Aligning Internal Digital Capabilities with External Market Readiness: A Mixed-method analysis of Digital Servitization in Industrial Manufacturing

Sammanfattning

The thesis investigates the gap between external perception and maturity of digital solutions and internal digital capabilities to align with market expectations, an eroded field of significance for industrial manufacturing firms due to the dynamic market environment and rapid technological advancements. The primary research question explores how inter-organizational insights can be positioned to create customer value while aligning micro-level digital capabilities to meet customer expectations to enable digital servitization. The study employs a mixed-method approach to analyze the external market landscape from the case firms’ target market through multiple interviews with municipalities operating within the water and wastewater treatment sector in Sweden, alongside private-sector industries at both national and global levels. Furthermore, it investigates the current setup of digital capabilities and determines the sufficiency for successful digital servitization. Initial findings suggest that engaging in a sales-oriented digital strategy is difficult to translate into profit due to the market competition and regulatory burdens while lack of digital capabilities limits the competitiveness and the development of the firm. The study reveals how crucial digital capabilities become for industrial manufacturing firms operating in business-to-business ecosystems. The study contributes to the academic field of digital servitization by providing a comprehensive analysis to the industrial manufacturing field from a capability-lens. The implications provided are essential for decision-makers within sales and product development and stakeholders, highlighting the essence of establishing digital capabilities in a dynamic market environment.