Skip to main content

Towards a Comprehensive Service Business Management Environment for Equipment Manufacturers

  • 1677 Accesses

Part of the Lecture Notes in Mechanical Engineering book series (LNME)


Transformation of equipment manufacturers to become providers of industrial services is a trend that involves deep transformation of companies. Equipment manufacturers can potentially provide services significantly more efficiently and effectively by utilizing information about their installed base (IB). We aim to recognize decision support functionality and required information contents for a system that supports service business in the context of services like ‘full service’, lease of maintained equipment, extended warranties, and operations and maintenance. A further supported function is product and service development. Eight cases from Finnish machine-building and telecommunications industries provide a basis for our view of business needs in decision support of operational and tactical levels of service business management. We present a vision of a decision-making tool for service business of equipment manufacturers—the service business management environment (SBME)—and identify decision-making situations (‘use cases’) of SBME. SBME integrates ideas and information content from engineering asset management, condition-based maintenance, standards to represent and exchange life cycle, reliability and maintenance data, and e-maintenance. If successful, SBME can support transformation of equipment manufacturers to service business. This takes place by aggregating information from whole IB, which enables better accuracy in health assessment, prognostics, cost estimation, awareness of service contract status in terms of defined KPIs, and analysis of profitability of service offerings. Furthermore, SBME supports product development by providing information on field reliability, maintainability, recognition of epidemics, and other inputs.


  • Preventive Maintenance
  • Service Business
  • Product Individual
  • Spare Part
  • Service Contract

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
USD   199.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions


  1. Oliva R, Kallenberg R (2003) Managing the transition from products to services. Int J Serv Ind Manag 14(2):160–172

    CrossRef  Google Scholar 

  2. Ala-Risku T (2009) Installed base information: ensuring customer value and profitability after the sale. Doctoral dissertation. Industrial Engineering and Management, Helsinki University of Technology

    Google Scholar 

  3. Mathew AD (2008) Asset management data warehouse data modelling. Doctoral dissertation, Queensland University of Technology

    Google Scholar 

  4. Jardine AKS, Lin D, Banjevic D (2006) A review on machinery diagnostics and prognostics implementing condition-based maintenance. Mech Syst Signal Process 20(7):1483–1510

    CrossRef  Google Scholar 

  5. Mimosa (2007) MIMOSA’s open system architecture for enterprise application integration (OSA-EAI) version 3.2 technical architecture summary

    Google Scholar 

  6. ISO (2007) ISO 13374-2:2007 condition monitoring and diagnostics of machines—data processing, communication and presentation—Part 2: data processing

    Google Scholar 

  7. ISO (2006) ISO 14224:2006(E) petroleum, petrochemical and natural gas industries—collection and exchange of reliability and maintenance data for equipment

    Google Scholar 

  8. Dekker R, Pinçe Ç, Zuidwijk R, Jalil MN (2013) On the use of installed base information for spare parts logistics: a review of ideas and industry practice. Int J Prod Econ 143(2):536−545

    Google Scholar 

  9. Haddad G, Sandborn PA, Pecht MG (2012) An options approach for decision support of systems with prognostic capabilities. IEEE Trans Reliab 61(4):872

    CrossRef  Google Scholar 

  10. Martin HH (1997) Contracting out maintenance and a plan for future research. J Qual Maintenance Eng 3(2):81–90

    CrossRef  Google Scholar 

  11. Baines T, Lightfoot H, Evans S, Neely A, Greenough R, Peppard J et al (2007) State-of-the-art in product-service systems. Proc Inst Mech Eng Pt B J Eng Manuf 221(10):1543–1552

    CrossRef  Google Scholar 

  12. Dausch M, Hsu C (2006) Engineering service products: the case of mass-customising service agreements for heavy equipment industry. Int J Serv Technol Manage 7(1):32–51

    Google Scholar 

  13. Moseley S (2012) Asset management basics. Maintworld 4(1):6–8

    Google Scholar 

  14. Peltonen H, Männistö T, Alho K, Sulonen R (1994) Product configurations—an application for prototype object approach. In: Tokoro M, Pareschi R (eds) Proceedings of object-oriented programming. 8th European conference, ECOOP’94, Bologna, Italy, 4–8 July 1994

    Google Scholar 

Download references


We thank TEKES, FIMECC, and related companies for financial support; this work has been funded by TUPASU research project and FIMECC SHOK program Future Industrial Services (FutIS). We also express our gratitude to companies that have offered us access in the context of TUPASU and FutIS research.

Author information

Authors and Affiliations


Corresponding author

Correspondence to Juha Tiihonen .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this paper

Cite this paper

Tiihonen, J., Borgman, J., Nieminen, M. (2015). Towards a Comprehensive Service Business Management Environment for Equipment Manufacturers. In: Lee, W., Choi, B., Ma, L., Mathew, J. (eds) Proceedings of the 7th World Congress on Engineering Asset Management (WCEAM 2012). Lecture Notes in Mechanical Engineering. Springer, Cham.

Download citation

  • DOI:

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-02461-5

  • Online ISBN: 978-3-319-06966-1

  • eBook Packages: EngineeringEngineering (R0)