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Reliability-centered maintenance for production assets is a well-established concept for the most effective and efficient disposition of maintenance resources. Unfortunately, the approach takes a lot of effort and relies heavily on the knowledge of individuals. Reliability data in Computerized Maintenance Management System (CMMS) is scarce and almost never used well. An automated risk assessment system would have the potential to contribute to the dissemination and effective use of risk information and analysis. The individuality of production setting, however, prevents current systems from being practically relevant for most industries. The presented approach combines ontologies to store and link knowledge, an information logistics model displaying the various information streams, and the Internet of production to take the different user systems and infrastructure layers into account. The provided model of a reference digital shadow for risk information and a detailed information logistics model will help software companies to improve reliability software, standardize and enable assets owners to establish a customized digital shadow for their production networks. [https://link.springer.com/chapter/10.1007/978-3-030-57993-7_2]
Smart Services – die effektive Trias aus Produkt, Service und kundenorientiertem Leistungsversprechen – bieten Chancen für produktionsorientierte Unternehmen eine Differenzierung und neue Marktchancen zu erreichen. Der bislang geringe Einsatz von Smart Services zeigt, dass im produzierenden Gewerbe vielschichtige Herausforderungen bestehen, die Bausteine Produkt, Service und Leistungsversprechen zu nachhaltigen und wettbewerbsfähigen Smart Services zu kombinieren, erfolgreiche Geschäftsmodelle abzuleiten und Organisationen auf das Smart-Service-Geschäft anzupassen. Nur die großen Player schaffen dies eigenständig, der Innovationsstandort Deutschland lebt aber auch von seinen Hidden Champions: Kleinunternehmen und Mittelständlern.
Manufacturing companies (MFRs) are increasingly extending their
portfolios with services and data-driven services (DDS) to differentiate themselves from competitors, tap new revenue potential, and gain competitive advantages through digitization and the subsequently generated data. Nonetheless, DDS fail more often than traditional industrial services and products within the first year on the market. Particularly, companies are failing to sell DDS successfully and efficiently with their existing (multi-level) distribution structures. Surprisingly, there is a lack of scientific research addressing this issue. Since there are currently no holistic models for an end-to-end description of distribution-tasks for DDS in the manufacturing industry, this paper contributes to a task-oriented reference model for mapping interactions in the multi-level distribution management. Therefore, a case study research approach is used, to identify and describe the interactions in the multi-level distribution management of DDS, as well as to develop a regulatory framework for MFRs and their multi-level distribution management. This research uses the established theoretical framework of Service-Dominant-Logic to address the co-creation in multi-level distribution management of DDS. As a result, this paper identifies different interaction variants as well as the need for a new management function with 4 main and 14 basic tasks.
Competitive differentiation in the manufacturing sector is no longer based on product and service innovations alone but on the ability to monetize the usage phase of products and services. To this end, manufacturers are increasingly looking at so-called subscription business models as a way of supplementing the traditional sale of products and services. Since supplier success in the subscription business is directly dependent on customer success, the setup and expansion of a so-called Customer Success Management (CSM) is required. While CSM has already been established in the software industry for several years, companies in the manufacturing sector are often still in the conceptual phase of a CSM, parallel to the setup and expansion of their subscription business. Therefore, this paper aims to support the set-up of a CSM by providing a reference data model, based on case study research, that can be used to support the organizational or daily CSM tasks and to serve as a blueprint for conceptualizing CSM-specific IT systems.
Manufacturing companies are constantly increasing their efforts in the subscription business, also known as product-as-a-service business, offering usage and outcome based solutions (value-in-use) instead of transactional services and products (value-in-exchange). Customers are becoming contractual subscribers of the solution in return for recurring, performance-related payments. To address arising, inevitable challenges like (1) reducing customer churn, (2) increasing usage intensity and outcome quality, (3) ensuring the adoption of product and software releases as well as (4) fostering customer loyalty, leading manufacturing companies are setting up a new organizational, customer-facing unit, called Customer Success Management (CSM). This unit has its origins in the software-as-a-service business, operating next to established entities like sales, key account management and customer service. Since there are currently no holistic models for an end-to-end description of CSM-tasks in the manufacturing industry, this paper contributes to a taskoriented reference model, using a grounded theory approach, examining both manufacturing and software companies. Containing a reference framework with 8 main tasks, 17 basic tasks and 76 elementary tasks, the reference model supports manufacturing companies in adapting and customizing a company-specific CSM concept.
