Managing Industrial Services: From Basics to the Emergence of Smart and Remote Services (Management for Professionals)

"The increasing importance of industrial services and rapid digitalization towards smart and remote services pose opportunities as well as challenges to the manufacturing sector. This book provides a holistic understanding of industrial service management and guides companies into building capabilities and management practices for smart and remote services. By combining insights from research and practice, it offers a unique perspective on the core and enabling activities of manufacturing companies for growth in the service business. In essence, the first part covers action-based research findings regarding service strategy, organizational design, service innovation, service sales, services operations, and customer relationship management together with insights into value networks. The second part introduces outstanding practices from leading manufacturing companies in industrial and smart services. The book concludes with a summary of key messages and recommendations to navigate the landscape of industrial and smart service management successfully"--Back cover Managing Industrial Services Foreword Contents About the Editors List of Abbreviations List of Figures List of Tables Part I: Theoretical Considerations Introduction to Managing Industrial Services 1 A Brief Review on Our Industrial Service Research 2 Structure of the Book References Servitization of Manufacturing Companies 1 The Servitization Journey 2 From the Service to the Digital Paradox 3 Distinguishing Physical and Smart Services 4 Summary References Fundamentals of Industrial Service Management 1 Introduction 2 Conclusions 3 Dimensions of Industrial Service Management 3.1 The Industrial Service Management Framework 3.2 Top Layer 3.3 Middle Layer 3.4 Bottom Layer 4 Summary References Service Strategy 1 On the Importance of a Service Strategy 2 The Strategy Planning Process 2.1 The Role of the Corporate Strategy 2.2 Dimensions of a Service Strategy 2.2.1 Objectives 2.2.2 USPs 2.2.3 Portfolio 2.2.4 Make-or-Buy 2.2.5 Roadmap 2.3 Approach to Strategy Definition 2.3.1 Industry and Environmental Analysis 2.3.2 Competitor, Partner, Supplier, and Complementor Analysis 2.3.3 Customer and Market Trend Analysis 2.3.4 Internal Analysis of Resources and Capabilities 2.3.5 Analysis of Interdependencies with Company ́s Own Product and Service Portfolio 3 Three Generic Service Strategies 3.1 The Differentiation Strategy 3.2 The Marketing Strategy 3.3 The Financial Strategy 4 Managerial Implications 5 Summary References Organizational Structure 1 Barriers and Challenges 2 Structuring for Success 2.1 Organizing the Physical Services Business 2.2 Organizing the Smart Services Business 2.2.1 Hub and Spoke 2.2.2 Front-End Convergence 2.2.3 Zipper Organization 2.2.4 Leveraging the Existing 2.2.5 Top Loading 2.2.6 Breaking Up 2.2.7 Market Rationale 2.2.8 Service Nexus 3 Managerial Implications 4 Summary References Service Innovation 1 Pitfalls in Service Innovation 2 Evolution of Service Innovation 3 Dimensions of Service Innovation ́s Outcome 4 Dimensions of the Service Innovation Process 5 Applying Service Innovation Successfully 6 Managerial Implications 7 Summary References Service Sales 1 A Story of Failure in Service Sales 2 Moving from Reactive to Proactive Service Selling 3 Pinpointing the Gap in Current Service Sales Approaches 4 Way Forward: The St.Gallen Industrial Service Sales Framework 4.1 Market Levers 4.1.1 Market Strategy 4.1.2 Revenue Model 4.1.3 Channel Management 4.2 Organizational Levers 4.2.1 Competencies 4.2.2 Organizational Configuration 4.2.3 Sales Governance 5 Managerial Implications 6 Summary References Service Operations 1 The Evolution of Service Operations 2 Opportunities 2.1 Leveraging Internal Efficiencies 2.2 Achieving Win-Win 2.3 Enhancing Core Business Focus 2.4 Creating New Value 3 Challenges 3.1 Conflicts of Goals in the Provision of Services 