Techno-functional Delivery Leader for Data & AI at Deloitte Canada | PhD Researcher on Data Monetization | Part-time Professor
Series 3/17: The Concept of Servitization in Data Monetization Servitization refers to the shift from selling standalone products to offering integrated products and services that deliver greater value. First introduced in 1988, the concept aimed to help manufacturers differentiate themselves from competitors by providing complementary services, such as maintenance, alongside their products. Servitization is grounded in Service-Dominant (SD) Logic, an academic theory that shifts focus from tangible resources with embedded value to intangible resources, co-creation of value, and relationships. SD logic emphasizes the economic exchange of competencies—skills, knowledge, and processes—where one actor applies their capabilities for the benefit of another. In the context of data monetization, SD logic applies through the use of data-related skills, knowledge, and processes to generate value for data consumers. The benefits can be tangible, such as data products, or intangible, like insights derived from data or the utility gained from data-driven solutions. There are three key elements of SD logic that help conceptualize Data Monetization as a Service (DMaaS): 1. Service Ecosystem: A network of participants, including data consumers, providers, and enrichers, that interact within the data ecosystem. 2. Service Platform: The digital infrastructure—a modular structure of resources—that facilitates interactions and exchanges within the ecosystem, such as data marketplaces. 3. Value Co-Creation: The processes and activities that integrate resources, where different participants play roles in co-creating value, such as packaging and delivering data insights. In the next installment (Series 4/17), we will explore real-world industry examples of servitization and its impact. #datamonetization #datamonetizationasaservice #sdlogic #servicedominantlogic #servitization