Digital Servitization Maturity Model: A Proposed Framework

Digital servitization is a pivotal research trend reshaping the manufacturing sector, leveraging Industry 4.0 technologies for a transition from product-centric to sophisticated service-centric business models. As the field of digital servitization matures, development of more context-specific maturity models that investigates the optimal combination of traditional and digital dimensions are needed. This study investigates a framework for a digital servitization maturity model, utilizing an exclusive dataset from the European Manufacturing Survey, comprising 1496 industrial firms from Germany and Serbia. The study identifies five levels of digital servitization maturity (Pure manufacturer, Traditional servitization, Outcome based business model, Digital servitization, and Digitalized PSS business model), emphasizing the need for a nuanced understanding of how companies navigate traditional and digital dimensions. Surprising disparities emerge, particularly in traditional servitization levels, suggesting a unique trajectory for Serbian firms. The paradoxical dynamic prompts exploration into whether digitization acts as a catalyst, propelling Serbian manufacturers swiftly into servitization upon deciding to transition.