Short answer

Designers and engineers must think beyond the physical product to encompass the entire ecosystem of a smart solution, including data, services, and connectivity.

Field
Innovation & Design
Source
European Management Review (2026)
Method
Longitudinal, in-depth single-case study
Evidence
Strong effect

Manufacturers evolving into smart solution providers must develop distinct capabilities in visualizing data, integrating diverse components, and scaling operations to successfully shift their business models. This innovation & design research insight is drawn from a 2026 study published in European Management Review. Using Longitudinal, in-depth single-case study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and engineers must think beyond the physical product to encompass the entire ecosystem of a smart solution, including data, services, and connectivity.

Study
Innovation & DesignNew This WeekStrong effect

Transitioning to Smart Solutions Requires Visualization, Integration, and Scaling Capabilities

Manufacturers evolving into smart solution providers must develop distinct capabilities in visualizing data, integrating diverse components, and scaling operations to successfully shift their business models.

European Management Review · 2026

01

Key Findings

  • 01Visualization capability is essential for understanding and leveraging data generated by smart solutions.
  • 02Integration capability is needed to combine products, services, software, and connectivity into a cohesive offering.
  • 03Scaling capability is crucial for expanding the smart solution model across a broader customer base and market.
02

Application

Design takeaway

Designers and engineers must think beyond the physical product to encompass the entire ecosystem of a smart solution, including data, services, and connectivity.

How to apply

When developing new products or services, consider how they will integrate with existing systems and generate actionable data. Plan for future scalability and service components.

Project actions

  • 01Consider how your design can generate useful data.
  • 02Think about how your design could connect with other systems or services.
  • 03Plan for how your design could be produced or used at a larger scale.
03

Method & Evidence

AimWhat are the key value-creation capabilities and activities that enable a product manufacturer to transition into a smart solution provider?
MethodLongitudinal, in-depth single-case study
ProcedureThe study followed a leading technology provider over time, analyzing how they transformed their product-focused capabilities into those required for smart solutions.
ContextManufacturing and technology industries, specifically the shift from product-centric to solution-centric business models.

Variables

IV["Product manufacturer's existing capabilities","Business model logic"]
DV["Smart solution provider capabilities (visualization, integration, scaling)","Value creation activities and practices"]
CV["Industry sector","Company size","Technological maturity"]
04

Strengths & Limitations

Strengths

  • +Longitudinal study provides insight into evolutionary processes.
  • +In-depth case study offers rich detail on capability development.

Limitations

A single case study might not capture all the nuances of this transition across different industries or company sizes.

Reliability & validity

The single-case nature limits external validity. Reliability would depend on consistent data collection methods over the longitudinal period.

Think critically

How might a company with strong existing product manufacturing capabilities struggle with the 'service' or 'software' aspects of smart solutions, and what design strategies could mitigate this?

05

Design Principles

"Design for integration and data-driven evolution."

This transition is critical for staying competitive in markets increasingly demanding integrated product-service offerings. Understanding these core capabilities allows design and engineering teams to proactively plan for the necessary technological and organizational shifts.

06

What This Means for Your Design

To make a product 'smart,' companies need to be good at seeing and using data (visualization), connecting different parts together (integration), and making the whole thing work for many customers (scaling).

How to use in your project

  • 1.Use this research to justify the need for specific features related to data handling, connectivity, or modularity in your design project.
  • 2.Frame your design project's evolution towards a 'solution' rather than just a 'product'.
07

Add to My Project

08

Quick Cite

Paragraph starter

The transition from product manufacturing to smart solution provision necessitates the development of key value-creation capabilities, including visualization, integration, and scaling. These capabilities enable a business to effectively manage the synergy of products, services, software, and data, thereby revamping the traditional business model to embrace the logic of smart solutions.

09

Source

European Management Review

From products to smart solutions: A value‐creation approach

journal · 2026

View source

Questions About This Research

What does the research say about transitioning to smart solutions requires visualization, integration, and scaling capabilities?
Designers and engineers must think beyond the physical product to encompass the entire ecosystem of a smart solution, including data, services, and connectivity. Evidence: European Management Review (2026).
Why does "Transitioning to Smart Solutions Requires Visualization, Integration, and Scaling Capabilities" matter for design?
This transition is critical for staying competitive in markets increasingly demanding integrated product-service offerings. Understanding these core capabilities allows design and engineering teams to proactively plan for the necessary technological and organizational shifts.
How can designers apply this research?
Designers and engineers must think beyond the physical product to encompass the entire ecosystem of a smart solution, including data, services, and connectivity.
What were the main findings?
Visualization capability is essential for understanding and leveraging data generated by smart solutions.. Integration capability is needed to combine products, services, software, and connectivity into a cohesive offering.. Scaling capability is crucial for expanding the smart solution model across a broader customer base and market.
What research method was used?
Longitudinal, in-depth single-case study.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2026 journal from European Management Review.
What should I do differently in my next project?
When developing new products or services, consider how they will integrate with existing systems and generate actionable data. Plan for future scalability and service components.
What are the limitations?
Findings are based on a single case study, limiting generalizability.