Understanding Procurement Processes for Digitally Enabled Advanced Services

• Digitalization or industry 4.0 holds the potential of providing many benefits to industrial companies. Industrial customers are increasingly focusing on buying digitally enabled advanced services, i.e. integrated solutions that combine products and service functions with digital capabilities. However, traditional procurement processes are not well designed for evaluating and buying digitally enabled advanced services, which inhibits value co-creation between the supplier and customer. Therefore, industrial customers need to transform their procurement processes in order to improve the potential of profiting from digitalization. We use data gathered from multiple case study of 8 large companies in Sweden to develop a procurement process for digitally enabled advanced services. The proposed process consists of 4 phases with key activities at each phase. These are based on a close interaction between the internal actors of customer organization, as well as co-creation logic between customer and supplier, leading to a win-win relationship and continuous innovation.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Keyword

Procurement

Digitalization

Industry 4.0

Servitization

Entreprenörskap och innovation

Entrepreneurship and Innovation

Publication and Content Type

ref (subject category)

kon (subject category)