Co-creation for service portfolio reconfiguration in digital servitization

Abstract

Value proposition design in digital servitization requires alternative design approaches to avoid what is known in servitization literature as the “service paradox,” where significant efforts in expanding the service business result in more service offerings, yet fail to produce the expected increase in returns. This paper presents a single case study where co-creation participatory practices have been used to conceptually reconfigure the service portfolio of an equipment goods manufacturer immersed in a digital servitization process. Using a design research approach, a participatory approach where knowledge is created through design practice, we describe how, in the analysed case company, human-centred service design’s co-creation and visualization practices contributed to enhancing participants' creativity, boosting common understandings about possible problems and solutions, and engaging key employees with the digital servitization strategy outlined by the general management of the manufacturer. In line with previous research, the article suggests these co-creation practices and visualization tools as a beneficial mechanism for consensual strategic decision-making in relation to the company's service offerings in digital servitization.