An agile co-creation process for digital servitization: A micro-service innovation approach

David Sjödin, Vinit Parida, Marko Kohtamäki and Joakim Wincent

Journal of Business Research, 2020, vol. 112, issue C, 478-491

Abstract: In this paper, we explore how manufacturing firms and their customers co-create digital service innovations in an attempt to address the digitalization paradox. We present empirical insights from a case study of four manufacturers and their customer relationships. The results suggest that value co-creation in digital servitization is best managed through an agile micro-service innovation approach. Such an approach requires incremental micro-service investments, sprint-based micro-service development, and micro-service learning by doing to ensure customized and scalable digital service offerings. The proposed agile co-creation model provides insight into the phases, activities, and organizational principles of a micro-service innovation approach. Relational teams that pool knowledge from providers’ and customers’ strategic, technological, and operational areas are crucial to ensure successful cooperation and governance for agile co-creation. This paper offers insight into how companies engage in agile co-creation processes, with important recommendations for innovation in manufacturing firms in the era of digitalization.

Keywords: Digitalization; Industrial Internet of Things (IoT); Advanced services; Digital paradox; artificial intelligence (AI); Product-service systems (PSS); New service development (NSD) (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (69)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:112:y:2020:i:c:p:478-491

DOI: 10.1016/j.jbusres.2020.01.009

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