The toolkit is designed to help manufacturing leaders understand and implement digital servitisation strategies to drive growth and competitive advantage.
What is Digital Servitisation and How Does It Work?
Developed by leading academics at the University of East Anglia (UEA), Digital Servitisation is an interactive website and toolkit designed to educate and support SME manufacturing leaders in evaluating and implementing digital servitisation models that can unlock significant business benefits. The toolkit focuses on digital technologies such as the Internet-of-Things (IoT), Blockchain, and Artificial Intelligence (AI), enabling SMEs to transform operations, improve their competitive edge, and reduce environmental impact.
Digital Servitisation Toolkit Designed for SME Manufacturers
Supported by InterAct, a Made Smarter Innovation-funded programme, the digital toolkit offers manufacturing leaders an essential resource for understanding and adopting digital servitisation models. This toolkit helps bridge the digital divide between SMEs and larger companies by providing easy access to resources that can assist in the digital transformation process.
Practical Tools to Implement Digital Servitisation Models
The free-to-access resource is the result of an eight-month, pioneering research study by Dimitrios Dousios and Tony Karatzas aimed at addressing the digital divide between SMEs and larger companies in the manufacturing sector.
Tony Karatzas, Associate Professor in Supply Chain Management at UEA, said: "Over 90% of UK manufacturers are SMEs, yet there’s been little guidance on digital servitisation. This toolkit helps SME leaders unlock its potential and embrace the future of industry."
Understanding the Four Digital Servitisation Models
The research explored how companies choose digital servitisation models and their performance. The team identified four models: Add-on (extra services for existing products), Use-based (company-owned products for customer use), Solution-oriented (outcome-based contracts), and Platform (connecting users to services). They also identified seven factors – such as demand unpredictability and digital maturity – that impact the success of these models.
How Digital Servitisation Models Can Enhance SME Performance
A survey of 352 UK SMEs helped identify which factors lead to better performance in the digital servitisation space. The toolkit is designed to help SME leaders assess if digital servitisation is right for their business. It also provides guidance on selecting the most profitable business model and offers educational videos through an accompanying training manual.
SMEs Can Thrive with the Right Digital Servitisation Model
Dimitrios Dousios, Associate Professor in Entrepreneurship at UEA, said: “Our research shows that SMEs can achieve high performance across all digital servitisation models, depending on how well the model aligns with the organization’s context and design. There is no single formula for success. SMEs with different characteristics can still thrive."
InterAct’s Role in Driving Digital Transformation in SMEs
InterAct was a £4.4 million Made Smarter Innovation-funded, Economic and Social Research Council-led network that brought together economic and social scientists, UK manufacturers, policymakers, and digital technology providers to address the human issues resulting from the diffusion of new technologies in industry.
A Collaborative Approach to Digital Servitisation and Growth
With involvement in over 70 events both in-person and online, welcoming more than 2,000 stakeholders to engage and connect, InterAct has placed building the Network at the heart of their activities. With more than 750 network members, the community has proven to be a dynamic bridge between industry, policy, and academia. InterAct also funded 30+ projects spanning topics from Digital Change Management to sustainable steel manufacturing.
The Future of Digital Servitisation for SME Manufacturers
InterAct also collated insights for UK manufacturing from the global manufacturing environment, leading research missions to engage with 150+ manufacturing and digital technology leaders in Singapore, Malaysia, India, Australia, and Sri Lanka.
Professor Jillian MacBryde of the University of Strathclyde, co-director of InterAct, said: “This project is a prime example of how pioneering research can generate valuable insights and practical tools that support SME manufacturers in their digital transformation."