Digital Servitization in SMEs: Evidence from Italian Manufacturing Firms

Abstract

This thesis explores the concept of servitization and its implications for businesses in the modern digital age. In Chapter 1, we begin with an introduction to servitization, tracing its historical background, providing a comprehensive definition, and delving into the nuances of products and services. We also introduce the concept of Product-Service Systems, setting the stage for a deeper understanding of this transformation. Moreover, this chapter investigates the drivers of servitization, including financial, strategic, and marketing drivers, which motivate organizations to transition from traditional product-centric models to service-oriented approaches while examining the barriers that hinder servitization. In Chapter 2, the focus shifts towards digital servitization, highlighting its significance in the context of Industry 4.0. We delve into the fundamentals of Industry 4.0, encompassing its definition, evolution, and core technologies. Furthermore, we explore the journey from traditional operations to digital servitization, emphasizing the role of digitization, digitalization, smart products, and digital product-service systems. Special attention is paid to the impact of digital servitization on Small and Medium Enterprises (SMEs), highlighting both the opportunities and barriers they face. Chapter 3 takes a closer look at the Italian context, providing a multiple case study perspective on servitization in manufacturing firms. We present each firm by showcasing their backgrounds, paths to servitization, and main challenges. By examining their experiences, this dissertation offers an opportunity to delve into the practical aspects of servitization, shedding light on the challenges and successes encountered by these organizations as they transition towards service-oriented business models.