Digital Transformation and Servitization in Traditional Manufacturing Enterprises: An Exploratory Case Study
The ongoing global Covid-19 epidemic has had an immeasurable impact on various industries. Especially for traditional manufacturing industries dominated by traditional business models, the impact is extremely severe and far-reaching. As such, digital transformation is urgent. Although previous research has conducted research on the digital transformation of traditional manufacturing enterprises, there still lack of in-depth research on how servitization affects the digital transformation of enterprises and the specific business models. The purpose of this research is to explore the role of servitization in the process of digital transformation in traditional manufacturing enterprises, and to further develop a conceptual model of digital transformation with servitization as a key factor. This research adopted exploratory case study method with an abductive logic, as well as time series analysis to investigate the servitization process and digital transformation strategies of the world's top 100 traditional manufacturing companies. The important milestone servitization and digital transformation events in the selected enterprises are analyzed as research samples, and each development stage of traditional manufacturing enterprises shows different characteristics. Finally, the study summarizes business model innovations in traditional manufacturing industries and summarizes strategies for digital transformation. Among theoretical contributions, this study further develops research on the interplay of servitization and enterprise digital transformation. In addition, it provides an innovation conceptual model to analyze the digital transformation and business model innovation of traditional manufacturing enterprises.
Keywords - Digital Transformation, Manufacturing Industry, Servitization, Business Model Innovation