How Firms Co-CreateValue In Digital Servitization: A Process View On Digitalization Relationships

Document identifier: oai:DiVA.org:ltu-76181
Keyword: Social Sciences, Economics and Business, Business Administration, Samhällsvetenskap, Ekonomi och näringsliv, Företagsekonomi, Agile, Digitalization, Service innovation, Advanced services, Relationships, Entreprenörskap och innovation, Entrepreneurship and Innovation
Publication year: 2019
Relevant Sustainable Development Goals (SDGs):

The SDG label(s) above have been assigned by OSDG.ai

Abstract:

Purpose: Digitalization is a fundamental disruptive force of Industry 4.0, which is revolutionizing the way business is conducted within industrial value chains. However, many firms are not prepared to benefit from the promise digitalization holds. A radical shift in the innovation process is required entailing increased emphasis on agility and co-creation of value through design, customization and delivery of increasingly intangible digital offerings in cooperation with their customers. Yet, literature on this topic is scarce. The purpose of this paper is to investigate how firms can co-create digital innovations with their customers to avoid the digital paradox.

Design/Methodology/Approach: The present research is based on an empirical study of four providers and their customers in manufacturing industries.

Findings: The results showcase the importance of aligning roles in co-creation and presents a detailed process model of ideation, development and implementation. Notably, we identify how forming dedicated joint teams at the strategic, managerial and operational levels are key to ensure appropriate cooperation and governance of co-creation engagements. We further detail how key activities for the joint teams vary over the phases of the innovation process.

Originality/Value: This study contributes to the growing body of literature on value co-creation in digital servitization by providing an in-depth account of how value co-creation processes for leveraging digitalization unfolds between provider and customer. This study offers four contributions. First, this study shows that value co-creation require openness and resource dedication from both provider and customer. Second, results show that value co-creation processes are interdependent and both parties perspective should be considered in parallel to ensure alignment throughout the process. Third, value co-creation is best managed through an agile approach which requires continuous innovation over time especially in the delivery phase. Finally, using the value co-creation lens provides novel insights into the digital paradox and how to profit from complex digitally enabled advanced services.

Authors

David Sjödin

Luleå tekniska universitet; Centre for Management of Innovation and Technology in Process Industry, Promote; Luleå tekniska universitet; Industriell Ekonomi
Other publications >>

Vinit Parida

Luleå tekniska universitet; Innovation och Design
Other publications >>

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        identifier: oai:DiVA.org:ltu-76181
        datestamp: 2021-04-19T12:35:45Z
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                recordCreationDate: 2019-10-01
            identifier: http://urn.kb.se/resolve?urn=urn:nbn:se:ltu:diva-76181
            titleInfo: 
                @attributes: 
                    lang: eng
                title: How Firms Co-CreateValue In Digital Servitization: A Process View On Digitalization Relationships
            abstract: 
Purpose: Digitalization is a fundamental disruptive force of Industry 4.0 which is revolutionizing the way business is conducted within industrial value chains. However many firms are not prepared to benefit from the promise digitalization holds. A radical shift in the innovation process is required entailing increased emphasis on agility and co-creation of value through design customization and delivery of increasingly intangible digital offerings in cooperation with their customers. Yet literature on this topic is scarce. The purpose of this paper is to investigate how firms can co-create digital innovations with their customers to avoid the digital paradox.
Design/Methodology/Approach: The present research is based on an empirical study of four providers and their customers in manufacturing industries.
Findings: The results showcase the importance of aligning roles in co-creation and presents a detailed process model of ideation development and implementation. Notably we identify how forming dedicated joint teams at the strategic managerial and operational levels are key to ensure appropriate cooperation and governance of co-creation engagements. We further detail how key activities for the joint teams vary over the phases of the innovation process.
Originality/Value: This study contributes to the growing body of literature on value co-creation in digital servitization by providing an in-depth account of how value co-creation processes for leveraging digitalization unfolds between provider and customer. This study offers four contributions. First this study shows that value co-creation require openness and resource dedication from both provider and customer. Second results show that value co-creation processes are interdependent and both parties perspective should be considered in parallel to ensure alignment throughout the process. Third value co-creation is best managed through an agile approach which requires continuous innovation over time especially in the delivery phase. Finally using the value co-creation lens provides novel insights into the digital paradox and how to profit from complex digitally enabled advanced services.

            subject: 
                    @attributes: 
                        lang: eng
                        authority: uka.se
                    topic: 
                        Social Sciences
                        Economics and Business
                        Business Administration
                    @attributes: 
                        lang: swe
                        authority: uka.se
                    topic: 
                        Samhällsvetenskap
                        Ekonomi och näringsliv
                        Företagsekonomi
                    @attributes: 
                        lang: eng
                    topic: agile
                    @attributes: 
                        lang: eng
                    topic: digitalization
                    @attributes: 
                        lang: eng
                    topic: service innovation
                    @attributes: 
                        lang: eng
                    topic: advanced services
                    @attributes: 
                        lang: eng
                    topic: relationships
                    @attributes: 
                        lang: swe
                        authority: ltu
                    topic: Entreprenörskap och innovation
                    genre: Research subject
                    @attributes: 
                        lang: eng
                        authority: ltu
                    topic: Entrepreneurship and Innovation
                    genre: Research subject
            language: 
                languageTerm: eng
            genre: 
                conference/other
                ref
            note: 
                Published
                2
            name: 
                    @attributes: 
                        type: personal
                        authority: ltu
                    namePart: 
                        Sjödin
                        David
                        1983-
                    role: 
                        roleTerm: aut
                    affiliation: 
                        Luleå tekniska universitet
                        Centre for Management of Innovation and Technology in Process Industry Promote
                        Luleå tekniska universitet
                        Industriell Ekonomi
                    nameIdentifier: 
                        davron
                        0000-0001-5464-2007
                    @attributes: 
                        type: personal
                        authority: ltu
                    namePart: 
                        Parida
                        Vinit
                        1983-
                    role: 
                        roleTerm: aut
                    affiliation: 
                        Luleå tekniska universitet
                        Innovation och Design
                    nameIdentifier: vinpar
            originInfo: 
                dateIssued: 2019
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                form: print
            typeOfResource: text