The Impact of Servitization and Digital Transformation - A Conceptual Extension of the IPOO-Framework

Continuous innovation paves the way for companies to achieve long-term competitive advantages. Measuring the performance of innovation activities enables organizations to monitor and manage their innovation projects and competitiveness. The Input-Process-Output-Outcome (IPOO)-Framework provides a tool for performance measurement. For some years now, reinforced by the digital transformation, the trend in mechanical and plant engineering is turning away from pure product offerings towards providing Product-Service Systems (PSS). PSS consist of material benefits as well as various intangible, supplementary service components. Within the course of this servitization from producers towards holistic solution providers and the digital transformation, new impacts arise on the performance measurement of innovation activities, which are determined both based on literature and empirically to provide a starting point for further research. The aim of this study is to extend the IPOO-Framework adopting the identified factors to enable the performance measurement of PSS innovation activities. (C) 2019 The Authors. Published by Elsevier Ltd.