The Digital Servitization Exchange Podcast

Heiko Gebauer
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Connecting research and practice in the transformation from products to digital services.The Digital Servitization Exchange Podast explores how manufacturers create and capture value through services and software. Designed for both researchers and practitioners, the podcast brings together academic insight and industry experience to unpack the concepts, challenges, and opportunities driving digital servitization. Each episode delves into themes such as service innovations, subscription models, industrial IoT, digital platform ecosystems, and organizational transformation. Rather than focusing on individual voices, the podcast emphasizes relevant topics that matter across domains — offering evidence-based perspectives for academics and actionable ideas for business professionals. By bridging theory and practice, The Digital Servitization Exchange Podcast provides a space where learning flows both ways: from research to real-world implementation, and from practice back to research.Ideal for: academics, doctoral researchers, industrial leaders, digital transformation managers, service strategists, and anyone shaping the future of digitally enabled services.

  1. #37 Rebuilding the Brick: LEGO's Journey From Crisis to SustAInnovation

    APR 28

    #37 Rebuilding the Brick: LEGO's Journey From Crisis to SustAInnovation

    Description: How did the world’s most iconic toy company go from the brink of bankruptcy to unprecedented global success?. In this episode, we dive deep into the fascinating turnaround story of the LEGO Group. We explore how former CEO Jørgen Vig Knudstorp rescued the company in the early 2000s by cutting crippling supply chain complexities, drastically reducing product components, and refocusing on the company's core asset: the physical plastic brick. From there, we unpack how LEGO evolved from a simple product manufacturer into a massive customer-experience powerhouse. We discuss the delicate balance between preserving traditional hands-on play and embracing digital innovation, examining early missteps like the LEGO Universe online game, and recent triumphs like their digital partnership with Epic Games. We also look at how LEGO harnesses the power of crowdsourcing and co-creation through its passionate Adult Fans of LEGO (AFOLs) and the LEGO Ideas platform. Finally, we analyze the brand's ambitious but challenging push for sustainability, including the recent setback in replacing petroleum-based ABS plastic with recycled PET bottles, and their shift toward circular models like the LEGO Replay program. Tune in to discover how LEGO leverages "Systematic Creativity" to continuously navigate industry tensions and build the future of play. Key Words: LEGO, Business Turnaround, Digital Innovation, Sustainability, Toy Industry, Co-Creation, Customer Communities, Brand Management, Jørgen Vig Knudstorp, Supply Chain Optimization, Systematic Creativity, AFOL.

    23 min
  2. #36 The Evolution of 365FarmNet

    APR 28

    #36 The Evolution of 365FarmNet

    Description: In this episode, we explore the fascinating journey of 365FarmNet, a pioneering farm management information system (FMIS) introduced by the agricultural machinery manufacturer CLAAS in 2013. Originally designed as an ambitious, open ecosystem to handle everything "from field to barn," it promised farmers a unified way to manage mixed tractor fleets, reduce duplicate data entry, and easily navigate regulatory compliance. We discuss how 365FarmNet solved real operational headaches for its approximately 100,000 registered users across Europe, particularly through interoperability innovations like DataConnect, which allowed seamless data exchange across major competing brands like John Deere and CNH Industrial without needing extra hardware. However, as the digital agriculture landscape shifted, so did the platform's strategy. We dive into the key challenges 365FarmNet faced over the years—ranging from fragmented technical standards and the complexities of maintaining an open ecosystem, to the financial realities of transitioning away from a free business model. Finally, we unpack why CLAAS ultimately decided to reintegrate 365FarmNet's core capabilities into its global CLAAS connect architecture, scheduling the original platform's phase-out for November 2026 (except in Switzerland, where it will continue under Barto AG). Join us as we look at how 365FarmNet evolved from a stand-alone product into the foundational machine intelligence and digital service layer for the future of CLAAS equipment. Key Words: 365FarmNet, CLAAS, CLAAS connect, Digital Farming, Farm Management Information System (FMIS), Mixed Fleets, DataConnect, AgTech, Interoperability, Precision Agriculture, Data Sovereignty.

