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Remote services are services enabled by information and communication components and therefore do not require the physical presence of a service technician at the service object to provide a task. The impact of remote service on the capital goods industry has been increasingly significant over the recent yeas. Still many companies struggle with developing and implemenling successful business model, for remote service. This leads to a lot of unaccomplished benefits for the customer as well as for the companies themselves. A survey throughout companies in Ihe industrial machine and plant production sector was conducted in order to determine what successful companies do differently from those that cannot efficiently implement remote service business models.
The study presented in this chapter identifies key suceess factors of companies that effectively implemented remote services for their products. In order to identify the successful companies a scale for measuring remote service success was developed. Only by the use of this scale further findings regarding the success factors were possible. Key findings include the fact that successful companies actively market their remotle service to their customers. Generally they try to approach their remote service business from the operating company's perspective.
This paper presents a simulation approach for service production processes on the basis of which an optimal operating point for service systems can be identified. The approach specifically takes into account the characteristics of human behavior. The simulation is based on a system theory approach to the service delivery process. A specific use case of the simulation approach is presented in detail to illustrate how characteristic curves are deduced and an optimal operating point is obtained.
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.
Nowadays, providing purchasable goods is not enough for a company to survive on the global market. Because of competitive prices and a large range of products available, companies need to offer additional benefits to their customers in order to create a unique selling point. They add services to their product portfolio and offer clients the opportunity to acquire an additional service solution to go with it. The offered services need to fit to the customer's needs, resulting in a variety of available services, great complexity of the service range and decreasing transparency of the resource utilization. This paper addresses the problem by identifying variant-creating factors in product service systems, transferring them into an organizational framework and verifying their significance.
Operation and Maintenance (O&M) is a key value driver for offshore wind farms. Consequently, reducing O&M costs improves their profitability. This paper introduces different typologies of dispositioning maintenance tasks in offshore wind farms, in order to help design the strategies and organization of maintenance. Based on the special requirements of offshore wind farms regarding planning and controlling the O&M activities, a morphological analysis was developed. With this different disposition strategies for offshore wind farms could be generated. The consequences of choosing different characteristics are allegorized in an exemplary fashion. The work presented in the following is the foundation for designing a software-based dispositioning tool for usage in offshore wind farms, which will help to increase the effectiveness of the disposition in offshore wind farms by maximizing the number of accomplished tasks per day and minimizing the time technicians stay on the wind turbine and the ships.
Digitally connected industrial production promises faster and more efficient processes - in development and production, services, marketing & sales and for adapting entire business models. Agility and the ability to make changes in real time are strategic chracteristics of successful companies in Industrie 4.0. To acquire these features, it is necessary to create a continuously expanding data base. However, a company's organisational structure and culture also play an important part in determining whether this data's potential is leveraged effectively.
This acatech STUDY describes a new tool for helping manufacturing enterprises to forge their own individual path towards becoming a learning, agile company. The acatech Industrie 4.0 Maturity Index is a six-stage maturity model that analyses the capabilities in the area of resources, information systems, culture and organisational structure that are required by companies operating in a digitalised industrial environment. The attainment of each development stage promises concrete additional benefits for manufacturing companies. The model's practical application was validated in a medium-sized company.
The change from the traditional to the digital service provider is not easy. The digital maturity level of many industrial companies is still too low to successfully place these digital service innovations on the market. One problem of service development is the increasing involvement of information and communication technology in service development and implementation. The additional technology makes the innovation processes for services on the part of manufacturers increasingly complex by involving different internal and external stakeholders (e.g. IT partners, data protection officers or product development departments). In addition to this, data-driven services also require that manufacturers (e.g. data scientists) develop new competencies in order to use the customer data obtained to increase machine productivity and to offer new business models. Furthermore, industrial companies that want to successfully offer data-driven services must develop new market introduction strategies to create a high degree of acceptance and trust among their customers. This is necessary to get access to relevant data. These and other challenges caused the success rate of companies in regarding the development of new, industrial services to shrink.
To change this, this white paper presents six principles that help industrial enterprises to develop new successful data-driven services.
The additive manufacturing technique of "Selective Laser Melting" (SLM) provides the basis for a fundamental paradigm shift in industrial spare part manufacturing, affecting both technological and organizational company prac-tices. To harness the full potential of SLM-technology, considering agility and customizability, decentralized additive production networks need to be estab-lished. According to the principles just in time, just in place and just enough, a global online platform, which efficiently distributes construction orders to local manufacturing hubs could empower the market participants to utilize production capacities at optimal costs and minimal efforts. This work evaluates and selects key factors and creates scenarios for the development of platform-based networks for additive, SLM-based, spare part production. For this purpose, the selected key factors (e. g. material expenses, quality and process management and platform-based business models) are projected into the future, forming the three major scenarios "New distribution of roles in the SLM value chain", "SLM-technology for high wage countries" and "Individualization instead of mass production". These scenarios not only allow estimating the potential of an online network for additive spare part production, but also enable market participants to react pur-posively and agilely to unexpected market developments, and to foster the suc-cess of a platform-based additive spare part production.
