From products to services in the forestry industry : ICT as an enabler for creating an Open Innovation system

Most forestry machines being produced today include a PC that monitors and controls the harvester head, and an information system that stores data on every action the driver or the machine performs. ICT thus provides an opportunity to improve efficiency and competitiveness and possibly also opens up for new ways of working for actors in the forestry industry. The purpose of this study is to investigate how ICT can enable the transformation from selling products to selling services in the forestry industry. We investigate this through performing a Case Study including a number of actors from the Forestry industry in northern Sweden. First, we investigate the barriers for establishing an Open Innovation system in forestry. Then we describe the main steps to be taken and how the use of ICT can enable the establishment of such a system. The case study shows that the forestry industry is committed to working according to a traditional value chain and is committed to a closed innovation paradigm. We argue that the ICT component in Timbercut’s forestry machines constitutes a latent potential that can be fully captured through changing the business model and setting up a joint venture with Rewire