Skip to main content

Servitization and Digitalization as “Siamese Twins”: Concepts and Research Priorities

  • Chapter
  • First Online:
The Palgrave Handbook of Service Management

Abstract

Across many industries we observe trends to change business models in favor of service offerings (“servitization”) as well as trends to apply digital technologies for value creation (“digitalization”). First, we perform a conceptual analysis to explain their interdependence. Second, we combine a topic modeling literature study and a qualitative expert interview approach to identify key research fields for the service and information system research communities. The work should deepen the understanding of service concepts to inform the purposeful design and application of digital technologies for service innovation along the identified research roadmap—as “high-tech meets high-touch”.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 249.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    While the service sector in OECD countries accounts for 70% of GDP, it employs 73% of the working population (https://data.worldbank.org/indicator/SL.SRV.EMPL.ZS, accessed Mar 5, 2021).

  2. 2.

    This projection is based on market sizes compared at market exchange rates. Measured at purchase power parity, E7 markets in 2050 are expected to even be twice the size of the G7 ones (Hawksworth & Chan, <CitationRef CitationID="CR33" >2015</Citation Ref>, p. 8).

  3. 3.

    It may be noted that product-service systems denote systems of value propositions while service systems as introduced in the subsequent section will denote systems of value creation partners and associated resources.

  4. 4.

    It may be noted that—as typical for topic modeling—the clusters do not necessarily indicate coherent entities but are labeled based on their key terms as “labeling focuses on showing not the original words of a topic but rather a clearer label more akin to what a human summary of the data would provide” (Boyd-Graber et al., <CitationRef CitationID="CR13" >2017</Citation Ref>, p. 40). These labels can provide a first orientation and form a starting base for additional research into those clusters.

  5. 5.

    The original source grouped the six research fields further into ecosystems & value creation models, interaction & hybridization, and innovation & development methods. It additionally emphasized the lenses under which those were extracted: value-orientation, innovation-orientation, and human-centricity.

References

  • Akaka, M. A., & Vargo, S. L. (2014). Technology as an operant resource in service (eco)systems. Information Systems and E-Business Management, 12(3), 367–384.

    Article  Google Scholar 

  • Baier, L., Kühl, N., Schüritz, R., & Satzger, G. (2021). Will the customers be happy? Identifying unsatisfied customers from service encounter data. Journal of Service Management, 32(2), 265–288.

    Article  Google Scholar 

  • Baines, T., Ziaee Bigdeli, A., Bustinza, O. F., Shi, V. G., Baldwin, J., & Ridgway, K. (2017). Servitization: Revisiting the state-of-the-art and research priorities. International Journal of Operations & Production Management, 37(2), 256–278.

    Article  Google Scholar 

  • Barile, S., Lusch, R., Reynoso, J., Saviano, M., & Spohrer, J. (2016). Systems, networks, and ecosystems in service research. Journal of Service Management, 27(4), 652–674.

    Article  Google Scholar 

  • Belanche, D., Casaló, L. V., & Flavián, C. (2019). Artificial Intelligence in FinTech: Understanding robo-advisors adoption among customers. Industrial Management & Data Systems, 119(7), 1411–1430.

    Article  Google Scholar 

  • Benz, C., Zierau, N., & Satzger, G. (2020). Not all tasks are alike: Exploring the effect of task representation on user engagement in crowd-based idea evaluation. Proceedings of the 27th European Conference on Information Systems, 1–17.

    Google Scholar 

  • Berkovich, M., Leimeister, J. M., & Krcmar, H. (2011). Requirements engineering for product service systems. Business & Information Systems Engineering, 3(6), 369–380.

    Article  Google Scholar 

  • Beverungen, D., Müller, O., Matzner, M., Mendling, J., & vom Brocke, J. (2019). Conceptualizing smart service systems. Electronic Markets, 29(1), 7–18.

    Article  Google Scholar 

  • Blei, D. M., Ng, A. Y., & Jordan, M. I. (2003). Latent dirichlet allocation. Journal of Machine Learning Research, 3(1), 993–1022.

    Google Scholar 

  • Böhmann, T., Leimeister, J. M., & Möslein, K. (2014). Service systems engineering. Business & Information Systems Engineering, 6(2), 73–79.

