The roles of internet of things in enabling servitized business model : a systematic literature review

Internet of things has increasingly gained attention regarding its potential in enabling servitized business model. However, the academic research that explains this concept is still underexplored. Thus, this paper aims to provide a consolidation and comprehensive analysis of the relevant literature, through conducting a systematic review. From analysing 53 articles, four types of IoT-enabled servitized business model: add-on, sharing, usage-based and solution-oriented are identified. The framework was established to present the relationships of the roles of IoT, firm’s benefit and inhibiting factors in enabling each type of business model. This framework provides a useful and inclusive overview of the topic

An exploration of how product-based firms transition to IoT-enabled servitized firms

The current trend of Industry 4.0 involves the use of digitalisation and smart technologies in product manufacturing. This has enabled product-based manufacturing firms to make the radical shift in their traditional business model towards the service-oriented business model in order to respond to the disruption of digital technologies. This corresponds to the concept of servitization which refers to the shift from selling pure products to the integration of product-service offerings. It is also expected that by leveraging the Internet of Things (IoT) technology as part of the emerging Industry 4.0 disruptive technologies, product-based firms can fundamentally transform their business model and help to facilitate and enable the novel servitized business models. The existing literature discusses the concept of IoT-enabled servitization under the terms of “digital servitization” and “smart servitization” which can be considered as the transformation of firms’ processes and capabilities to shift from a product-centric business model towards smart product-service software systems in enabling value creation. Although the knowledge of the servitization concept has been advanced in both theory and practice, the existing knowledge of the emerging concept of IoT and servitization is still in its infancy and the literature is fragmented. Therefore, the research on this emerging concept provides an opportunity for further investigation. The adoption of IoT in implementing servitized business models is associated with the introduction of new service offerings to meet the new market needs in the volatile market, as discussed in the strategic management literature. The importance of renewal and reconfiguration of firms’ resources and capabilities in order to implement a new business model has been emphasised in the theories of dynamic capabilities view and resource-based view (RBV). In this context, the opportunity exists to carry out empirical research that identifies all associated characteristics, resources, capabilities and related factors that lead to the successful implementation of IoT-enabled servitized business models. To explore this research prospect, the purpose of this thesis is to identify firms’ resources and capabilities and the associated processes which are necessary to implement IoT-enabled servitized business models. In line with the abductive research logic which was underlined by the author’s critical realism, the research design developed to address this research opportunity includes two phases: theoretical and empirical. The former aims to explore the extant literature related to the emerging concept and develop a conceptual framework to serve as a guide for empirical study. The latter is a case-based research method which is adopted to empirically test the conceptual framework and emerge the new findings. Two case studies comprised of six embedded units of analysis are selected to provide an opportunity for the literal replication of the guiding principles that underline the capabilities the product-based firms can adopt in order to transition to an IoT-enabled servitized business model. The research findings concluded that there are four types of IoT-enabled servitized business model which have different associated characteristics. It was also illustrated that firm resources, operational capabilities and firm’s network configurations vary by different IoT-enabled servitized business model strategy, and product-based firms require a particular set of dynamic capabilities (DC) to manage those resources and capabilities. This research highlights the understandings of the transformation process from product-based to IoT-enabled servitized firms. Subsequently, the thesis provides the theoretical and practical contributions by developing a conceptual framework that can be used by academic research in order to further empirically investigate and broaden the knowledge of the emerging concept of IoT and servitization, and by practitioners to evaluate their existing (product-based) firm resources and capabilities, and renew or adjust those resources and capabilities as appropriate in order to implement IoT-enabled servitized business models. Finally, the limitations and future research avenues are highlighted

The roles of internet of things technology in enabling servitized business models : a systematic literature review

