Behind the scenes of digital servitization: Actualising IoT-enabled affordances

Abstract Manufacturers are increasingly transforming through servitization, and the Internet of Things (IoT) is a crucial enabler of this transformation. Current literature describes the diverse outcomes from IoT that enable servitization but fails to explain the reasons behind the diversity and the processes manufacturers go through to create these outcomes. This study aims to identify these processes by drawing on affordance theory and its core principles of affordance perception (understanding an opportunity provided by technology) and affordance actualisation (taking advantage of an opportunity provided by technology). By using affordance theory to analyse the case scenarios of six manufacturing firms, the study develops a framework to explain the realisation of the opportunities the IoT provides to manufacturers' servitization efforts. The analysis identifies three types of affordances and actualisation processes that help manufacturers realise the opportunities of the IoT. This framework enables manufacturers to systematically manage the contributions from the IoT and the associated actualisation efforts required to advance servitization. The study adds to the understanding of the IoT's role in a manufacturing servitization context.

[1]  Alexander Bogner,et al.  The Theory-Generating Expert Interview: Epistemological Interest, Forms of Knowledge, Interaction , 2009 .

[2]  Mario Rapaccini,et al.  The role of digital technologies for the service transformation of industrial companies , 2018, Int. J. Prod. Res..

[3]  Amitabh S. Raturi,et al.  Lessons learned from methodological triangulation in management research , 2006 .

[4]  V. Braun,et al.  Using thematic analysis in psychology , 2006 .

[5]  Jason Seawright,et al.  Case Selection Techniques in Case Study Research , 2008 .

[6]  Terri L. Griffith,et al.  Information Technology and the Changing Fabric of Organization , 2007, Organ. Sci..

[7]  G. Thomas.  A Typology for the Case Study in Social Science Following a Review of Definition, Discourse, and Structure , 2011 .

[8]  Andreas Schroeder,et al.  The value architecture of servitization: Expanding the research scope , 2019, Journal of Business Research.

[9]  Michael Meuser,et al.  The Expert Interview and Changes in Knowledge Production , 2009 .

[10]  Hani Safadi,et al.  The Role of Anchoring in Actualizing IT Affordances in EMR Implementations , 2018, HICSS.

[11]  M. Taisch,et al.  ICT enabled operationalization of collaborative servitization , 2014, 2014 International Conference on Engineering, Technology and Innovation (ICE).

[12]  Paul Matthyssens,et al.  Moving from basic offerings to value-added solutions: Strategies, barriers and alignment , 2008 .

[13]  M. Porter,et al.  How Smart, Connected Products Are Transforming Competition , 2014 .

[14]  E. Levrat,et al.  E-maintenance: review and conceptual framework , 2008 .

[15]  Ali Ziaee Bigdeli,et al.  Organisational change towards servitization: a theoretical framework , 2017 .

[16]  Tim Baines,et al.  Network positioning and risk perception in servitization: evidence from the UK road transport industry , 2018, Int. J. Prod. Res..

[17]  Irene C. L. Ng,et al.  The Internet-of-Things: Review and research directions , 2017 .

[18]  Henri Barki,et al.  Functional Affordance Archetypes: a New Perspective for Examining the Impact of IT Use on Desirable Outcomes , 2013, ICIS.

[19]  Christian Lerch,et al.  Digitalized Product-Service Systems in Manufacturing Firms , 2015 .

[20]  Glauco Henrique de Sousa Mendes,et al.  Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective , 2019, Technological Forecasting and Social Change.

[21]  Sophie Peillon,et al.  Service and customer orientation of corporate culture in a French manufacturing SME , 2018 .

[22]  Huifen Wang,et al.  A Review of Application of Affordance Theory in Information Systems , 2018 .

[23]  Antonio Iera,et al.  The Internet of Things: A survey , 2010, Comput. Networks.

[24]  R. Yin.  Case Study Research: Design and Methods , 1984 .

[25]  Robert X. Gao,et al.  Digital Twin for rotating machinery fault diagnosis in smart manufacturing , 2018, Int. J. Prod. Res..

[26]  Matthias Herterich,et al.  Exploring How Digitized Products Enable Industrial Service Innovation - an Affordance Perspective , 2016, ECIS.

[27]  Taija Turunen,et al.  Identifying Servitization Capabilities of Manufacturers: A Conceptual Model , 2012 .

[28]  T. Baines,et al.  Servitization of the manufacturing firm: exploring the operations practices and technologies that deliver advanced services , 2013 .

[29]  H. Turunen,et al.  Content analysis and thematic analysis: Implications for conducting a qualitative descriptive study. , 2013, Nursing & health sciences.

[30]  P. Matthyssens,et al.  Boosting servitization through digitization: Pathways and dynamic resource configurations for manufacturers , 2017 .

[31]  Oscar F. Bustinza,et al.  Servitization: revisiting the state-of-the-art and research priorities , 2017 .