    Article  Google Scholar 

  • Böhmann, T., Roth, A., Satzger, G., Grotherr, C., Schymanietz, M., Wolff, C., Benz, C., Falk, S., Frank, J., Ganz, W., Hipp, C., Leimeister, J. M., & Stich, V. (2021). High-Tech meets High-Touch: Die Dienstleistungswende als Chance für die Wertschöpfung und Beschäftigung der Zukunft. Retrieved May 18, 2021, from https://dfdf.informatik.uni-hamburg.de/das-df2/positionen/

  • Boyd-Graber, J. L., Hu, Y., & Mimno, D. (2017). Applications of topic models. Information Retrieval, 11(2–3), 143–296.

    Article  Google Scholar 

  • Bromuri, S., Henkel, A. P., Iren, D., & Urovi, V. (2021). Using AI to predict service agent stress from emotion patterns in service interactions. Journal of Service Management, 32(4), 81–611.

    Google Scholar 

  • Cavalieri, S., & Pezzotta, G. (2012). Product–service systems engineering: State of the art and research challenges. Computers in Industry, 63(4), 278–288.

    Article  Google Scholar 

  • Chandler, J., & Chen, S. (2015). Prosumer motivations in service experiences. Journal of Service Theory and Practice, 25(2), 220–239.

    Article  Google Scholar 

  • Conte, T., Blau, B., Satzger, G., van Dinther, C., & Weinhardt, C. (2011). Rewarding participation in service value networks – An approach to incentivize the joint provisioning of complex e-services. E-Service Journal, 7(2), 2–27.

    Article  Google Scholar 

  • de Reuver, M., Sørensen, C., & Basole, R. C. (2018). The digital platform: A research agenda. Journal of Information Technology, 33(2), 124–135.

    Article  Google Scholar 

  • Dell’Era, C., & Landoni, P. (2014). Living lab: A methodology between user-centred design and participatory design. Creativity and Innovation Management, 23(2), 137–154.

    Article  Google Scholar 

  • Edvardsson, B., Gustafsson, A., & Roos, I. (2005). Service portraits in service research: A critical review. International Journal of Service Industry Management, 16(1), 107–121.

    Article  Google Scholar 

  • Edvardsson, B., Tronvoll, B., & Gruber, T. (2011). Expanding understanding of service exchange and value co-creation: A social construction approach. Journal of the Academy of Marketing Science, 39(2), 327–339.

    Article  Google Scholar 

  • Enders, T., Wolff, C., & Satzger, G. (2020). Knowing what to share: Selective revealing in open data. Proceedings of the 27th European Conference on Information Systems.

    Google Scholar 

  • Engelhardt, W. H., Kleinaltenkamp, M., & Reckenfelderbäumer, M. (1993). Leistungsbündel als Absatzobjekte. Zeitschrift für betriebswirtschaftliche Forschung, 45(5), 395–426.

    Google Scholar 

  • EU Commission. (2019). Ethics guidelines for trustworthy AI.

    Google Scholar 

  • Feine, J., Gnewuch, U., Morana, S., & Maedche, A. (2019). A taxonomy of social cues for conversational agents. International Journal of Human-Computer Studies, 132, 138–161.

    Article  Google Scholar 

  • Fernandes, T., & Oliveira, E. (2021). Understanding consumers’ acceptance of automated technologies in service encounters: Drivers of digital voice assistants adoption. Journal of Business Research, 122, 180–191.

    Article  Google Scholar 

  • Fromm, H., & Bloehdorn, S. (2014). Big Data—Technologies and potential. In G. Schuh, V. Stich, G. Gudergan, & A. Walter (Eds.), Enterprise-integration (pp. 107–124). Springer.

    Chapter  Google Scholar 

  • Fromm, H., & Cardoso, J. (2015). Foundations. In J. Cardoso, H. Fromm, S. Nickel, G. Satzger, R. Studer, & C. Weinhardt (Eds.), Fundamentals of service systems (pp. 1–32). Springer.

    Google Scholar 

  • Gomez-Uribe, C. A., & Hunt, N. (2016). The Netflix recommender system. ACM Transactions on Management Information Systems, 6(4), 1–19.

