Digital servitization of the machinery sector: A comparison between Italy-Based and Foreign companies

The machinery industry sector is among the most important due to its production of equipment utilized by other industries in manufacturing processes. Traditionally characterized by transactional sales, this sector is currently shifting towards servitized business models, wherein products such as machines and industrial equipment are bundled with services or offered purely as services. Implementing servitized business models is non-trivial as it necessitates thorough investigation. Additionally, machinery is undergoing a digital transformation that, in combination with servitization, has led to the concept of digital servitization. Since the Italian market is among the most important at European level, it is critical for Italian companies to understand their positioning against competition. This paper delves into the digital servitization evolution of machinery companies, comparing those based in Italy with their foreign counterparts. The findings highlight that, despite facing similar challenges, foreign companies are more advanced in this transition than their Italian counterparts.