This paper contributes to an assessment framework for valuing data as an asset. Particularly industrial manufacturers developing and delivering Smart Product Service Systems (Smart PSS) are comprehensively depended on the business value derived by processing data. However, there is a lack in a framework for capturing and comparing the Smart PSS data value with the purpose of increasing the accountability of data initiatives. Therefore a qualitative data value assessment approach was developed and specified on Smart PSS, based on an industrial case study research. [https://link.springer.com/chapter/10.1007/978-3-030-57997-5_39]
Pricing for Smart-Product-Service-Systems in Subscription Business Models for Production Industries
(2021)
In the production industry, subscription business models have the potential to create long-term relationships where a supplier provides a continuous value-oriented service to a customer based on digitalisation. Monetising this increase in value through pricing represents a central challenge for suppliers in subscription business. Unlike the current dominant transactional business, the focus of pricing is on the value-in-use of the customer (e.g. on the increase in output for the customer). In this regard, there is so far no pricing approach for practice that allows the linking of the performance data of the customer with the periodically charged price. However, in subscription businesses, such an approach is required to create win-win situations for the customer and supplier through continuous performance improvement. Therefore, this paper develops a novel process model for pricing of smart-product-service-systems in subscription business for production industries. This process can serve as basis for suppliers of subscriptions in the production industry to align pricing with the created value-in-use. In the long term, this allows companies to systematically develop their pricing to monetise the potential of digitalisation.
More and more manufacturing companies are starting to transform the transaction-based business model into a customer value-based subscription business to monetize the potential of digitization in times of saturated markets. However, historically evolved, linear acquisition processes, focusing the transactionoriented product sales, prevent this development substantially. Elemental features of the subscription business such as recurring payments, short-term release cycles, data-driven learning, and a focus on customer success are not considered in this approach. Since existing transactional-driven acquisition approaches are not successfully applicable to the subscription business, a systematic approach to an acquisition cycle of the subscription business in the manufacturing industry is presented, aiming at a long-term participative business. Applying a grounded theory approach, a task-oriented model for themanufacturing industry was developed.
The model consisting of five main tasks and 14 basis tasks serves as best practice to support manufacturing companies in adapting or redesigning acquisition activities for their subscription business models.
Through data-based insights into customer behavior, products and service offers can be improved. For manufacturing companies, smart product-service systems (SPSS) offer the possibility to collect customer data during the usage phase of the product. As the focus on customer analytics is too often on sales and marketing, SPSS are overlooked as a source of customer data. However, manufacturing companies need to integrate data from all interactions with their customers along the complete customer journey to achieve a holistic data-based view of the customers. To identify these interactions and the customer data derived from them, the concept of a digital shadow will be applied to the customer journey. The projected results for the presented work in progress are a reference process model for the customer journey in manufacturing and a data model of the customer data created along this process.
Pricing is one of the most important, but underestimated tools, to enhance a company's profitability. Especially in the furniture sector, customers place a special interest in cost-efficient products and easy processes. Individualised and sustainable furniture can help to create a unique selling point and deliver real value to the customers. Therefore, a platform to create designs together is needed and can involve several stakeholders in the design and production phase. However, in order to include several stakeholders, the pricing and revenue model need to reflect individual needs and be a benefit to all. In this paper, the initial situation and potential revenue model options will be presented. Furthermore, multiple scenarios for practical use will be discovered and an overview given.
For a considerable time, European companies in the capital goods industry experience stagnating growth in material goods markets. Moreover, increasing international competition forces European companies to improve their market position. In order to stay successful, an increasing number of companies adapt their businesses from manufacturing to service provider. Unfortunately, the number of companies who manage to turn their portfolio change into a competitive advantage is comparatively low. Therefore, this paper focuses on the development of a framework for the positioning as industrial services provider. Besides, it provides support for management in shaping the changes that occur with the transformation.
One of the major tasks of operations managers is to boost uptime while simultaneously keeping budget. To meet this challenge they discover reliability-based management as strategic factor to improve performance. But which parameters are the key to “reliability excellence” and drive a company’s performance? What are the relevant levers to pull in reliability-based management?
To answer these questions McKinsey & Company partnered with Aachen University to launch a global reliability survey in process industries. Objective of the initiative is to provide a statistically proven picture of key factors that drive maintenance and reliability excellence. Furthermore benchmarks and best practices concerning overall operational performance will be identified. The study is based on a questionnaire-based approach which addresses all relevant departments within a company, complemented by best practice analyses.
This paper provides results of the survey. The results demonstrate that reliability pays off. Some unproven beliefs have been confirmed (e.g. a good reliability performance results in a low spare part inventory) but also surprises like a correlation between safety and performance were identified. The analysis also shows that structural differences like company size or geography do not influence reliability performance.
Industrial companies are moving to a solution driven business by offering smart product service systems (Smart PSS). In addition to an existing portfolio of physical goods and technical services, companies develop new digital services and combine all three offerings to an integrated digital solution business. While the development of new digital services does not pose any major challenges for companies, the successful sale of Smart PSS does. Due to changing customer requirements and value propositions of a solution, the sale of Smart PSS requires new design principles for the sales organization compared to the simple sale of physical goods or technical services. While there are already many publications on the topic of industrial sales in research, the description of Smart PSS in particular represents a new field of research. The combination of both topics is therefore not only interesting from a theoretical point of view, but also has a particularly high practical relevance and impact for industrial companies. This paper therefore describes on the one hand, which characteristics can be used to derive customer requirements for Smart PSS and on the other hand, which effects these requirements have on the sales organization of the industrial company. The design principles give recommendations for the organizational structure, the resources, the information systems and the culture of the company depending on the targeted customer type. In order to identify and describe both the customer requirements and the design principles, two morphological boxes were developed based on a literature research and semi-structured interviews with industrial companies. The paper gives an outlook on the different characteristics of the design recommendations and describes first best practices for the successful transformation of the sales organization.
