From Forestry Machines to Sociotechnical Hybrids: Investigating the Use of Digitally Enabled Forestry Machines

Abstract

Part 6: Section 5: The Future of Industrial-Institutional Practices and Outcomes through Information TechnologyInternational audienceMost forestry machines being produced today include a personal com puter that monitors and controls the harvester head, and an information system that stores data on every action the driver or the machine performs. Information and communication technologies (ICTs) thus provide an opportunity to improve effi ciency and competitiveness and possibly also opens up new ways of working for actors in the forestry industry. The purpose of this study is to investigate how ICT can enable the transformation from selling products to selling services in the forestry industry. We investigate such transformation through conducting a case study including a number of actors from the forestry industry in northern Sweden. First, we investigate the barriers for establishing an open innovation system in forestry. Then we describe how the use of ICTs can enable the establishment of such a system. The case study shows that the forestry industry as a whole is dominated by the salient traditional value chain where the raw materials are refined to paper products and that many of the actors are committed to a closed innovation paradigm. We argue that the ICT component in forestry machines constitutes a latent potential that can be fully captured in the context of an open innovation system

Managing unbounded digital transformation: exploring the role of tensions in a digital transformation initiative in the forestry industry

“…First, following technological spillovers from other domains and industries (Müller et al. , 2019), the forestry industry has undergone rapid digitalization in recent years (Nylén and Holmström, 2011), which has generated both challenges and opportunities in the sector (Holmström, 2020). Second, Sweden has very high forest cover (KSLA, 2009), a long tradition of forest exploitation and management, and for more than a century forest resources have played major roles in Sweden's industrial development (Siiskonen, 2013; Simonsson et al.…”

“…, 2021), the economy (Scholz et al. , 2018) and societal contexts as a whole (Nylén and Holmström, 2011; Ciriello et al. , 2018).…”

“…In recent years, various scholars have shown that pervasive digitalization has fundamentally transformed business logic (Hinings et al, 2018) and ecosystems (Riasanow et al, 2021), organizational dynamics (e.g. Gregory et al, 2015), social structures (Yoo et al, 2010a;Bonina et al, 2021), the economy (Scholz et al, 2018) and societal contexts as a whole (Nyl en and Holmstr€ om, 2011;Ciriello et al, 2018). Digital technologies have democratized the digital innovation process (Yoo et al, 2012), and dramatically changed the structure of products and services while generating new value-creation pathways (Nambisan et al, 2017(Nambisan et al, , 2019.…”

AI management beyond the hype: exploring the co-constitution of AI and organizational context

“…A case in point is the current transition of the forestry industry from the production and sale of wood products and heavy machinery such as harvesters to operators, towards provision of services associated with operating the machinery (Nylen and Holmström, 2011). These services include, inter alia, maintenance, operational control and measurements of harvested material (and material that could potentially be harvested), and scheduling for both harvesting and regenerating stands.…”

The Interactions between Information and Communication Technologies and Innovation in Services

“…Scholars observe this mechanism both when considering ICT only as a product (Chen, Watanabe, & Griffy-Brown, 2007;Chen & Watanabe, 2006) or as special capital input (Castellacci, 2010), and when recognizing also their role as special capital input (Ayres & Williams, 2004;Bygstad & Aanby, 2010;Bygstad, 2010;Kanstrup, Bjerge, & Kristensen, 2010;S. Lee, Kim, & Park, 2009;S.-G. Lee, Trimi, Byun, & Kang, 2011;Lyytinen & Rose, 2003;Nylén & Holmström, 2011;Potts & Mandeville, 2007;Sharif, 2010).…”