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Although data-driven services play a major role in future business models of manufacturing companies, the large number of newly invented data-driven services that fail shortly after launching implies that companies struggle with their market launch. This paper deduces success factors and examines these empirical factors with structural equation modelling.
Smart Service Engineering
(2018)
Global manufacturing companies currently face an increasingly turbulent economic environment known as the "VUCA-world" (volatility, uncertainty, complexity and ambiguity). After the transformation of many companies from product to solution providers in the last 15-20 years, the focus of many corporate change processes is on digital solutions such as data-driven services. In this context, service development is of particular relevance for industrial services. Companies develop digital strategies and try to maximize the added value for their customers, by offering, for example, smart services. They are based on smart products, which are connected to the internet, interact with their environment and gather environmental data. The collected data sets are combined with other easily accessible information and processed into so-called smart data. Based on this smart data, smart services are designed. They can be defined as individualized combinations of physical and digital services. They generate added value for providers and customers and offer context-related and demand-oriented value via digital platforms. The contribution of this paper to this research field of data-driven services is a service engineering approach for industrial smart services.
Since the 1990s, service engineering has established itself as a systematic process for the development of services. Currently existing service engineering processes are based on engineering science and business model innovation toolsets. However, the increasing digital components in service engineering reveal deficits in the direct application of the classical methods of service engineering to smart services. We suggest that the successful development and implementation of smart services requires a more agile service engineering process. Studies show that companies who develop services successfully (top-performer) act up to six times faster than those with less success (follower). They involve customers in the first running prototype of their digital service to increase customer centricity and focus their development activities on core functionalities of the service to reduce its development time and test it early with customers.
To strengthen the successful development pf data-driven services in future industrial service development projects, this paper contributes to a more agile service engineering approach. Smart service engineering combines elements of linear phase models and implements agile and customer-centric findings to decrease the overall development time by focussing on core functionalities that offer a high value for customers. The paper focuses on the service development steps and presents strategic scenarios for smart service engineering. It presents the interaction and interconnection of different elements of smart services based on a case study research. In addition to this, it illustrates the implications of a customer-centric engineering approach and possible strategic decisions based on the customer feedback. The paper focuses on the successful application of the smart service engineering approach and its impact in a German medium-size company in the textile machine industry.
Data-driven services play an important role in
innovative business models of successful manufacturing
companies: They hold great potential for the creation of unique
selling points and improve the differentiation of manufacturing
companies in highly competitive markets. However, the large
number of newly invented digital services that fail shortly after
launching implies that companies struggle with the invention and
implementation of data-driven service solutions, which ends in a
waste of resources. The following paper introduces guideline
principles for successful innovation processes for data-driven
services. The principles were identified during in-depth case
studies with manufacturing companies. They contribute to a
necessary paradigm change for manufacturing companies in
terms of data-driven services for machines. The six identified
principles emphasize new aspects regarding the new dimension of
data-driven solutions and improve the life cycle management of
products and services. They demonstrate how the rules of agile
development can lead to successful and more efficient service
innovations in the industrial sector.
Production in high-wage countries can be made more efficient, cost-effective, and flexible by solving the conflict between planning and value orientation. A promising approach is to focus on planning and decision-making processes (production planning and control, design of production processes and machinery, etc.) and to aim to maximize overall planning efficiency. Planning efficiency can be expressed as the ratio between the benefit generated by preparing detailed process instructions to produce the parts or components and the corresponding planning efforts. Industrial companies wanting to gain a competitive advantage in dynamic global markets have to identify a set of non-dominated solutions with the most favorable effort–benefit ratio rather than a single solution. The optimum between detailed planning and the immediate implementation of value-adding activities (process steps) in the process chain needs to be found dynamically for each product.
Erfolgreiche Serviceinnovation im Zeitalter industrieller, datenbasierter Dienstleistungen unterscheidet sich deutlich von bisherigen Ansätzen der klassischen Dienstleistungsentwicklung. Diese Erkenntnis konnte aus einem breit angelegten Benchmarking in der deutschen Industrie gewonnen werden. Die Benchmarking-Studie identifizierte besonders erfolgreiche Unternehmen, deren Methoden und Ansätze zur Gestaltung innovativer Dienstleistungen in Form von Fallstudien im Detail untersucht wurden. Als Kernergebnis ergeben sich sechs Prinzipien, die erfolgreiche Serviceinnovation für datenbasierte Dienstleistungen auszeichnen.