Industry 4.0 and Smart Maintenance represent a great opportunity to make manufacturing and maintenance more effective, safer, and reliable. However, they also represent massive change and corresponding challenges for industrial companies, as many different options and starting points have to be weighed and the individual right paths for achieving Smart Maintenance need to be identified. In our paper, we describe our approach to evaluating maintenance organizations in a case study for the oil and gas industry, developing a shared vision for the future, and deriving economical and effective measures. We will demonstrate our approach, by showcasing a specific example from the oil and gas industry, where a need for action on HSE-relevant critical flanges in the company's piping systems was identified. We describe the steps, that were taken to identify the need for action, the specifications of the project and the criticality analysis of the piping system. This resulted in the derivation of a digitalization measure for critical flanges, which was first commercially analyzed and then the flanges were equipped with a continuous monitoring solution. Finally, a conclusion is drawn on the performed procedure and the achieved improvements.
In most European countries a structural change from a production dominated towards a service oriented society is progressing. Companies increasingly consider services as means to gain competitive advantages in a global competition. In order to provide holistic, value-adding solutions while simultaneously guaranteeing high quality standards, production companies increasingly join forces with external services‘ providers. Models, methods and tools for service development are rare and in most cases immature. In the context of virtual services‘ development this leads to a dual set of simultaneous chal-lenges: an alignment of systematic services‘ and product development and the coordination of distributed R&D partners. The objective is to provide a meta-process that identifies all steps and decision points necessary to successfully develop innovative services. It is a result of combined service development and virtual enterprises‘/ networks‘ research.
Increasing productivity in product-service systems is a vital success factor for industrialized economies and individual businesses. The service production is typically described as an integrated value chain setting, in which the provider and the customer are co-creators.
This paper embraces a characteristic curve model in order to illustrate the influence of the customer on the productivity of service production. The characteristic curves are derived from a system dynamics simulation model for a synchronized takt-based service production. In conclusion this research leads to designs recommendations for service production systems in order to reduce lead times and increase adherence to delivery dates.
Aus dem privaten Alltag sind Soziale Technologien nicht mehr wegzudenken, doch zunehmend kommen diese auch innerhalb von Unternehmen zum Einsatz. Insbesondere Business-Communities können dabei helfen, Mitarbeiter zu vernetzen, und bieten speziell bei wissensintensiven Aufgaben erhebliche Potenziale. Da sowohl der systematische Aufbau als auch die Koordination einer Business-Community mit zahlreichen Aufgabenfeldern verbunden ist, werden oftmals schwerwiegende Fehler im Management dieser Communities gemacht, wodurch Nutzenpotenziale ungenutzt bleiben. Auch mangelt es in der Praxis an geeigneten Erkenntnissen über eine erfolgreiche Steuerung solcher Business-Communities.
Um die Erfolgswirkungen konkreter Koordinationsmechanismen zu untersuchen, führte das FIR an der RWTH Aachen gemeinsam mit der IntraWorlds GmbH eine Studie unter Community-Managern durch. Dabei hat sich herausgestellt, dass die Steuerungsinstrumente unterschiedlich und mit divergierendem Erfolg eingesetzt werden können.
Subscription business models provide an important component for monetizing the potential of Industrie 4.0. Subscription business is based on a long-term and participative business relationship between customer and provider. However, only digitalization offers the necessary framework conditions to realize the characteristic recurring and performance-based billing, and to ensure the necessary transparency about the usage phase of products as well as continuous performance improvements in the customer process. Against this background, companies must not only recognize the much-cited potential that lies in the total dedication to the success of individual subscription customers. Rather, the central obstacles must be addressed, examined, and subsequently overcome in a targeted manner in order to successfully establish subscription business models and place them on the market.
Monetizing Industry 4.0: Design Principles for Subscription Business in the Manufacturing Industry
(2019)
Subscription business models have a major role for monetizing products and services for manufacturing companies in the age of Industry 4.0. As the manufacturing industry has difficulties generating revenues through digitalization, the implementation of innovative business models are essential to remain successful. Physical assets are often capital-intensive and require a more complex manufacturing process than subscription business models. Moreover, subscription models can focus on the individual customer benefit and a consistent service transformation, constituting a unique selling proposition and a competitive advantage. Hence, the following paper provides a management model that enables manufacturing companies to successfully realize the transformation towards a subscription business model. The management model presents four major fields of action, each matched with one design principle that must be considered when dealing with subscription models in the manufacturing industry. These principles were determined by an in-depth case study analysis among various manufacturing companies. Opportunities, challenges and recommendations for action were then systematically derived and integrated into the management model.