Data capturing capability

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Data capturing capability in servitisation emerged as an aggregate dimension in the analysis, capturing the comprehensive alignment of hardware and software components to sense, monitor and collect information from product operations with low human involvement.

The emergence of data capturing capability as an aggregate dimension emerged from identifying the first order categories from data (combined hardware and software interface to develop smart functionalities, real-time monitoring through digital components, information resources for service provision, and observe and gather relevant operational data), and their subsequent integration into second order themes (enabling intelligent functionalities; sense, monitor, collect and record). The presentation of the findings is structured around the second order themes.

5.2.1.1 Enabling intelligent functionalities:

Enabling intelligent functionalities captures the real-time visibility of product operations and initial data processing. The analysis identified that at the start of the business relationship with its clients the manufacturers employ digital technology (telematics) for data to be captured, then the online platform increases the user’s abilities and provides an environment for generating solutions.

Hence, the analysis of the data indicates that the case companies begin with data capturing capability, and showed that there were instances in which all cases use two or more of the 1st _{order categories to}

facilitate information gathering on product usage, fulfilment of customer’s needs, and information sharing with customers. These first order categories are discussed below.

Combined hardware and software interface to develop smart functions

In the context of servitisation, the manufacturer initially upgrades the hardware components of the product with sophisticated IT systems and sensors that allow devices and embedded operating systems to sense and capture critical information. These enhance intelligent functionalities and, therefore, offer opportunities for increased operational efficiency to the end users. The respondents explained how they upgraded the integral hardware aspect of the product with telemetry units to gather operational data that supports various service offerings. The respondents from TruckPro1 and TruckPro2 explains:

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STM, TruckPro1#5: “So what we do, the reason we fit this box [telemetry] is, what this box

can do is: it can connect to a thing called the CANBUS on the vehicle which is a bit like the brain of the truck”

STM, TruckPro2, #3: “Over the years, we’ve actually upgraded the product which is now based

on integral hardware of the vehicle. So we actually build in the telemetry unit as part of the overall vehicle, so it is not just an add-on feature, the actual hardware is completely embedded within the vehicle product. And we then offer various telemetry services to the end user customer to help him manage his business effectively.”

Real-time monitoring through digital components

Smart technological functions facilitate interactions and support the processing of real-time information the about products condition. Gaining and advancing insight into the user’s operations enables identification and understanding of customer needs. The Regional Director of TruckPro2 explains:

RED, TruckPro2, #34: “The factory are monitoring the vehicle performance in real-time

across the globe, and they are able to come up, just like we get an update on our mobile phone, to improve things. So it’s the case with vehicles now.”

Information resources for service provision

The ability to capture data through embedded smart components is prevalent in the implementation of servitisation, as this enables intelligent functionalities and, equally, emphasises the foundational role of data and information services. The embedded tracking devices provide opportunities to observe products remotely and to acquire customer usage and operational data, necessary for service provision or product upgrades. In other words, data is one of the main resources used for service provision, and it enables deep insight into different customers’ usage.

Also, TruckPro2’s Service and Technology Manager explained that access to a products condition helps them carry out maintenance proactively to prevent customers’ downtime, and also helps them avoid uncertainties, rather than maintaining vehicles on a time-based schedule. He explained that:

TruckPro2 STM, #12: “Service is by time of mileage based interface because of the UK

legislation, often it’s down to an inspection which is a time based interval. It’s got to come off the road for an inspection, as we move further and further, it actually become a modularised service regime, you actually repair stuff proactively as it is required. So you don’t take off the road all day, you take it off for 45 mins. Or your truck is due in for a scheduled service. However, we see it needs a large service, therefore, we need it for 7 hours. We would schedule a technician for 7 hours.”

118 5.2.1.2 Sense, monitor, collect and record:

Sense, monitor collect, and record was identified as a second order theme that captures the transmission of operational data to the product cloud. This theme was based on, another 1st _{order category (observe}

and gather relevant operational data).

Observe and gather relevant operational data

Participants were asked about the way that they capture and share information with members of the service network. The respondents explained that data is at the core of their value propositions, in essence, sensing, monitoring and collecting usage data enables them to communicate vital information to support customer operations. Some of the respondents explain:

STM TruckPro1, #6: “It [Telematics] monitors and knows the fuel consumption of the vehicle,

the mileage driven, idling, which is wasting fuel. It also monitors things like if [the driver] is driving harshly, harsh braking or harsh steering and all those kind of things. So really it can detect if the vehicle is being driven properly or not.”

