Exploring the Willingness-to-Share Data of Digitized Products in B2B Manufacturing Industries

In the digital age, physical products of all kind become infiltrated by technology. Especially for the sophisticated manufacturing industries manifold opportunities, yet in the same way defiances originate. While academia and practice on the one hand show that the value of digitized products for an ecosystem participant increases with the access to data from the surrounding ecosystem, on the other hand research to understand and manage this willingness-to-share data is limited. Accordingly, the Research-in-Progress Paper at hand explores the willingness-to-share data of digitized products in B2B manufacturing industries. In particular, an exploratory case study research design in the Swiss B2B manufacturing industries is carved out. Considering the inherent limitations of this qualitative research approach, preliminary findings show that highly different aspects influence the willingness-to-share data of digitized products in these environments

Enabling servitization by affordance actualization:The role of digitalization capabilities

Digital technologies enable servitization by providing opportunities for the manufacturer to understand the product usage and condition, in customer’s operations. The present study seeks to validate the applicability of affordance actualization theory in order to help identify these opportunities. A systematic literature review of the extent servitization research is conducted to identify the key constructs of the theory and their role in enabling servitization using digital technology. The review identified common affordances across the servitization literature along with specific digitalization capabilities required to actualize these affordances. The study contributes further by proposing future research extended to affordance interdependence

Producer-side Use Cases of Digitized Products: What’s Best for Your Company?

Digital technologies are moving into physical products. Smart cars, connected lightbulbs and data-generating tennis rackets are examples of previously “pure” physical products that turned into “digitized products”. Digitizing products offers many use cases for consumers that will hopefully persuade them to buy these products. Yet, as revenues from selling digitized products will remain small in the near future, digitized product manufacturers have to look for other sources of benefits. Producer-side use cases describe how manufacturers can benefit internally from the digitized products they produce. Our article identifies three categories of such use cases: product-, service-, and process-related ones. We suggest digitized product manufacturers to (1) also consider internal value creation opportunities when developing digitized products, (2) take stock and identify blind spots, and (3) prioritize use cases. Our research can help product manufacturers when building a business case for digitizing their products

Service Systems, Smart Service Systems and Cyber- Physical Systems—What’s the difference? Towards a Unified Terminology

As businesses and their networks transform towards co-creation, several concepts describing the resulting systems emerge. During the past years, we can observe a rise of the concepts Service Systems, Smart Service Systems and Cyber-Physical Systems. However, distinct definitions are either very broad or contradict each other. As a result, several characteristics appear around these terms, which also miss distinct allocations and relationships to the underlying concepts. Previous research only describes these concepts and related characteristics in an isolated manner. Thus, we perform an inter-disciplinary structured literature review to relate and define the concepts of Service Systems, Smart Service Systems and Cyber-Physical Systems as well as related characteristics. This article can, therefore, serve as a basis for future research endeavors as it delivers a unified terminology

Digital Product Innovation in Manufacturing Industries - Towards a Taxonomy for Feedback-driven Product Development Scenarios

In the light of pervasive digitalization, traditional physical products get augmented with digital components that create the potential of making the whole product lifecycle visible for product developers. As numerous opportunities sketch out how feedback such as sensor data might be leveraged for future products, a comprehensive model to describe, particularly a classification model to organize and structure these opportunities seems analytically useful. Hence, this paper pursues a scenario-based approach and proposes a taxonomy for feedback-driven product development scenarios in manufacturing industries. Grounded on (1) empirical data from case studies and focus groups and (2) a systematic literature review, we follow an established taxonomy development method employing the general systems theory as meta-characteristic. With the limitation of a (1) qualitative, interpretive empirical research design and a (2) representative literature review, we contribute to the body of knowledge by shedding light on feedback-driven product development from a classification perspective which may act as structuring and creativity fostering tool

DATA-DRIVEN SERVICE INNOVATION: A SYSTEMATIC LITERATURE REVIEW AND DEVELOPMENT OF A RESEARCH AGENDA

The potential created by ongoing developments in data and analytics permeates a multitude of research areas, such as the field of Service Innovation. In this paper, we conduct a Systematic Literature Review (SLR) to investigate the integration of data and analytics as an analytical unit into the field of Service Innovation – referred to as Data-Driven Service Innovation (DDSI). Overall, the SLR reveals three main research perspectives that span the research field of Data-Driven Service Innovation: Explorative DDSI, validative DDSI, and generative DDSI. This integrated theoretical framework describes the distinct operant roles of data analytics for Service Innovation, and thus contributes to the body of knowledge in the field of DDSI by providing three unified lenses, which researchers can use to describe and locate their existing and future research endeavors in this ample field. Building up on the insights from the SLR, a research agenda is proposed in order to trigger and guide further discussions and future research surrounding DDSI. Ultimately, this paper aims at contributing to the body of knowledge of Service Innovation in general and Data-Driven Service Innovation in particular by presenting a three-dimensional research space model structuring DDSI towards its advancement

