Business Models for Digital Service Infusion Using AI and Big Data

This chapter delves into the transformative potential of digitalization in manufacturing firms, focusing on service infusion and its evolution into digital servitization. It examines how IoT, AI, and Big Data can unlock the digital paradox by enhancing service provision and transforming business models. The text explores various business models enabled by these technologies, such as add-on, sharing, usage-based, and solutions-oriented models. It also discusses how digital technologies can change service encounters, augment employee capabilities, and even replace human interactions with automated digital services. The chapter offers theoretical and managerial insights into the challenges and opportunities of digital service infusion, providing a comprehensive guide for professionals seeking to navigate this digital transformation.