Smart services – characteristics, challenges, opportunities and business models

Abstract

Abstract “Industry 4.0”, “Digitalization”, “Internet of Things” and “Smart Services” are the today’s buzzwords when tracking economic news. It is to ask about the meaning of those phrases. The world has changed over the last decade from a mainly physical to software controlled economy and the information technology has become an integral part of our industry and society in its entirety. Nowadays it is no longer the product that matters it is the data that are generated by using the product or service. Those usage data collected and analyzed commence new business models and services. The economic future of a company will much more rely on the ability to collect and use the data to generate Smart Services for their customers and to transform from a simple product supplier to an entertainment provider. However there are not only opportunities there are also challenges on the way to that new services which needs to be known and considered. For instance the development cycles need to be faster, the business models need to be adjusted and the positive financial results will not come into the picture on the first day. Based on those thoughts and while there only a handful of researches about that new services exists, the main purpose of the present study is at first, to gain a common understanding about the meaning and the characteristics of Smart Services and their adjacencies. Secondly, the study summarizes the identified challenges and opportunities in relation to them. Thirdly, the author introduce and explain the main business models usable for those Smart Services and the requirements for starting the transformation towards those services. The aim of this paper is to set a basis for this exciting and relatively unsought topic and to produce an interest in further empirical and practical researches in this area. The methodologies used for this research are a systematic literature review and an evaluation of existing studies with the subjects “Industrie 4.0”, “Digitization”, “Internet of Things” and “Smart Services”. Additional national initiated programs and best-practice of transformations where analyzed and interpreted. The outcome of the study is always focused on service providers.