RED TruckPro2 #18: “Every vehicle has a communicator on board- blackbox. In

[TruckPro2]’s world it’s called a [….], and this […] is the mind of information on the vehicle, so every customer gets free of charge what we call entry level information package with telematics.”

The case companies further explained that monitoring their products closely helps them to minimise risks on service contracts. For example, it facilitates the reduction of risks transferred to the manufacturer by being proactive in response to customers and supporting preventive maintenance. The collected and recorded data helps the case companies provide an information service to customer organisations. Acquired product usage information is sent to the customers weekly or monthly and includes information about product utilisation, which motivates customers to perform better. This implies a focus on value-in-exchange. The illustrative examples in Table 5.1 demonstrate how the case companies deploy the first order category of capabilities for service provision and management. These instances from the case companies emphasise that operational data collected from the field products is the main resource for delivering and managing their service offerings. Such monitoring of real-time vehicle performance information enables rapid diagnostics of product failure, allows quick response and facilitates an immediate resolution to problems. Data capturing capability is the foundation on which servitising organisations implement and navigate towards digitization of products and services.

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Table 5.1: Data capturing capability – illustrative data for theme 1 and 2. Theme one: Enabling intelligent functionalities

1a: Combined hardware and software interface to develop smart functionalities

• Now every manufacturer signed up to a European protocol which allows each of us to share and exchange information, so we have something called fleet management interface on the vehicle, where [TruckTech] could bolt unto [TruckPro2] performance data for [TruckTech] customers, seemingly we can put our […] into a [TruckPro4] and draw the data.

• We have our own in-house telematics solution which is called [….].Whenever you buy a product from [TruckPro4], it’s got telematics built into it”(DAM, TruckPro4 #64)

1b: Real-time monitoring through digital components

• The factory are monitoring the vehicle performance in real-time across the globe and they are able to come up just like we get an update on our mobile phone to improve things. So it’s the case with vehicles now (#34)

1c: Information resources for service provision

• We are actually calling it the […] vehicle concept here in [TruckPro2], where the unit is embedded within the truck and we are also taking what we call service management data (STM, TruckPro2, #5)

Theme two: Sense, monitor, collect and record 2a: Observe and

gather relevant operational data

• It will also inform us of any active or inactive fault codes on the vehicle. So the vehicle constantly senses and stores any data about faults. So for example, turbo charger is developing a fault, it will record the code, which we will take off the download, to inform us of what is going on (RED, TruckPro2, #25)

• From our point of view, also we can contact the vehicle remotely and pull to take a download of operational data the tachograph information (RED, TruckPro2 #22)

5.2.1.3 Summary and Implications of data capturing capability

Data capturing capability was identified as the first capability associated with digitalisation of products and services, which refers to the ability to align hardware and software components with sensing, monitor and collect information from product operations with low human interference. Visibility of

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operation emerged as the main characteristics of data capturing capability. The study proposes visibility of operation as the manifestation of monitoring products and operations, which enables unique identification of customer operational data relevant for service delivery, service improvement, and service management.

It emerged that insight into customer operations is focused on helping manufacturing firms understand how their products fit within different contexts. The focus is on providing manufacturers with the data ability to respond to the customers’ environment in real-time. Particularly, it emerged that visibility of customer operation allows stronger relationships within the service network, especially when manufacturers aspire to promote servitised offerings. Extant literature on servitisation highlights the role of data as a vital antecedent for the effective provision of servitisation (Bastl, Johnson et al. 2012, Lightfoot, Baines et al. 2013, Opresnik and Taisch 2015). The study’s findings extend prior understanding by showing that visibility of customers’ operations allows manufacturers to observe and identify areas of improvement, which facilitates long term relationships with the customers. The nature of these relationships provides the basis for, and is seen as a prerequisite for, future collaboration and value co-creation processes.

Ultimately, all these second order themes enable data capturing capability for customers’ improved understanding and in doing so, provide insight into what is most important to customer’s business operations.