Business Intelligence and Innovation: An European Digital
Innovation Hub to Increase System Interaction and Value
Co-creation within and among Service Systems
Florian Maurer
Department Business Informatics, Vorarlberg University of Applied Sciences, Hochschulstraße 1, Dornbirn, Austria
Keywords: European Digital Innovation Hub, Business Intelligence & Innovation, Service Science, Service Systems.
Abstract: Due to limited resources (e.g. human, financial, knowledge, etc.), Small- and Medium sized Enterprises run
the risk to miss the Digital Transformation of its systems. Especially the manufacturing industry – a strategic
industry within the European Union that employs millions of workers and provide tremendous Gross
Domestic Product to the partner countries faces technology changes and increased challenges for
implementation. As reaction to the challenges of the manufacturing industry, the European Union launched
the Factory of the Future programme and the European Digital Innovation Hub programme. Within this article
at hand, the literately and empirically endeavours towards the design and development of the Digital
Innovation Hub: Business Intelligence & Innovation within the region of Vorarlberg are presented. In doing
so, a narrative literature review about the academic discipline of Service Science the guiding theory to
innovate service systems and an empirical research about the motivation, status quo, vision and strategy
towards the Digital Transformation and Industry 4.0 paradigm of the manufacturing industry within the region
of the Federal State of Vorarlberg are presented.
European Digital Innovation Hubs (EDIH) is a
program launched by the European Commission with
the objective to support European business, industry
and regions to succeed the Digital Transformation. It
is an instrument of the European Commission’s Smart
Specialization Strategy to digitise European
organizations (considered as service systems within
this article) as well as to boost investment through
strategic partnerships and networks within. The EDIH
program provides a broad range of services towards
digital challenges and organizational innovation that
support the design and development of heterogenous
Digital Innovation Hubs within the European regions.
Considered from an academic perspective, services
are about the service interaction and co-creation of
value within and between systems.
Service interaction and value co-creation are the
means of the academic discipline of Service Science,
which was chosen as one of the breakthrough ideas for
2005 by the Harvard Business Review (Chesbrough,
2005). Service Science combines organizational and
human understanding, related to Maglio & Spohrer
(2013), with technological understanding to categorize
and explain service systems: how they interact and
evolve to co-create value.
Services systems are the main abstraction of
Service Science. Service systems are both: providers
and clients of service and can be made up of multiple
independent service systems to interact and co-create
value. Within this article, a Digital Innovation Hub is
considered as a service system mainly a provider of
services coordinated by a single service system (single
organization) and/or a group of service systems (two or
more organizations) with complementary knowledge
and expertise within the ongoing Digital
Transformation in the manufacturing industry.
Although Service Science introduces concepts to
foster service interaction and value co-creation
mechanisms, these concepts between and among
(vertical and horizontal) systems are less considered
within the empirical field of manufacturing
(organizations its internal and external business
stakeholders). Many systems still act as
organizational silos. As consequence, the systems
face an enormous gap of knowledge combined with
increased cost- and market pressure. Due to the
knowledge gap and the complexity of technological
innovations, opportunities, challenges and threats,
Maurer, F.
Business Intelligence and Innovation: An European Digital Innovation Hub to Increase System Interaction and Value Co-creation within and among Service Systems.
DOI: 10.5220/0010255602080217
In Proceedings of the 10th International Conference on Operations Research and Enterprise Systems (ICORES 2021), pages 208-217
ISBN: 978-989-758-485-5
2021 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
service systems run at risk not to keep up the speed
with the Digital Transformation.
This article at hand presents the activities and
efforts to design and develop a Digital Innovation
Hub a service hub called Business Intelligence &
Innovation for the long-term sustainability,
survivability and success of the manufacturing
industry within the Federal State of Vorarlberg
(Austria). The objective is to highlight the endeavours
about the first four steps about the European
Commission’s “Guide for a Digital Innovation Hub”
(Rissola & Sörvik, 2018): (1) define regional needs,
characteristics & specialisms, (2) develop a vision for
the regional DIH: vision for digital transformation,
(3) look at what is already available in region as basis
and (4) define the services that the DIH should offer.
