Manufacturing Service Innovation Ecosystem

Due to increasing global commercial competition, current economic crisis and global-ization, enterprises would like to shift from a pure product sales structure towards after-sales services and related activities. It is noteworthy that “profit generated by after-sales service is often higher than the one obtained with sales; the service market can be four or five times larger than the market for products” (Bundschuh & Dezvane, 2003). In this way annual turnover which is generated by this cycle will be considerable and possible to support profit of pure product sales, which is decreasing by above mentioned economic matters. Manufacturing companies which want to support service life cycle need to improve service structure by using complementary pillars like collaborative innovation, IT interaction and internet business infrastructure to characterize new service ecosystem. “Most important aim of this ecosystem is enabling companies to self organize in distributed, autonomous, interoperable, non hierarchical innovation ecosystem in tangible and intangible manufacturing assets” (Manufacturing SErvice Ecosystem, 2011). This paper introduces two main classes of scenarios, which are useful to reach above-mentioned ecosystem features: 1. The Product2Service scenario, based on manufacturing of goods and selling of service, emphasize on selling long-life service instead of one-shot physical goods sale. This model helps to beat the low-wages countries' competition by using intangible values like reliability, accuracy, innovation and social responsibility. 2. The product+service scenario is less radical, in principle, as manufacturers foresee the simultaneous offering of physical products and extended tailored service. In this case, both physical products and services contribute to the revenues; their balance needs to be adaptively determined and continuous innovation of service is key competitive advantages (Manufacturing SErvice Ecosystem, 2011).