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Value Creation for Cyber-Physical Systems and Services (CPSS) combine the worlds of bits and atoms, and promise to transform existing logics of people, organizations, and entire industries. Examples range from wearables in the areas of health, work or entertainment, artificial intelligence based Internet-of-Things (i.e, IoT), or new forms of open distributed information technology architectures to co-create private and public value. Use of these technologies has substantial impacts on organizational practices and human behavior.

Likewise, there are substantial opportunities for CPSS driven innovations in business-to-business settings. These opportunities exist particularly in manufacturing in which innovation activities increase the digitization of products and production processes. We see that the global awareness of the power of the manufacturing industry will be linked to horizontal CPSS that enable value creation in the networked business environment. The cyber-aspects of such systems are ICT infrastructure, computer hardware, software, and different kinds of sensors and actors. These components turn CPSS into platforms for designing and operating service. The data on products and processes gained through networked CPSS and the ability to act on this data through control systems and actors enables novel ways of creating CPSS in industrial contexts.

Please also see our research note for more details: Tuunanen, Tuure; Kazan, Erol; Salo, Markus; Leskelä, Riika-Leena; and Gupta, Shivam (2019) "From digitalization to cybernization: Delivering value with cybernized services," Scandinavian Journal of Information Systems: Vol. 31 : Iss. 2 , Article 3. Available at:

CPSS Research Teams

Digital Services Adoption and Diffusion Research Team
The Digital Services Adoption and Diffusion Research Team (DART) focuses on research on the adoption and diffusion of digital services. DART aims to increase the understanding of consumer behaviour and consumer experiences related to digital services, for example, in the contexts of digital commerce and digital well-being. Based on this understanding, DART aims to build effective digital business models.
Team Leader: Lauri Frank

Digital Service Design and Innovation Team
The Digital Service Design and Innovation (DSDI) team focuses on research on the innovation, design and development of digital services in the context of rapidly advancing technologies such as artificial intelligence, cyber-physical systems, the Internet of Things, and virtual and augmented reality. The team aims to increase understanding and develop innovative methods for designing user-centric services in today’s rapidly changing and digitalized service ecosystems to promote value co-creation and sustainable transitions. In addition to cutting-edge research, the team is actively involved in the development of education and maintains an active dialog with fellow researchers and practitioners.
Team Leader: Tuure Tuunanen

Digital Technology Management Research Team
The Digital Technology Management Research Team focuses on the strategic adoption, implementation, and impact of digital technologies in businesses and organizations. Their research explores how firms can leverage digital transformation, artificial intelligence, data analytics, and emerging technologies to drive innovation and enhance customer experience. With a particular interest in digital business strategies, customer analytics, AI-driven tools, data-driven decision-making, digital business transformation, and customer relationship management, the group investigates key challenges and opportunities in digital technology management. Their insights contribute to both academic knowledge and practical applications, helping organizations navigate the rapidly evolving digital landscape and stay competitive in the digital era.
Team Leader: Heikki Karjaluoto

Value-driven IT and Enterprise Architecture Enhancement Team
VITAE team enhances value creation through capabilities, technology and research from the fields: Enterprice Architecture, IT Service Management, Process Quality and Automation, Agile and DevOps, Data and Intelligence, and IT Governance. Our activities combine education, societal interaction and research.
Team Leader: Pentti Marttiin