Digital Servitization Roadmapping: A Case Study of Well-Being and Productivity Management Service in the Construction Industry

Abstract

Manufacturing companies are increasingly focused on developing novel value propositions that address environmental and social impacts. This shift is driven by business models through digital servitization (DS), which integrates digitalized product-service solutions. DS requires the adoption of new digital technologies and development capabilities, alongside an overhaul of organizational capabilities and network structures, to manage and adopt service offerings effectively. Additionally, fostering a customer value-oriented vision for DS is crucial for designing a strategy that aligns both digital and organizational capabilities to create customer value. Although roadmapping is commonly used for strategic planning in the industry, existing approaches primarily support technological planning and fail to comprehensively align technological and organizational aspects toward realizing customer value. To fill this gap, this study proposes a DS roadmapping framework to enhance strategic planning for DS in manufacturing firms. The framework includes processes and tools based on two principles: aligning digitalization and organizational transformation and adopting a customer value-oriented strategic design. The framework’s effectiveness is demonstrated through its application to strategic planning for DS at a mining and construction equipment manufacturing company. This study contributes to the literatures by providing three principal implications, summarized as 1) extending previous knowledge by linking capability theory in service management with roadmapping as its theoretical foundation, 2) developing a framework that newly integrating value-oriented thinking and the perspective of the alignment of digitalization with organizational capabilities into the roadmapping process, and 3) extending the scope of roadmapping to practical DS planning by demonstrating its applicability through a case study.