    Article  Google Scholar 

  • Grönroos, C., & Voima, P. (2013). Critical service logic: Making sense of value creation and co-creation. Journal of the Academy of Marketing Science, 41(2), 133–150.

    Article  Google Scholar 

  • Habryn, F., Blau, B., Satzger, G., & Kölmel, B. (2010). Towards measuring customer intimacy in B2B services. In J.-H. Morin, J. Ralyté, & M. Snene (Eds.), Exploring service science. Proceedings of the First International Conference (IESS) (pp. 1–14). Springer.

    Google Scholar 

  • Hashimoto, D. A. (2020). Artificial intelligence in surgery: An AI primer for surgical practice. McGraw Hill.

    Google Scholar 

  • Hawksworth, J., & Chan, D. (2015). The world in 2050 will the shift in global economic power continue?

    Google Scholar 

  • Hein, A., Schreieck, M., Riasanow, T., Setzke, D. S., Wiesche, M., Böhm, M., & Krcmar, H. (2020). Digital platform ecosystems. Electronic Markets, 30(1), 87–98.

    Article  Google Scholar 

  • Hill, T. P. (1977). On goods and services. Review of Income and Wealth, 23(4), 315–338.

    Article  Google Scholar 

  • Hirt, R., Kuhl, N., Peker, Y., & Satzger, G. (2020). How to learn from others: Transfer machine learning with additive regression models to improve sales forecasting. Proceedings of the 22nd IEEE Conference on Business Informatics (CBI), 1, 20–29.

    Article  Google Scholar 

  • Huang, M.-H., & Rust, R. T. (2018). Artificial intelligence in service. Journal of Service Research, 21(2), 155–172.

    Article  Google Scholar 

  • Huang, M.-H., Rust, R., & Maksimovic, V. (2019). The feeling economy: Managing in the next generation of Artificial Intelligence (AI). California Management Review, 61(4), 43–65.

    Article  Google Scholar 

  • Hunke, F., Seebacher, S., Schüritz, R., & Satzger, G. (2020). Pathways from data to value: Identifying strategic archetypes of analytics-based services. 15th International Conference on Wirtschaftsinformatik, 1035–1050.

    Google Scholar 

  • Jarrahi, M. H. (2018). Artificial intelligence and the future of work: Human-AI symbiosis in organizational decision making. Business Horizons, 61(4), 577–586.

    Article  Google Scholar 

  • Jetter, M., Satzger, G., & Neus, A. (2009). Technological innovation and its impact on business model, organization and corporate culture – IBM’s transformation into a globally integrated, service-oriented enterprise. Business & Information Systems Engineering, 1(1), 37–45.

    Article  Google Scholar 

  • Jung, D., Dorner, V., Glaser, F., & Morana, S. (2018). Robo-advisory. Business & Information Systems Engineering, 60(1), 81–86.

    Article  Google Scholar 

  • Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. (2017). Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management, 60, 4–10.

    Article  Google Scholar 

  • Kühl, N., Scheurenbrand, J., & Satzger, G. (2016). Needmining: Identifying micro blog data containing customer needs. Proceedings of the 24th European Conference on Information Systems.

    Google Scholar 

  • Kühl, N., Goutier, M., Hirt, R., & Satzger, G. (2019). Machine learning in Artificial Intelligence: Towards a common understanding. Proceedings of the 52nd Hawaii International Conference on System Sciences, 6, 5236–5245.

    Google Scholar 

  • Maedche, A., Legner, C., Benlian, A., Berger, B., Gimpel, H., Hess, T., Hinz, O., Morana, S., & Söllner, M. (2019). AI-based digital assistants. Business & Information Systems Engineering, 61(4), 535–544.

    Article  Google Scholar 

  • Maglio, P. P., & Spohrer, J. (2008). Fundamentals of service science. Journal of the Academy of Marketing Science, 36(1), 18–20.

    Article  Google Scholar 

  • Maleshkova, M., Kühl, N., & Jussen, P. (Eds.). (2020). Smart service management. Springer.

    Google Scholar 

  • Manyika, J., Lund, S., Chui, M., Bughin, J., Woetzel, J., Batra, P., Ko, R., & Sangvhi, S. (2017). What the future of work will mean for jobs, skills, and wages. McKinsey Report.

