Facts

Contact person:
Helena Holmström Olsson
Financers:
  • Software Center
Responsible at Malmö University:
Helena Holmström Olsson
Project members:
Collaborators:
  • AB Volvo
  • Axis Communications
  • BOSCH
  • CEVT
  • Chalmers University of Technology
  • DEIF
  • Ericsson
  • Grundfos
  • Jeppesen (Boeing)
  • Qamqom
  • SAAB
  • Scania
  • Siemens
  • Tetra Pak
  • Volvo Cars
  • Wärtsilä
  • Zenseact
Time frame:
01 January 2021 - 31 December 2021
Faculty/department:
Research subject:
Website:
http://www.software-center.se/

About the project

Background

With digitalization disrupting industry after industry to an extent that we have only seen the early beginnings of, and with digital technologies becoming the key differentiators in new products and services, the business landscape is dramatically changing. With software, data and AI as core components, the digital transformation disrupts entire value chains, shifts the power balance in existing business ecosystems, allows for new entrants to challenge current keystone players and redefine what has so far been regarded as the competitive advantage.

For software-intensive companies in the embedded systems domain, digitalization of businesses offers the opportunity to extend and improve existing product offerings with digital capabilities (e.g., remote diagnostics, preventive maintenance, continuous deployment of software updates, automated troubleshooting and automated release and configuration of systems) as well as exploiting new digital technologies to create new data-driven and digital service offerings. However, the transition towards digital companies is far from trivial as so far, companies in the embedded systems domain have successfully focused their value-creating activities on physical products rather than complementary (digital) services. In domains such as telecom, automotive, defense, security and manufacturing, products sales have been, and currently are, where the primary revenue is generated.

Although most companies have some service offerings that allow for more frequent, or at least periodic relationships to customers, the revenue generated from these services is still secondary. Often, maintenance services are offered at scheduled intervals and sold as part of the overall product transaction but without having a separate revenue model associated to them. In such models, the focus is on the short-term selling of products rather than the long-term and continuously evolving customer needs. As an emerging opportunity, and as the main focus of this project, companies face a situation where traditional business models are complemented with more service-oriented business models. In these new service-oriented offerings, software is the enabler for innovative digital offerings in which data and AI technologies play an increasingly critical role. This involves not only a change of revenue models and value creation opportunities but also a fundamental shift in the relationship to customers and the response time to market needs.

Project goal

The overall goal of this project is to help companies accelerate the digital transformation and maximize the benefits of digitalization. We provide a holistic understanding and strategic guidance for how to transition from a traditional company to a digital company, how and when to engage in partnerships and we seek to provide strategies, tactics and techniques that help companies successfully manage the digital transformation they are in.