3.2 Misalignment Between Service Sales and Operations 3.3 Lack of Exchange Between Service Innovation and Operations 3.4 Difficulty in Harnessing Digital Technologies 4 Managerial Implications 4.1 Defining a Service Operations Strategy 4.2 Getting Started 4.3 Establishing a Culture of Service Excellence 4.4 Rethinking the Process Landscape 4.5 Upgrading the Planning, Information, and Control Systems 5 Summary Reference Customer Relationship Management and the Value Network 1 The Evolution of Company-Customer Interaction 1.1 First Efforts 1.2 Sense of Urgency 1.3 Professionalizing Customer Touchpoints 1.4 Implementing CRM 2 The Evolution of Company Collaborations 2.1 Manufacturers with Direct Sales 2.1.1 New and Existing Partner Involvement 2.1.2 Redefining Service Delivery 2.1.3 Financial Flows 2.1.4 Data Flow, Data Access, and Data Ownership 2.1.5 Customer Access 2.1.6 Vulnerability to New Entrants 2.2 Manufacturers with Indirect Sales 2.2.1 New and Existing Partner Involvement 2.2.2 Redefining Service Delivery 2.2.3 Financial Flows 2.2.4 Data Flow, Data Access, and Data Ownership 2.2.5 Customer Access 2.2.6 Vulnerability to New Entrants 3 Managerial Implications 4 Summary References Outlook and Summary of Managing Industrial Services 1 Gaining the Future 1.1 Service Strategy 1.2 Organizational Structure 1.3 Service Innovation 1.4 Service Sales 1.5 Service Operations 1.6 CRM 1.7 Value Networks 2 Summary Part II: Insights from Practice Editorial to Managing Industrial Services: Insights from Practice Industrial Smart Services Facilitated by the Heidelberg Cloud 1 Introduction 1.1 Industrialization Changes the Print Media Industry 2 Pioneering the Internet of Things 3 Smart Services and New Business Models 3.1 The Network Effect drives New Business Models 4 Scaling Smart Services 4.1 Smart Services Are the New Normal 5 Executive Summary Adaptive Service: Digital Service Platform and the Service Crowd Community 1 Service Maintenance Methodologies 2 The Journey to Full Digitalization 3 The Human Factor: Experience and Creativity 4 The Service Crowd Platform: Adaptive Service 5 Adaptive Service in Practice 5.1 Connectivity 5.2 Insight 5.3 Dynamic Planner 5.4 Human-Machine Interaction 5.5 Leveraging the Crowd Globally 6 Conclusion References Enabling the Dealer Network to Deliver Smart Services 1 Company Introduction 2 After-Sales Service Innovation 3 Dealer Implementation of John Deere Connected Support 3.1 Management Commitment 3.2 Organizational Structure 3.3 Operational Structure 3.4 People 3.5 Service Culture 3.6 Service Quality 3.7 Summary 4 Conclusion SKF: Rotating Equipment Performance, a Shift in Perspective-From Transactions to Outcomes 1 Introduction 2 Initial Situation 3 Solution 3.1 Improving Output 3.2 Trimmed Total Cost of Ownership 3.3 Use Digitalization to Increase Uptime 3.4 Reduced Reliance on Scarce Talent 3.5 Safer Operations 3.6 Increased Sustainability 3.7 Data-Driven Decision-Making 3.8 Artificial Intelligence Services and Condition Monitoring 4 Conclusion References Value Co-creation as Key to Customer Satisfaction in Digital Services Sales 1 Introduction 2 Digitalization Changes the Way We Work, Do Business, and Interact 3 What Are the Triggers for Co-creation? 4 ``Customer Value Co-creation ́ ́ as a Means to Drive and Scale Digital Services 5 Why All Should Apply the Co-creation Principle? Applications of a Digital Twin for the Use of Compressed Air Stations: Concepts and Methods for Model-Based Automatic Planning... 1 Company KAESER KOMPRESSOREN 2 Introduction to Compressed Air Stations 3 Key Challenges to Be Solved/Solutions 3.1 Development, Creation, and Application of a Digital Twin 3.2 Reuse Parts of a Digital Twin 3.3 Static and Dynamic Variants of a Digital Twin 3.4 Standardization of Data 4 Process for Creating Digital Twins 5 Simulation-Based Control of Compressed Air Stations 6 Simulation-Based Planning of Compressed Air Stations 7 Model-Based Monitoring of Compressed Air Stations 8 Summary Reference Index