In the center of this article is the research question
how an European Innovation Hub within the region
of the Federal State of Vorarlberg for Business
Intelligence & Innovation can look like?
This article is structured among five sections.
Section one introduces the article at hand and presents
the research motivation as well as the research
question. Section two introduces the applied research
methods about the research into Service Science
literature, the European Digital Innovation Hub
initiative and the empirical field of the manufacturing
industry in the region of Vorarlberg. Section three
presents the results of the narratively literature review
into the academic field of Service Science and the
European Digital Innovation Hub “community”.
Section four presents the empirically investigation
into the needs, incl. the motivation, status quo, vision
and strategy, of the manufacturing industry within the
region of the Federal State of Vorarlberg towards an
European Digital Innovation Hub: Business
Intelligence & Innovation. Section five concludes the
article and provides an outlook of the future strategies
to design and develop the hub.
Applied research method is case study research. Case
study research is a research method to focus on
contemporary events, especially when the boundaries
between the phenomenon explored and the context
may not clearly evident Yin (2014). The case study
research method fits best to bring together the
research endeavours: a) to narratively analyse the
theoretical base of the academic field of Service
Science and to narratively analyse the semi-
theoretical base of Digital Innovation Hubs with the
aim to build up of a sophisticated knowledge base
about the field of interest and b) to empirically
explore the needs of business and industry towards a
digital service hub for business intelligence and
innovation. Finally, case study research method
captures a broad repertoire of tools to combine
theoretically and empirically knowledge to formulate
and develop new theory and artifacts about the
investigated research question.
As depicted in figure 1, applied case study
research method is complementary to the design and
development guideline of the European Commission.
Case study research augments and extends the guide
by the integration of literature reviews to explore
what is already known within the field and to develop
more purposefully and tailored questions for
empirical research.
Figure 1: Structure of the research endeavour – a guide for
a Digital Innovation Hub (adapted from the European
2.1 Analysis of Service Science
Literature and the European
Digital Innovation Hub Programme
The analysis of the Service Science literature bases on
a narrative literature review (Baumeister & Leary,
Business Intelligence and Innovation: An European Digital Innovation Hub to Increase System Interaction and Value Co-creation within and
among Service Systems
1997). In doing so, the article database of the Service
Science Worldwide Community for Service Science
Education and Research is sighted. This article
database consists of 306 scholarly articles, published
in international scientific journals and conferences.
The meta-data of all these articles were exported into
a Microsoft Excel table. In this table, data got
corrected (for example, the database hosts multiple
entries for one and the same author, e.g. Spohrer, J.
and Spohrer, J. C.), structured and codified for further
analysis. Codified data were uploaded into a
Microsoft Access SQL database, consisting of seven
tables. Five tables provide meta/master-data (codes
and information about authors, category, journal,
title, year). Remaining two tables provide operational
data (including information about articles and co-
authors). Afterwards, Standard Query Language
(SQL) select statements were executed to structurally
explore these meta-data. The use of SQL allows to
join and exclude data and enables to detect patterns
that are not possible with conventional and/or not
computer assisted methods.
The articles recommended by the Service Science
Worldwide Community are (co-) authored by 543
unique authors. Most frequent listed authors are
Spohrer, J. C. (31 publications), Maglio, P. P. (15),
Vargo, S. L. (11), Alter, S. and Polese, F. (10 each).
Taken together, 20,5 % or 63 unique articles out of
this database are published by these authors. These 63
articles are the basis for the narrative literature review
about the academic field of Service Science. In doing
the review about European Digital Innovation Hubs
programme, a morepragmatically” method is
chosen: the narrative analysis of the European
Commission’s homepages and its uploaded
documents. The results of both reviews are presented
in section 3 contextual embedment: digital
innovation hubs as service systems.
2.2 Empirically Research into the
Manufacturing Industry within the
Region of Vorarlberg
The investigation into the manufacturing industry
within the region of Vorarlberg bases on a smart
digital questionnaire accompanied with oral expert
interviews. Experts, in this sense, are the managers
and organizational decision makers from randomly
chose organization within the field of manufacturing
and accompanied sectors. For example, 14,81% of
interviewees state that their organizations are active
in the sector computer programming, consultancy
and related activities” (NACE). Following sectors in
which integrated organizations are active are
“machinery and equipment” (11,11%), “computer,
electronic and optical products” (8,64%), “metal
products, except machinery” (8,64%), “engineering
and architectural activities” (7,41%) and “plastics
materials” (7,41%).
