Aligning strategic position, behavior, and structure for smart service businesses in manufacturing

The manufacturing industry is currently experiencing profound changes driven by digitalization and servitization. Consequently, so-called smart services, which are digital services that generate value from product data, are gaining considerable attention. However, many companies are struggling with their strategic management, particularly in terms of strategic position, behavior, and structure. In the literature, a discussion on such an integrative view is missing. In this paper, we introduce a process model that allows choosing adequate strategic competences and a suitable structure for a smart service business. Accordingly, this model enables manufacturing companies to align their strategic position (i.e., products and markets), competences, and structure. We put forward the case for an integrative view on strategy for smart services in theory and deliver an approach for managers in their day-to-day businesses.