A conceptual framework for a new service model: digital servitization with an Industrial 4.0 perspective

Abstract

Purpose

Recently, increasing costs and competitive pressure have accelerated the search for different business models in both the production and service sectors. The rapid development of technology has increased the importance of digitalization, especially in developing new and different strategies. The digital service business model has also become a new business model that companies have recently preferred. In addition to its many advantages, it is a business model in which different barriers arise in practice. When we look at the literature, there are very few studies, especially on digital servitization. The purpose of this study is to integrate the concept of digital servitization with the Industry 4.0 perspective.

Design/methodology/approach

To achieve this aim, first, the authors identify various challenges and barriers in front of digital servitization based on the Industry 4.0 perspective. Later, they determine the relative importance of these barriers critical to the success of digital servitization. Lastly, one multi-criteria decision-making method, the fuzzy decision-making trial and evaluation laboratory method, is used to analyze the cause-and-effect relationship between each barrier based on the Industry 4.0 perspective

Findings

Based on the results, the most crucial cause-and-effect barriers are insufficient infrastructure/lack of IT infrastructure and high implementation, respectively. Therefore, this study offers the reader the possible barriers to sustainable digital servitization with Industry 4.0 perspective implementations and comprehensive solutions for these barriers. In addition, this study draws a roadmap for disseminating digital service applications.

Originality/value

There is no study, to the best of the authors’ knowledge, about determining barriers and problems with merging digital servitization with the Industry 4.0 perspective. So, there is still a significant gap in the literature about investigating these two essential topics from the Industry 4.0 perspective.

Citation

Adsiz, T. and Ozturkoglu, Y. (2023), "A conceptual framework for a new service model: digital servitization with an Industrial 4.0 perspective", Journal of Global Operations and Strategic Sourcing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JGOSS-08-2022-0091