    7 min
  3. #35 From Plant Floor to Cloud: The Evolution of Rockwell's FactoryTalk InnovationSuite

    APR 28

    #35 From Plant Floor to Cloud: The Evolution of Rockwell's FactoryTalk InnovationSuite

    Description: In this episode, we dive deep into Rockwell Automation's ambitious pivot from a traditional controls and automation hardware vendor to a software, data, and digital-transformation platform vendor. We explore the evolution of FactoryTalk InnovationSuite, which operates as a federated digital-transformation stack bringing together IIoT, manufacturing execution systems (MES), and analytics. Discover how key milestones—like the initial 2018 PTC alliance and the pivotal 2021 acquisition of Plex Systems—reshaped Rockwell’s strategy toward a broader cloud operations platform. We'll unpack the strategic benefits driving their recurring revenue growth, alongside the real-world integration and packaging challenges they face. We also examine how Rockwell's expanding ecosystem—now featuring Microsoft Azure and NVIDIA digital twins—stacks up against heavyweight competitors like Honeywell Forge and Siemens. Whether you're a digital transformation leader, an industrial engineer, or simply curious about the future of smart manufacturing, this episode breaks down the architecture, customer success metrics, and the future outlook of Rockwell's industrial software strategy. Key Words: Rockwell Automation, FactoryTalk InnovationSuite, Digital Transformation, Industrial Internet of Things (IIoT), Manufacturing Execution Systems (MES), Smart Manufacturing, Plex Systems, Industrial DataOps, Edge Computing, Digital Twin.

    7 min
  4. #34 The D2C Dilemma: Navigating Manufacturer-Dealer Collaborations in the Digital Age

    APR 28

    #34 The D2C Dilemma: Navigating Manufacturer-Dealer Collaborations in the Digital Age

    The shift toward Direct-to-Customer (D2C) strategies and digital servitization presents a complex paradox for product manufacturers today. While digital technologies offer lucrative new revenue streams, valuable data, and closer customer relationships, bypassing established dealer networks can lead to severe consequences, including brand dilution, loss of market share, and disrupted customer journeys. In this episode, we dive deep into the "D2C Dilemma," exploring how major brands like Nike, Caterpillar, and Mafell have navigated the rocky transition from traditional indirect sales to hybrid, data-driven ecosystems. We unpack a proven three-phase framework for safely embedding D2C approaches, starting with low-risk touchpoints and expanding without alienating retail partners. Furthermore, we trace the evolution of manufacturer-dealer relationships, showing how they must transition from basic, transactional product support into multi-layered collaborations focused on integration, productivity, and sustainability. Join us to learn how to successfully blend direct and indirect sales channels, empower your dealers as strategic brand ambassadors, and unlock the true value of your digital offerings. Key Words: Direct-to-Customer (D2C), Manufacturer-Dealer Collaboration, Digital Servitization, Hybrid Sales Models, B2B Ecosystems, Customer Journey, Digital Offerings

    7 min
  5. #33 Decoding Honeywell Forge: Transforming Industrial Data into Digital Outcomes

    APR 28

    #33 Decoding Honeywell Forge: Transforming Industrial Data into Digital Outcomes

    In this episode, we dive deep into the strategic evolution of Honeywell Forge, exploring how a traditional industrial giant successfully transitioned into a software-driven platform. We trace the emergence of the Honeywell Connected Enterprise (HCE) in 2018, which spearheaded the shift from selling standalone products to generating recurring, data-driven software revenue across industries like aerospace, building technologies, and life sciences. Listeners will discover the key benefits of the Forge platform, specifically how it solves the massive challenge of fragmented operational technology (OT) and IT data by focusing on verticalized, measurable outcomes. We break down real-world impacts, from helping airlines save up to $140,000 in fuel and $40,000 in maintenance per aircraft annually, to driving a 12.97% reduction in energy usage for healthcare facilities. The episode also maps out key milestones, showing how Honeywell expanded Forge not just organically, but through an ecosystem of powerful partnerships (including SAP, Microsoft, and Google Cloud) and targeted acquisitions (such as Sine, Sparta Systems, and Performix) to connect operational data with business workflows and AI capabilities. Finally, we explore the key challenges of this transformation—such as integrating with legacy "brownfield" systems, managing OT cybersecurity risks, and overcoming internal organizational silos. We reveal the critical success factorsthat allowed Honeywell to overcome these hurdles: leveraging decades of deep domain expertise, utilizing a "SaaS plus services" model, and maintaining a strict focus on delivering tangible business results rather than just selling a generic data dashboard. Key Words: Honeywell Forge, Digital Transformation, Operations Technology (OT), Industrial IoT (IIoT), Enterprise Performance Management, SaaS Transformation, Connected Aerospace, Smart Buildings, Predictive Maintenance, OT Cybersecurity.

