Moving from product-oriented to platform-oriented business mod

Keywords: Digital servitization, Digital platforms, Organizational change, Connected cars, Automotive industry

Abstract

Many product manufacturers are transitioning into platform providers, a shift that requires a series of organizational changes. Nevertheless, limited attention has been given to the motivations behind this shift and the specific organizational changes undertaken by manufacturers seeking to become platform providers. To address this gap, this paper explores the connected cars landscape. Specifically, it examines the organizational transformation of automakers as they evolve from product-oriented to platform-oriented business models following the introduction of connected cars. This study draws on data from 12 automakers in the Brazilian automotive industry. The findings reveal three primary motivations driving automakers’ shift toward connected car business models and highlight six key organizational changes that support this transformation. These insights offer valuable theoretical and managerial guidance for servitization researchers and practitioners working with platform-oriented business models.

Author Biographies

Guilherme Sales Smania, Federal University of São Carlos, Brazil

Ph.D. candidate at the Department of Production Engineering at the Federal University of São Carlos (UFSCar). His research interests include servitization, digitalization, platforms, and service innovation.

Glauco Henrique de Sousa Mendes, Federal University of São Carlos, Brazil

Associate Professor at the Department of Production Engineering at the Federal University of São Carlos (UFSCar). His research interests include service innovation, quality service, product-service systems, and servitization.

References

Ardolino, M., Rapaccini, M., Saccani, N., Gaiardelli, P., Crespi, G., & Ruggeri, C. (2018). The role of digital technologies for the service transformation of industrial companies. International Journal of Production Research, 56(6), 2116-2132.

Athanasopoulou, A., de Reuver, M., Nikou, S., & Bouwman, H. (2019). What technology enabled services impact business models in the automotive industry? An exploratory study. Futures, 109, 73-83.

Baines, T., Bigdeli, A. Z., Sousa, R., & Schroeder, A. (2020). Framing the servitization transformation process: A model to understand and facilitate the servitization journey. International Journal of Production Economics, 221, 107463.

Beverungen, D., Kundisch, D., & Wünderlich, N. (2021). Transforming into a platform provider: strategic options for industrial smart service providers. Journal of Service Management, 32(4), 507-532.

Bohnsack, R., Kurtz, H., & Hanelt, A. (2021). Re-examining path dependence in the digital age: The evolution of connected car business models. Research Policy, 50(9), 104328.

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77-101.

Bryman, A., & Bell, E. (2015). Business research methods (4th ed.). Oxford, UK: Oxford University Press.

Buck, C., & Reith, R. (2020). Privacy on the road? Evaluating German consumers’ intention to use connected cars. International Journal of Automotive Technology and Management, 20(3), 297-318.

Capgemini (2020). Connected Vehicle Trend Radar 2. https://www.capgemini.com/insights/research-library/connected-vehicle-trend-radar-2/.

Cenamor, J., Sjödin, D. R., & Parida, V. (2017). Adopting a platform approach in servitization: Leveraging the value of digitalization. International Journal of Production Economics, 192, 54-65.

Coreynen, W., Matthyssens, P., & Van Bockhaven, W. (2017). Boosting servitization through digitization: Pathways and dynamic resource configurations for manufacturers. Industrial marketing management, 60, 42-53.

Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550.

Eloranta, V., Ardolino, M., & Saccani, N. (2021). A complexity management approach to servitization: the role of digital platforms. International Journal of Operations & Production Management, 41(5), 622-644.

Favoretto, C., Mendes, G. H., Oliveira, M. G., Cauchick-Miguel, P. A., & Coreynen, W. (2022). From servitization to digital servitization: How digitalization transforms companies’ transition towards services. Industrial Marketing Management, 102, 104-121.

Frank, A. G., Mendes, G. H., Ayala, N. F., & Ghezzi, A. (2019). Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective. Technological Forecasting and Social Change, 141, 341-351.

Fu, W., Zhang, M., Zhao, X., & Jia, F. (2022). Interplay between servitization and platforms: a longitudinal case study. International Journal of Operations & Production Management, 42(4), 471-499.

Genzlinger, F., Zejnilovic, L., & Bustinza, O. F. (2020). Servitization in the automotive industry: How car manufacturers become mobility service providers. Strategic Change, 29(2), 215-226.

Gioia, D. A., Corley, K. G., & Hamilton, A. L. (2013). Seeking qualitative rigor in inductive research: Notes on the Gioia methodology. Organizational Research Methods, 16(1), 15-31.

Jovanovic, M., Sjödin, D., & Parida, V. (2022). Co-evolution of platform architecture, platform services, and platform governance: Expanding the platform value of industrial digital platforms. Technovation, 118, 102218.

Kapoor, K., Bigdeli, A. Z., Schroeder, A., & Baines, T. (2022). A platform ecosystem view of servitization in manufacturing. Technovation, 118, 102248.

Kohtamäki, M., Einola, S., & Rabetino, R. (2020). Exploring servitization through the paradox lens: Coping practices in servitization. International Journal of Production Economics, 226, 107619.

