The digitalization and servitization of manufacturing: A review on digital business models

• DOI: http://doi.org/10.1002/jsc.2184
• Published date: 01 March 2018
• Date: 01 March 2018

RESEARCH ARTICLE

DOI: 10.1002/jsc.2184

Strategic Change. 2018;27(2):91–99. wileyonlinelibrary.com/journal/jsc © 2018 John Wiley & Sons, Ltd. 91

Abstract

The digitalizaon and servizaon of manufacturing lead to compeve advantages through

innovave digital business models. The increase in compeon has led many manufacturers to

search for customized soluons through servizaon. In the present study, a systemac review

of literature informs on how the eld is structured and the key concepts are dened.

1 

|

 INTRODUCTION

Industry 4.0 is being encouraged by the introducon of digital tech‐

nologies that push the specializaon of the value chain and also con‐

necvity between actors. Industry 4.0 heralds greater operaonal

eciency and the development of new products, services, and busi‐

ness models (Kagermann, Wahlster, & Helbig, 2013). The symbiosis

between tradional manufacturing and services, through processes of

servizaon is at the core of innovave technologies, iniang new

sectors or improving the compeveness of the exisng ones (De

Propris, 2016). Many rms have evolved from producing and com‐

mercializing a single product to oering customers need‐based inte‐

grated soluons (Davies, 2004). In order to successfully introduce a

digitalizaon/servizaon strategy, companies must change, among

other things, their strategies, their operaons, and their value chain

(Busnza, Parry, & Vendrell‐Herrero, 2013; Oliva & Kallenberg, 2003;

Wise & Baumgartner, 1999). In short, they must introduce changes

into their business models. Change will involve maintaining a constant

ow of innovaon, not only in terms of what the companies are oer‐

ing the customer, but also in relaon to how products and services

are designed, produced, delivered, and sold (Vendrell‐Herrero, Parry,

Busnza, & O’Regan, 2014).

Industry must address the challenges of digitalizaon and

servizaon in order to improve compeveness and generate sus‐

tainable compeve advantage (Myrthianos, Vendrell‐Herrero, Parry,

& Busnza, 2014). This creates new business models, as digitaliza‐

on and servizaon give rise to digital business models (DBMs).

Researchers have previously studied the business model concept in

dierent domains (Al‐Debei & Avison, 2010), but most of the research

focused on business models in the context of digitalizaon has been

linked with e‐business. The aim of this arcle is to review the exist‐

ing literature on DBMs and create a conceptual framework to beer

understand the relaonship between digitalizaon and servizaon; a

useful task in the context of Industry 4.0.

In order to successfully introduce a digitalizaon/servizaon

strategy, companies must change, among other things, their

strategies, their operaons, and their value chain.

2 

|

 DIGITALIZATION AND SERVITIZATION:

NEW DIGITAL BUSINESS MODELS

Servizaon can be understood as the process of increasing value

by adding services to a rm’s oerings (Vandermerwe & Rada, 1988).

Authors such as Neely (2008) claim that the process of servizaon

can be viewed as the development of new organizaonal innovave

capabilies in the sense that, rather than merely oering products, the

organizaon can provide customers with complete product‐service

systems (PSS) (Visnjic & Van Looy, 2013). In this context, informa‐

on and communicaon technologies (ICTs) have had a major impact

(Belvedere, Grando, & Bielli, 2013). ICT has increased eciency and

eecveness in terms of the development of new products, and

has contributed to the emergence of new kinds of product‐service

(Agnihothri, Sivasubramaniam, & Simmons, 2002; Simmons, 2001).

Previous literature recognizes the role played by the development

of ICTs as enablers of servizaon strategies (Brax & Jonsson, 2009;

Kryvinska, Kaczor, Strauss, & Greguš, 2014; Neu & Brown, 2005;

The digitalizaon and servizaon of manufacturing:

A review on digital business models*

María Luz Marn‐Peña | Eloísa Díaz‐Garrido | José María Sánchez‐López

Department of Business and Management,

Rey Juan Carlos University, Madrid, Spain

Correspondence

María Luz Marn‐Peña, Department of

Business and Management, Rey Juan Carlos

University, Paseo de los Arlleros, s/n,

Madrid, Spain.

Email: Luz.marn@urjc.es

* JEL classicaon codes: M10, O14.