Abstract
For most industrial goods, markets have become global and highly competitive. Manufacturers, whose products are reaching the maturity phase of their life cycles, have to differentiate their offerings through complementary services (e.g., maintenance, repair, and overhaul). Driven by changing customer demand and the widespread adoption of cyber-physical systems, maintenance providers are pursuing performance or facilitator contracts as well as condition- and prediction-based maintenance policies to differentiate their offerings. However, many companies struggle to adapt their processes and develop sustainable offerings—even though these changes could address the principal-agent problem associated with maintenance outsourcing. This chapter outlines why innovation in industrial maintenance requires an integrated approach that leverages these opportunities simultaneously and how this approach addresses the principal-agent problem associated with maintenance outsourcing.
This chapter is based on the paper Vössing (2019).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Agnihothri, S., Sivasubramaniam, N., & Simmons, D. (2002). Leveraging technology to improve field service. International Journal of Service Industry Management, 13(1), 47–68.
Ahamed, Z., Inohara, T., & Kamoshida, A. (2013). The servitization of manufacturing: An empirical case study of IBM corporation. International Journal of Business Administration, 4(2), 18–26.
Alvesson, M., & Sandberg, J. (2011). Generating research questions through problematization. Academy of Management Review, 36(2), 247–271.
Ardolino, M., Rapaccini, M., Saccani, N., Gaiardelli, P., Crespi, G., , & Ruggeri, C. (2018). The role of digital technologies for the service transformation of industrial companies. International Journal of Production Research, 56(6), 2116–2131.
Atzori, L., Iera, A., & Morabito, G. (2010). The internet of things: A survey. Computer Networks, 54(15), 2787–2805.
Baines, T., Lightfoot, H., Evans, S., Neely, A., Greenough, R., Peppard, J., Roy, R., Shehab, E., Braganza, A., Tiwari, A., Alcock, J. R., Angus, J. P., Bastl, M., Cousens, A., Irving, P., Johnson, M., Kingston, J., Lockett, H., Martinez, V., Michele, P., Tranfield, D., Walton, I. M., & Wilson, H. (2007). State-of-the-art in product-service systems. Proceedings of the Institution of Mechanical Engineers, 221(10), 1543–1552.
Baines, T., Lightfoot, H., & Smart, P. (2011). Servitization within manufacturing: Exploring the provision of advanced services and their impact on vertical integration , Journal of Manufacturing Technology Management, 22(7), 947–954.
Begur, S. V., Miller, D. M., & Weaver, J. R. (1997). An integrated spatial DSS for scheduling and routing home-health-care nurses. Interfaces, 27(4), 35–48.
Bektas, T., Repoussis, P. P., & Tarantilis, C. D. (2014). Dynamic vehicle routing problems (2nd ed.). Philadelphia: Society for Industrial and Applied Mathematics.
Belvedere, V., Grando, A., & Bielli, P. (2013). A quantitative investigation of the role of information and communication technologies in the implementation of a product-service system. International Journal of Production Research, 51(2), 410–426.
Beverungen, D., Müller, O., Matzner, M., Mendling, J., & Vom Brocke, J. (2019). Conceptualizing smart service systems. Electronic Markets, 29, 7–18.
Breidbach, C., Choi, S., Ellway, B., Keating, B. W., Kormusheva, K., Kowalkowski, C., Lim, C., & Maglio, P. (2018). Operating without operations: how is technology changing the role of the firm? Journal of Service Management, 29(5), 809–833.
Campbell, J. D. (1995). Outsourcing in maintenance management: A valid alternative to self-provision. Journal of Quality in Maintenance Engineering 1(3), 18–24.
Cohen, M. C. (2018). Big data and service operations. Production and Operations Management, 27(9), 1709–1723.
Cordeau, J. F., Laporte, G., Pasin, F., & Ropke, S. (2010). Scheduling technicians and tasks in a telecommunications company. Journal of Scheduling, 13(4), 393–409.
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. The Academy of Management Review, 14(1), 57–74.
Field, J. M., Victorino, L., Buell, R. W., Dixon, M. J., Meyer Goldstein, S., Menor, L. J., Pullman, M. E., Roth, A. V., Secchi, E., & Zhang, J. J. (2018). Service operations: What’s next? Journal of Service Management, 29(1), 55–97.
Fitzgerald, M., & Kruschwitz, N. (2014). Embracing digital technology: A new strategic imperative. MIT Sloan Management Review, 55(2), 1–12.
Fraser, K., Hvolby, H.-H., & Tseng, T.-L. B. (2015). Maintenance management models: A study of the published literature to identify empirical evidence. International Journal of Quality & Reliability Management, 32(6), 635–664.
Garg, A., & Deshmukh, S. (2006). Maintenance management: Literature review and directions. Journal of Quality in Maintenance Engineering, 12(3), 205–238.
Geraerds, W. (1985). The cost of downtime for maintenance: preliminary considerations. Maintenance Management International, 5(1), 13–21.
Gitzel, R., Schmitz, B., Fromm, H., Isaksson, A., & Setzer, T. (2016). Industrial services as a research discipline. Enterprise Modelling and Information Systems Architectures, 11(4), 1–22.
Helander, A., & Möller, K. (2007). System supplier’s customer strategy. Industrial Marketing Management, 36(6), 719–730.
Helander, A., & Möller, K. (2008). How to become solution provider: System supplier’s strategic tools. Journal of Business-to-Business Marketing, 15(3), 247–289.
Herterich, M. M., Uebernickel, F., & Brenner, W. (2015). The impact of cyber-physical systems on industrial services in manufacturing. Procedia CIRP, 30, 323–328.