The internet of things (IoT) is gaining attention from both scholars and practitioners regarding its potential as a key enabler of servitized business models; academic research on this emerging concept is increasing but overall underexplored, however. This paper comprehensively analyses and consolidates the relevant literature on the emerging concept of IoT and servitized business models through conducting a systematic literature review. Based on an analysis of 74 articles, four archetypes of business models are identified that are enabled by the IoT: add-on, sharing, usage-based and solution-oriented and supplemented with information on what role IoT adoption takes, benefits from the provider perspective, and the inhibiting factors per archetype. A framework draws the findings together and forms five propositions about these elements and their corresponding business models that may guide future empirical research and serve as a common typology. Therefore, this study contributes to the body of knowledge on innovative servitized business models by classifying emergent business models utilising IoT and what is currently known about them. For practice, this paper provides an overview for initial consideration by practitioners before adopting IoT in enabling servitized business models and the range of applications IoT may have in enabling servitized business models with examples

How product-centric firms transition to IoT-enabled servitised firms: A dynamic capabilities perspective

Internet-of-Things (IoT) technology may assist firms in transitioning to service-oriented business models but the empirical research base on how such transitions are accomplished is limited. This study first develops a conceptual framework using the resource-based view and dynamic capability theory and then further refines this framework via two embedded case studies. Our findings show broad validation of earlier work but highlight that there are more similarities between vastly different IoT-enabled servitised business models than may be anticipated based on the existing literature, which stresses idiosyncratic journeys. Our framework serves as a starting point for confirmatory research and practice implementation.</p

How product-centric firms transition to IoT-enabled servitised firms: A dynamic capabilities perspective

Internet-of-Things (IoT) technology may assist firms in transitioning to service-oriented business models but the empirical research base on how such transitions are accomplished is limited. This study first develops a conceptual framework using the resource-based view and dynamic capability theory and then further refines this framework via two embedded case studies. Our findings show broad validation of earlier work but highlight that there are more similarities between vastly different IoT-enabled servitised business models than may be anticipated based on the existing literature, which stresses idiosyncratic journeys. Our framework serves as a starting point for confirmatory research and practice implementation.</p

State-of-the-art on product-service systems and digital technologies

Digitalization has undoubtedly revolutionized the way businesses think, plan and operate. This transition finds origin in the dramatic increase in demand of digital solutions, from those that target every day activities to highly-specific manufacturing processes. The last decades have been characterized for having both researchers and practitioners join efforts to innovate through solutions that are smarter, more productive and more efficient. This constant effort has accompanied the appearance of other impactful phenomena, often considered as a new industrial revolution. In a historically parallel line, companies made leaps towards exploring alternative ways to organize their business structure and relate to their customers. So is the case of Product-Service Systems (PSS), which have called for increased attention in the last years due to the extensive opportunities they offer. Recent literature raises the question of which and how sustainability advantages can be derived from PSS implementation. This study aims to understand the interactions of digital technologies and PSS through a state-of-the-art review. The authors have identified that academic literature encounters the challenge of finding digital technologies under a large cloud of different terminologies, which complicates systematization. Therefore, increased efforts will be applied to clarify the area of study and provide novel insights and results. This process will include the dissemination of enablers, constrains and possible effects of integrating digital technologies with PSS. The authors aim to contribute to the on-going discussion regarding the relationship between PSS and sustainability, specifically in applications that have high impacts, such as digital technologies

Behind the scenes of digital servitization: Actualising IoT-enabled affordances

Manufacturers are increasingly transforming through servitization, and the Internet of Things (IoT) is a crucial enabler of this transformation. Current literature describes the diverse outcomes from IoT that enable servitization but fails to explain the reasons behind the diversity and the processes manufacturers go through to create these outcomes. This study aims to identify these processes by drawing on affordance theory and its core principles of affordance perception (understanding an opportunity provided by technology) and affordance actualisation (taking advantage of an opportunity provided by technology). By using affordance theory to analyse the case scenarios of six manufacturing firms, the study develops a framework to explain the realisation of the opportunities the IoT provides to manufacturers' servitization efforts. The analysis identifies three types of affordances and actualisation processes that help manufacturers realise the opportunities of the IoT. This framework enables manufacturers to systematically manage the contributions from the IoT and the associated actualisation efforts required to advance servitization. The study adds to the understanding of the IoT's role in a manufacturing servitization context