The conduction of the empirical research was
characterized by two phases: in the first phase, a
smart digital questionnaire was we distributed to
organizations within the Federal State of Vorarlberg
and its neighbouring regions in Austria, Germany,
Liechtenstein and Switzerland. However, due to low
responses, in the second phase, bi-lateral interviews
about business needs, strategies and technologies
about the Digital Transformation with managers and
decision makers (primarily within the region of
Vorarlberg) were organized. An interview lasted 35-
45 minutes in average.
The academic discipline of Service Science act as
guiding scientific theory of the research endeavours
within this article at hand. In the centre of this
Information System related theory are service
systems. Service systems are considered as socio-
technical systems (Böhmann et al., 2014) and thus
service systems “dynamic value cocreation
configurations of resources (people, technology,
organizations, and shared information)” (Maglio &
Spohrer (2007); including language, laws, measures,
methods). Service systems are both: providers and
clients of service that are connected by value
propositions in service networks of value-creating
systems. Value creation in service systems is enabled
via the configuration of actors and resources
(Böhmann et al., 2014) as well as the service
interaction between. Service interaction are joint
activities that depends on increased communication
between the service systems (Maglio & Spohrer,
2013) to build up sustainable value propositions.
Service interactions and value propositions are “not
only data and physical components, but also layers of
knowledge, communication channels and networked
actors” (Böhmann et al., 2014). Service interactions
and value propositions coordinate and motivate
resource access across service system entities
(Maglio & Spohrer, 2013).
Service systems are everywhere (Parbs et al.,
2016): the smallest service system, related to Maglio
& Spohrer (2007), “centres on an individual as he or
ICORES 2021 - 10th International Conference on Operations Research and Enterprise Systems
she interacts with others, and the largest service system
comprise the global economy […]”. Digital Innovation
Hubs, in the sense of this article, are a bundle of service
systems (vertical and horizontal) organizations and
other stakeholders from business and industry that
interact, collaborate, cooperate and co-create to gain
services: new knowledge and expertise.
Within the theory of Service Science, the Service-
Dominant Logic, SSMED, Viable System Approach
and the Work System Theory could be identified. As
Maurer (2020) summarizes, Service-dominant logic
increases value co-creation with and among service
system stakeholders: clients, providers, suppliers, etc.
Service-Dominant Logic aims to improve the potential
to launch services and service innovation and is part of
Marketing Theory. SSMED an abbreviation for
Service Science, Management, Engineering and
Design focuses on increased services, service
systems and its service interaction mechanisms by
continuous service system development, (re-) design
and (re-) engineering. It is about innovation and
evolution by use of knowledge gained from the service
systems ecologies. Viable system approach focuses on
the service system's viability, sustainability and
survivability through dynamic stakeholder interaction
and value co-creation mechanisms. It is closely related
to Service-Dominant Logic. Work system theory, a
core-intervention of Alter (2013), focus on the
resources base of service systems to design and
develop valuable, rare, inimitable and non-
substitutable (VRIN) resources. As depicted in figure
2, in the centre of the Work System Theory is the Work
System Framework a framework and guide to
execute service, service system and service ecosystem
renewal and innovation. Central idea of the Work
System Theory is to support service system thinking.
Service systems are made of nine resources, best
presented in the Work System Framework (cf. figure
Figure 2: Work system framework.
The Work System Theory (main protagonist:
Seven Alter, e.g. Alter (2013)) is a business process
approach and focuses on service systems and its
participants rather than on (information and
communication) technologies. The Work System
Theory and its Work System Framework are relevant
for system analysis: analyzing, describing, designing,
or evaluation of service systems (and its
improvement) towards both: planned and
unplanned changes within and among service systems
(internal & external). The Work System Theory
supports system participants to develop new services
and service systems as well as to improve and
innovate the existing systems towards organizational
challenges, opportunities and trends.