[32]  Jan Recker,et al.  Sensemaking and Sustainable Practicing: Functional Affordances of Information Systems in Green Transformations , 2013, MIS Q..

[33]  Christopher A. Voss,et al.  Case research in operations management , 2002 .

[34]  Jan Recker,et al.  Understanding the Actualization of Affordances: A Study in the Process Modeling Context , 2013, ICIS.

[35]  Rogelio Oliva,et al.  Managing the transition from products to services , 2003, International Journal of Service Industry Management.

[36]  Brian P. Bloomfield,et al.  Bodies, Technologies and Action Possibilities , 2010 .

[37]  Jodi Aronson.  A Pragmatic View of Thematic Analysis , 1995 .

[38]  R. Wise,et al.  Go Downstream: The New Profit Imperative in Manufacturing , 1999 .

[39]  T. Baines,et al.  Capturing the benefits of industry 4.0: a business network perspective , 2019, Production Planning & Control.

[40]  T. Baines,et al.  SERVITIZATION CAPABILITIES FOR ADVANCED SERVICES: A MULTI-ACTOR PERSPECTIVE , 2014 .

[41]  M. Taisch,et al.  The value of Big Data in servitization , 2015 .

[42]  E. Giménez,et al.  Decision-driven marketing , 2014 .

[43]  Orr Mendelson,et al.  A Typology of Affordances: Untangling Sociomaterial Interactions through Video Analysis , 2011, ICIS.

[44]  Paul M. Leonardi,et al.  When Does Technology Use Enable Network Change in Organizations? A Comparative Study of Feature Use and Shared Affordances , 2013, MIS Q..

[45]  Susan V. Scott,et al.  10 Sociomateriality: Challenging the Separation of Technology, Work and Organization , 2008 .

[46]  Marko Kohtamäki,et al.  Modeling manufacturer’s capabilities for the Internet of Things , 2018, Journal of Business & Industrial Marketing.

[47]  Stephen L. Vargo,et al.  Service Innovation in the Digital Age: Key Contributions and Future Directions , 2015, MIS Q..

[48]  Oscar F. Bustinza,et al.  Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry , 2018 .

[49]  J. Wincent,et al.  Non-linear relationship between industrial service offering and sales growth: The moderating role of network capabilities , 2013 .

[50]  Tonci Grubic,et al.  Servitization and remote monitoring technology: A literature review and research agenda , 2014 .

[51]  Noemi Sinkovics.  Pattern matching in qualitative analysis , 2018 .

[52]  Sujit Banerji,et al.  Challenges of servitization: A systematic literature review , 2017 .

[53]  Angappa Gunasekaran,et al.  IoT powered servitization of manufacturing – an exploratory case study , 2017 .

[54]  Tobias Larsson,et al.  Development of product-service systems: challenges and opportunities for the manufacturing firm , 2009 .

[55]  K. Eisenhardt.  Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[56]  Javier Cenamor,et al.  Adopting a platform approach in servitization : Leveraging the value of digitalization , 2017 .

[57]  Jens Dibbern,et al.  How Users Perceive and Actualize Affordances: An Exploratory Case Study of Collaboration Platforms , 2017, ICIS.

[58]  J. Wincent,et al.  Digitalization Capabilities as Enablers of Value Co‐Creation in Servitizing Firms , 2017 .

[59]  J. Loveland,et al.  Transitioning from product to service-led growth in manufacturing firms: Emergent challenges in selecting and managing the industrial sales force , 2014 .

[60]  J. Wincent,et al.  Mastering the Transition to Product-Service Provision: Insights into Business Models, Learning Activities, and Capabilities , 2014 .

[61]  In Lee,et al.  The Internet of Things (IoT): Applications, investments, and challenges for enterprises , 2015 .

[62]  Irene C. L. Ng,et al.  Servitization and operations management: a service dominant-logic approach , 2014 .

[63]  Federico Adrodegari,et al.  Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies , 2018 .

[64]  Mario Rapaccini.  DIGITAL TECHNOLOGIES AND THEIR IMPACTS ON SERVITIZATION STRATEGIES , 2016 .

[65]  Ritu Agarwal,et al.  Evolving Work Routines: Adaptive Routinization of Information Technology in Healthcare , 2011, Inf. Syst. Res..

[66]  Youngjin Yoo,et al.  Being Innovative About Service Innovation: Service, Design and Digitalization , 2012, ICIS.

[67]  Adam Lindgreen,et al.  What makes a good case study? A positivist review of qualitative case research published in Industrial Marketing Management, 1971–2006 , 2010 .

[68]  D. Strong,et al.  Affordance theory and how to use it in IS research , 2017 .

[69]  Daniel Kindström,et al.  Service Innovation in Product-Centric Firms: A Multidimensional Business Model Perspective , 2014 .

[70]  Birgitta Bergvall-Kåreborn,et al.  Digital Service Innovation Enabled by Big Data Analytics - A Review and the Way Forward , 2017, HICSS.

