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Value Network Transformation: Digital Service Innovation in the Vehicle Industry
Halmstad University, School of Information Technology, Halmstad Embedded and Intelligent Systems Research (EIS), Man and Information technology laboratory (MI-lab). University of Gothenburg, Gothenburg, Sweden.ORCID iD: 0000-0001-8060-5613
2016 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Advancement in digital technology is rapidly changing the contemporary landscape of business and associated networks for manufacturing firms. Many traditional physical products are now being embedded with digital components, providing them digital capability to become digitized products. The digitization of physical products has become an important driver for digital service innovation within manufacturing industries. Such digital service innovation transforms value networks of manufacturing firms in various industries. While digitization of products and digital service innovation can be observed in many manufacturing industries, this thesis focuses on the transformation of value networks within the vehicle industry.

This thesis is a collection of papers and a cover paper. The thesis reports from a collaborative project in the vehicle industry. The project explored new digital services for vehicles based on remote diagnostics technology. The exploration and conceptualization of digital services is investigated in a collaborative manner with participants from the vehicle industry. The results reflect that there is a paradigm shift for manufacturing firms digitizing their products, and stretching the business scope from product to solution oriented business.

This thesis contributes to the existing literature on digital innovation with insights on the transformation of value networks in the vehicle industry. The research question addressed in this thesis is: How are value networks of manufacturing firms transformed by digital service innovation? To answer the question, this thesis conceptualizes how the value creating pattern of digitized products transforms value networks of manufacturing firms. A model is presented that reflects how the symbiotic value relationship between the digitized product and digital services transforms the roles, relationships and exchanges in the value networks of manufacturing firms. The model can serve as an analytical tool to further advance the knowledge on business aspects in digital innovation. This thesis contributes to practice by providing an understanding of how manufacturing firms can leverage value of digitized products and digital services in value networks.

Place, publisher, year, edition, pages
Gothenburg: University of Gothenburg , 2016. , 169 p.
Series
Gothenburg Studies in Informatics, ISSN 1400-741X ; 51
Keyword [en]
digital service innovation, value network, value creation, digitized products, digital services
National Category
Information Systems
Identifiers
URN: urn:nbn:se:hh:diva-30153ISBN: 978-91-982069-6-8 OAI: oai:DiVA.org:hh-30153DiVA: diva2:893746
Public defence
2016-01-28, Halda, Visionen, Kristian IV:s väg 3, Halmstad, 13:00 (English)
Opponent
Supervisors
Projects
ReDi2Service
Available from: 2016-02-11 Created: 2016-01-13 Last updated: 2016-03-11Bibliographically approved
List of papers
1. Value Network Transformation By Digital Service Innovation In The Vehicle Industry
Open this publication in new window or tab >>Value Network Transformation By Digital Service Innovation In The Vehicle Industry
2011 (English)In: Proceedings of the 15th Pacific Asia Conference on Information Systems | Pacific Asia Conference on Information Systems (PACIS), Association for Information Systems, 2011Conference paper, (Other academic)
Abstract [en]

This paper reports from preparations in an ongoing research study concerning how digital service innovation transforms value networks in the vehicle industry. The research study concerns digital services based on remote diagnostics systems. This digital service innovation in particular is of great importance since the vehicle industry has great potential to expand its business and found new and extended boundaries and relationships with other stakeholder in the networks they are attached to. Core challenges and opportunities for digital service innovation will lead us to the study of its influence on the business and innovation environment i.e. the value network. In this paper, we propose three propositions to study transformation from product oriented value networks to digital service oriented value networks.

Place, publisher, year, edition, pages
Association for Information Systems, 2011
Keyword
Value network, Digital Innovation, Digital service innovation, Remote diagnostics system
National Category
Information Science
Identifiers
urn:nbn:se:hh:diva-15992 (URN)978-1-86435-644-1 (ISBN)
Conference
15th Pacific Asia Conference on Information System, Queensland University of Technology (QUT), Brisbane, Australia, 7-11 July, 2011
Note

Paper 12

Available from: 2011-09-09 Created: 2011-08-26 Last updated: 2016-02-11Bibliographically approved
2. Challenges and Opportunities Related to Remote Diagnostics: An IT-based Resource Perspective
Open this publication in new window or tab >>Challenges and Opportunities Related to Remote Diagnostics: An IT-based Resource Perspective
2013 (English)In: International Journal of Information Communication Technologies and Human Development, ISSN 1935-5661, E-ISSN 1935-567X, Vol. 5, no 3, 80-96 p.Article in journal (Refereed) Published
Abstract [en]

Remote diagnostics is expanding the business scope of vehicle manufacturers, ranging from products to services. In this paper, we focus on investigating the business challenges and opportunities related to the remote diagnostics of vehicles from an IT-based resource perspective. Remote diagnostics involves technology, human skills and intangibles. IT-based resources consist of physical IT infrastructure, human IT skills and IT-enabled intangibles. In this study, we find that remote diagnostics not only faces challenges in these three categories of IT-based resource, but also creates opportunities. One contribution of this paper is to provide an overview of the challenges and opportunities for business related to the technology. The paper also makes a contribution to information systems by shedding light on the discussion of digital infrastructure. It also highlights the application of IT-based resource perspective to find out the business challenges and opportunities of an emerging technology like remote diagnostics.

