Key differences between servitization and DS
| Servitization | Digital servitization | |
|---|---|---|
| Scope | A broader concept that encompasses various types of services, not necessarily dependent on digital technologies (Vandermerwe and Rada, 1988) | A subset of servitization, focusing specifically on the digitization aspect (Paschou et al., 2020) |
| Focus | Shifting from products to services (Oliva and Kallenberg, 2003) | Enhancing services through digital technologies (Paschou et al., 2020) |
| Technological emphasis | Could proceed partly without technologies. While sometimes technology-enabled, not necessarily require cutting-edge digital solutions (Baines and Lightfoot, 2014) | Emphasizing the use of digital technologies like IoT, AI, and data analytics to improve service delivery and create new service offerings (Ardolino et al., 2018) |
| Organizational aspect | Developing service-oriented skills and capabilities that involve training employees, and changing the structure to accommodate service units and teams (Kimita et al., 2022) | A high level of digital literacy within the organization including the integration of IT specialists, data analysts, and professionals (Shen et al., 2023) |
| Business model | Creating value through services, enabling revenue streams through long-term service contracts, subscriptions, or pay-per-use models (Rabetino et al., 2017) | Expanding the servitization model by enabling data-driven decision-making, predictive maintenance, and automation of processes, involving partnerships with technology providers and software-as-a-service (SaaS) offerings, enabling revenue streams through digital service subscriptions and IoT device sales (Rapaccini et al., 2023) |
| Infrastructure | Focusing on service delivery, including service centers, service network, maintenance facilities, customer support hotlines, and trained service personnel (Bikfalvi et al., 2013) | Requires a robust IT infrastructure, including IoT devices for data collection, cloud computing platforms for data storage and processing, analytics tools for data analysis, and cybersecurity measures to protect digital assets (Flores-García et al., 2023) |
| Servitization | Digital servitization | |
|---|---|---|
| Scope | A broader concept that encompasses various types of services, not necessarily dependent on digital technologies ( | A subset of servitization, focusing specifically on the digitization aspect ( |
| Focus | Shifting from products to services ( | Enhancing services through digital technologies ( |
| Technological emphasis | Could proceed partly without technologies. While sometimes technology-enabled, not necessarily require cutting-edge digital solutions ( | Emphasizing the use of digital technologies like IoT, AI, and data analytics to improve service delivery and create new service offerings ( |
| Organizational aspect | Developing service-oriented skills and capabilities that involve training employees, and changing the structure to accommodate service units and teams ( | A high level of digital literacy within the organization including the integration of IT specialists, data analysts, and professionals ( |
| Business model | Creating value through services, enabling revenue streams through long-term service contracts, subscriptions, or pay-per-use models ( | Expanding the servitization model by enabling data-driven decision-making, predictive maintenance, and automation of processes, involving partnerships with technology providers and software-as-a-service (SaaS) offerings, enabling revenue streams through digital service subscriptions and IoT device sales ( |
| Infrastructure | Focusing on service delivery, including service centers, service network, maintenance facilities, customer support hotlines, and trained service personnel ( | Requires a robust IT infrastructure, including IoT devices for data collection, cloud computing platforms for data storage and processing, analytics tools for data analysis, and cybersecurity measures to protect digital assets ( |
Source(s): Created by authors