IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The value of Big Data in servitization

Listed author(s):
  • Opresnik, David
  • Taisch, Marco
Registered author(s):

    Servitization has become a pervasive business strategy among manufacturers, enabling them to undergird their competitive advantage. However, it has at least one weakness. While it is used worldwide also in economies with lower production costs, services in manufacturing are slowly becoming commoditized and will become a necessary, though not sufficient, condition for reaching an above average competitive advantage. Consequently, in this article we propose a new basis for competitive advantage for manufacturing enterprises called a Big Data Strategy in servitization. We scrutinize how manufacturers can exploit the opportunity arising from combined Big Data and servitization. Therefore, the concept of a Big Data Strategy framework in servitization is proposed. The findings are benchmarked against established frameworks in the Big Data and servitization literature. Its impact on competitive advantage is assessed through three theoretical perspectives that increase the validity of the results. The main finding is that, through the proposed strategy, new revenue streams can be created, while opening the possibility to decrease prices for product–services. Through the proposed strategy manufacturers can differentiate themselves from the ones that are already servitizing. This article introduces the possibility of influencing the most important of the five “Vs” in Big Data–Value, in addition to the other four “Vs”—Volume, Variety, Velocity and Verification. As in regards to servitization, the article adds a third layer of added value— “information”, beside the two existing ones: product and service. The results have strategic implications for managers.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 165 (2015)
    Issue (Month): C ()
    Pages: 174-184

    in new window

    Handle: RePEc:eee:proeco:v:165:y:2015:i:c:p:174-184
    DOI: 10.1016/j.ijpe.2014.12.036
    Contact details of provider: Web page:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Sheikhzadeh, Mehdi & Elahi, Ehsan, 2013. "Product bundling: Impacts of product heterogeneity and risk considerations," International Journal of Production Economics, Elsevier, vol. 144(1), pages 209-222.
    3. Johnson, Mark & Mena, Carlos, 2008. "Supply chain management for servitised products: A multi-industry case study," International Journal of Production Economics, Elsevier, vol. 114(1), pages 27-39, July.
    4. Bullinger, Hans-Jorg & Fahnrich, Klaus-Peter & Meiren, Thomas, 2003. "Service engineering--methodical development of new service products," International Journal of Production Economics, Elsevier, vol. 85(3), pages 275-287, September.
    5. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    6. Gebauer, Heiko & Fleisch, Elgar & Friedli, Thomas, 2005. "Overcoming the Service Paradox in Manufacturing Companies," European Management Journal, Elsevier, vol. 23(1), pages 14-26, February.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:165:y:2015:i:c:p:174-184. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.