Digital servitisation toolkit for SME manufacturers

Supported by InterAct, a Made Smarter Innovation-funded programme, academics at the University of East Anglia (UAE) have developed a digital servitisation toolkit to boost growth for SME manufacturers by giving them the tools to explore and adopt innovative business models. InterAct DigiServe is an interactive website and toolkit designed to educate and support SME manufacturing leaders in evaluating and implementing digital servitisation models that can unlock significant business benefits.

The digital toolkit offers manufacturing leaders an essential resource for understanding and adopting digital technologies such as the internet-of-things (IoT), blockchain, and artificial intelligence (AI) to transform their operations, improve their competitive edge and reduce their environmental impact. The free-to-access resource is the result of an eight-month, pioneering research study by Dimitrios Dousios and Tony Karatzas aimed at addressing the digital divide between SMEs and larger companies in the manufacturing sector.

Tony Karatzas, UAE associate professor in supply chain management, said: “Over 90% of UK manufacturers are SMEs, yet there has been little guidance on digital servitisation. This toolkit helps SME leaders unlock its potential and embrace the future of industry. It is a great example of Government-backed research providing practical solutions for digital transformation. We aim to encourage more industry engagement, research, and policy support to help SMEs thrive in the digital age.”

The research explored how companies choose digital servitization models and their performance. The team identified four models: Add-on (extra services for existing products); use-based (company-owned products for customer use); solution-oriented (outcome-based contracts); and platform (connecting users to services). They found seven factors, includingng demand unpredictability and digital maturity, that impact success. A survey of 352 UK SMEs then helped identify which factors lead to better performance.

Digitial servitisation toolkit
The key outcome of the project is a ‘self-assessment toolkit’ that allows SME leaders to evaluate whether digital servitisation is right for their business. The toolkit also provides guidance on selecting the most profitable business model and offers educational videos through an accompanying training manual.

Dimitrios Dousios, the UEA’s associate professor in entrepreneurship, said: “Our research shows that SMEs can achieve high performance across all digital servitisation models, depending on how well the model aligns with the organisation’s context and design. There is no single formula for success — SMEs with different characteristics can still thrive.”

InterAct was a £4.4 million Made Smarter Innovation-funded, Economic and Social Research Council-led network that brought together economic and social scientists, UK manufacturers, policymakers, and digital technology providers to address the human issues resulting from the diffusion of new technologies in industry.

With involvement in over 70 events both in-person and online, welcoming more than 2,000 stakeholders to engage and connect, InterAct has placed building this network at the heart of its activities. With more than 750 network members, the community has proven to be a dynamic bridge between industry, policy and academia.

InterAct funded over 30 projects spanning a wide range of topics from digital change management to sustainable steel manufacturing and public perceptions of manufacturing, bringing together over 100 researchers from more than 40 institutions. The organisation also collated insights for UK manufacturing from the global manufacturing environment, leading research missions to engage with 150+ manufacturing and digital technology leaders in Singapore, Malaysia, India, Australia and Sri Lanka.

Professor Jillian MacBryde of the University of Strathclyde, co-director of InterAct, said: “This project is a prime example of how pioneering research can generate valuable insights and practical tools that support SME manufacturers in their digital transformation.”

For more information about the digital servitisation toolkit visit the InterAct DigiServe website here, and to find out more about the work of InterAct visit its website here.