| dc.description.abstract | In 2018, Taiwan′s machinery industry entered the first year of the Trillion-Dollar industry. But it still faces challenges like stiff market competition, exchange rate fluctuations, upgrading and transformation, insufficient resources for innovation etc. Therefore, manufacturers have to tackle problems like market share, profit and growth. Meanwhile, the initiative of Industry 4.0, smart manufacturing and IoT has pushed new-type demand and accelerated the development of new application technologies. These together creates new stimulus, challenges and transformation opportunity for the industry.
Servitization is a process of transformation from product-oriented thinking to service-oriented thinking. Manufacturers transform the traditional product into product service system (PSS). The products can be used as the carrier for service delivery. In order to create and deliver better co-value to customers. Rolls-Royce changed from an engine manufacturer to an aero engine power service provider, Xerox changed from a photocopier manufacturer to a document processing service provider, and OTIS changed from an elevator manufacturer to a logistics service provider. The product, main selling object, has become the carrier for service providing. Through value delivery by carrier, the new-type business model will be created.
Machine tools possess the characteristics of complex product system (CoPS) with capital goods and complex knowledge. The transaction period is long, low frequency, and also with long product life cycle. It is not easy to obtain after-sales service business opportunities in the usage phase. For providing automation and digital solutions, it has to integrate with cross-domain knowledge and knowhow. Therefore, machine tool manufacturers may use servitization as a strategy for transformation. It could push machine tool manufacturers to transform into service providers with diverse PSS to create a new and sustainable business model.
This research adopts the quality research method, collecting secondary data for in depth analysis using grounded theory. Through the development history of DMG MORI, the world’s leading manufacturer of machine tools, this study analyzed the servitization events and trajectory of DMG MORI, which is a highly servitization company. This study proposes to use the concept of “fit” introduced by the organizational information processing theory as a foundation, to explain the balance between “machining capabilities” and “machining knowledge depth,” as well as the balance between “financial affordability” and “financial requirements,” to explain the servitazation prosess. | en_US |