Internet of things-enabled servitization for small to medium sized enterprises : innovation report

Servitization has been a recognized business phenomenon since the late 1980s to innovate a business’s capabilities and processes to create value for their customer through service. Recent technological advances, particularly in the capabilities being developed by the Internet of Things (IoT) could be an enabler for a servitzation transition at an organization. Servitization, enabled by the Internet of Things (IoT), has not been considered in the context of Small to Medium Sized Enterprises (SMEs). Due to the traits of SMEs, the potential opportunities from effectively servitizing their business models and the accessibility and affordability of IoT sensors, equipment and tools, there is a gap to be explored. This research provides an understanding of the many challenges SMEs face to remain competitive. Additionally, the research develops a framework that can help to overcome some of these challenges through the utilization of a Servitization business model and IoT technology and capability. The investigation and development of IoT-enabled Servitization for SMEs could potentially lead to new knowledge and innovation. Initially, main traits of SMEs were identified and then aspects of IoT and servitization were ascertained to find those that best align with the SME unique traits. From this understanding, a framework was developed that will allow Small to Medium sized Enterprises to utilise the technology and capabilities from the IoT in order to develop servitization within their business. This framework was then further developed through a longitudinal case study with an SME and validated by a range of industry stakeholders. The outcome resulted in a conceptual framework, based on academic literature, evolved in a real-world case study, and validated by professionals and stakeholders. This validation was conducted through the dissemination of the material on a professional program MSc module, presentation of the research at international conferences, and an event held with regional SMEs to gain insight on the final version of the framework. The framework can be used by SMEs or those consulting SMEs to help them develop strategy that creates value added services in their business that are enabled by the IoT