Conference Agenda

The increasing diffusion of Smart Connected Products (SCPs) is transforming how firms create, capture, and leverage data throughout product lifecycles. While SCPs have been extensively studied in the context of product innovation, servitization, and customer value creation, their implications for supply chain management (SCM) remain insufficiently understood. Existing SCM research widely focuses on improving information visibility through transactional data, such as point-of-sale information, to mitigate inefficiencies such as the bullwhip effect. SCPs introduce a new source of information by generating real-time usage and performance data during the post-purchase phase, potentially reshaping supply chain structures, information flows, and planning processes. Yet little is known about how organizations currently exploit this potential and how SCPs may transform supply chains in the future.

This study investigates the impact of SCPs on SCM through an exploratory multiple-case study. Four case studies were conducted in industries characterized by long product lifecycles and growing digital connectivity, including home appliances, building automation, and elevator systems. Data were collected through interviews with managers responsible for supply chain, service, and digitalization activities. Interviews were analyzed to identify current practices, challenges, and opportunities associated with the use of SCP-generated data in supply chain processes.

The findings reveal a substantial gap between the technological potential of SCPs and their current utilization in SCM. Although all companies recognize the value of SCP-generated data, none fully integrate these data streams into core demand planning processes. A major barrier is the activation gap between product purchase and customer activation of connected functionalities, which limits the availability and reliability of usage data for forecasting purposes. Consequently, traditional demand signals continue to dominate production and inventory planning. However, SCPs are already creating value in post-transaction activities, particularly predictive maintenance, fault detection, and spare-parts forecasting. Companies report improved visibility into component usage, more accurate service planning, and opportunities to reduce stockouts and excess inventory in after-sales operations. These findings are especially relevant given the persistence of bullwhip-effect dynamics in spare-parts supply chains.

Building on the empirical insights, the research illustrates how SCPs may reshape supply chains. SCPs enable the emergence of servitized supply chains, create new information flows from product usage back to manufacturers, and potentially alter power relationships among supply chain actors. Beyond supporting maintenance activities, SCP-generated data may enable forecasting of complementary products and services, thereby connecting previously independent supply chains. Such developments suggest a transition from transaction-driven supply chains toward data-driven supply chain ecosystems.

This study contributes to the growing literature on digital supply chains by highlighting SCPs as a novel source of supply chain management enhancement and by identifying the organizational and technological barriers that currently constrain their impact. The findings provide a foundation for future research on SCP-enabled forecasting, supply chain reconfiguration, and even data-centric business models, while offering managers practical insights into how SCP may enhance supply chain performance and resilience.