In the centre of SSMED are to launch productive
service interactions, increase labour productivity and
innovation measuring productivity. In accordance to
Spohrer et al. (2010), measures to increase service
interaction and productivity (such as: efficiency,
effectiveness, performance and sustainability as well
as renewal and innovation) include the (1)
identification of all the stakeholder system entities in
a network under study (e.g. a network ecology
analysis), (2) examination of existing relationships
and value cocreation mechanisms with the target to
understand the challenges and opportunities the
service system stakeholders have identified, (3)
improve existing value cocreation mechanisms (that
may include the freeing up of resources from existing
service system entities and its redistribution), (4)
creation of new service system entities to address
them (if challenges and opportunities remain)
(Spohrer et al., 2010). As depicted in table 1, SSMED
makes use of four propositions that are:
Table 1: SSMED’s four propositions.
Propositions Source
1 Service system entities
dynamically configure
(transform) people,
technology, organizations
and shared information
Spohrer et al.
Maglio &
Service system entities
compute and calculate value
from multiple stakeholder
Spohrer et al.
Maglio &
Service system entities
reconfigure access rights to
resources by mutually agreed
to value propositions resp.
the access rights associated
with entity resources are
reconfigured by mutually
agreed-to value propositions
Spohrer et al.
Maglio &
Business Intelligence and Innovation: An European Digital Innovation Hub to Increase System Interaction and Value Co-creation within and
among Service Systems
Table 1: SSMED’s four propositions (cont.).
Propositions Source
Service system entities
compute and coordinate
actions with others through
symbolic processes of
valuing and symbolic
processes of communicating
Maglio &
However, the European Digital Innovation Hub is a
research, innovation and investment programme of
the European Commission. It can be considered as the
supplement of the “Factory of the Future” (FoF;
European Factories of the Future Research
Association (2016)) programme, which was launched
firstly in 2008 with the aim to develop a sustainable
and competitive EU manufacturing. In first iteration,
this initiative included the development of high added
value manufacturing technologies, which
additionally are clean, highly performing,
environmentally friendly and social sustainable (e.g.
European Commission; European Commission
(Multi-Annual Roadmap). However, FoF is a
narrative and under its roof, this term describes a
factory as a fully integrated plant, incl. the use and
application of smart cyber-physical systems.
Especially in the German speaking countries Industry
4.0 approach is in close relation to FoF. It interlinks
human resources, technology and information equally
to establish more performant and more efficient but
also more intelligent and self-managing service
systems in overall value co-creation chains.
Related to the Draft Working Programme of the
European Commission (2019), EDIH’s are one-stop
shops that help companies become more competitive
with regard to their business/production processes,
products or services using digital technologies, by
providing access to technical expertise and
experimentation. Organizations should be able to
“test before invest”. Further services assigned to
EDIH’s are, for example, provision of innovation
services, incl. to better organise the innovation
support system in the region, start-up support (assist
start-ups who are based on digital technologies) and
innovation in more established companies (support
more mature companies with the development of new
products and services that are not fully exploiting the
digital opportunities yet), matchmaking and
connection of actors and stakeholders, financing
advice and training and skills development that are
needed for a successful Digital Transformation of
business, industry and/or the region. Actors and
stakeholders of Digital Innovation Hubs are, for
example, RTOs, universities, technological
companies, governmental institutions, etc. (DIH,
Smart Specialisation Platform, 2020) and their main
service is to support the Digital Transformation of
business and industry and the regional ecosystem
(European Commission, 2016). It is a concept that
builds upon previous experiences and organisations
to digitalize business, industry and the regional
As highlighted in theory of Service Science, industry
experiences a strong shift form Goods-Dominant
Logic to the Service-Dominant Logic. This is true too
for the investigated field of manufacturing industry
within the Federal State of Vorarlberg: old processes
and services get renewed, changed and adopted by
new, technology-based processes and services to
increase service interaction and value co-creation.
The Digital Transformation, as observed in the field,
additionally impacts and challenges the human
resources and the requirements into them. A
continuous qualification and upskilling of their
competences are needed. The following chapters
present the motivation for the Digital Transformation
within investigated organizations, the status quo
about the use of Industry 4.0 technology, a future
prospection and the strategy towards this future.
