Manufacturing companies are undergoing a transformative shift with digital servitisation, integrating digital technologies into service-oriented business models. This evolution brings new challenges and opportunities, shaping distinct pathways for firms embracing digital transformation. Recent research identifies three primary business typologies in digital servitization: digital experimentalists, strategic pioneers, and digital servitization novices.

What is Digital Servitization?

Digital servitization refers to the process of leveraging digital technologies to enhance traditional servitization strategies, enabling manufacturers to offer data-driven services alongside physical products. This trend aligns with Industry 4.0 advancements, where manufacturers use digital tools to optimize service delivery, improve efficiency, and create new revenue streams.

Three Business Typologies in Digital Servitisation

A recent study categorized manufacturing firms into three typologies based on their approach to digital servitization:

1. Technology readiness & proof of concept

These companies focus on exploring digital technologies to enhance their service offerings. They actively experiment with IoT, AI, and simulation tools to develop data-driven services. While they recognize the potential of digital transformation, their strategies are often opportunistic rather than systematically planned. Key characteristics include:

• High adoption of digital tools like machine learning and digital twins.

• Use of product usage data for service innovation.

• Strong commitment to sustainability through smart PSS (Product-Service Systems).

2. Strategic pioneers

This group represents manufacturers that integrate digital servitization within a well-defined business model. They prioritize structured strategies, forming partnerships with IT providers and leveraging data-driven insights to enhance service value. Strategic pioneers are characterized by:

• A clear vision of digital servitization’s value for business growth.

• Strong internal capabilities for managing digital transformation.

• Focus on long-term customer relationships through data-driven services.

3. Digital servitisation novices

These companies are in the early stages of digital servitization, facing challenges in implementing digital tools and strategies. While they acknowledge the importance of digital transformation, they struggle with execution due to a lack of expertise and resources.

Their main challenges include limited adoption of digital technologies, unclear business strategies for digital service integration and difficulty in monetising digital services effectively.

Best practices for advancing digital servitisation

To transition successfully toward digital servitization, manufacturers can adopt the following best practices:

• Develop a clear digital servitization strategy to align technology adoption with business goals.

• Invest in data analytics and AI to extract valuable insights for service innovation.

• Build strategic partnerships with technology providers to enhance service capabilities.

• Prioritize customer engagement by integrating digital services that offer tangible value.

• Focus on sustainability by leveraging digital tools to improve resource efficiency and reduce waste.

Digital servitisation is reshaping the manufacturing landscape, offering new avenues for growth and innovation. Whether a company is a digital experimentalist, strategic pioneer, or novice, understanding these typologies helps businesses navigate their digital transformation journey effectively. By adopting best practices and leveraging digital tools strategically, manufacturers can unlock new value propositions and establish a competitive edge in the evolving market.

Reference:
Arioli, V., Pezzotta, G., Romero, D., et al. (2025). Digital servitization business typologies in the manufacturing sector. International Journal of Industrial Engineering and Management. https://doi.org/10.24867/IJIEM-378