    Google Scholar 

  • Martin, D., Kühl, N., & Satzger, G. (2021). Virtual sensors. Business & Information Systems Engineering, 63, 315–323.

    Google Scholar 

  • Martín-Peña, M. L., Sánchez-López, J. M., & Díaz-Garrido, E. (2019). Servitization and digitalization in manufacturing: The influence on firm performance. Journal of Business and Industrial Marketing, 35(3), 564–574.

    Article  Google Scholar 

  • Meffert, H., Bruhn, M., & Hadwich, K. (2018). Dienstleistungsmarketing Methoden, Grundlagen – Konzepte (9th ed.). Springer Gabler.

    Google Scholar 

  • Mervelskemper, L., & Streit, D. (2017). Enhancing market valuation of ESG performance: Is integrated reporting keeping its promise? Business Strategy and the Environment, 26(4), 536–549.

    Article  Google Scholar 

  • Moeller, S. (2010). Characteristics of services – a new approach uncovers their value. Journal of Services Marketing, 24(5), 359–368.

    Google Scholar 

  • Mont, O. (2002). Drivers and barriers for shifting towards more service-oriented businesses: Analysis of the PSS field and contributions from Sweden. The Journal of Sustainable Product Design, 2(3/4), 89–103.

    Article  Google Scholar 

  • Nam, K., Dutt, C. S., Chathoth, P., Daghfous, A., & Khan, M. S. (2020). The adoption of artificial intelligence and robotics in the hotel industry: Prospects and challenges. Electronic Markets, 1–22.

    Google Scholar 

  • Neely, A. (2009). Exploring the financial consequences of the servitization of manufacturing. Operations Management Research, 1(2), 103–118.

    Article  Google Scholar 

  • Ng, I., Pogrebna, G., & Ma, X. (2014). Smart home, smart things and smart me in the smart city: The hub-of-all-things resource integration and enabling tool (HARRIET). IET Conference on Future Intelligent Cities.

    Google Scholar 

  • Nikolenko, S. I., Koltcov, S., & Koltsova, O. (2017). Topic modelling for qualitative studies. Journal of Information Science, 43(1), 88–102.

    Article  Google Scholar 

  • Parida, V., Sjödin, D. R., Lenka, S., & Wincent, J. (2015). Developing global service innovation capabilities: How global manufacturers address the challenges of market heterogeneity. Research-Technology Management, 58(5), 35–44.

    Article  Google Scholar 

  • Przybilla, L., Klinker, K., Lang, M., Schreieck, M., Wiesche, M., & Krcmar, H. (2021). Design thinking in digital innovation projects—Exploring the effects of intangibility. IEEE Transactions on Engineering Management, 1–15.

    Google Scholar 

  • Quinn, J. B. (1992). Intelligent enterprise: A knowledge and service based paradigm for industry. The Free Press.

    Google Scholar 

  • Raddats, C., Kowalkowski, C., Benedettini, O., Burton, J., & Gebauer, H. (2019). Servitization: A contemporary thematic review of four major research streams. Industrial Marketing Management, 83, 207–223.

    Article  Google Scholar 

  • Rafaeli, A., Ashtar, S., & Altman, D. (2019). Digital traces: New data, resources, and tools for psychological-science research. Current Directions in Psychological Science, 28(6), 560–566.

    Article  Google Scholar 

  • Rossi, M., Mueller-Bloch, C., Thatcher, J. B., & Beck, R. (2019). Blockchain research in information systems: Current trends and an inclusive future research agenda. Journal of the Association for Information Systems, 20(9), 1388–1403.

    Article  Google Scholar 

  • Schmitz, H.-C., Kurth, F., Wilkinghoff, K., Müllerschkowski, U., Karrasch, C., & Schmid, V. (2020). Towards robust speech interfaces for the ISS. Proceedings of the 25th International Conference on Intelligent User Interfaces Companion, 110–111.

    Google Scholar 

  • Schueritz, R., Farell, K., Satzger, G., & Wixom, B. H. (2019). Designing for value co-creation — How provider and customer shape joint spheres that impact real value creation in data-driven services. Proceedings of the 40th International Conference on Information Systems (ICIS).

    Google Scholar 

  • Schüritz, R., & Satzger, G. (2016). Patterns of data-infused business model innovation. Proceedings of the IEEE Conference on Business Informatics (CBI), 133–142.

