Data-driven service innovation strategy for Scania

Abstract

Scania is one of the world-leading manufacturers of trucks and buses for heavy transport, combined with an extensive product-related service offering. This thesis proposes a data-driven service innovation strategy to leverage the potential of data and data intelligence for Scania's future business in the truck segment. The freight transport industry is significantly disrupted by trends such as digitalization, automation, connectivity and electrification. These trends will restructure the value network of the freight transport industry by creating new ways of doing business. Enabled by connectivity and data intelligence, vehicle data can be aggregated and processed to provide data insights that benefit the logistics chain. It unlocks new opportunities for Scania to deliver new digital services driven by data, extending beyond their traditional business model. Therefore, to fully exploit the possibilities of the value pools created by data, the thesis aims to create an innovation strategy to define Scania's new market positions and customers and create a coordinated roadmap for Scania's future data-driven services.This strategy has been developed by analyzing the internal environment, the value network of the freight transport industry, the logistics chain, market trends and technologies. Insights from research have been synthesized to envision the future scenarios of the value network and define Scania's strategic direction. In the short term, Scania delivers digital logistics services to shippers and carriers, enabling them to achieve efficient and sustainable transport operations collaboratively by data sharing. In the long term, Scania aims to offer Logistics as a service with autonomous vehicles directly to shippers by partnering with a digital logistics broker. A future vision has been created for Scania's service development by 2030: "Scania as a sustainable transport ecosystem enabler, providing customers collaborative and optimized logistics solutions powered by open innovation to drive their business forward." To reach the future vision, four main service systems were designed incrementally and related to other technologies:1. Connecting & Sharing: Enable visible and controllable transport operation for both carriers and shippers through seamless data orchestration and sharing.2. Optimizing transport operations: Delivering sustainable and efficient logistics and transport management services to customers via data-driven decision making and integration of digital logistics brokerage platforms.3. EV transition Acceleration: Accelerating the transition to electrified vehicles by providing customers effortless transport experience with smart routing and power charging services.4. Logistics as a Service with autonomous vehicles: Transforming towards the transport ecosystem enabler by providing Logistics as a Service with autonomous vehicles.The strategy is presented in the format of a roadmap with all the elements such as trends, user values, service systems, technologies and business. By following this path and delivering these data-driven services to the market, Scania can create multi-dimensional business models and shift from a truck OEM (original equipment manufacturer) to a service provider with production.