Developing capabilities for digital servitization

Purpose: Many manufacturers invest in digital technologies to advance servitization and achieve competitive advantage; however, their ability to utilise these technologies often lags behind the potential of them. Research has only begun to explore the capabilities for digital servitization and this study investigates the mechanisms through which these capabilities can be developed both internally and through collaborating with other actors.
Design/Methodology/Approach: This paper presents an exploratory study based on interviews with eight managers from large manufacturers who have significant knowledge of their companies’ digital servitization efforts.
Findings: The findings illustrate three capability development mechanisms for digital servitization: learning, building, and acquiring and show that these mechanisms are inherently tied with which capability is being developed.
Originality/Value: Developing capabilities for digital servitization requires a more extensive reconfiguration than for traditional servitization, particularly with regard to partner collaboration.