    Google Scholar 

  • Schüritz, R. M., Seebacher, S., Satzger, G., Schwarz, L., & Schwarz, L. (2017). Datatization as the next frontier of servitization – Understanding the challenges for transforming organizations. Proceedings of the International Conference on Information Systems (ICIS).

    Google Scholar 

  • Seebacher, S., Schüritz, R., & Satzger, G. (2021). Towards an understanding of technology fit and appropriation in business networks: Evidence from blockchain implementations. Information Systems and E-Business Management, 19, 183–204.

    Article  Google Scholar 

  • Sklyar, A., Kowalkowski, C., Tronvoll, B., & Sörhammar, D. (2019). Organizing for digital servitization: A service ecosystem perspective. Journal of Business Research, 104, 450–460.

    Article  Google Scholar 

  • Smith, D. J. (2013). Power-by-the-hour: The role of technology in reshaping business strategy at Rolls-Royce. Technology Analysis & Strategic Management, 25(8), 987–1007.

    Article  Google Scholar 

  • Stojkovski, I., Achleitner, A., & Lange, T. (2021). Equipment as a service: The transition towards usage-based business models. Retrieved May 18, 2021, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3763004

  • Storbacka, K., Brodie, R. J., Böhmann, T., Maglio, P. P., & Nenonen, S. (2016). Actor engagement as a microfoundation for value co-creation. Journal of Business Research, 69(8), 3008–3017.

    Article  Google Scholar 

  • Vandermerwe, S., & Rada, J. (1988). Servitization of business: Adding value by adding services. European Management Journal, 6(4), 314–324.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science, 36, 1–10.

    Article  Google Scholar 

  • Vink, J., Koskela-Huotari, K., Tronvoll, B., Edvardsson, B., & Wetter-Edman, K. (2021). Service ecosystem design: Propositions, process model, and future research agenda. Journal of Service Research, 24(2), 168–186.

    Article  Google Scholar 

  • Vössing, M. (2020). Designing human-computer collaboration: Transparency and automation for intelligence augmentation. Dissertation KIT.

    Google Scholar 

  • Wang, P. P., Ming, X. G., Li, D., Kong, F. B., Wang, L., & Wu, Z. Y. (2011). Modular development of product service systems. Concurrent Engineering, 19(1), 85–96.

    Article  Google Scholar 

  • Wiersema, F., & Treacy, M. (1993). Customer intimacy and other value disciplines. Harvard Business Review, 71(1), 84–93.

    Google Scholar 

  • Wirtz, J., Patterson, P. G., Kunz, W. H., Gruber, T., Lu, V. N., Paluch, S., Martins, A., & Lu, N. (2018). Brave new world: Service robots in the frontline. Journal of Service Management, 29(5), 907–931.

    Article  Google Scholar 

  • Wirtz, J., So, K. K. F., Mody, M. A., Liu, S. Q., & Chun, H. E. H. (2019). Platforms in the peer-to-peer sharing economy. Journal of Service Management, 30(4), 452–483.

    Article  Google Scholar 

  • Wolff, C., & Satzger, G. (2018). System-oriented service delivery: The application of service system engineering to service delivery. Proceedings of the European Conference on Information Systems (ECIS).

    Google Scholar 

  • Yang, Q., Liu, Y., Chen, T., & Tong, Y. (2019). Federated machine learning. ACM Transactions on Intelligent Systems and Technology, 10(2), 1–19.

    Article  Google Scholar 

  • Yiannas, F. (2018). A new era of food transparency powered by blockchain. Innovations: Technology, Governance, Globalization, 12(1–2), 46–56.

    Article  Google Scholar 

  • Zhang, Y., Huang, M., Tian, L., Jin, D., & Cai, G. (2021). Build or join a sharing platform? The choice of manufacturer’s sharing mode. International Journal of Production Economics, 231.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Gerhard Satzger .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Satzger, G., Benz, C., Böhmann, T., Roth, A. (2022). Servitization and Digitalization as “Siamese Twins”: Concepts and Research Priorities. In: Edvardsson, B., Tronvoll, B. (eds) The Palgrave Handbook of Service Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-91828-6_46

Download citation

Publish with us

Policies and ethics