Anticipated, the removal of existing products because
of the Digital Transformation is less expected by the
interviewees – manufacturing get incentivized and
augmented with services.
4.1 Motivation for the Digital
The general motivation for the Digital
Transformation of managers within interviewed
organizations is all about internal and external
innovation (renewal, adaption and change of the
manufacturing systems, its underlying technologies,
processes and services) at almost all organizational
levels. Core efforts are the implementation of new
technologies, processes and services within their
manufacturing systems. In doing so, most
interviewed managers expect a reduction of material
consumption within their organization. Further
expectations of interviewed managers are the
adaption, design and development of new products
and services, increased managing quality and
ICORES 2021 - 10th International Conference on Operations Research and Enterprise Systems
organizational robustness as well as changed business
models. Additionally, by the Digital Transformation,
managers expect to access to new markets and
business areas as well as to attract and gain new
The observed examples within the empirical field are
manifold. For example, the managing director of an
involved company specialized in injection moulding
foster the motivation for the Digital Transformation
of its employees by internal value services: increased
transparency of manufacturing processes by use of a
manufacturing info-board (c.f. figure 3). A further
company equips its service employees with Virtual
Reality Glasses to easily download construction plans
during services processes at the customer.
Additionally, by use of the VR Glasses, the service
employees are able to get connected with the
headquarter and to receive real-time support and
Figure 3: Organizational transparency by use of a
manufacturing info-board.
4.2 Status Quo: Availability of
Emergent Manufacturing
Technologies in Industry and Its
In analysing the status quo, interviewees had to
evaluate applied Industry 4.0 technologies on a Likert
Scale ranging from 1 (= no usage at all) until 4 (=
very intensive use). Based on the research of
Schumacher et al. (2016 & 2019), these technologies
are: autonomous robots, simulation, system
integration, (industrial) internet of things,
cybersecurity, cloud technologies, additive
manufacturing, augmented reality and big data &
As depicted in table 2 & 3, from a “positive”
perspective, the technologies simulation, system
integration, (industrial) internet of things,
cybersecurity, cloud technologies, additive
manufacturing and big data & analysis passed the
50% hurdle (summary of the results: few usage, good
usage & intense usage, c.f. table 3). This determines
that most of the interviews affirm the use of these
technologies. From a “negative” perspective, it seems
that the technologies autonomous robots and
augmented reality did not gain interest and did not
enter the field of manufacturing yet. For example, any
of the interviews stated that these technologies
experience an intensive use in their organization. The
results about the “positive” and “negative”
perspective the usage and no usage of Industry 4.0
technologies in investigated organizations are
depicted in table 2.
Table 2: Usage of manufacturing technologies.
Technology No usage Usage
Autonomous robots 58,06% 41,94%
Simulation 35,48% 64,52%
System integration 41,94% 58,06%
(Industrial) IoT 48,39% 51,61%
Cybersecurity 35,48% 64,52%
Cloud technologies 29,03% 70,97%
48,39% 51,61%
Augmented reality 83,87% 16,13%
Big data & analysis 29.03% 70,97%
Focusing on the “positive” perspective (usage of
manufacturing technologies), as depicted in table 3,
an intense usage could be identified in cybersecurity,
big data & analysis, simulation and (industrial)
Internet of Things.
Table 3: Detailed visualization of the usage of
manufacturing technologies.
Technology Few Good Intense
22,58% 19,35%
Simulation 35,48% 19,35% 9,68%
29,03% 29,03%
(Industrial) IoT 29,03% 16,13% 6,45%
Cybersecurity 29,03% 22,58% 12,90%
25,81% 38,71% 6,45%
35,48% 16,13%
12,90% 3,23%
Big data &
45,16% 16,13% 9,68%
Business Intelligence and Innovation: An European Digital Innovation Hub to Increase System Interaction and Value Co-creation within and
among Service Systems
Examples of the use of these technologies are, for
example, the integration of external cloud platforms
as Dropbox, SharePoint, etc., server decentralization,
outsourcing of IT processes and IT service-oriented
architectures. Major to the managers is to ‘flexibilize’
the organization and make it more agile to
stakeholder requirements. But also, a few
interviewees stated that they are working on their own
cloud solutions that face increased security measures.
