Drivers for Smart Servitization in Manufacturing Companies

DOI 10.7160/aol.2018.100305
No 3/2018, September
pp. 57-68

Kaňovská, L. and Tomášková, E. (2018) “Drivers for Smart Servitization in Manufacturing Companies", AGRIS on-line Papers in Economics and Informatics, Vol. 10, No. 3, pp. 57-68. ISSN 1804-1930. DOI 10.7160/aol.2018.100305.


Wireless communication technologies associated with the Internet of things (IoT) have started to be used also in manufacturing. Developing data-driven services by IoT also known as “smart services” in manufacturing business has become one of the current trends. Sensors enable IoT systems to provide intelligent and smart services during the shift towards smart production. Smart technologies have begun to be used also in agriculture by means of agricultural and farming applications. The aim of the paper is to determine why manufacturing companies have started to provide smart services with their products. A literature review presents the background of smart services in manufacturing companies as well in agriculture. For the empirical part, a qualitative multi-case study was conducted among seven Czech electrotechnical manufacturers and one Czech agricultural tractor manufacturer. All case companies have already begun with their smart service development. The findings indicate that manufactures usually decide by themselves to start with smart servitization, but the main categories of smart servitization drivers are connected to competitive advantage. The study is unique in highlighting the problems of smart services in SMEs in the Czech Republic, where the industrial sector is still dominant in comparison to other European countries.


Smart servitization, smart services, electrotechnical and agricultural manufacturers, smart (precision) agriculture (farming), Czech Republic.


