Exploring the value of IoT data as an enabler of the transformation toward servitization: An action design research approach

Kuan-Lin Chen*, Astrid Heidemann Lassen, Chen LI, Charles Møller

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Servitization, a slow-mode of industrial evolving from the innovative service development in supply chain activities, is a well-recognized phenomenon in the manufacturing industry. Mass of evidence that shows the business potential to embark on this transformation is rounded from the marketing perspective of servitization. However, due to digitalization and implication around the smart products (and its components), researchers from different fields are also increasing their attention to this particular phenomenon. In the IS field, two interest topics are around the evolving role of information technology (IT) in the organization and the role of data supporting the business goals. The objective of this research, therefore, is taking these two concerns into considerations to investigate the digital-enabled servitization on the organizational impact in a manufacturing firm. It aims to probe the implication of IoT data to the business system for supporting managers in better understanding the smart products’ “in-use” status and its markets. Our goal is to investigate the organizational impact from the implementation of IoT and its data and how it might support managers in decision-making toward digital-enabled servitization. The action design research (ADR) is applied as an approach to investigate this particular situation, which we need to understand more about the role of IT in this transforming journey, and its impact on the organizational context. With three iterative engagements, we make three research contributions. First, we propose a set of design principles for exploring enterprise data sets, including the newly acquired “product-in-use” data from the IoT platform. Second, we bring up theoretical contributions to understand the emerging constructs in the business system to support the digital-enabled servitization. It sheds light on the existing body of research on the operational aspect of the servitization paradigm. Third, we discuss our experience in using ADR and argue that the use context of the IT artifact should also be co-defined in the building, investigation, and evaluation process.
Original languageEnglish
JournalEuropean Journal of Information Systems
Number of pages42
ISSN0960-085X
Publication statusSubmitted - Sep 2020

Keywords

  • the Internet of Things (IoT)
  • digital servitization
  • digitalization
  • action design research
  • business system

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