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Digital Product-Service Systems: The Role of Data in the Transition to Servitization Business Models

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  • David J. Langley

    (Strategic Analysis & Policy Unit, TNO, 2595 DA The Hague, The Netherlands
    Faculty of Economics and Business, University of Groningen, 9747 AE Groningen, The Netherlands)

Abstract

The Circular Economy, as a guiding model for business processes, is attracting interest due to its potential for aligning business and societal goals as it offers companies the opportunity to simultaneously focus on economic value creation and on the mitigation of environmental damage. It is becoming increasingly clear that digital technologies are an essential component of this model as they enable transparency and efficiency in closing material and energy cycles. Additionally, digitalization leads to efficient business models that revolve around adapting the value proposition to the insights gained from the continual analysis of data, shifting the emphasis of Product-Service Systems towards the service end of the spectrum. As such, these new business models are categorized as forms of Servitization. Despite the increasing importance of Servitization and digitalizing business processes, such as the move towards what is referred to as Industry 4.0 in the manufacturing industry, the associated transition towards widespread adoption of the principles of the Circular Economy is slow. This explorative study investigates key themes and challenges in transitioning towards digitally-enabled Servitization in the manufacturing industry and the relationship with the Circular Economy. Through interviews with experts from the realms of digital technology, Industry 4.0, and business sustainability, a set of research questions is developed that forms a research agenda.

Suggested Citation

  • David J. Langley, 2022. "Digital Product-Service Systems: The Role of Data in the Transition to Servitization Business Models," Sustainability, MDPI, vol. 14(3), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:3:p:1303-:d:732210
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    References listed on IDEAS

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    1. Montecchi, Matteo & Plangger, Kirk & West, Douglas C., 2021. "Supply chain transparency: A bibliometric review and research agenda," International Journal of Production Economics, Elsevier, vol. 238(C).
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    Cited by:

    1. Yan Chen & Zijin Wang & Jaime Ortiz, 2023. "A Sustainable Digital Ecosystem: Digital Servitization Transformation and Digital Infrastructure Support," Sustainability, MDPI, vol. 15(2), pages 1-16, January.
    2. Serena Galvani & Elisa Carloni & Roberta Bocconcelli & Alessandro Pagano, 2022. "From After-Sales to Advanced Services: A Network Analysis on the Impacts of Digital Servitization Evolution," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    3. Truant, Elisa & Giordino, Daniele & Borlatto, Edoardo & Bhatia, Meena, 2024. "Drivers and barriers of smart technologies for circular economy: Leveraging smart circular economy implementation to nurture companies' performance," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    4. Päivi Luoma & Romana Rauter & Esko Penttinen & Anne Toppinen, 2023. "The value of data for environmental sustainability as perceived by the customers of a tissue‐paper supplier," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3110-3123, November.
    5. Kumar, Mukesh & Raut, Rakesh D. & Mangla, Sachin Kumar & Chowdhury, Soumyadeb & Choubey, Vikas Kumar, 2024. "Moderating ESG compliance between industry 4.0 and green practices with green servitization: Examining its impact on green supply chain performance," Technovation, Elsevier, vol. 129(C).
    6. Rabia Charef, 2022. "Is Circular Economy for the Built Environment a Myth or a Real Opportunity?," Sustainability, MDPI, vol. 14(24), pages 1-5, December.
    7. Linna Hou & Juning Su & Yu Ye, 2023. "Exploring the Influence of Smart Product Service Systems on Enterprise Competitive Advantage from the Perspective of Value Creation," Sustainability, MDPI, vol. 15(18), pages 1-23, September.
    8. Chun-Yi Lin & Chen Li & Sadaf Mahmood & Feng Guo & Zuoyi Qian, 2024. "Integrating Culture and Tourism: A Resilient Scale for Digital Transformation Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 16122-16155, December.
    9. Lukas Alexander Benz, 2022. "Critical Success Factors for Circular Business Model Innovation from the Perspective of the Sustainable Development Goals," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    10. Jasna Prester & Andrea Bikfalvi & Iztok Palčič, 2022. "The Effect of Product Complexity on Servitization and Deservitization: A Multi-Country Quantitative Analysis," Sustainability, MDPI, vol. 14(19), pages 1-16, September.
    11. Xiying Zhang & Yihuan Wang, 2022. "Research on the Influence of Digital Technology and Policy Restrictions on the Development of Digital Service Trade," Sustainability, MDPI, vol. 14(16), pages 1-16, August.
    12. Ya-Ping Hu & Chun-Wei Lin & Eko Hariyadi, 2024. "Achieving Sustainability in Banking through Smart Product-Service Systems: An Integrated Robust Fuzzy DEMATEL," International Journal of Economics and Financial Issues, Econjournals, vol. 14(5), pages 81-91, September.
    13. Rita Henriques & Filipa Figueiredo & João Nunes, 2023. "Product-Services for a Resource-Efficient and Circular Economy: An Updated Review," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    14. Veronica Arioli & Giovanni Ruggeri & Roberto Sala & Fabiana Pirola & Giuditta Pezzotta, 2022. "A Methodology for the Design and Engineering of Smart Product Service Systems: An Application in the Manufacturing Sector," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    15. Bag, Surajit & Gupta, Shivam & Chan, Hau-Ling & Kumar, Ajay, 2024. "Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).
    16. Chunhua Luo & Dianlong Wei & Wunhong Su & Jinjing Lu, 2023. "Association between Regional Digitalization and High-Quality Economic Development," Sustainability, MDPI, vol. 15(3), pages 1-19, January.

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