IoT powered servitization of manufacturing – an exploratory case study

By A. Rymaszewska, Petri T. Helo, Angappa Gunasekaran. 2017

450 citations recorded by the source corpus.

More than ever companies are challenged to rethink their offerings while simultaneously being provided with a unique opportunity for creating or recreating their product-service systems. This paper seeks to address how servitisation can utilise the third wave of Internet development, referred to as the Internet of Things (IoT), which may unlock the potential for innovative product-service systems on an unprecedented scale. By providing an analysis of this technological breakthrough and the literature on servitisation, these concepts are combined to address the question of how organisations offering product-service systems can reap the benefits that the IoT. An analysis of three successful IoT implementation cases in manufacturing companies, representing different industry sectors such as metal processing, power generation and distribution, is provided. The results of the empirical research presented in the paper provide an insight into different ways of creating value in servitisation. The paper also proposes a framework that is aimed at proving a better understanding of how companies can create value, and add it to their servitisation processes with, the data obtained by the IoT based solutions. From the value chain perspective, IoT aided servitisation enables organisations to extend their value chains in order better serve their customers which, in turn, might result in increased profitability. The article proposes further research avenues, and offers valuable insight for practitioners.

Subfields: Industrial and Manufacturing Engineering, Management Information Systems, Marketing

View Paper: https://www.semanticscholar.org/paper/ed3e87c33890c5c9e77f049e645105ab6a3c8d25

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Citations in the corpus

Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations (2018, background): “Additionally, these technologies are able to collect information on consumers’ behaviour; organisations can therefore improve both product and service design for better utilisation or replacement of equipment, and increase customers’ satisfaction (Rymaszewska et al. 2017).”
The internet of things for smart manufacturing: A review (2019, background): “Manufacturing operations management: Rymaszewska et al. (2017) studied the effect of IoT on the product-service systems of manufacturing industry.”
Digital servitization business models in ecosystems: A theory of the firm (2019, background): “Companies, such as Rolls-Royce, Wärtsilä, and Caterpillar have used a variety of sensor-based technologies to enable product-service-software systems and smart solutions (Grubic, 2018; Rymaszewska, Helo, & Gunasekaran, 2017).”
Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies (2018, methodology): “Therefore, companies have a great opportunity to gain knowledge on how customers are using products, achieving a closer proximity with them [52], and thus transforming the interactions between manufacturer and their customers from negotiation to communication [12,19,56].”
Development of a Risk Framework for Industry 4.0 in the Context of Sustainability for Established Manufacturers (2019, background): “[7,8,17,20,68,73] Cyberattacks (8) Technical solutions (6) Awareness and organizational structure (4) “We have 500 to 600 cyberattacks per day” (E6) “Someone could cripple production from outside.”
The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies (2020, background): “…(Airfaas, 2020; Fisher, Watson, Escrig, & Gomes, 2019; KemConnect, 2020), product use and operations (Bressanelli et al., 2018b; Pham et al., 2019; Rymaszewska, Helo, & Gunasekaran, 2017), logistics (12Return, Liebig, Piatkowski, Bockermann, & Morik, 2020; Liebig et al., 2014), and energy (Shrouf…”