The Impact of Servitization and Digital Transformation - A Conceptual Extension of the IPOO-Framework

Abstract

Continuous innovation paves the way for companies to achieve long-term competitive advantages. Measuring the performance of innovation activities enables organizations to monitor and manage their innovation projects and competitiveness. The Input-Process-Output-Outcome (IPOO)-Framework provides a tool for performance measurement. For some years now, reinforced by the digital transformation, the trend in mechanical and plant engineering is turning away from pure product offerings towards providing Product-Service Systems (PSS). PSS consist of material benefits as well as various intangible, supplementary service components. Within the course of this servitization – from producers towards holistic solution providers – and the digital transformation, new impacts arise on the performance measurement of innovation activities, which are determined both based on literature and empirically to provide a starting point for further research. The aim of this study is to extend the IPOO-Framework adopting the identified factors to enable the performance measurement of PSS innovation activities.

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