The cloud technology, with respect to the academic
field of Service Science as well as the interviews
highlighted, is to boost cooperation, collaboration and
to increase of organizational transparency. It enables
to increase the interaction and value co-creation
among system members on the digital way (e.g.
exchange of documents, edition of documents at the
same time, etc.). Big data & analysis technology, as
observed in the interviews, is in close connection to
simulation. The manufacturing processes and
products, for example, are augmented with
(industrial) internet of things technology: sensors,
chips, etc. These IoT’s are the basis for big data in
manufacturing and its structured analysis at
operational level (e.g. internal cycling times, speed,
maintenance, etc.– as depicted in figure 3). At
strategic level, the organizational supply chains get
observed, forecasted and simulated. The make use of
these (interconnected) big data and its analysis
enables, as the interviewees stated, to identify
patterns and structures for latter decision making. The
use of simulation enables to design and develop
scenarios and incidents, decision making, software
tests, product development and process simulation.
The “organizational shut-down” of a well-known
organization within the region due to a cyber-attack
sits deep within the interviewees’ minds. Probably for
this and globally observed reasons, the technology
cybersecurity is the most applied technology within .
As observed, the protection of IT hard- and software
is at high level and captures, for example,
technological standards, legal protection for digital
products and services, rules for employment in digital
work environment, safety, security & resilience and
control, reliability & robustness.
4.3 Vision for the Digital
Transformation: Future
Related to a future estimation of the use of emergent
manufacturing technologies that drive the Digital
Transformation in systems, the interviewees
highlighted a tremendous shift. As observed, all
surveyed manufacturing technologies are on the
agendas of the managers and a more intensive use in
the future is expected by them in their organization.
The comparison between present use, the future
application and the change is depicted in table 4. For
example, 87,10% of the interviewees (instead of
70,97% (as in the status quo section)) planning to
make use of cloud technologies in the future. This is
a shift of +16,13%. The technologies system
integration, (industrial) internet of things and
augmented reality, as the interviews highlight, will
experience the most significant change: +25,81%
each. Nevertheless, more than the half of the
interviewees (58,06%) showed a negative attitude
towards augmented reality.
Table 4: Prospected shift of the usage of manufacturing
Prospected shift
Technology Present Future Change
41,94% 67,74% +25,80%
Simulation 64,52% 67,74% +3,22%
58,06% 83,87% +25,81%
(Industrial) IoT 51,61% 77,42% +25,81%
Cybersecurity 64,52% 77,42% +12,90%
70,97% 87,10% +16,13%
51,61% 61,29% +9,68%
16,13% 41,94% +25,81%
Big data &
70,97% 80,65% +9,68%
As observed, an intense usage of manufacturing
technologies is to be expected in cybersecurity (ten
interviewees highlighted the intense usage of this
technology, cloud technologies (7), big data &
analytics and simulation (6 each). The technology
system integration will be used to increase the
system’s collaboration from human-to-human,
human-to-machine and machine-to-human. Applied
fields are manifold and capture, for example,
interfaces (to internal/external ERP systems, MES
systems, CAx systems, etc.), machines and sensors
(to collect noise and additional data about the product
and its cycle times) and -partly- robots and
autonomous driving systems. Centre to the managers
are increased service interaction: automated
information exchange, customer and supplier
integration and value co-creation in product/service
development, utilization of customer and supplier
ICORES 2021 - 10th International Conference on Operations Research and Enterprise Systems
related data and IT-collaboration for product
4.4 Strategies for the Digital
As observed within the surveyed organizations, the
most promising strategy for the successful
implementation of Industry 4.0 technologies and the
continuous cope with the Digital Transformation are
the developments of an Innovation Strategy and an
Industry 4.0 Strategy. Almost 81% resp. 59% of the
interviewees are positive towards the Innovation
Strategy document and the Industry 4.0 Strategy
document. A further important part, as observed, is
the communication of these documents towards the
system participants (e.g. managers, decision makers,
employees, etc.) and the system stakeholders.