EXPLORING HOW DIGITIZED PRODUCTS ENABLE INDUSTRIAL SERVICE INNOVATION – AN AFFORDANCE PERSPECTIVE

This paper explores the impact of digitized products on industrial service innovation. Digital technolo-gies equip physical products with versatile material properties that create a multitude of opportunities for value co-creation. In particular, product-complementing service offerings are an obvious field for investigating service innovation that leverage digitized products. We contribute to research on digitally enabled service systems that progressively emerge in industrial settings. Anchored in a revelatory case study in the intra-logistics industry, we explore how digitized products are put to innovative uses. Spe-cifically, we take an affordance perspective to identify goal-oriented action potentials that arise from material properties of the digitized product and organizational use contexts in service systems. Inter-preting case data, we show how original equipment manufacturers create the potential to (1) monitor and control industrial products remotely; (2) empower technical customer service; (3) manage, opti-mize, and integrate product operations; and (4) offer performance-based contracting of industrial prod-ucts. Besides identifying affordances and demonstrating how digitized products enable novel configu-rations in service systems, we contribute to theory by (1) proposing a framework to conceptualize af-fordances of digitized products for service innovation and (2) linking the service-dominant logic with affordance theory

Exploring the root causes of servitization challenges:an organisational boundary perspective

Purpose: This paper explains how servitization disrupts long-established internal and external boundaries of product-focused manufacturers and investigates the root causes of servitization challenges. Design/methodology/approach: The authors draw from the collective experiences of 20 senior executives from ten multinational manufacturers involved in servitization, using a multiple case study approach, and employ a codebook thematic analysis technique. Findings: The authors develop an integrative framework based on the theoretical notions of power, competency and identity boundaries to offer insights into the root causes of various servitization-related challenges. Research limitations/implications: Although the extant literature discusses servitization challenges, it does not examine the underlying root causes that create them in the first place. This study contributes to the extant research by establishing rational links between organisational boundaries (internal and external) and servitization challenges in the interest of building a coherent and systematically integrated body of theory that can be successfully applied and built upon by future research. Practical implications: This study provides a foundation for managers to recognise, anticipate and systematically manage various boundary-related challenges triggered by servitization. Originality/value: It is one of the first studies to employ the concept of organisational boundary to understand the challenges created by servitization and to account for both internal (between different functions of the same organisation) and external boundaries (between an organisation and its external stakeholders) to establish a holistic understanding of the impacts of servitization on manufacturers