  1. Allmendinger, G. and Lombreglia, R. (2005) "Four strategies for the age of smart services", Harvard business review, Vol. 83, No. 10, pp. 131. ISSN 0017-8012.
  2. Baines, T. S., Lightfoot, H. W., Benedettini, O., and Kay, J. M. (2009) "The servitization of manufacturing: A review of literature and reflection on future challenges", Journal of manufacturing technology management, Vol. 20, No. 5, pp. 547-567. ISSN 1741-038X. DOI 10.1108/17410380910960984.
  3. Baines, T. and Lightfoot, H. W. (2013) "Servitization of the manufacturing firm: Exploring the operations practices and technologies that deliver advanced services", International Journal of Operations & Production Management, Vol. 34, No. 1, pp. 2-35. ISSN 0144-3577. DOI 10.1108/IJOPM-02-2012-0086.
  4. Beverungen, D., Matzner, M. and Janiesch, C. (2017) “Information systems for smart services”, Information Systems and e-Business Management, vol. 15, No. 4, pp. 781-787. E-ISSN 1617-9854, ISSN 1617-9846. DOI 10.1007/s10257-017-0365-8.
  5. Bőgel, G. (2017) “Competing in a smart world: the need for digital agriculture”, In: "Management and Organization: Concepts, Tools and Applications", pp. 11-28. [Online]. Available: 2017j%C3%BAn08-DOI_CrossRef-2017j%C3%BAn13f.pdf. [Accessed: 20. May 2018]. DOI 10.18515/dBEM.M2017.n02.ch01.
  6. Borgmeier, A. (2002) "Schlußbetrachtung“, In: "Teleservice im Maschinen-und Anlagenbau". Deutscher Universitätsverlag, pp. 209-217. DOI 10.1007/978-3-322-81064-9.
  7. Brase, T. (2006) “Precision Agriculture”, Delmar Cengage Learning, Independence, Kentucky.
  8. Brax, S. A. and Jonsson, K. (2009) “Developing integrated solution offerings for remote diagnostics: A comparative case study of two manufacturers”, International Journal of Operations & Production Management, Vol. 29, No. 5, pp. 539-560. ISSN 0144-3577. DOI 10.1108/01443570910953621.
  9. Cedeño, J. M. V., Papinniemi, J., Hannola, L. and Donoghue, I. (2018) “Developing smart services by internet of things in manufacturing business”, LogForum, Vol. 14, No. 1., E-ISSN 1734-459X, ISSN 1895-2038. DOI 10.12783/dtetr/icpr2017/17680.
  10. Chatterjee, A., Greenberg, J., Jones, M., Kaas, H. W. and Wojcik, P. (2001) "Telematics: decision time for Detroit”, London Business School Review, Vol. 12, No. 2, pp. 21-38. E-ISSN 2057-1615. DOI 10.1111/1467-8616.00172.
  11. Dubois, A. and Gadde, L. E. (2014) “Systematic combining - A decade later”, Journal of Business Research, Vol. 67, No. 6, pp. 1277-1284. ISSN 0148-2963. DOI 10.1016/j.jbusres.2013.03.036.
  12. Farmtelemetry (2018) "Farmtelemetry Solution". [Online]. Available: [Accessed: 20.4.2018].
  13. Fischer, T., Gebauer, H. and Fleisch, R. (2012) “Service Business Development: Strategies for Value Creation in Manufacturing Firms”, Cambridge University Press, Cambridge. DOI 10.1017/CBO9781139136730.
  14. Garcia, E., Guyennet, H., Lapayre, J. C. and Zerhouni, N. (2004) "A new industrial cooperative tele-maintenance platform”, Computers & Industrial Engineering, Vol. 46, No. 4, pp. 851-864. ISSN 0360-8352. DOI 10.1016/j.cie.2004.05.019.
  15. Gebauer, H. and Kowalkowski, C. (2012) “Customer-focused and service-focused orientation in organizational structures”, Journal of Business & Industrial Marketing, Vol. 27, No. 7, pp. 527-537. ISSN 0885-8624. DOI 10.1108/08858621211257293.
  16. Grubic, T., Redding, L., Baines, T. and Julien, D. (2011) “The adoption and use of diagnostic and prognostic technology within UK-based manufacturers”, Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, Vol. 225, No. 8, pp. 1457-1470. DOI 10.1177/0954405410395858.
  17. Grubic, T. and Jennions, I. (2017) “Remote monitoring technology and servitised strategies-factors characterising the organisational application”, International Journal of Production Research, Vol. 56, No. 6, pp. 2133-2149. E-ISSN 1366-588X, ISSN 0020-7543. DOI 10.1080/00207543.2017.1332791.
  18. Hallová, M., Polakovič, P. and Slováková, I. (2017) "Current Trends in Training of Managers in the Field of Information and Communication Technologies and Identifying the Barriers to Education of Managers", AGRIS On-line Papers in Economics and Informatics, Vol. 9, No. 4, pp. 45-52. ISSN 1804-1930. DOI 10.7160/aol.2017.090405.
  19. Hermann, M., Pentek, T. and Otto, B. (2016) "Design principles for industrie 4.0 scenarios", System Sciences (HICSS), 49th Hawaii International Conference on. IEEE. DOI 10.1109/HICSS.2016.488.
