Short answer

Embrace digital transformation by designing products and services that are inherently data-rich and capable of providing advanced, information-driven support to customers.

Field: Innovation & Design
Source: Aaltodoc (Aalto University) (2015)
Method: Case Study and Literature Review
Evidence: Moderate effect

Increasing the 'information intensity' of industrial services, enabled by technologies like the Industrial Internet, is a key strategy for Original Equipment Manufacturers (OEMs) to transition from product providers to advanced solutions providers. This innovation & design research insight is drawn from a 2015 study published in Aaltodoc (Aalto University). Using Case study and literature review, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Embrace digital transformation by designing products and services that are inherently data-rich and capable of providing advanced, information-driven support to customers.

Study

Innovation & DesignHigh ImpactModerate effect

Information Intensity Drives OEM Servitization in the Industrial Internet Era

Aaltodoc (Aalto University) · 2015

Key Findings

01The concept of 'information intensity' is a useful abstract framework for analyzing the evolution of industrial services.
02Different industrial sectors and service types exhibit varying degrees of benefit from increased information intensity.
03OEMs are transforming from mere goods producers to advanced solutions providers, offering services like asset availability and process efficiency improvements.

Application

Design takeaway

Embrace digital transformation by designing products and services that are inherently data-rich and capable of providing advanced, information-driven support to customers.

How to apply

When designing new industrial products or services, proactively consider how data collection, analysis, and digital connectivity can be integrated to offer enhanced support, predictive capabilities, or process optimization services.

Project actions

01Consider how data can be collected from a product to provide ongoing services.
02Research how digital platforms can enhance the user experience of industrial equipment.

Method & Evidence

AimTo investigate the impacts of the proposed industrial revolution, specifically the Industrial Internet and Industrie 4.0, from the OEM perspective, focusing on industrial services and the concept of 'information intensity'.

MethodCase Study and Literature Review

ProcedureThe research involved a multidisciplinary literature review to synthesize existing knowledge on industrial services, information, and related technologies. This was complemented by a case study on an OEM in the process manufacturing sector to gather empirical data and perspectives on the transformation towards service provision.

ContextIndustrial manufacturing and services, specifically focusing on Original Equipment Manufacturers (OEMs) and the adoption of Industrial Internet/Industrie 4.0 technologies.

Variables

IV["Level of information intensity (e.g., data collection, connectivity, analytics capabilities)"]

DV["OEM service offering sophistication","Customer value (e.g., asset availability, process efficiency)","OEM revenue streams"]

CV["Industry sector","Type of industrial service","OEM's existing business model"]

Strengths & Limitations

Strengths

+Introduces a novel concept ('information intensity') for analyzing industrial service evolution.
+Combines theoretical synthesis with practical case study insights.

Limitations

The complexity and cost of implementing advanced data analytics and digital platforms can be a barrier for smaller companies or certain types of industrial products.

Reliability & validity

The use of a literature review provides a broad theoretical foundation, while the case study offers empirical depth. However, the generalizability of case study findings to other contexts may be limited.

Think critically

To what extent can the benefits of 'information intensity' be realized without significant investment in digital infrastructure and data analytics expertise?

Design Principles

"Design for information-enabled service evolution."

This insight is crucial for industrial businesses aiming to remain competitive. By leveraging data and digital technologies, OEMs can offer more value-added services, such as predictive maintenance and process optimization, thereby deepening customer relationships and creating new revenue streams beyond traditional product sales.

What This Means for Your Design

Companies that make and sell industrial equipment (OEMs) can become more valuable by using more data and digital technology to offer better services, like fixing machines before they break or helping customers run their factories more efficiently. This is part of a big shift called the Industrial Internet or Industry 4.0.

How to use in your project

1.Use the concept of 'information intensity' to justify the development of data-driven features in your design project.
2.Refer to the OEM servitization trend to explain the strategic importance of your design's service capabilities.

Add to My Project

Quick Cite

Paragraph starter

This research highlights the growing trend of 'information intensity' in industrial services, where Original Equipment Manufacturers (OEMs) are leveraging digital technologies like the Industrial Internet to evolve from product suppliers to comprehensive solutions providers. By integrating data-driven capabilities, designs can offer enhanced asset availability, process optimization, and predictive maintenance, thereby creating significant added value for customers and strengthening market position.

Source

Aaltodoc (Aalto University)

Increasing information intensity in industrial services: towards Industrial Internet and Industrie 4.0 servitizing industrial OEMs

journal · 2015

View source

Questions About This Research

What does the research say about information intensity drives oem servitization in the industrial internet era?: Embrace digital transformation by designing products and services that are inherently data-rich and capable of providing advanced, information-driven support to customers. Evidence: Aaltodoc (Aalto University) (2015).
Why does "Information Intensity Drives OEM Servitization in the Industrial Internet Era" matter for design?: This insight is crucial for industrial businesses aiming to remain competitive. By leveraging data and digital technologies, OEMs can offer more value-added services, such as predictive maintenance and process optimization, thereby deepening customer relationships and creating new revenue streams beyond traditional product sales.
How can designers apply this research?: Embrace digital transformation by designing products and services that are inherently data-rich and capable of providing advanced, information-driven support to customers.
What were the main findings?: The concept of 'information intensity' is a useful abstract framework for analyzing the evolution of industrial services.. Different industrial sectors and service types exhibit varying degrees of benefit from increased information intensity.. OEMs are transforming from mere goods producers to advanced solutions providers, offering services like asset availability and process efficiency improvements.
What research method was used?: Case Study and Literature Review.
How strong is the evidence?: Evidence strength is rated Moderate effect, based on a 2015 journal from Aaltodoc (Aalto University).
What should I do differently in my next project?: When designing new industrial products or services, proactively consider how data collection, analysis, and digital connectivity can be integrated to offer enhanced support, predictive capabilities, or process optimization services.
What are the limitations?: The study's findings may be more applicable to OEMs in process manufacturing, and the specific benefits of information intensity can differ significantly across diverse industrial sectors.