Smart Service System

A Case Study on Pitfalls and Implications Abstract The trend for ‘servitization’ reflects manufacturers’ increasing efforts to offer services along with their physical goods. Organizations establish smart  service systems with digitally networked products—e.g., cars, industrial machinery, or home appliances—as boundary objects that connect the organization with customers, offering them digital channels for communication  and interaction. While anecdotal evidence indicates that many manufacturers  fail to establish profitable services, few studies have traced the underlying  causes for failure. We perform a revelatory case study at a global white-goods  manufacturer to identify pitfalls and derive guidelines for establishing smart  service systems. Based on interpreting qualitative data from interviews and  additional organizational resources, we analyze how and why the manufacturer’s efforts to establish pay-per-use services based on a smart laundry machine ...