Asset Lifecycle Management and Digital Servitization: A Case Study in Machining

Paper in proceeding, 2024

Digital servitization is increasingly relevant for competitiveness and long-term sustainability in several industrial sectors. Firms with capital assets and long lifespans have been documented as promising candidates for maximizing the value of resource-efficient operations and lifecycle extension opportunities. This paper investigates the conceptual overlap of asset lifecycle management and digital servitization in the context of machining in industry to maximize resource efficiency and lifecycle extension. While existing literature primarily focuses on early-stage strategic planning, this study emphasizes the significance of decision-making during the use phase of assets, highlighting the need for a balanced allocation of resources between late-stage decisions and early strategic planning, to capture sustainable value. This study presents a map of strategic options that connect levels of digital servitization and eco-efficiency principles across an asset’s lifecycle. By exemplifying through a case study, the results of this paper include a mapping of scenarios highlighting the importance of integrating digital servitization and asset lifecycle management strategies to achieve improved sustainability in industrial settings.