An agile co-creation process for digital servitization: A micro-service innovation approach

David Sjödin*, Vinit Parida, Marko Kohtamäki, Joakim Wincent

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

15 Citations (Scopus)

Abstract

In this paper, we explore how manufacturing firms and their customers co-create digital service innovations in an attempt to address the digitalization paradox. We present empirical insights from a case study of four manufacturers and their customer relationships. The results suggest that value co-creation in digital servitization is best managed through an agile micro-service innovation approach. Such an approach requires incremental micro-service investments, sprint-based micro-service development, and micro-service learning by doing to ensure customized and scalable digital service offerings. The proposed agile co-creation model provides insight into the phases, activities, and organizational principles of a micro-service innovation approach. Relational teams that pool knowledge from providers’ and customers’ strategic, technological, and operational areas are crucial to ensure successful cooperation and governance for agile co-creation. This paper offers insight into how companies engage in agile co-creation processes, with important recommendations for innovation in manufacturing firms in the era of digitalization.
Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Volume112
Pages (from-to)478-491
Number of pages14
ISSN0148-2963
DOIs
Publication statusPublished - 13.03.2020
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Digitalization
  • Industrial Internet of Things (IoT)
  • Advanced services
  • Digital paradox
  • Artificial intelligence (AI)
  • aProduct-service systems (PSS)
  • New service development (NSD)

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoHP: Strategic and entrepreneurial praxis

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