The document discusses how small- and medium-sized enterprises (SMEs) can improve servitization through digitization. It presents case studies of three SMEs - Alpha, Beta, and Charlie - that implemented new digital technologies. The technologies enabled more customized and integrated solutions for clients but also faced barriers like reluctance from employees and clients. Overall, digitization allows SMEs to deepen customer relationships and pursue new revenue streams by offering customized products, integrated services, and new market applications. However, SMEs must develop capabilities to convince stakeholders of these changes.

1. The
bumpy
servitization
road
upstream
in
the
value
chain:
strategies,
enablers
&
barriers
in
digitization
Wim
Coreynen
Paul
Matthyssens
Koen
Vandenbempt

3. Overview
Introduction
Research
framework
Preliminary
integrative
framework
Results
Conclusions

4. Introduction
The
many
bene=its/opportunities
of
servitization
&
digitization:
Servitization:
commercial
beneEits,
deal
with
commoditization,
compete
with
lower
cost
economies,
an
alternative
to
product
and
process
innovation
Digitization:
inEinite
possibilities
for
connecting
people,
systems,
companies,
etc.,
enhance
operational
performance,
deepen
customer
insight
Increasing
attention
and
clear
links
between
both
Eields
of
study,
yet
no
connection
on
a
more
strategic
level

5. Introduction
Address
two
shortcomings:
Treat
digitization
as
a
facilitator
for
strategic
servitization
purposes,
not
a
mere
upgrading
of
digital
tools
Focus
on
SMEs,
for
whom
there
is
no
predeEined
transition
process
for
service
infusion
Our
aim
is
to
=ind
how
SMEs
can
improve
on
servitization
through
digitization
Also,
to
pinpoint
and
describe
enablers
and
barriers
when
implementing
new
technologies

6. Research
framework

7. Preliminary
integrative
framework

8. Alpha
Beta
Charlie
Founded
1986
1970
2008
Revenue
€33
million
(2013)
€5.9
million
(2012)
€1.2
million
(2013)
#employees
170
60
12
Main
products
Electrical
switchboards
Precision-­‐
engineered
components
FuncEonal
soles
Clients
Local
OEMs
&
installers
Wide
variety
of
internat.
clients
Local
chiropodists
Results
Case
studies

9. Alpha
Beta
Charlie
Technology
Web
applicaEon
Direct
digital
manufacturing
Digital
foot
scanner
Product
dimension
(1)
Unique
switchboards
More
precise
teeth
prostheEcs,
also
stronger
&
lighter
Personalized
funcEonal
soles
Service
dimension
(2)
Building
switchboards
Modelling
&
prinEng
prostheEcs
Modelling
&
moulding
soles
Business
model
dimension
(3)
Licensing
the
web
app
to
compeEtors
abroad
New
applicaEons
such
as
opEcians
-­‐
Results
Preliminary
integrative
framework

10. Results
Barriers
&
enablers
Alpha
Beta
Charlie
Enablers
Increase
in
speed,
less
stock
&
generate
docs
automaEcally
Increase
in
speed,
no
stock,
cleaner,
safer,
less
materials,
energy
&
less
labour
Increase
in
speed,
no
stock
&
cleaner
Barriers
Difficult
to
convince
employees
&
inEmidaEon
by
suppliers
Difficult
to
convince
clients
&
inEmidaEon
by
clients
Difficult
to
convince
clients

11. Conclusions
Through
digitization,
SME’s
may
deepen
customer
relations
through:
offering
more
customized
solutions
(product
dimension)
that
are
better
integrated
in
the
clients’
processes
(service
dimension)
This
may
lead
to
higher
operational
performance
as
well
as
new
revenue
streams
(business
model
dimension)
through
opening
up
new
markets
and/or
applications,
In
doing
so,
companies
need
to
develop
new
capabilities
for
convincing
employees,
clients
and
suppliers.

12. Questions?
E:
wim.coreynen@ams.ac.be
T:
@WimCoreynen
L:
linkedin.com/in/wimcoreynen

13. OPENING
MINDS
TO
IMPACT
THE
WORLD