This chapter illuminates the challenges of small and medium-sized enterprises (SMEs) face when transforming to digital servitization. It is suggested that to embrace and overcome these challenges; the SME needs to undergo three transformational shifts: dematerialization, identity, and collaboration. The enabler for these shifts is SMEs' closeness to their customers and that they thus have a good understanding of their customers' (and customers' customers) needs. It is also the collaboration shift with the most substantial possibilities as SMEs are used to coordinate activities with other actors. The biggest challenge is to make the dematerialization shift - separate information from the physical world - as it usually requires a high level of technical competencies and financial strength. The identity shift might also be hard for SMEs, as organizational culture has been proven to be relatively resistant to change.
Bård Tronvoll, Christian Kowalkowski and David Sörhammar
Bo Edvardsson, Bård Tronvoll and Lars Witell
This chapter suggests moving forward research on service innovation by articulating an ecosystem perspective and a service-dominant logic within a context of value creation, in order to provide an integrated and systemic framework of the structuration of service innovation. The framework emphasizes changes in agency that facilitate reconfiguration, such as actors, resources and value propositions, or in structure, such as institutional arrangements. A change of the state of service innovation process takes place as changes originate in either agency or structure. The chapter provides an illustration of this theoretical model, using the case of the service ecosystem built around Etalay, a high-end Italian food store chain that includes restaurants, food and beverage stations, bakeries, a bookstore and conference facilities. The authors call for the use of this theoretical construct in other contexts such as healthcare, the Internet of Things and social media, as well as the bottom of the pyramid.