The bumpy servitization road upstream in the value chain:
Wim Coreynen Paul Matthyssens Koen Vandenbempt
strategies, enablers & barriers in digitization
Overview
Introduction Research framework Preliminary integrative framework Results Conclusions
Introduction
The many bene=its/opportunities of servitization & digitization: Servitization: commercial beneEits, deal with commoditization, compete with lower cost economies, an alternative to product and process innovation Digitization: inEinite possibilities for connecting people, systems, companies, etc., enhance operational performance, deepen customer insight
Increasing attention and clear links between both Eields of study, yet no connection on a more strategic level
Introduction
Address two shortcomings: Treat digitization as a facilitator for strategic servitization purposes, not a mere upgrading of digital tools Focus on SMEs, for whom there is no predeEined transition process for service infusion
Our aim is to =ind how SMEs can improve on servitization through digitization Also, to pinpoint and describe enablers and barriers when
implementing new technologies
Research framework
Preliminary integrative framework
Alpha Beta Charlie
Founded 1986 1970 2008
Revenue €33 million (2013)
€5.9 million (2012)
€1.2 million (2013)
#employees 170 60 12
Main products Electrical switchboards
Precision-‐engineered components
FuncEonal soles
Clients Local OEMs & installers
Wide variety of internat. clients Local chiropodists
Results
Case studies
Alpha Beta Charlie
Technology Web applicaEon Direct digital manufacturing
Digital foot scanner
Product dimension (1)
Unique switchboards
More precise teeth prostheEcs, also stronger & lighter
Personalized funcEonal soles
Service dimension (2)
Building switchboards
Modelling & prinEng
prostheEcs
Modelling & moulding soles
Business model dimension (3)
Licensing the web app to compeEtors
abroad
New applicaEons such as opEcians -‐
Results
Preliminary integrative framework
Results
Barriers & enablers
Alpha Beta Charlie
Enablers
Increase in speed, less stock & generate docs automaEcally
Increase in speed, no stock, cleaner,
safer, less materials, energy & less labour
Increase in speed, no stock & cleaner
Barriers
Difficult to convince
employees & inEmidaEon by
suppliers
Difficult to convince clients & inEmidaEon by
clients
Difficult to convince clients
Conclusions
Through digitization, SME’s may deepen customer relations through: offering more customized solutions (product dimension) that are better integrated in the clients’ processes (service dimension)
This may lead to higher operational performance as well as new revenue streams (business model dimension) through opening up new markets and/or applications,
In doing so, companies need to develop new capabilities for convincing employees, clients and suppliers.
OPENING MINDS TO IMPACT THE WORLD
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