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| The Back-feeding Mechanism of Service Innovation to Product Innovation in Digital Environment: A single Case Study Based on Xiaomi Technology |
| Luo Jianqiang1,2,Li Yujuan1 |
| (1. School of Management,Jiangsu University;2.China Research Institute for Agricultural Equipment Industry Development,Jiangsu University,Zhenjiang 212013,China) |
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Abstract At present, with the in-depth advancement of scientific and technological revolution and industrial transformation, digital technology accelerates enterprise innovation, technology diffusion and industrial integration, and it has become a driving force for manufacturing enterprises and an important force for a company's competitive advantage. For manufacturing enterprises, the effect of digital servitization is becoming increasingly significant, and it has exacerbated the complexity of the relationship between service innovation and product innovation (two types of innovation). As service innovation evolves from the incremental type to the fundamental, service value creation will be increasingly influenced by product technology, making the two types of innovations more interactive. When the two types of innovations interact with each other to promote the in-depth transformation of services, digital technologies, such as artificial intelligence, blockchain and cloud computing, it helps to realize the two types of innovations. The application of digital technology to the front-end supply and demand interaction process generates and retains a large amount of evidence/information of services, extracts the customer demand information vaguely and converts the information into customer knowledge, which can help form a first-mover innovation advantage characterized by data expression. For this reason, this paper focuses on how to realize the back-feeding of service innovation to product innovation under the good circumstances created by digitalization.#br#First of all, this paper sorts out domestic and foreign literature based on innovation theory, knowledge-based theory and value creation theory,and constructs a service innovation feeding back product innovation mechanism in the digital environment. Secondly, in order to verify the effectiveness of the service innovation and product innovation mechanism of manufacturing enterprises in the digital environment, this paper uses the case study method to take the significantly digitalized and service-oriented Xiaomi Technology as the research object, and analyzes the evolutionary process of its product innovation and service innovation in the product-dominant logic stage and service-dominant logic stage. Finally, this paper follows the research paradigm of "value discovery—value creation—value realization", and deeply analyzes the value creation process of Xiaomi Technology from the perspective of knowledge transformation. With the greatest advantages provided by the digital environment, Xiaomi Technology collects, transmits, stores and analyzes customers' demand data and provides a platform that supports the realization of supply and demand interaction, so as to realize the extraction and transformation of customer demand knowledge-supply and demand interaction knowledge-experiential materialized knowledge. Knowledge enables service innovation to feed back incremental or subversive product innovations, confirming and refining the implementation process of the feed-back mechanism.#br#The results of the case analysis show that the product technology of manufacturing enterprises is the cornerstone of service innovation, the realization of service innovation for greater value creation requires the support of higher product technology and the service innovation relying on advanced product technology can help to achieve greater value added; the digital environment provides manufacturing enterprises easy access to data,so that enterprises are sensitive to supply and demand, which further enhances the synergy of the two types of innovation; the mechanism by which the realization of service innovation feeds back product innovation in the digital environment is the result of the internalization of manufacturing enterprises external knowledge. The acquisition of customer knowledge can update the knowledge base of the manufacturing enterprise instantly, promoting the enterprise's incremental and subversive product innovation. This paper uses the single-case study method to refine the mechanism of service innovation feeding back product innovation in the digital environment, and it corresponds with the objective reality that manufacturing enterprises could improve product innovation through service-based empowerment. The research conclusions open up the "black box" of service innovation enabling product innovation of manufacturing enterprises in the digital environment, help manufacturing enterprises to reconstruct innovation advantages, enhance industrial resilience and provide a theoretical reference for the two types of innovation collaboration of manufacturing enterprises under the trend of digitalization and service integration.#br#
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Received: 13 December 2021
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