mv Emerald Group Publishing Ltd.
dc.source.none.fl_str_mv reponame:DAU Arxiu Digital de la Universitat Ramon Llull
instname:Universitat Ramon Llull (URL)
instname_str Universitat Ramon Llull (URL)
reponame_str DAU Arxiu Digital de la Universitat Ramon Llull
collection DAU Arxiu Digital de la Universitat Ramon Llull
repository.name.fl_str_mv
repository.mail.fl_str_mv
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