Nevertheless, the results out of the survey paints an
ambiguous picture about the strategy for the Digital
Transformation and the application of Industry 4.0
technologies. At the one hand, the willingness of
mangers to pro-actively act manage and master the
Digital Transformation within their organization is
high. At the other hand, the most important resources’
objectives to master the Digital Transformation are
not captured sufficiently yet: less than 42% of the
interviews confirmed that the employees’ objectives
are captured within their roadmap and innovation
strategy towards the Digital Transformation. Related
to the academic discipline of Service Science, it is a
major pitfall of design, development and engineering
(of products, services, processes, technologies, etc.)
since value is always co-created.
Further possible sources of danger are the
organizations central coordination of the activities
and efforts of the Digital Transformation, its
communication to become digitalized and the risk
assessment. For example, only the half of interviewed
managers stated that their endeavours of their Digital
Transformation is centralized. This disables the
capitalization of implemented technologies and
decreases the organizations’ ability to design, develop
and (re-) engineer its processes and services
accordingly as well as to disseminate the adaptions,
changes and innovation to the system stakeholders
(employees, suppliers, customers, etc.). Although the
mangers are aware about the ongoing Digital
Transformation, more than the half of interviewed
managers stated that they did not make an assessment
about future technologies. Currently, it seems that
digital transformation in companies is based on a trial
and error process instead of a structured innovation
Digital Transformation and Industry 4.0 force
proactive digital adaption, change and innovation of
the system, its infrastructure, resources, processes,
products and services. Considered from a service
perspective – the perspective of the academic field of
Service Science, Digital Transformation and Industry
4.0 not only is about the implementation of new
technology within the organization but also its
management, engineering and design. However, due
to limited resources (e.g. human, financial,
knowledge, etc.), especially Small- and Medium
sized Enterprises run the risk to miss the successful
innovation of its systems.
5.1 Contributions to Research and the
Empirical Field of Manufacturing
From an academic perspective, this article at hand
introduces the academic field of Service Science as
engineering guide to response to and to cope with the
Digital Transformation and Industry 4.0 in the
manufacturing industry. Service Science supports to
increase service system stakeholders abilities to think
systems in services and thus to better design, develop
and (re-) engineer service systems. Especially the
SSMED and the Work System Theory provides
guidelines and frameworks to adapt to, change and
innovate within the Digital Transformation and
Industry 4.0 paradigm. From an empirical
perspective, this paper introduces the European
Commission’s Digital Innovation Hub programme.
This programme is meant to support the European
manufacturing business and industry to cope the
Digital Transformation and Industry 4.0. Centre to the
European Digital Innovation Hub programme is to
establish Digital Innovation Hubs that boost
innovation within business, industry and the
European regions.
Both perspectives, Service Science (incl. SSMED and
Work System Theory) and the European Digital
Innovation Hub programme are key to establish the
Business Intelligence & Innovation Hub within the
region of Vorarlberg.
5.2 Future Outlook
After the analysis and evaluation of the motivation,
status quo, vision and strategies within the empirical
field, as demanded by the European Digital
Innovation Hub programme, next step is to define the
Business Intelligence and Innovation: An European Digital Innovation Hub to Increase System Interaction and Value Co-creation within and
among Service Systems
services that the intended Business Intelligence &
Innovation Hub should offer. In doing so, it is
important to analyse the resources, infrastructures,
existing networks, etc. of the region to identify, for
example, the relevant stakeholders within the field of
manufacturing. Target then is to conceptualize the
integration of identified stakeholders into the design
and development processes for later dynamically
configuration and transformation of people/human
resources, technologies, organizations (incl. internal
and external stakeholders) and shared information for
a sustainable, survivable and profitable
manufacturing industry within the region. At the one
hand, it is centre to design and develop services that
meet the needs, vision and strategies of the
manufacturing industry. At the other hand, it is
important to align with the overall strategy of the
region. Thus, the services of the Business Intelligence
& Innovation Hub not only re-combines
infrastructure, technologies, products, services and
production factors – it enables new alignments in the
organizational culture and its management and
contributes to the Smart Specialization Strategy
“Intelligent Production” of the Government of the
Federal State of Vorarlberg.
This article at hand was made possible by the
financial support of Interreg Central Europe research
project “4Steps” (Towards the application of Industry
4.0 in SMEs; project number: CE1492).
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