The trend for 'servitization' reflects manufacturers' increasing efforts to offer services along with their physical goods. Organizations establish smart service systems with digitally networked products-e.g., cars, industrial machinery, or home appliances-as boundary objects that connect the organization with customers, offering them digital channels for communication and interaction. While anecdotal evidence indicates that many manufacturers fail to establish profitable services, few studies have traced the underlying causes for failure. We perform a revelatory case study at a global white-goods manufacturer to identify pitfalls and derive guidelines for establishing smart service systems. Based on interpreting qualitative data from interviews and additional organizational resources, we analyze how and why the manufacturer's efforts to establish pay-per-use services based on a smart laundry machine failed. While we provide insights that can guide management in establishing smart service systems, our findings also motivate updating concepts and methods currently discussed in service science.

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