IFIP advances in information and communication technology
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690
To monetize the potential of digitalization in times of saturated markets, increased machinery and plant engineering companies are starting to transform the transaction-based business model into a customer- and service-oriented subscription business. Even though subscription offerings can create win-win situations for providers and customers, companies encounter significant difficulties in acquiring customers for this innovative business model. Historically linear acquisition processes focused on transactional product sales impede success. To identify key challenges and targeted coping strategies for customer acquisition we conducted in-depth interviews with 18 subscription managers and sales representatives from seven machinery and plant engineering case studies. In our research we uncovered four challenge dimensions: (1) lack of motivation, (2) missing skills and competences, (3) insufficient customer confidence and (4) transaction-oriented sales approach. Beyond that we derived four appropriate coping strategies (1) steering mechanisms, (2) human resource management, (3) trust building instruments and (4) systematic methodology to address them. These insights highlight the key challenges at the management level for customer acquisition that companies face when trying to initiate and sustain the transition from a purely transactional product and service business to subscription-oriented growth. Furthermore, they provide guidance how to cope with these challenges.
690
The mechanical and plant engineering industry faces a stagnation in the new machinery market and is relying on innovative business models such as subscription to overcome these. In this business model, individually customized solution packages are offered. The success of these models depends directly on the future success of the customer, making the selection of the right customers crucial. The aim of this paper is to identify the criteria that indicate the suitability of customers for subscription models. While there are individual descriptions of suitability criteria in the existing literature, there is a lack of comprehensive consideration of customer relationship, customer company, and customer market, as the extensive consideration was not necessary in the transactional sale of machines until now. Therefore, in this study, expert interviews are conducted with companies in mechanical and plant engineering that offer subscription models. The results show criteria that are used to evaluate customers in the six main categories of creditworthiness, market potential, benefit potential, feasibility, relationship, and sales effort. In total, 24 criteria can provide insight into the suitability of the customer for a successful subscription relationship. These criteria are intended to develop target systems that meet the requirements of different stakeholders in the customer and thus support the economic viability of these business models.
690
More and more companies in the mechanical and plant engineering industry are transforming their business model and evolving from product to solution providers. Subscription business models play a key role in this development. They enable companies to enter long-term collaborative relationships with customers and thus monetize the potential of Industry 4.0. However, this development is not easy for many companies and is associated with numerous hurdles. One of these hurdles is the development of a suitable range of services tailored to customer needs. In this context, the bundling of individual services to service modules plays a key role in realizing new value propositions. In practice, however, companies often lack an understanding of which services need to be combined in what way to be able to realize new value propositions. Accordingly, the goal of this work is to identify relevant services for subscription business models, to cluster them into meaningful value-adding bundles, and to derive new value propositions accordingly. The new value propositions in turn enable mechanical and plant engineering companies to strengthen customer loyalty and thus achieve long-term economic success.
592
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]
631
Since data becomes more and more important in industrial context, the question arises on how data-driven added value can be measured consistently and comprehensively by manufacturing companies. Currently, attempts on data valuation are primarily taking place on internal company level and qualitative scale. This leads to inconclusive results and unused opportunities in data monetization. Existing approaches in theory to determine quantitative data value are seldom used and less sophisticated. Although quantitative valuation frameworks could enable entities to transfer data valuation from an internal to an external level to take account of progress in digital transformation into external reporting. This paper contributes to data value assessment by presenting a four-part valuation framework that specifies how to transfer internal, qualitative to external, quantitative data valuation. The proposed framework builds on insights derived from practice-oriented action research. The framework is finally tested with a machine tool manufacturer using a single case study approach. Placing value on data will contribute to management’s capability to manage data as well as to realize data-driven benefits and revenue. [https://link.springer.com/chapter/10.1007/978-3-030-85902-2_19]
664
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.