Servitization increases uncertainty and complexity in manufacturing firms by introducing dynamic interdependencies within and between organisations. This study proposes the conceptual lens of Complex Adaptive Systems (CAS) to frame manufacturers’ service delivery systems and a hybrid simulation approach to explore the dynamic interdependencies of their servitization journeys. The case of a boiler manufacturer transforming to a provider of Heat-as-a-Service (HaaS) is used to examine the dynamic interdependencies between the growth of a service business, digitalisation efforts and operational efficiency as well as the interaction between the emerging service- and existing product business. The findings indicate that the manufacturer will experience an initial ‘cost-shock’ which will significantly decline as service delivery optimises and diagnostic accuracy improves. The study contributes to the servitization literature by introducing CAS as a theoretical perspective and hybrid modelling as a practical approach to explore and reconcile the strategic and operational dimensions of servitization.
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This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.
Funding: This work was supported by the European Union’s Horizon 2020 Research and Innovation Programme under the Marie Skłodowska-Curiegrant agreement No , and the UK’s Engineering and Physical Science Research Council through the Digitally Enhanced Advanced Services Network Plus funded by grant ref [EP/R044937/1]. Data AccessStatement for EPSRC funded study: The data underwriting this publication can be accessed at the Aston research data repository.
- Heat-as-a-Service (HaaS)
- Complex Adaptive Systems (CAS)
- Hybrid simulation
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