Abstract

This paper connects research from business model innovation and information systems by exploring critical IT capabilities for servitized business models. The adoption of servitized business models is a major business model innovation strategy. At the same time, digitalization drives the evolution of IT capabilities at these business models. Scholars argue that it remains unclear how IT capabilities enable servitized business models to build a competitive advantage by achieving cost advantages or differentiation. This paper explores IT capabilities that enable building a competitive advantage for servitized business models based on a qualitative analysis of multiple published case studies. The authors identify configurations of IT capabilities among servitized business models. The findings contribute to servitization research by exploring IT capabilities and how they are combined among servitized business models. The insights help practitioners deploy digital technologies and IT assets effectively as building blocks of IT capabilities to advance their servitized business model.

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