Hypko, P., Tilebein, M., & Gleich, R. (2010). Benefits and uncertainties of performance-based contracting in manufacturing industries. Journal of Service Management, 21(4), 460–489.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Kim, S.-H., Cohen, M. A., & Netessine, S. (2007). Performance contracting in after-sales service supply chains. Management Science, 53(12), 1843–1858.
Kowalkowski, C., Windahl, C., Kindström, D., & Gebauer, H. (2015). What service transition? Rethinking established assumptions about manufacturers’ service-led growth strategies. Industrial Marketing Management, 45(1), 59–69.
Krinsky, I., & Mehrez, A. (1989). Principal-agent maintenance problem. Naval Research Logistics, 36(6), 817–828.
Lee, J., Bagheri, B., & Kao, H. A. (2015). A cyber-physical systems architecture for industry 4.0-based manufacturing systems. Manufacturing Letters, 3, 18–23.
Legner, C., Eymann, T., Hess, T., Matt, C., Böhmann, T., Drews, P., Mädche, A., Urbach, N., & Ahlemann, F. (2017). Digitalization: Opportunity and challenge for the business and information systems engineering community. Business & Information Systems Engineering, 59(4), 301–308.
Martin, H. H. (1997). Contracting out maintenance and a plan for future research. Journal of Quality in Maintenance Engineering, 3(2), 81–90.
Mcilwraith, J., Stark, J., & Stark, J. (2011). Complex engineering service systems. Decision engineering. London: Springer.
Murthy, D. N. P., & Jack, N. (2008). Maintenance outsourcing. In K. A. H. Kobbacy, & D. N. P. Murthy (Eds.), Complex system maintenance handbook (1st ed., pp. 373–393). London: Springer.
Murthy, D. N. P., & Jack, N. (2014). Extended warranties, maintenance service and lease contracts: Modeling and analysis for decision-making. London: Springer.
Murthy, D. N. P., Jack, N., & Kumar, U. (2013). Maintenance outsourcing: Issues and challenges. In T. Dohi, & T. Nakagawa (Eds.), Stochastic reliability and maintenance modeling (9 ed., pp. 41–62). London: Springer.
Ng, I. C., Ding, D. X., & Yip, N. (2013). Outcome-based contracts as new business model: The role of partnership and value-driven relational assets. Industrial Marketing Management, 42(5), 730–743.
Ng, I. C., Maull, R., & Yip, N. (2009). Outcome-based contracts as a driver for systems thinking and service-dominant logic in service science: Evidence from the defence industry. European Management Journal, 27(6), 377–387.
Oliva, R., & Kallenberg, R. (2003). Managing the transition from products to services. International Journal of Service Industry Management, 14(2), 160–172.
Paz, N. M., & Leigh, W. (1994). Maintenance scheduling: Issues, results and research needs. International Journal of Operations & Production Management, 14(8), 47–69.
Penttinen, E., & Palmer, J. (2007). Improving firm positioning through enhanced offerings and buyer-seller relationships. Industrial Marketing Management, 36(5), 552–564.
Pintelon, L., & Van Puyvelde, F. (2013). Asset management: The maintenance perspective. Leuven: Acco.
Pongpech, J., Murthy, D., & Boondiskulchock, R. (2006). Maintenance strategies for used equipment under lease. Journal of Quality in Maintenance Engineering, 12(1), 52–67.
Safaei, N., Banjevic, D., & Jardine, A. K. S. (2011). Workforce-constrained maintenance scheduling for military aircraft fleet: a case study. Annals of Operations Research, 186(1), 295–316.
Smith, D. J. (2013). Power-by-the-hour: the role of technology in reshaping business strategy at Rolls-Royce. Technology Analysis & Strategic Management, 25(8), 987–1007.
Sörensen, K., Sevaux, M., & Schittekat, P. (2008). “Multiple Neighbourhood” search in commercial VRP packages: Evolving towards self-adaptive methods (pp. 239–253). Berlin: Springer.
Strähle, O., Füllemann, M., & Bendig, O. (2012). Service now! Time to wake up the sleeping giant. Munich: Bain & Company
Takeda, M., & Kosaka, M. (2016). Fuji Xerox - manufacturer managed equipment service. In J. Wang, M. Kosaka, & K. Xing (Eds.), Manufacturing servitization in the Asia-Pacific (1st ed., pp. 137–154). Singapore: Springer.
Thoben, K.-D., Wiesner, S., & Wuest, T. (2017). “Industrie 4.0” and smart manufacturing – a review of research issues and application examples. International Journal of Automation Technology, 11(1), 4–16.
Tsang, A. H. (2002). Strategic dimensions of maintenance management. Journal of Quality in Maintenance Engineering, 8(1), 7–39.
Vössing, M. (2019). Redesigning service operations for the digital world: Towards automated and data-driven field service planning. In Proceedings of the 27th European Conference on Information Systems (ECIS), Stockholm, & Uppsala, Sweden.
Waeyenbergh, G., & Pintelon, L. (2002). A framework for maintenance concept development. International Journal of Production Economics, 77(3), 299–313.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Vössing, M., Kühl, N. (2020). Industrial Maintenance in the Digital World. In: Maleshkova, M., Kühl, N., Jussen, P. (eds) Smart Service Management. Springer, Cham. https://doi.org/10.1007/978-3-030-58182-4_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-58182-4_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-58181-7
Online ISBN: 978-3-030-58182-4
eBook Packages: Computer ScienceComputer Science (R0)