Digital servitization is the combination of servitization with the adoption of digital technologies. Referring to the definition of servitization, we can therefore give a definition of digital servitization.
Definition of digital servitization:
Digital servitization is the process of transforming a firm to also compete through offering 'outcomes' to its customers, by means of a product-service combination and the intensive use of digital technologies.
In particular, among all digital technologies, those that have a decisive impact on servitization are those that collect and process data from connected products. This type of digital technologies proves to be fundamental in delivering and guaranteeing the outcomes for customers. They also have a second major benefit: they considerably help to save costs and reduce the risks involved in providing the service.
We can then give an extended definition of digital servitization.
Extended definition of digital servitization
Digital servitization is the process of transforming a firm to also compete through offering 'outcomes' to its customers, by means of a product-service combination and the intensive use of digital technologies, in particular those that collect and process data generated by the product, that help the firm to also save costs and reduce the risks involved in providing the offering.
A journey, not a destination
Like servitization, digital servitization is a journey, not a destination. It is not a one-off project you complete and set aside: it is a gradual transformation of how your company competes, delivers value, and generates revenue — one that unfolds over time and keeps evolving.
And when you set out on a journey, you need a map: something that helps you understand where you are, choose where to go next, and trace a route to get there without losing your way.
To learn how to plan your route, read Planning your Digital Servitization and DPS journey.
Scientific papers and experts
Many scientific papers study digital servitization. We picked these for you:
- Digital servitization in manufacturing: A systematic literature review and research agenda by Theoni Paschou, Mario Rapaccini, Federico Adrodegari, Nicola Saccani (2020)
- Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms by Marco Paiola and Heiko Gebauer (2020)
- Digital servitization: Crossing the perspectives of digitization and servitization by Heiko Gebauer, Marco Paiola, Nicola Saccani, Mario Rapaccini (2021)
- Conceptualizing customer value in data-driven services and smart PSS by Mario Rapaccini, Federico Adrodegari (2022)
We thank all the experts working on this subject who are a source of inspiration and reference for our work: Mario Rapaccini, Federico Adrodegari, Nicola Saccani, Theoni Paschou, Marco Paiola, Heiko Gebauer, Christian Kowalkowski, Shaun West, Andreas Schroeder.