Process Characteristics and Process Performance Indicators for Analysis of Process Standardization
(2018)
Industrial service companies deliver technically complex services (inspection, maintenance, repair, improvement, installation) for an enormous variety of technical assets in the chemical, steel, food and pharmaceutical industry. This variety of assets leads to a corresponding variety of service processes. To ensure competitiveness, the management of industrial service companies aims to increase the service process efficiency, especially through service process standardization. However, decision-makers struggle to make knowledge-based decisions on service process standardization because ex-ante the cost-benefit ratios of process standardization are unknown. The missing understanding of cost-benefit ratios of process standardization is caused by a missing understanding, which interdependencies exist between process characteristics and process performance indicators. Thus, the objective of this paper is to determine suitable characteristics and performance indicators to measure the way service provision processes are executed in the industrial service sector. The results represent the basis for executing an empirical questionnaire study focusing on the execution of service provision processes and identifying the cause-effect relations of process standardization.
Many industrial companies face their digital transformation. In addition to an existing portfolio of products and services, new digital services are being developed to offer a portfolio of smart product service systems (Smart PSS). While the development of new digital services is rarely a problem for the companies, the organization of sales and distribution of Smart PSS in particular is a key issue. The sales of Smart PSS differs considerably from the sales of only products or services and must therefore be designed differently in order to meet customer requirements and successfully commercialize the developed Smart PSS. This paper therefore describes how the sales organization of Smart PSS should be designed successfully in various forms. The network thinking methodology is used in combination with a case study research approach to describe the connection between the offered portfolio, the customer requirements and the different elements of a sales organization. Furthermore, four different types of a sales organization for Smart PSS are described. This paper gives a recommendation for companies on a design of their sales organizations on which practical implications may be developed.
Progress in the development of small electric and hybrid aircraft promises business opportunities for thin-haul air mobility services. In order to develop demand-oriented flight plan scenarios for Germany, this paper presents a model to estimate the marked volume of thin-haul air mobility. To quantify the potential demand, our model includes the steps of trip generation, trip distribution and mode choice. Trip generation and distribution takes place between 412 geographic subdivisions of Germany and is based on calibrated traffic forecast data for the year 2030. For the first time the five relevant modes of transport, namely: car, intercity train, intercity bus, commercial aircraft and thin-haul air mobility services, have been included in one model. The step of choosing the transport mode is implemented via a generalized cost approach, taking into account travel costs and travel time. Additionally, route modeling of all transport modes is enhanced by real market data using large-scale data readouts of web interfaces. As primary result we predict a market share of 6 % or 81 million trips per year for thin-haul air mobility services. The demand concentrates on a small number of airports: 30 % of the trips are estimated to be between only 20 airports. Hubs and main routes are identified to offer the potential for scheduled air services.
Method for a qualitative cost benefit evaluation of process standardisation for industrial services
(2018)
Industrial service providers deliver complex technical services (e.g. inspection, maintenance, repair, improvement, installation and turnarounds) for a wide range of technical assets in process industries such as the chemical industry. Due to the versatility of assets and industries, there is also a variety of the corresponding service offerings. The demand for a high service quality and the general cost pressure leads to the need of a more efficient and standardized design of the service processes. However, cost-benefit ratio related decisions regarding the questions where and how service processes should be standardized entail great challenges for small and medium-sized enterprises. This is because there is often a lack of understanding of cost savings through process standardization, which is caused by a lack of understanding of the correlations between process characteristics and process target values. Because of this, the goal of this paper is to develop a method for a quantitative evaluation of the cost-benefit ratio of process standardization measures. Within this method, the relevant service performance processes are selected first. Next, the process data will be recorded with the help of questionnaires. These are then analyzed by looking for correlations between the process characteristics and the process target values. Afterwards standardization measures are derived on the basis of these findings in order to improve deficit characteristics and thus target values. Finally, the method´s practical applicability is tested and validated by applying it to an industrial service in the chemical industry.
Traditional manufacturing companies increasingly launch data-driven services (DDS) to enhance their digital service portfolio. Nonetheless, data-driven services fail more often than traditional industrial services or products within the first year on the market. In terms of market launch, their digital characteristics differ from traditional industrial services and thus need specific structures and actions, which companies currently lack. Therefore, a process guideline for a six-month market launch phase of DDS is developed. The guideline relies on analogies from product, service and software launches based on the latest literature from service marketing and successful practices from various industries. Finally, the guideline is evaluated within five industrial case studies. Thus, the guideline provides scientific research insights regarding the market launch process of DDS and adds to the research of service marketing. It provides practical guidance for manufacturing companies by serving as a reference process for the market launch and offering a collection of successful practices within this area. [https://link.springer.com/chapter/10.1007/978-3-030-00713-3_14]