Session: CIE-05-01CIE Graduate Student Poster Symposium

Paper Number: 74725

Start Time: August 18, 10:00 AM

74725 - Platform for Framing the Uk Sme Digital Servitization Journey 

Mohammed Biography

Mohammed Daniyaal Khan is a PhD candidate specializing in digital servitization within the context of Industry 4.0 for SME’s. He completed his Masters in Mechanical Engineering at Loughborough University in June 2020 and has extensive experience at working in Supply Chain environments such as working as a Quality and Improvements Engineer at Rolls-Royce Aerospace in Derby, UK. This was followed by a summer internship at Delphi Technologies as a Lean Engineer in Gloucester, UK. His 3rd year dissertation is on topic Resilient Supply Chains analyzing how supply chain businesses react to external disturbances. These experiences made him focus on a career in supply chain studies in combination with emerging technologies.

Overview

This research will focus on using maturity model techniques and statistical regression analysis to develop a framework for the SME’s looking to transition into a digital servitization business model. It will bridge the gap between digital technologies and servitization which currently has limited research in relation to transition modelling and performance modelling. Three different maturity modelling techniques will be incorporated with a focus on different aspects of the transition e.g., comparing competences of a business to their counterparts who have already transitioned into a digital servitization business model to the requirements that need to be met to transition from a product-based business to a digital service-based business. Performance modelling will be used to measure the effects of the UK SME’s post transition with financial performance and non-financial performance measures being used.

Motivation

Since the concept of combining services with product (Vandermerwe and Rada 1988) first emerged, businesses have been looking into creating new business model to generate additional revenue streams to gain competitive advantage. With the emergence of the Industry 4.0 paradigm, there is a need for manufacturers to integrate emerging technologies into their processes in order to deliver the services efficiently and cost-effectively e.g. using Cyber-Physical Systems, Internet-of-Things, etc. (Huxtable and Schaefer 2016) conducted a study to see to what extent the servitization concept has been adopted by the UK and the impact it has. The results stated that the income from services accounts for nearly 1/3 (27%) and 35% of publicly listed manufacturing firms were offering services in relation to Industry 4.0. (Crozet and Milet 2017) conducted a performance of servitization review of large and SME French manufacturing firms over a 10-year period (1997-2007) and concluded that the share of services on average in all sectors increased and they were more profitable (by 8% to 8.5%), employed more people (by 0.2%-0.4%) and had higher total sales compared to non-servitized firms for mainly micro and small firms. SME’s play a vital role in the health of the UK economy (Roper 2016), therefore, there is a need to do introduce service business models to smaller firms as well as larger firms, e.g. Rolls-Royce, Xerox.
More firms are realizing the potential benefits this new business concept has in the form of creating additional revenue streams, creating stronger and longer lasting customer relationships, etc. However, to realize this, there has to be common standards developed in order to transition to the new business model. Specifically, for the UK SME’s, there has been a lack of transition frameworks in place to assist them in identifying their current structure and what needs to be done. In addition, presenting results of the UK SME’s performance post digital servitization transition will strengthen the argument on converging towards servitization.

 

 

Presenting Author: Mohammed Khan Liverpool University

Authors:

Mohammed Khan Liverpool University