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Expanding Business from Products to Digital Services: Value Dimensions of Digital Services Enabled by Embedded Technology
Halmstad University, School of Information Technology, Halmstad Embedded and Intelligent Systems Research (EIS), Man and Information technology laboratory (MI-lab).
2014 (English)In: Proceedings of the 8th Mediterranean Conference on Information Systems / [ed] Mola, L., Carugati, A., Kokkinaki, A., Pouloudi, N., 2014, Paper 12- p.Conference paper, Published paper (Refereed)
Abstract [en]

Manufacturing firms are now embedding digital technology into products with an aim to offer digital services to their customers. Digital services create opportunities for firms to add new value dimensions to their businesses as firms now can expand their businesses from tangible products to digital services. Existing research explains three value dimensions. ‘Value-in-exchange’ is traditionally followed by manufacturing firms where they determine monetary value for their products and exchange the value with customers. Recent research argues that ‘value-in-exchange’ is not customer centric and therefore to gain customer value, ‘value-in-use’ and ‘value-in-cocreation’ are necessary. With growing utilization of embedded digital technology in products, new digital services are rendered and new value dimensions are emanating. Existing research informs little about the value dimensions of digital services that result from the combination of digital technology and tangible products. Therefore, in this research, we seek answer to the question, ‘What are the value dimensions of digital services that are enabled by embedded digital technology in tangible products?’ A qualitative study has been conducted to investigate Remote Diagnostics Services (RDS) for vehicles. Along with the three known value dimensions, that is, value-in-exchange, value-in-use and value-incocreation, this research contributes to knowledge by showing two new value dimensions: ‘value-in-connectivity’ and ‘value-in-architecture’.

Place, publisher, year, edition, pages
2014. Paper 12- p.
Keyword [en]
Digital, Services, Value-in-use, Value-in-cocreation, Value-in-connectivity, Value-in-architecture
National Category
Information Systems
Identifiers
URN: urn:nbn:se:hh:diva-27110ISBN: 978-88-6787-273-2 OAI: oai:DiVA.org:hh-27110DiVA: diva2:765869
Conference
8th Mediterranean Conference on Information Systems (MCIS), Verona, Italy, September 3-5, 2014
Available from: 2014-11-25 Created: 2014-11-25 Last updated: 2015-10-06Bibliographically approved
In thesis
1. Service Logic in Digitalized Product Platforms: A Study of Digital Service Innovation in the Vehicle Industry
Open this publication in new window or tab >>Service Logic in Digitalized Product Platforms: A Study of Digital Service Innovation in the Vehicle Industry
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The digitalization of products has become an important driver for service innovation in manufacturing firms. The embedding of digital technology in previously non-digital products creates digitalized product platforms that enable digital service innovation. Digital service innovation offers new business opportunities for manufacturing industries, as well as challenges established premises for value creation.  While digital service innovation can be found in many manufacturing industries, this thesis studies service logic in digitalized product platforms in the vehicle industry.

Existing Information Systems (IS) literature presents challenges in digital service innovation relating to value, architecture, and generativity. The design of the architecture of digitalized product platforms requires the identification and combination of digital and non-digital assets. Understanding the architectural aspects is useful in digital service innovation. Moreover, with growing instances of generative digital technologies, it is challenging to develop strategies to leverage generativity for service design in digitalized product platforms. While digital technologies are embedded in products, the role of technology-embeddedness in value creation of digital services is relatively unexplored. Drawing on these challenges, this thesis describes and conceptualizes the underlying premises brought by the architecture and generativity to the value creation of services in digitalized product platforms. The research question addressed in this thesis is: What are the underlying premises for services in digitalized product platforms?

To address the question, an interpretive qualitative research approach was adopted in a collaborative research project concerning services enabled by digitalization of vehicles. Drawing on digital innovation and service literature, this thesis presents a theoretical perspective on the role of the architecture and generativity of digitalized product platforms for value creation of digital services. This perspective is conceptualized as underlying premises for this specific class of services. The premises frame the service logic in digitalized product platforms and provide a ground for understanding services in digitalized product platforms in relation to value dimensions, architecture and generativity. The premises are based on five concepts: value-in-architecture, value-in-connectivity, fundamental asset for value creation, mutual dependence of modular and layered modular assets, and re-evaluation of value propositions. The proposed premises offer a basis for understanding value creation of this class of services, and guidance for manufacturing firms designing digitalized product platforms.

Place, publisher, year, edition, pages
Göteborg: Göteborgs universitet, 2015. 138 p.
Series
Gothenburg Studies in Informatics, ISSN 1400-741X ; 50
Keyword
digital services, premises, digital service innovation, digitalized product platforms, service logic
National Category
Information Systems
Identifiers
urn:nbn:se:hh:diva-29574 (URN)978-91-982069-5-1 (ISBN)
Public defence
2015-09-28, O103, Kristian IV:s väg 3, Halmstad, 10:00 (English)
Opponent
Supervisors
Funder
VINNOVA
Available from: 2015-10-06 Created: 2015-10-05 Last updated: 2015-10-06Bibliographically approved

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