Capturing customer understanding with third parties in digital servitization: relational mechanisms and challenges

Abstract

Purpose: The advancement in digital servitization enables manufacturers to transform data from their customers’ product usage into valuable customer insights. Despite this opportunity, the empirical evidence has shown that manufacturers may struggle in capturing customer understanding (i.e., obtaining and using customer knowledge in service processes) on their own and they need to cooperate with other firms during digital servitization. This study investigates relational mechanisms and challenges of capturing customer understanding in digital servitization. Design/Methodology/Approach: A qualitative case study was conducted in four large manufacturers that offer complex industrial systems and services to their global customers. Findings: The findings identify relational mechanisms to capture customer understanding, through considering the scope of the problem and the manufacturer’s capability. The findings also reveal relational challenges in capturing customer understanding: industry insights, contractual, operational, and behavioural. Originality/Value: Capturing customer understanding in digital servitization requires a relational view between the manufacturers and third parties.