From After-Sales to Advanced Services: A Network Analysis on the Impacts of Digital Servitization Evolution

Abstract: The B2B context has experienced a push toward digital servitization (DS), i.e., the development of services by means of digital technologies. There are three levels of DS: (1) product provision, (2) after-sale servicing, and (3) advanced services taking after-sales to the next level. At level 3, DS evolves from a product and service-oriented strategy to a service-centric one. The literature has acknowledged the changes provoked by levels 1 and 2 of DS. Yet, further changes at level 3 still have not been explored. This research aims to understand the impact of DS’s evolution after the DS
setup, with an intra- and interorganizational focus. To reach this aim, the case of Beta, an Italian mechatronic manufacturer implementing IIoT-based DS, is analyzed. The adopted framework is the ‘developing’, ‘producing’, ‘using’ (DPU) framework, formulated within the industrial marketing and purchasing (IMP) approach. Results are summarized in three propositions, showing how: (1) DS complexity unfolds intra- and interorganizationally and is gradually embedded in the three settings of the framework; (2) integration of settings and resources becomes essential; and (3) processes of resource procurement, development, and integration allow the evolution toward a service platform. Theoretical and managerial implications are provided.