Enabling Servitisation by Balancing Activities and Capabilities in Manufacturing Companies

Paper in proceeding, 2026

Manufacturers are increasingly interested in transitioning towards product service systems (PSS). Servitisation requires developing and integrating digital capabilities that are accompanied by a sustainable value creation perspective moving the organisation’s production processes further. Aligning desired capabilities and the activities of the organisation can enable servitisation to bridge essential value delivery that is aligned across the organisational and asset levels. This study identifies activities and capabilities that enhance service-oriented value by focusing on three core perspectives: (1) production systems, (2) product development, and (3) service value offering. Also, it proposes to balance activities and capabilities across four main domains identified in the literature: organisation, system, ecosystem, and asset. This approach can enable the transition towards developing with greater foundational rigour and delivering a value proposition that considers the needed aspects to support a service-oriented solution. The results show discrepancies in the available literature, as there is a relatively low representation of activities and capabilities associated with the external ecosystem. Moreover, analysing cases from the manufacturing industry in Sweden and Denmark showcased the impact these discrepancies can have, as well as their effect on organisations’ business capabilities. The findings from this research work contribute to establishing recommendations for future research and call for more systematic and prescriptive approaches.