Digital Factory Transformation from a Servitization Perspective

In recent years, a complex set of dynamic developments driven by both the economy and the emergence of digital technologies has put pressure on manufacturing companies to adapt. The concept of servitization, i.e., the shift from a product-centric to a service-centric value creation logic, can help manufacturing companies stabilize their business in such volatile times. Existing academic literature investigates the potential and challenges of servitization and the associated development of data-based services, so-called smart services, with a view to external market performance. However, with the increasing use of digital technologies in manufacturing and the development of internal smart services based on them, we argue that the existing insights on external servitization are also of interest for internal transformation. In this paper, we identify key findings from service literature, apply them to digital factory transformation, and structure them into six fields of action along the dimensions of people, technology, and organization. As a result, recommendations for designing digital factory transformation in manufacturing companies are derived from the perspective of servitization and developing internal smart services.