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.
Industrial Smart Services - Types of Smart Service Business Models in the Digitalized Agriculture
(2018)
Due to lack of experience of companies with digital business models, agricultural machinery manufacturers and agricultural service companies are facing a positioning problem in their ecosystem. Smart services are getting more important for these companies and they have issues to define a matching business model for their newly developed smart services. The lack of a framework for smart service business models makes it even harder for companies to successfully develop new services.
This paper contributes to a better understanding of business models for smart services and establishes a common morphological framework to define different types of business models for smart services. Six types of business models of industrial smart services were identified during the research based, which was based on a literature review and interviews with leading experts in the field of smart services. The validation of the developed types and its practical application was carried out as part of the German research project Smart-Farming-World and its four developed use cases. This paper gives a detailed description of the application of the framework on the use case nPotato.
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.
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.
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]
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.
Industrial service is currently undergoing tremendous changes, largely driven by the development of new technologies, in particular the advancing digitalization. Never before have organizations had more comprehensive and insightful data assets - and never before have the opportunities to fully exploit this potential been better. However, most companies are unaware of how they can make use of this potential and which development steps are necessary to react to the current situation. To change this, a maturity-based approach was developed which describes four development stages of an industrial service company from a technological, organizational and cultural point of view. The maturity model makes it possible to develop a digital roadmap that is tailormade to each company, which helps to introduce Industrie 4.0 and transform industrial service companies into learning, agile organizations.
The FIR at the RWTH Aachen University continuously develops the concept and the principles of RoM further. It is already noticeable that the gap between companies that began preparing their maintenance departments for Industrie 4.0 years ago and those that are still struggling with the mere foundations of a professional maintenance organisation is rapidly increasing.
The first driver of the development sparked by Industrie 4.0 is the collection of and work with condition data. It is used to create a digital shadow of a service, e.g. maintenance measures in a specific
context. In the future, critical machine functions will be monitored continuously within production processes.
Based on these observations, the likelihood of machine failures can be predicted, which makes it possible to prioritize data-based maintenance measures. This means that maintenance activities, i.e. production plans, are based on prognoses regarding machine failures. By doing so, the currently existing separation between inspection, maintenance and reactive measures can be overcome, resulting in a holistic approach to maintenance. Maintenance specialists receive support from assistance systems, which give them access to all relevant information (e.g. machine history, spare part availability, proposals for measures, etc.). As a result, they can take on routine tasks in different areas as well and contribute to the increased flexibility of the production process. Although data is becoming an increasingly important driver of successful maintenance strategies,
maintenance employees continue to be central to specific tasks, machines and systems. In the future, it can be expected that they choose to become experts in a certain field and, ideally, actively share their knowledge with others within an open maintenance culture. Systems for interdisciplinary collaboration will be made part of everyday practice.
The maintenance department will be a center and distributor of knowledge in the agile company of the future.Only through the interaction of the outlined success principles, which amount to a paradigm shift within the maintenance department, the potential
benefit of maintenance as defined by RoM can be fully exploited, creating a long-term competitive advantage for those who consistently follow the path towards Industrie 4.0 in maintenance.
In order to cope with the challenges of an increased demand for flexibility, quality and availability of production, maintenance measures provide a major competiveness factor for manufacturing companies. Yet, interdependencies between maintenance and production activities as well as differing target systems within the functional units of an enterprise, especially production and maintenance, raise needs for extended coordination efforts. This paper aims to develop an innovative approach for the coordination between maintenance and production activities for industrial production companies. To achieve this, the novel coordination mechanism is used. It helps to achieve maximised operational availability— for a maximised output of the production system at optimal costs. Based on the developed model, the present paper identifies findings regarding the impact of different maintenance strategies on the medium-term economic efficiency of the production system.
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.
Today, machine manufacturers generate a significant share of their revenues with the provision of services. At the same time, they are confronted with the challenge of adopting of Industrie 4.0.
One of the most important Industrie 4.0 concepts is the idea of the digital shadow, which contributes to the comprehensive structuring of different kinds of data from different data sources. It can be defined as the sufficiently precise, digital representation of reality in real-time.
Thus, it also functions as a database of the considered area of a company that can be used for numerous applications. It serves as a central platform for the aggregation and distribution of data. Thereby, it helps to open isolated data silos. A system architecture that enables extraction of data from various sources and the aggregation of that data is an important prerequisite for the digital shadow.
In addition, the merger of data from different sources requires a model of the part of the company to be mapped digitally. In this paper, we focus on maintenance, repair and overhaul (MRO) services of machine manufacturers. The scope comprises the whole order processing of a service including the utilized resources and the obtained results.
MRO services and their single elements are mapped and structured using a case study research in a first step. Those elements provide a basis for designing the digital shadow. A second contribution of this paper is a data model for the digital shadow of MRO services that entails a comprehensive representation of that department.
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.