Purpose The present study sets out to understand how a manufacturing company in the maritime industry utilized creative design principles and developed service design routines to advance digital servitization (i.e. the transition to offering smart product-service-software systems-PSS) and realize subsequent positive growth outcomes. Design/methodology/approach We build upon a longitudinal single case of a marine solution provider. Using an action research approach, we collected data through in-depth interviews and informal conversations involving senior managers, project members and customer representatives over a three and a half-year period. In addition, secondary data such as documentary data, service design tools and visualization were utilized. Findings The inductive analysis highlights the underlining role of four service-design routines that drive creativity and an innovative approach to digital servitization transformation. More specifically, we identify (a) user insights through creative customer data acquisition, (b) smart PSS collaboration through co-creation across departments, (c) smart PSS ideation through creative forms of collaboration and (d) effective smart PSS delivery and commercialization through creative concept design as the drivers of the case company digital servitization transformation. Practical implications We encourage senior managers within large manufacturing companies to promote the development of service design routines as these promote the transformation process from being a product-centric to service-centric firm. The four service design routines are built on a set of service design sub-activities providing concrete actions that can be applied by senior managers to successfully develop and deliver smart PSS offerings and achieve growth outcomes. Originality/value This study contributes by integrating digital servitization and service design literatures. We illustrate how manufacturing firms can drive a transition to digital servitization through service design activities and routines development for smart PSS strategy implementation.