Smart Service Innovation: Organization, Design, and Assessment

Background: The emergence of technologies such as the Internet of Things, big data, cloud computing, and wireless communication drives the digital transformation of the entire society. Organizations can exploit these potentials by offering new data-driven services with innovative value propositions, such as carsharing, remote equipment maintenance, and energy management services. These services result from value co-creation enabled by smart service systems, which are configurations of people, processes, and digital technologies. However, developing such systems was found to be challenging in practice. This is mainly due to the difficulties of managing complexity and uncertainty in the innovation process, as contributions of various actors from multiple disciplines must be coordinated. Previous research in service innovation and service systems engineering (SSE) has not shed sufficient light on the specifics of smart services, while research on smart service systems lacks empirical grounding. Purpose: This thesis aims to advance the understanding of the systematic development of smart services in multi-actor settings by investigating how smart service innovation (SSI) is conducted in practice, particularly regarding the participating actors, roles they assume, and methods they apply for designing smart service systems. Furthermore, the existing set of methods is extended by new methods for the design-integrated assessment of smart services and service business models. Approach: Empirical and design science methods were combined to address the research questions. To explore how SSI is conducted in practice, 25 interviews with experts from 13 organizations were conducted in two rounds. Building on service-dominant logic (SDL) as a theoretical foundation and a multi-level framework for SSI, the involvement of actors, their activities, employed means, and experienced challenges were collected. Additionally, a case study was used to evaluate the suitability of the Lifecycle Modelling Language to describe smart service systems. Design science methods were applied to determine a useful combination of service design methods and to build meta-models and tools for assessing smart services. They were evaluated using experiments and the talk aloud method. Results: On the macro-level, service ecosystems consist of various actors that conduct service innovation through the reconfiguration of resources. Collaboration of these actors is facilitated on the meso-level within a project. The structure and dynamics of project configurations can be described through a set of roles, innovation patterns, and ecosystem states. Four main activities have been identified, which actors perform to reduce uncertainty in the project. To guide their work, actors apply a variety of means from different disciplines to develop and document work products. The approach of design-integrated business model assessment is enabled through a meta-model that links qualitative aspects of service architectures and business models with quantitative assessment information. The evaluation of two tool prototypes showed the feasibility and benefit of this approach. Originality / Value: The results reported in this thesis advance the understanding of smart service innovation. They contribute to evidence-based knowledge on service systems engineering and its embedding in service ecosystems. Specifically, the consideration of actors, roles, activities, and methods can enhance existing reference process models. Furthermore, the support of activities in such processes through suitable methods can stimulate discussions on how methods from different disciplines can be applied and combined for developing the various aspects of smart service systems. The underlying results help practitioners to better organize and conduct SSI projects. As potential roles in a service ecosystem depend on organizational capabilities, the presented results can support the analysis of ex¬ternal dependencies and develop strategies for building up internal competencies.:Abstract iii Content Overview iv List of Abbreviations viii List of Tables x List of Figures xii PART A - SYNOPSIS 1 1 Introduction 2 1.1 Motivation 2 1.2 Research Objectives and Research Questions 4 1.3 Thesis Structure 6 2 Research Background 7 2.1 Smart Service Systems 7 2.2 Service-Dominant Logic 8 2.3 Service Innovation in Ecosystems 11 2.4 Systematic Development of Smart Service Systems 13 3 Research Approach 21 3.1 Research Strategy 21 3.2 Applied Research Methods 22 4 Summary of Findings 26 4.1 Overview of Research Results 26 4.2 Organizational Setup of Multi-Actor Smart Service Innovation 27 4.3 Conducting Smart Service Innovation Projects 32 4.4 Approaches for the Design-integrated Assessment of Smart Services 39 5 Discussion 44 5.1 Contributions 44 5.2 Limitations 46 5.3 Managerial Implications 47 5.4 Directions for Future Research 48 6 Conclusion 54 References 55 PART B - PUBLICATIONS 68 7 It Takes More than Two to Tango: Identifying Roles and Patterns in Multi-Actor Smart Service Innovation 69 7.1 Introduction 69 7.2 Research Background 72 7.3 Methodology 76 7.4 Results 79 7.5 Discussion 90 7.6 Conclusions and Outlook 96 7.7 References 97 8 Iterative Uncertainty Reduction in Multi-Actor Smart Service Innovation 100 8.1 Introduction 100 8.2 Research Background 103 8.3 Research Approach 109 8.4 Findings 113 8.5 Discussion 127 8.6 Conclusions and Outlook 131 8.7 References 133 9 How to Tame the Tiger – Exploring the Means, Ends, and Challenges in Smart Service Systems Engineering 139 9.1 Introduction 139 9.2 Research Background 140 9.3 Methodology 143 9.4 Results 145 9.5 Discussion and Conclusions 151 9.6 References 153 10 Combining Methods for the Design of Digital Services in Practice: Experiences from a Predictive Costing Service 156 10.1 Introduction 156 10.2 Conceptual Foundation 157 10.3 Preparing the Action Design Research Project 158 10.4 Application and Evaluation of Methods 160 10.5 Discussion and Formalization of Learning 167 10.6 Conclusion 169 10.7 References 170 11 Modelling of a Smart Service for Consumables Replenishment: A Life Cycle Perspective 171 11.1 Introduction 171 11.2 Life Cycles of Smart Services 173 11.3 Case Study 178 11.4 Discussion of the Modelling Approach 185 11.5 Conclusion and Outlook 187 11.6 References 188 12 Design-integrated Financial Assessment of Smart Services 192 12.1 Introduction 192 12.2 Problem Analysis 195 12.3 Meta-Model Design 200 12.4 Application of the Meta-Model in a Tool Prototype 204 12.5 Evaluation 206 12.6 Discussion 208 12.7 Conclusions 209 12.8 References 211 13 Towards a Cost-Benefit-Analysis of Data-Driven Business Models 215 13.1 Introduction 215 13.2 Conceptual Foundation 216 13.3 Methodology 218 13.4 Case Analysis 220 13.5 A Cost-Benefit-Analysis Model for DDBM 222 13.6 Conclusion and Outlook 225 13.7 References 226 14 Enabling Design-integrated Assessment of Service Business Models Through Factor Refinement 228 14.1 Introduction 228 14.2 Related Work 229 14.3 Research Goal and Method 230 14.4 Solution Design 231 14.5 Demonstration 234 14.6 Discussion 235 14.7 Conclusion 236 14.8 References 23

