From selling machinery to hybrid offerings – organizational impact of digital servitization on manufacturing firms

The transition towards services has been imperative for manufacturing firms years. change from a product-oriented to more service-dominant business model affects the organizational structure of firms. However, literature provides limited insights into how organize themselves in this transition. Even though digital technologies are critical transition, it is unclear orchestrate and traditional Information Technology (IT) resources accordingly. We analyze case typical firm that adjusted its reorganize solution offerings based on product, service, components. Our results describe hybrid splits front- back-end units. units split along Digital IT internalized governed decentrally, with being outsourced steered centrally. findings contribute servitization research by clarifying overarching as well IT-related organization