This presentation summarizes a paper on the successful commercialization of a digital twin in an industrial product service system. It describes how an industrial project partner used a framework called Data2Action (D2A) to structure problem description and solution development, which allowed them to focus on value co-creation. A key challenge was capturing the complex value constructs in such systems. Service Dominant Logic helped identify value but translation to traditional Goods Dominant Logic views, like for procurement, remained difficult. The case study provided lessons on understanding customer value through co-creation and testing, but more practical frameworks incorporating Service Dominant Logic are still needed.

1. The successful commercialization of a
digital twin in an industrial product
service system
Oliver Stoll, Shaun West, Paolo Gaiardelli, Prof. David Harrison, Fintan J Corcoran
APMS Conference, Novi Sad, Serbia
30 Aug – 4 Sep 2020

2. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Introduction
Problem and purpose of this presentation
… the commercialization of industrial product service systems
can be challenging because value constructs become complex.
… describe how an Innosuisse industrial project partner
successfully commercialized a smart service.
… show how Service Dominant Logic assisted or hindered the co-
development and delivery of smart services.
This presentation summarizes
the paper about “the successful
commercialization of a digital
twin in an industrial product
service system”.
Problem
Purpose of this presentation is to …

3. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Introduction
Industrial case: Operational conditions as a service and the challenges
Data can be used to create services that meet the challenges and goals of an organisation
Manage people, processes
and equipment
Increase availability of
dependent equipment

4. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, CorcoranAPMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Background
Selling the value of Smart Services in complex IPSS is hard
Data alone has no value
Grönroos, C., & Voima, P. (2012). Critical service logic: making sense of value creation and co-creation.
Journal of the Academy of Marketing Science, 41(2), 133-150. doi:10.1007/s11747-012-0308-3
Right information
Right time
Right form
Right person
Right action
Right data

5. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Introduction
D2A supported the problem description and solution development
This framework provides structure, allowing to focus on value co-creation
Stoll, O., West, S., Rapaccini, M., Barbieri, C., Bonfanti, A., & Gombac, A. (2020). Upgrading the Data2Action
Framework: Results Deriving from Its Application in the Printing Industry. In Exploring Service Science (pp.
273-286): Springer International Publishing.

6. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Methodology
The application and observation of the roadmap based on action research
The methodology was design to capture the learnings during a dynamic application of the roadmap
Single case studies can be
more effective to describe
complex interactions
among several variables
characterizing the problem
under investigation.
Dyer, W. G., & Wilkins, A. L. (1991). Better Stories, Not Better Constructs, To Generate Better
Theory: A Rejoinder to Eisenhardt. Academy of management review, 16(3), 613-619.
doi:10.5465/amr.1991.4279492

7. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, CorcoranAPMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Results
Sales roadmap and analysis
Service is about people and helping them to do their jobs – think customer outcomes
• Integration into firm's
strategy
• Many possibilities makes
it hard to choose from
• Get a common
understanding of the
value proposition
• Complex value system
Stage 1: Motivation
Understanding
digitalization
SWOT analysis
New business
opportunities
Stage 2: Understand
and ideate
System understanding
from multiple
viewpoints
Avatar/Customer
journey mapping,
personas and CVP
Optimization
potentials through
new Smart Services
Stage 3: Solution
evaluation
Determining the value
of Smart Services
Case actor matrix,
solution ranking
matrix, story telling
Understand and price
intangible service
value
Stage 4:
Development of a
sales roadmap
Communicating the
value of Smart
Services and showing
the USP
Business model
Understand the
potential of Smart
Services
Stage 5:
Commercialization
Identify willingness to
pay of the customer
Cost structure
analysis, targeted
marketing
Customer relationship,
ROI on project

8. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Discussion
Summary of key learnings from the case study
Capturing the value of co-creation remains a challenge
- Understand what customers value
- Co-creation and testing (open innovation) leads to
common understanding
- Service Dominant Logic helped identify value
- Translation of Service Dominant Logic value into
Goods Dominant Logic value for procurement
IPSS consist of value
networks with many
CVPs

9. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Conclusions
Limited to a specific single case study
Value co-creation demands collaboration & trust
Organizations seam to remain stuck in GD logic
Value constructs can become
complex in IPSS. System
understanding is key to identify
the value-creation network.
SD logic helped identify value and supports the idea of value networks

10. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Recommendations / closing
How can we further improve value understanding using SD logic?
This paper provides evidence that
practical frameworks for the
applications of SD logic
concerning design, development
and commercialization of PSS
may be needed.
SD logic is still very conceptual, practical frameworks
incorporating SD logic could help practitioners and academics.
Value perception from the customers perspective is under
investigated and needs further research.
Development of contracts capturing value according to SD
logic are poorly understood.

11. APMS Conference, Novi Sad 2020 | Stoll, West, Gaiardelli, Harrison, Corcoran
Who we are…
The people behind the work
For more information please visit slideshare.net/ShaunWest