Digital Technologies for Digital Innovation: Unlocking Data and Knowledge to Drive Organizational Value Creation

The rise of digitization has radically transformed innovation processes of today's companies and is increasingly challenging existing theories and practices. Digital innovation can describe both the use of digital technologies during the innovation process and the outcome of innovation. This thesis aims to improve the understanding of digital innovation in today's digitized world by contributing to the theoretical and practical knowledge along the four organizational activities of the digital innovation process: initiation, development, implementation, and exploitation. In doing so, the thesis pays special attention to the use of digital technologies and tools (e.g., machine learning, online crowdsourcing platforms, etc.) that unlock knowledge and data to facilitate new products, services, and other value streams. When initiating digital innovations, organizations seek to identify, assimilate, and apply valuable knowledge from within and outside the organization. This activity is crucial for organizations as it determines how they address the increasing pressure to innovate in their industries and markets while innovation processes themselves are changing and becoming more distributed and open. Papers A and B of this thesis address this phase by examining how digital technologies are changing knowledge gathering, e.g., through new ways of crowdsourcing ideas and facilitating cooperation and collaboration among users and innovation collectives. Paper A focuses on organizational culture as a critical backdrop of digital innovations and explores whether it influences the implementation of idea platforms and, in this way, facilitates the discovery of innovations. The paper reveals that the implementation of idea platforms is facilitated by a culture that emphasizes policies, procedures, and information management. Additionally, the paper highlights the importance of taking organizational culture into account when introducing a new technology or process that may be incompatible with the existing culture. Paper B examines newly formed innovation collectives and initiatives for developing ventilators to address shortages during the rise of the COVID-19 pandemic. The paper focuses on digital technologies enabling a transformation in the way innovation collectives form, communicate, and collaborate - all during a period of shutdown and social distancing. The paper underlines the role of digital technologies and collaboration platforms through networking, communication, and decentralized development. The results show that through the effective use of digital technologies, even complex innovations are no longer developed only in large enterprises but also by innovation collectives that can involve dynamic sets of actors with diverse goals and capabilities. In addition, established organizations are increasingly confronted with community innovations that offer complex solutions based on a modular architecture characteristic of digital innovations. Such modular layered architectures are a critical concept in the development of digital innovations. This phase of the digital innovation process encompasses the design, development, and adoption of technological artifacts, which are explored in Sections C and D of this paper. Paper C focuses on the latter, the adoption of digital services artifacts in the plant and mechanical engineering industry. The paper presents an integrative model based on the Technology-Organization-Environment (TOE) framework that examines different contextual factors as important components of the introduction, adoption, and routinization of digital service innovations. The results provide a basis for studying the assimilation of digital service innovations and can serve as a reference model for informing managerial decisions. Paper D, in turn, focuses on the design and development of a technology artifact. The paper focuses on applying cloud-based machine learning services to implement a visual inspection system in the manufacturing industry. The results show, for one, the value of standardization and vendor-supplied IS architecture concepts in digital innovation and, for another, how such innovations can facilitate further innovations in manufacturing. The implementation of digital innovations marks the third phase of the digital innovation process, which is addressed in Paper E. It encompasses organizational changes that occur during digital innovation initiatives. This phase emphasizes change through digital innovation initiatives within the organization (e.g., strategy, structure, people, and technology) and across the organizational environment. Paper E investigates how digital service innovations impact industrial firms, relationships between firms and their customers, and product/service offerings. The paper uses work systems theory as a theoretical foundation to structure the results and analyze them through the lens of service systems. While this analysis helps to identify the organizational changes that result from the implementation of digital innovations, the paper also provides a basis for further research and supports practitioners with systematic analyses of organizational change. The last phase of the digital innovation process is about exploiting existing systems/data for new purposes and innovations. In this regard, it is important to better understand the improvements and effects in the domains beyond the sheer outcome of digital innovation, such as organizational learning or organizational change capabilities. Paper F of this thesis investigates the exploitation of digital innovations in the context of organizational learning. One aspect of this addresses how individuals within the organization leverage innovation to explore and exploit knowledge. Paper F utilizes the organizational learning perspective and examines the dynamics of human learning and machine learning to understand how organizations can benefit from their respective idiosyncrasies in enabling bilateral learning. The paper demonstrates how bilateral human-machine learning can improve the overall performance using a case study from the trading sector. Drawing on these findings, the paper offers new insights into the coordination of human learning and machine learning, and moreover, the collaboration between human and artificial intelligence in organizational routines