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The aim of this study is to introduce a framework, which describes a customer-oriented approach for developing data-driven services by the Internet of Things (IoT), also known as "Smart Services" in manufacturing business. A literature review presents a background for IoT, data and digitalization of services. Also the role of simulation technologies for Smart Service development process is introduced. For the empirical study, a case company was analyzed utilizing Customer Needs Assessment tools, to determine the new service requirements. The scientific contribution demonstrates the relationship between Product Lifecycle Management and IoT, and how it can leverage Smart Services. The practical contribution was based on the empirical study results by delivering smart service propositions in a tractor company, such as operation and remote failure tracking, showing customer demands for machine productivity, time saving and sustainable resource optimization.

DEVELOPING SMART SERVICES BY INTERNET OF THINGS IN MANUFACTURING BUSINESS