  20. John Deere (2018) “Telematics” [Online]. Available: telematics/ [Accessed: 15.3.2018].
  21. Kiritsis, D. (2011) “Closed-loop PLM for intelligent products in the era of the Internet of things”, Computer-Aided Design, Vol. 43, No. 5, pp. 479-501. ISSN 0010-4485. DOI 10.1016/j. cad.2010.03.002.
  22. Klein, M. M. (2017) “Design Rules for Smart Services: Overcoming Barriers with Rational Heuristics”, Doctoral dissertation, Universität St. Gallen, Switzerland.
  23. Levrat, E., Iung, B. and Marquez, C. A. (2008) “E-maintenance: review and conceptual framework”, Production Planning & Control, Vol. 19, No. 4, pp. 408-429. E-ISSN 1366-5871, ISSN 0953-7287. DOI 10.1080/09537280802062571.
  24. Lim, C. H., Kim, M. J., Heo, J. Y. and Kim, K. J. (2015) “Design of informatics-based services in manufacturing industries: case studies using large vehicle-related databases”, Journal of Intelligent Manufacturing, Vol. 29, N. 3, pp. 497-508. E-ISSN 1572-8145, ISSN 0956-5515. DOI 10.1007/s10845-015-1123-8.
  25. Lightfoot, H., Baines, T. and Smart, P. (2013) "The servitization of manufacturing: A systematic literature review of interdependent trends", International Journal of Operations & Production Management, Vol. 33, No. 11/12, pp. 1408-1434. ISSN 0144-3577. DOI 10.1108/IJOPM-07-2010-0196.
  26. Marquardt, K. (2017) “Smart services–characteristics, challenges, opportunities and business models”, In: Proceedings of the International Conference on Business Excellence, De Gruyter Open, pp. 789-801. ISSN 2558-9652. DOI 10.1515/picbe-2017-0084.
  27. National Instruments (2018) “Learn how to implement the Industrial IoT at a one-day industry event“ (seminar), Brno.
  28. Neu, W. A. and Brown, S. W. (2005) "Forming successful business-to-business services in goods-dominant firms", Journal of Service Research, Vol. 8, No.1, pp. 3-17. E-ISSN 15527379, ISSN 10946705. DOI 10.1177/1094670505276619.
  29. New Holland (2018) "Telemetry system". [Online]. Available: new-holland/product-169826-2253.html. [Accessed: 25.3.2018].
  30. Oliva, R. and Kallenberg, R. (2003) “Managing the transition from products to services”, International Journal Of Service Industry Management, Vol. 14, No. 2, pp. 160-172. ISSN 0956-4233. DOI 10.1108/09564230310474138.
  31. Paschou, T., Adrodegari, F., Perona, M. and Saccani, N. (2017) “The digital servitization of manufacturing: a literature review and research agenda”, 27th RESER Conference Bilbao [Online]. Available: manufacturing_a_literature_review_and_research_agenda [Accessed: 20 April 2018].
  32. Raddats, C., Baines, T., Burton, J., Story, V. M. and Zolkiewski, J. (2016) "Motivations for servitization: the impact of product complexity", International Journal of Operations & Production Management, Vol. 36, No. 5, pp. 572-591. ISSN 0144-3577. DOI 10.1108/IJOPM-09-2014-0447.
  33. Rowly, J. (2006) “An analysis of the e-service literature: towards a research agenda”, Internet research, Vol. 16, No.3, pp. 339-359. ISSN 1066-2243. DOI 10.1108/10662240610673736.
  34. Rust, T. R. and Huang, M.-H. (2014) "The service revolution and the transformation of marketing science", Marketing Science, Vol. 33, No. 2, pp. 206-221. E-ISSN 1526-548X, ISSN 0732-2399. DOI 10.1287/mksc.2013.0836.
  35. Šilerová, E., Hennyeyová, K., Michálek, R., Kánská, E., and Jarolímek, J. (2017) "Influence of the Correct Management of the IT Department on the Quality of Data and Information Processing", AGRIS On-line Papers in Economics and Informatics, Vol. 9, No. 4, pp. 91-98. ISSN 1804-1930. DOI 10.7160/aol.2017.090409.
  36. Valtra (2018) " Systém Valtra Connect" (In Czech). [Online]. Available: eacutem-Valtra-Connect_9935.aspx [Accessed: 20 April 2018].
  37. Wünderlich, N. V., Heinonen, K., Ostrom, A. L., Patricio, L., Sousa, R., Voss, C. and Lemmink, J. G. (2015) “Futurizing” smart service: implications for service researchers and managers”, Journal of Services Marketing, Vol. 29, No. 6/7, pp. 442-447. ISSN 0956-4233. DOI 10.1108/JSM-01-2015-0040.
  38. Zetor (2018) "Výzkumná činnost a granty" (In Czech). [Online]. Available: vyzkumna-cinnost-a-granty [Accessed: 26.2.2018].
  39. Zhang, N., Wang, M. and Wang, N. (2002) "Precision agriculture - a worldwide overview", Computers and electronics in agriculture, Vol. 36, No. 2-3, pp. 113-132. ISSN 0168-1699. DOI 10.1016/S0168-1699(02)00096-0.

Full paper

  Full paper (.pdf, 407.87 KB).