Place, publisher, year, edition, pages
Hershey, PA: IGI Global, 2013
Keyword
Remote Diagnostics, IT-based resource, IT infrastructure, human IT resource, IT-enabled intangibles.
National Category
Information Systems
Identifiers
urn:nbn:se:hh:diva-23454 (URN)10.4018/jicthd.2013070105 (DOI)
Available from: 2013-08-30 Created: 2013-08-30 Last updated: 2017-04-03Bibliographically approved
3. Digital Visions vs. Product Practices: Understanding Tensions in Incumbent Manufacturing Firms
Open this publication in new window or tab >>Digital Visions vs. Product Practices: Understanding Tensions in Incumbent Manufacturing Firms
2014 (English)In: Proceedings of the Annual Hawaii International Conference on System Sciences / [ed] Ralph H. Sprague, Jr., Los Alamitos, CA: IEEE Computer Society, 2014, 4516-4525 p.Conference paper, (Refereed)
Abstract [en]

Incumbent manufacturing firms face challenges when expanding their product focus with digital services. Such expansion creates tensions in organizations in the servitization process. While management visions and conceptualizes new service oriented businesses, the actual practice of implementing these service concepts is influenced by the product paradigmatic way of thinking in the organization. This dominant thinking creates tensions between business visions and business practice. We use the case of remote diagnostics services to provide insights into a manufacturing firm’s attempt to transform the dominant oriented business models into a new networked environment. We suggest that such acts that may or may not lead to transition are lingered by dominant logics related to the product focus. This indicates that firms are required to embed new logics into their existing practice in order to exploit the full potential of digital technology. © 2014 IEEE.

Place, publisher, year, edition, pages
Los Alamitos, CA: IEEE Computer Society, 2014
Keyword
Tensions, Digitalization, Dominant logic, Incumbent manufacturing firms
National Category
Information Systems
Identifiers
urn:nbn:se:hh:diva-24137 (URN)10.1109/HICSS.2014.562 (DOI)000343806604076 ()2-s2.0-84902254976 (Scopus ID)978-1-4799-2504-9 (ISBN)978-1-4799-2505-6 (ISBN)
Conference
HICSS–47, 47th Annual Hawaii International Conference on System Sciences 2014, Hilton Waikoloa, Big Island, Hawaii, USA, January 6-9, 2014
Projects
ReDi2Service
Note

Article number: 6759158

Available from: 2013-12-09 Created: 2013-12-09 Last updated: 2017-03-27Bibliographically approved
4. The Influence Of Generativity On Value Creation – A Study Of Digitized Products
Open this publication in new window or tab >>The Influence Of Generativity On Value Creation – A Study Of Digitized Products
2015 (English)In: 8th IADIS International Conference on Information Systems / [ed] Miguel Baptista Nunes, Pedro Isaias, Philip Powell, IADIS Press, 2015, 51-60 p.Conference paper, (Refereed)
Abstract [en]

The advancement of digital technologies is driving traditional product oriented businesses to move from selling product to selling solutions. In order to exploit business potentials from technology, it is important to understand the potential of the technology and how it influences the value creation in a digital environment where it is developed and to be deployed. To understand this changing environment, I have studied remote diagnostics as an example of digital technology within the vehicle industry as a source of new value for business. The findings show that digitized products not only helps to solve existing problems in providing services but also provides potential to generate value for new products and services in the networked environment. An implication from the findings for product oriented firms is that value creation with digitized products requires new business processes. Based on the findings, a discussion is presented about how generativity influences value creation via value in design, governance and networking in a digital ecosystem.

Place, publisher, year, edition, pages
IADIS Press, 2015
Keyword
Value creation, generativity, digitization, digital innovation, digital ecosystem, remote diagnostics
National Category
Information Systems, Social aspects
Identifiers
urn:nbn:se:hh:diva-28022 (URN)2-s2.0-84944039380 (Scopus ID)978-989-8533-33-3 (ISBN)
Conference
8th IADIS International Conference on Information Systems 2015, Madeira, Portugal, 14-16 March, 2015
Projects
ReDi2Service
Available from: 2015-03-27 Created: 2015-03-27 Last updated: 2016-11-30Bibliographically approved
5. Balancing Generativity of Digitized Products – A Study of Digitized Buses and Remote Diagnostics
Open this publication in new window or tab >>Balancing Generativity of Digitized Products – A Study of Digitized Buses and Remote Diagnostics
(English)In: Scandinavian Journal of Information Systems, ISSN 0905-0167, E-ISSN 1901-0990Article in journal (Other academic) Submitted
Place, publisher, year, edition, pages
Gothenburg: IRIS Association
National Category
Information Systems, Social aspects
Identifiers
urn:nbn:se:hh:diva-30327 (URN)
Available from: 2016-02-10 Created: 2016-02-10 Last updated: 2017-01-10

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