Designing digital servitisation solutions

Digital servitisation is one of the models in the masterplan innovation that has been receiving extra attention at Sirris. It is a perfect example of how technological innovations come together to transform businesses.

To exploit this new value delivery platform successfully, OEMs, vendors, distributors or service providers need to overcome different challenges and master new skills and capabilities:

  • Integration of connectivity in the product. The product needs to break out of its local connectivity, and be able to interact (directly or indirectly) with the outside world.
  • Establish a data mindset: To master the model of digital servitisation, you must truly understand how products are being used in the field, how best to maintain them and how best to deliver value over the products' useful life to those who own and use them. The infrastructure, collection and real-time analytics of (big) data have become affordable, even for SMEs. But understanding the deployment of these new technologies in company’s context is a tremendous challenge for the companies.
  • Software service design: Digitalisation enables cost reduction, for example by remote monitoring, notification and action, and by self-service and e-service options. Online software, mobile apps and other smart services create novel value propositions, service-type transactions and payment models. Mastering the software capabilities that are needed for robust and secure deployment of the software services in a digital servitization model are a necessity. These software capabilities are of a very different nature than the “embedded software” capabilities that “hardware-oriented” companies typically already master.
  • Establish an API and platform mindset: clean, well-defined interfaces and platforms must be first-class citizens in the product management.
  • Re-engineering (disruptive) business and deployment models: Digitised servitisation offers opportunities for new collateral assets to hold a competitive position through the development of innovative product-service systems and (disruptive) business models. Companies must change their way of thinking and re-engineer their business model to leverage the benefits of digital services. Different models enable the development of a services portfolio in order to maximise value capture by  incorporating a healthy mix of product- and service-based offerings. The strategy will include a choice on how to bring services to the market, and who will deploy/manage your digital service (manufacturer, distributor, other third party, customer, …).

At Sirris, we have gained experience in bringing all these elements together and let them work in harmony. Now, we also have a single point of contact for helping you to figure out what this could mean for your company.

This series has been made possible thanks to the support of VLAIO, Innoviris, Smart Innovator.