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Digital Business Model Innovation for Product-Service Systems

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Abstract

Manufacturing companies are increasingly focused on digitalization and service-led growth to gain new revenue streams and achieve sustainable competitive advantages. In this regard, offering product-service systems (PSS) is proposed as an attractive solution for manufacturing companies to achieve economic, environmental, and social benefits. More specifically, digital technology is used to offer services that integrate provider and customer operations, which increases efficiency, because each party focuses on its core competencies, and operations are optimized. Business model innovation represents a crucial component that may differentiate successful and unsuccessful PSS companies. Implementing digital business models for PSS provisions is a process with numerous challenges that constitutes a major reason why manufacturing companies struggle to increase the service and digitalization degree of their offerings. This chapter suggests that evaluating and understanding tactics, risk management, service network adjustment, and most importantly, alignment of activities are necessary for successful implementation of digital business model innovation for PSS. This chapter contributes to the PSS literature by proposing a four-phase digital business model innovation framework.

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Authors and Affiliations

  1. Luleå University of Technology, Luleå, Sweden

    Wiebke Reim, Vinit Parida & David Sjödin

Authors
  1. Wiebke Reim
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  2. Vinit Parida
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  3. David Sjödin
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Corresponding author

Correspondence to Wiebke Reim .

Editor information

Editors and Affiliations

  1. School of Management, University of Vaasa, Vaasa, Finland

    Marko Kohtamäki

  2. Aston Business School, Aston University, Birmingham, UK

    Tim Baines

  3. School of Management, University of Vaasa, Vaasa, Finland

    Rodrigo Rabetino

  4. Aston Business School, Aston Triangle, Aston University, Birmingham, UK

    Ali Ziaee Bigdeli

  5. Department of Management and Engineering, Linkoping University, Linköping, Sweden

    Christian Kowalkowski

  6. Mays Business School, Texas A&M University, College Station, TX, USA

    Rogelio Oliva

  7. Department of Business Administration, Luleå University of Technology, Luleå, Sweden

    Vinit Parida

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Reim, W., Parida, V., Sjödin, D. (2021). Digital Business Model Innovation for Product-Service Systems. In: Kohtamäki, M., et al. The Palgrave Handbook of Servitization. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75771-7_6

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