[71]  Cheng Hsu,et al.  Scaling with digital connection: Services innovation , 2007, 2007 IEEE International Conference on Systems, Man and Cybernetics.

[72]  Bengisu Tulu,et al.  A Theory of Organization-EHR Affordance Actualization , 2014, J. Assoc. Inf. Syst..

[73]  J. Godsell,et al.  The roles of internet of things technology in enabling servitized business models: A systematic literature review , 2019, Industrial Marketing Management.

[74]  Tim Baines,et al.  Servitization of manufacture: Exploring the deployment and skills of people critical to the delivery of advanced services , 2013 .

[75]  T. Baines,et al.  Context matters: how internal and external factors impact servitization , 2020 .

[76]  M. Lynne Markus,et al.  A Foundation for the Study of IT Effects: A New Look at DeSanctis and Poole's Concepts of Structural Features and Spirit , 2008, J. Assoc. Inf. Syst..

[77]  Tim Baines,et al.  Examining the information and communication technologies enabling servitized manufacture , 2011 .

[78]  B. Looy,et al.  Servitization: Disentangling the Impact of Service Business Model Innovation on Manufacturing Firm Performance , 2013 .

[79]  Daniel Kindström.  Towards a service-based business model – Key aspects for future competitive advantage , 2010 .

[80]  E. Guba,et al.  Competing paradigms in qualitative research. , 1994 .

[81]  Tim Baines,et al.  Servitization and Competitive Advantage: The Importance of Organizational Structure and Value Chain Position , 2015 .

[82]  Tim Baines,et al.  The servitization of manufacturing: A review of literature and reflection on future challenges , 2009 .

[83]  Diane M. Strong,et al.  Critical Realism and Affordances: Theorizing IT-Associated Organizational Change Processes , 2013, MIS Q..

[84]  C. Lerch,et al.  Digitalized Product-Service Systems in Manufacturing Firms: A Case Study Analysis , 2015 .

[85]  Jay Lee,et al.  Service Innovation and Smart Analytics for Industry 4.0 and Big Data Environment , 2014 .

[86]  T. Baines,et al.  Motivations for servitization: the impact of product complexity , 2016 .

[87]  Yingfeng Zhang,et al.  A comprehensive review of big data analytics throughout product lifecycle to support sustainable smart manufacturing: A framework, challenges and future research directions , 2019, Journal of Cleaner Production.

[88]  Jochen Wulf,et al.  Actualizing big data analytics affordances: A revelatory case study , 2020, Inf. Manag..

[89]  Rachel Ashman,et al.  Resource configurations for services success in manufacturing companies , 2015 .

[90]  M. Porter,et al.  UK Competitiveness: moving to the next stage , 2003 .

[91]  Richard E. Boyatzis,et al.  Transforming Qualitative Information: Thematic Analysis and Code Development , 1998 .

[92]  Thomas B. Long,et al.  Barriers to the adoption and diffusion of technological innovations for climate-smart agriculture in Europe: evidence from the Netherlands, France, Switzerland and Italy , 2016 .

[93]  W. Orlikowski.  Sociomaterial Practices: Exploring Technology at Work , 2007 .

[94]  I. Hutchby.  Technologies, Texts and Affordances , 2001 .

[95]  Ian K. Jennions,et al.  Do outcome-based contracts exist? The investigation of power-by-the-hour and similar result-oriented cases , 2018, International Journal of Production Economics.

[96]  Marimuthu Palaniswami,et al.  Internet of Things (IoT): A vision, architectural elements, and future directions , 2012, Future Gener. Comput. Syst..

[97]  Manoj Kumar Tiwari,et al.  Next generation smart manufacturing and service systems using big data analytics , 2019, Comput. Ind. Eng..

[98]  Joe Peppard,et al.  Servitized manufacturing firms competing through remote monitoring technology , 2016 .

[99]  A. Neely,et al.  Why Do Servitized Firms Fail? A Risk-Based Explanation , 2015 .

[100]  Tung X. Bui,et al.  The Influence of IS Affordances on Work Practices in Health Care: A Relational Coordination Approach , 2012, ICIS.

[101]  Shan Ling Pan,et al.  Affordances, experimentation and actualization of FinTech: A blockchain implementation study , 2019, J. Strateg. Inf. Syst..

[102]  Fiorenzo Franceschini,et al.  A worldwide survey on manufacturing servitization , 2019, The International Journal of Advanced Manufacturing Technology.

[103]  T. Baines,et al.  Measuring servitization progress and outcome: the case of ‘advanced services’ , 2018 .

[104]  Jay Lee.  Teleservice engineering in manufacturing: challenges and opportunities , 1998 .

[105]  Oscar F. Bustinza,et al.  Servitization, digitization and supply chain interdependency , 2017, Industrial Marketing Management.

[106]  Eduardo de Senzi Zancul,et al.  Business process support for IoT based product-service systems (PSS) , 2016, Bus. Process. Manag. J..

[107]  Jenny L. Davis,et al.  Theorizing Affordances: From Request to Refuse , 2016 .