Service oriented manufacturing is a new industrial form that integrates manufacturing and service development in the process of industrialization. In the era of digital economy, developing service-oriented manufacturing is an important way to strengthen the core competitiveness of the manufacturing industry, an important measure to expand domestic demand strategy, and an inevitable requirement to reshape the manufacturing value chain, enhance the resilience of the industrial chain, and promote the transformation of the manufacturing industry from large to strong. The article elaborates on the driving force for enterprises to carry out service-oriented manufacturing, which comes from fierce market competition, customer heterogeneity, and customer demand for complete solutions; Analyzed the mechanism and path of service-oriented manufacturing in the digital economy era, pointed out that digital empowers the transformation of the manufacturing industry, and promotes the global value chain climb of China's manufacturing industry; The article points out that changing from B2C to C2B is a fundamental disruption to the operational logic of the manufacturing industry; Analyzed the new characteristics and trends of service-oriented manufacturing such as personalized customization and product lifecycle management, and elaborated that lifecycle management is the high-end of the manufacturing value chain in the digital economy era. Chinese manufacturing enterprises should accelerate their transformation and strive to climb towards the high-end of the manufacturing value chain; Introduced the practices of companies such as Rolls Royce, Siemens, General Electric, and Sany Group in product lifecycle management. It is pointed out that adding high-quality, efficient, and differentiated services to industrial products is of great significance for enterprises to achieve differentiated competition and climb the global value chain of China's manufacturing industry.