The postindustrial market increasingly demands service infused products to add more value to the customer in order to be competitive. Much research regarding digitalized services indicates that companies have to be innovative in order to compete on the market. However, companies within different industries face different challenges with digital service development. This study has been conducted because there are little known about the opportunities and the challenges different industries faces with a globalized market. Our research question is what the challenges are and what opportunities does strategic digital service development entails for companies. To be able to understand digitalized services and to answer our research question about these challenges and opportunities we used a qualitative method, gathered data through interviews and literature studies. This study contributes a faceted understanding of digital service development within the electricity industry and an approach to strategic efforts at digital service development and what challenges and opportunities it entails.