Lerch, C. M., Horvat, D., & Jasny, J. (2024). When manufacturers turn into digital platform providers: A transformation model to understand the platformization pathway. International Journal of Production Economics, 273, 109235.

Lindgreen, A., Di Benedetto, C. A., & Beverland, M. B. (2021). How to write up case-study methodology sections. Industrial Marketing Management, 96, A7-A10.

Löfberg, N., Åkesson, M., & Skålén, P. (2025). Realization and unrealization of servitization through everyday micro-level activities: The interplay between servitization practices, practitioners, and praxis. Industrial Marketing Management, 124, 195-211.

Markfort, L., Arzt, A., Kögler, P., Jung, S., Gebauer, H., Haugk, S., ... & Wortmann, F. (2022). Patterns of business model innovation for advancing IoT platforms. Journal of Service Management, 33(1), 70-96.

Mckinsey & Company (2021). Unlocking the full life-cycle value from connected-car data. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/unlocking-the-full-life-cycle-value-from-connected-car-data.

Miller, C. C., Cardinal, L. B., & Glick, W. H. (1997). Retrospective reports in organizational research: A reexamination of recent evidence. Academy of Management Journal, 40(1), 189-204.

Paiola, M., & Gebauer, H. (2020). Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms. Industrial Marketing Management, 89, 245-264.

Palo, T., Åkesson, M., & Löfberg, N. (2019). Servitization as business model contestation: A practice approach. Journal of Business Research, 104, 486-496.

Paschou, T., Rapaccini, M., Adrodegari, F., & Saccani, N. (2020). Digital servitization in manufacturing: A systematic literature review and research agenda. Industrial Marketing Management, 89, 278-292.

Patton, M. Q. (2002). Qualitative research & evaluation methods. Sage publications.

Pettigrew, A. M. (1988). The Management of Strategic Change. Blackwell.

Raddats, C., Kowalkowski, C., Benedettini, O., Burton, J., & Gebauer, H. (2019). Servitization: A contemporary thematic review of four major research streams. Industrial Marketing Management, 83, 207-223.

Rajala, R., Brax, S. A., Virtanen, A., & Salonen, A. (2019). The next phase in servitization: transforming integrated solutions into modular solutions. International Journal of Operations & Production Management, 39(5), 630-657.

Seuring, S., & Gold, S. (2012). Conducting content‐analysis based literature reviews in supply chain management. Supply Chain Management: An International Journal, 17(5), 544-555.

Sjödin, D., Parida, V., Kohtamäki, M., & Wincent, J. (2020). An agile co-creation process for digital servitization: A micro-service innovation approach. Journal of Business Research, 112, 478-491.

Sklyar, A., Kowalkowski, C., Tronvoll, B., & Sörhammar, D. (2019). Organizing for digital servitization: A service ecosystem perspective. Journal of Business Research, 104, 450-460.

Smania, G. S., Arakaki, I. R. Y., Oliveira, A. F., Cauchick-Miguel, P. A., & de Sousa Mendes, G. H. (2023). Car subscription services: Automakers’ shift towards servitized and sustainable business models. Sustainable Production and Consumption, 36, 184-193.

Sterk, F., Stocker, A., Heinz, D., & Weinhardt, C. (2024). Unlocking the value from car data: A taxonomy and archetypes of connected car business models. Electronic Markets, 34(1), 13.

Svahn, F., Mathiassen, L., & Lindgren, R. (2017). Embracing digital innovation in incumbent firms. MIS Quarterly, 41(1), 239-254.

Tronvoll, B., Sklyar, A., Sörhammar, D., & Kowalkowski, C. (2020). Transformational shifts through digital servitization. Industrial Marketing Management, 89, 293-305.

Turienzo, J., Cabanelas, P., & Lampón, J. F. (2023). Business models in times of disruption: The connected and autonomous vehicles (uncertain) domino effect. Journal of Business Research, 156, 113481.

Van Dyck, M., Lüttgens, D., Diener, K., Piller, F., & Pollok, P. (2024). From product to platform: How incumbents’ assumptions and choices shape their platform strategy. Research Policy, 53(1), 104904.

Voss, C., Tsikriktsis, N., & Frohlich, M. (2002). Case research in operations management. International Journal of Operations & Production Management, 22(2), 195–219.

Weiss, N., Wiesche, M., Schreieck, M., & Krcmar, H. (2020). Learning to be a platform owner: How BMW enhances app development for cars. IEEE Transactions on Engineering Management, 69(6), 4019-4035.

Yin, R. K. (2009). Case study research: Design and methods (4th ed.). Thousand Oaks, CA: Sage Publications.

galeradasglaux
Published
2026-02-27
How to Cite
Sales Smania, Guilherme, and Glauco Henrique de Sousa Mendes. 2026. “Moving from Product-Oriented to Platform-Oriented Business Mod”. Bulletin of Economic Studies 80 (236), 83-107. https://doi.org/10.18543/bee.3239.