Tapping the Value Potential of Extended Asset Services: Experiences from Finnish Companies

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Recent developments in information technology and business models enable a wide variety of new services for companies looking for growth in services. Currently, manufacturing companies have been actively developing and providing novel asset based services such as condition monitoring and remote control. However, there is still untapped potential in extending the service delivery to the long-term co-operative development of physical assets over the whole lifecycle. Close collaboration with the end-customer and other stakeholders is needed in order to understand the value generation options. In this paper, we assess some of the asset services manufacturing companies are currently developing. The descriptions of the asset services are based on the results of an industrial workshop in which the companies presented their service development plans. The service propositions are compared with the Total Cost of Ownership and the closed loop life cycle frameworks. Based on the comparison, gaps that indicate potential for extended asset service concepts are recognised. In conclusion, we argue that the manufacturing companies do not recognise the whole potential for asset based services and for optimizing the performance of the end customers' processes.
Original languageEnglish
Pages (from-to)199-204
JournalManagement Systems in Production Engineering
Volume25
Issue number3
DOIs
Publication statusPublished - 2017
MoE publication typeA1 Journal article-refereed

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Assets
Service experience
Manufacturing companies
Life cycle
New services
Service delivery
Business model
Total cost of ownership
Service development
Condition monitoring
Development plans
Stakeholders

Keywords

  • asset
  • fleet
  • extended asset services

Cite this

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title = "Tapping the Value Potential of Extended Asset Services: Experiences from Finnish Companies",
abstract = "Recent developments in information technology and business models enable a wide variety of new services for companies looking for growth in services. Currently, manufacturing companies have been actively developing and providing novel asset based services such as condition monitoring and remote control. However, there is still untapped potential in extending the service delivery to the long-term co-operative development of physical assets over the whole lifecycle. Close collaboration with the end-customer and other stakeholders is needed in order to understand the value generation options. In this paper, we assess some of the asset services manufacturing companies are currently developing. The descriptions of the asset services are based on the results of an industrial workshop in which the companies presented their service development plans. The service propositions are compared with the Total Cost of Ownership and the closed loop life cycle frameworks. Based on the comparison, gaps that indicate potential for extended asset service concepts are recognised. In conclusion, we argue that the manufacturing companies do not recognise the whole potential for asset based services and for optimizing the performance of the end customers' processes.",
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