    23 min
  6. #32 Ericsson’s Evolution: Competing Through Software, Services, and Platforms

    MAR 4

    #32 Ericsson’s Evolution: Competing Through Software, Services, and Platforms

    Description: How does a 150-year-old telecommunications company stay competitive in the age of 5G, cloud computing, AI, and platform ecosystems? In this episode, we explore the Ericsson case and examine how the company transformed from a traditional network equipment supplier into a software- and services-driven technology leader. We discuss Ericsson’s strategic pivot toward cloud-native infrastructure, AI-enabled network automation, enterprise 5G solutions, and global network APIs. The episode analyzes major moves such as the Vonage and Cradlepoint acquisitions, partnerships with AWS, Microsoft, and Google Cloud, and the creation of the Aduna network API marketplace. Drawing on recent financial performance and competitive dynamics, we examine how Ericsson uses services, software, and ecosystem collaboration to build sustainable competitive advantages in a highly volatile and geopolitically complex industry. This case provides key insights into digital transformation, platform strategy, and long-term value creation in the telecommunications sector. Key Words: Ericsson, 5G, Telecom Strategy, Digital Transformation, Network APIs, Cloud-Native Infrastructure, AI in Networks, Platform Business Model, Managed Services, Enterprise 5G, Vonage, Strategic Partnerships, Competitive Advantage

    6 min
  7. #31 From Switchgear to Software: Schneider Electric’s Digital Reinvention

    FEB 26

    #31 From Switchgear to Software: Schneider Electric’s Digital Reinvention

    Description: How does a traditional electrical equipment manufacturer become a global digital services powerhouse? In this episode, we explore how Schneider Electric transformed from a hardware-driven industrial firm into a leader in software, IoT platforms, and recurring digital services between 2005 and 2025. Through bold acquisitions such as Telvent, Invensys, AVEVA, and RIB Software, the company built deep software capabilities and reshaped its business model around connected products, analytics, and lifecycle services. We unpack the rise of the EcoStruxure platform, the shift toward subscription-based revenue, and how Schneider’s “digital flywheel” now drives more than half of its business. This case reveals how strategic M&A, platform thinking, and a focus on sustainability can turn industrial hardware into a scalable digital ecosystem. Key Words: Schneider Electric, Digital Transformation, Servitization, EcoStruxure, Industrial IoT, Platform Strategy, Software Acquisitions, Recurring Revenue, Digital Flywheel, Energy Management, Industrial Automation, Sustainability Strategy

    18 min
  8. #30 Acquiring Service Growth: How Atlas Copco Became a Service Leader Through M&A

    FEB 26

    #30 Acquiring Service Growth: How Atlas Copco Became a Service Leader Through M&A

    Description How do strategic acquisitions turn an industrial manufacturer into a global service leader? In this episode, we examine how Atlas Copco transformed its business model between 2005 and 2025 by systematically acquiring distributors, service specialists, rental businesses, and technology firms to expand its installed base and recurring revenues  From early moves to strengthen aftermarket capabilities to major deals in vacuum technology and specialty rental, Atlas Copco used bolt-on acquisitions as a deliberate engine for service growth. By integrating these companies into dedicated service divisions and leveraging digital platforms like SmartLink, the firm increased service revenues to nearly 40% of total sales by 2025. This case reveals how disciplined M&A, combined with customer intimacy and digitalization, can power long-term servitization in industrial markets. Key Words: Atlas Copco, Mergers and Acquisitions, Servitization Strategy, Aftermarket Growth, Installed Base Expansion, SmartLink, Specialty Rental, Industrial Services, Bolt-on Acquisitions, Recurring Revenue, Digital Transformation, Service Leadership

    7 min
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About

Connecting research and practice in the transformation from products to digital services.The Digital Servitization Exchange Podast explores how manufacturers create and capture value through services and software. Designed for both researchers and practitioners, the podcast brings together academic insight and industry experience to unpack the concepts, challenges, and opportunities driving digital servitization. Each episode delves into themes such as service innovations, subscription models, industrial IoT, digital platform ecosystems, and organizational transformation. Rather than focusing on individual voices, the podcast emphasizes relevant topics that matter across domains — offering evidence-based perspectives for academics and actionable ideas for business professionals. By bridging theory and practice, The Digital Servitization Exchange Podcast provides a space where learning flows both ways: from research to real-world implementation, and from practice back to research.Ideal for: academics, doctoral researchers, industrial leaders, digital transformation managers, service strategists, and anyone shaping the future of digitally enabled services.

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