Creating value in servitization through digital service innovations

Chris Raddats*, Parikshit Naik, Ali Ziaee Bigdeli

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


Servitization increasingly requires the use of digital technologies such as the Internet of Things (IoT), cloud computing, and predictive analytics. This paper investigates digital service innovations (DSIs) that use these technologies. Using a service innovation lens, it is distinguished from most prior servitization research through specifying DSIs from incremental to radical modes, rather than measuring service innovation on self-reported scales. Data were collected using expert interviews and secondary sources from 20 manufacturers from four sectors. Using changes from baseline service offerings, the study identified nine DSIs with varying degrees of innovativeness. The paper develops a framework within which each DSI can be placed, with two axes representing innovation mode (incremental, intermediate, radical) and impact of innovation (customer, manufacturer, hybrid). This latter dimension addresses concerns about the lack of focus on customer value in prior service innovation research. The study also develops a new typology of DSI groupings (Business enabler, Service enhancement, Digital service offering) demonstrating that DSIs have mainly enabling or service enhancing roles for manufacturers rather than one that is predominantly designed to create digital service offerings. The exceptions are ‘predictive maintenance’ and ‘process improvement’, which are radical/intermediate DSIs respectively and provide strong value for both manufacturers and customers.

Original languageEnglish
Pages (from-to)1-13
Number of pages13
JournalIndustrial Marketing Management
Early online date15 Apr 2022
Publication statusPublished - Jul 2022


  • Digital service innovation
  • Digital servitization
  • Incremental
  • Radical
  • Service innovation
  • Servitization


Dive into the research topics of 'Creating value in servitization through digital service innovations'. Together they form a unique fingerprint.

Cite this