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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.
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.
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.
Geschäftsmodell-Innovation
(2017)
Der Wirtschaftsstandort Deutschland ist bislang vorrangig auf die Produktion von Gütern ausgerichtet: Kraftwagen und Kraftwagenteile, Maschinen, Datenverarbeitungsgeräte sowie elektronische und optische Erzeugnisse stellten wertmäßig die Hälfte der Gesamtausfuhren des Jahres 2013 dar. Die fortschreitende Globalisierung führt zu einer verstärkten internationalen Wettbewerbsintensität bei sich schneller ändernden Produkten und einem wachsendem Differenzierungsdruck. Industrielle Dienstleistungen stellen vor diesem Hintergrund eine Möglichkeit dar, die technische Leistungsfähigkeit von Produkten zu erweitern und zeitgleich die Abgrenzung und Differenzierung von Wettbewerbern auf internationalen Märkten zu realisieren. Produkte werden durch industrielle Dienstleistungen zu umfassenden und spezifischen Lösungen erweitert, die über die Kerneigenschaften der Produkte hinausgehen und Probleme der Nutzer und Kunden als integriertes System lösen. Sach- und Dienstleistungen werden nach Belz als Leistungssysteme beschrieben, die ausgewählte Kundenprobleme nicht als einzelnes Produkt oder einzelne Dienstleistung, sondern umfassend und wirtschaftlich als Kombination aus Leistungsbestandteilen lösen.
In order to achieve a holistic cost management approach, the maintenance and service costs should already be assessed during the development of machines and equipment. The required information in the company, like PLM, process and test data, are commonly not available or vague, especially in early development phases. This paper introduces a feasible method for an early assessment of maintenance and service costs during product development. In doing so, appropriate cost assessment methods are selected, based on the availability and quality of the existing information in the individual development phases. The evaluations of these methods are aggregated in a software tool, so that the respective cost information is displayed with a maximum, minimum and most probable value. The developed software tool was validated in cooperation with a new electric vehicle manufacturer.
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.
Ongoing digitalization and Industry 4.0 enable the development of new business models due to the increase in available data and digital connected products. A promising business model type for the machinery and plant engineering industry are subscription models, consisting of products and services offered in return for continuous payments. However, subscription-based business models are associated with extensive changes in the traditional machinery and plant engineering industry, in particular, for small and medium-sized companies (SMEs). Established concepts for the development of value propositions and business models neglect important aspects, such as the integrated development and optimization of products and services across the entire life cycle or the data infrastructure. This paper presents a concept for a methodology to support SMEs developing value propositions within subscription models. Therefore, the systematic identification of customer benefits, the determination and prioritization of subscription relevant functionalities as well as the design of product and service elements addressing those functionalities are the main aspects on which the focus is placed on. The result is a subscription value proposition canvas for SMEs to address the impact of subscription models on products and services.
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.
As industrial service portfolios grow, many companies overlook the implications of their business operations: rising complexity and resulting complexity costs. One reason are nonexistent tools that help service managers to decide in planning phases with an adequate effort about the implications that variety and complexity decisions have on the complexity costs of their portfolio. This paper depicts the challenges service companies have to face in this context and presents a concept of a heuristic approach to evaluate the complexity costs for industrial services. The concept is being developed in strong cooperation with industrial partners.