Abstract
Servitization has a significant impact on the upgrading and reform of the equipment manufacturing industry. From the perspective of application of high-end servitization theory in business practice of equipment manufacturing industry, based on the review of relevant literature, this paper analyzes the concept of integration delay strategy mechanism of cooperative production between enterprises and customers, and thus constructs the theoretical model framework of 4S service pilot high-end equipment manufacturing product-customer interaction experience. With the Liaoning equipment manufacturing industry as a case for quantitative analysis, the feasibility of using delay strategy in the 4S service pilot program is demonstrated, and the three-stage development plan of Liaoning 4S service pilot is outlined. The results show that: At present, in the trend of servitization of China’s equipment manufacturing enterprises, 4S service pilot high-end manufacturing product model enables equipment manufacturing enterprises to delay production time and produce according to customer orders, improve service efficiency and optimize resource allocation, and help enterprises to obtain new exclusive competitive advantages.
Introduction
The equipment manufacturing industry is the pillar industry of China’s economic development. The concept of service-oriented equipment manufacturing industry was proposed by Vandermerwe and Rada in 1988. After years of development, the strategic goal of manufacturing enterprises has changed from product-oriented to service-oriented. At present, an important way for developed countries to improve their comprehensive strength is to improve and expand the service level of the equipment manufacturing industry [1, 2]. Fifty-six percent of the world’s top 500 companies are service-based manufacturers, and 20 percent of them make more than half of their revenues from services. Foreign manufacturers such as IBM, Rolls-Royce, and Pratt and Whitney have successfully become service providers. The key for these enterprises to obtain more profits lies in the transformation to servitization [3]. Therefore, service manufacturing is a sign of high-end equipment manufacturing enterprises.
The diversity of customer needs is becoming more and more evident in China. For example, Baosteel, SMTCL (Shenyang Machine Tool Co., Ltd) and other large equipment manufacturing enterprises. They began to learn from Western manufacturing experience to develop high-end service-oriented strategy. At the same time according to relative paradox phenomenon of western equipment manufacturing enterprise service proposed by Gebauer et al. [4], we can learn from the world-class manufacturing enterprises from abroad development success (such as Philips and other companies) and the failure of some companies (such as Intel), that strengthening service does not necessarily bring more profit to the equipment manufacturing enterprises in our country. Therefore, the service-oriented development of China’s manufacturing enterprises needs to find their strategies to solve the specific problems encountered in the process of equipment manufacturing transformation. Therefore, the service-oriented development of China’s manufacturing enterprises needs to find their own strategies to solve the specific problems encountered in the process of equipment manufacturing transformation. Therefore, how should China’s equipment manufacturing industry develop servitization? This is a problem that many scholars have been studying, and it is also the subject facing the transformation of equipment manufacturing enterprises nowadays.
The study of the equipment manufacturing industry of high-end service conducted by Scholars at home and abroad are mainly based on such aspects as macro security factors, environmental effect, process mechanism, and micro empirical analysis research, and on how the equipment manufacturing industry develop and apply high-end service based on commercialization [5]. It’s still basically decentralized and unsystematic [6].
Literature review
This paper studies the existing literature on equipment manufacturing servitization. The service manufacturing industry needs a mass customization theory to guide its development. However, servitization can effectively promote the transformation and upgrading of equipment manufacturing enterprises [7]. Just as Jeff suggests [8], manufacturing industry needs the support of postponement strategy. It promotes the development of special customized services implemented by enterprises [9]. At present, there are few pieces of research on the service-based postponement strategy, while most scholars mainly have the following strategies for the study of service-based manufacturing.
The perspective of service-oriented transformation development path of equipment manufacturing industry. Jian and Wu relied on the smile curve theory, believe that there are four smile-curve value chain paths to promote the service-oriented equipment manufacturing industry. They are respectively the downstream manufacturing service-oriented smile path, the upstream manufacturing service-oriented smile path, the upstream and downstream manufacturing service-oriented smile path and the complete de-manufacturing path [10]. However, scholars represented by Tan believe that the servitization of manufacturing enterprises is to realize two servitization approaches based on technology upgrading and meeting customer needs [11]. Of course, some scholars believe that service outsourcing is also an important path for manufacturing to become service-oriented [12]. Görg et al. and others believe that Service outsourcing drives manufacturing enterprises to connect with the international pace [13]. White and others pointed that Manufacturing companies integrate services into their products to form new business models [14]. Manufacturing enterprises can enhance their competitive strength by integrating products and services [15]. The perspective of the development process of service-oriented equipment manufacturing industry. Service-oriented manufacturing process is the transformation and resource optimization of equipment manufacturing industry. It promotes the development of manufacturing products to the high end of the value chain [16]. The service-oriented development of the equipment manufacturing industry can be divided into three periods: conventional period, networked period and product-service package period [17]. Vandermerwe and Rada proposed that manufacturing enterprises should go through three stages of service-oriented development: pure production stage, service addition stage, and manufacturing stage combined with service [16]. The evolution process of equipment manufacturing service into four stages, namely, pure production stage, service initialization stage, service standardization stage and service manufacturing stage [18, 19]. Some scholars also believe that the development of the service is a process in which manufacturing enterprises transform from product provider to service provider [5, 20, 21]. The perspective of the service-oriented driving force of the equipment manufacturing industry. The rapid development of new industrialization in China has promoted the process of service of the equipment manufacturing industry. Zhao and others [6] proposed that the necessary factors for constructing the theoretical framework of service-oriented equipment manufacturing industry in China are the market environment, management decision, and customer demand, as well as the driving force of service-oriented equipment manufacturing enterprises. After analyzing the evolution of western service-oriented manufacturing enterprises, Liu and Li [22] pointed out that the service-oriented transformation of China’s equipment manufacturing industry needs four power sources: customer demand, competition creation, internal and external environment, and economic benefits. Huo and Huang believe [12] that the key to the transformation and upgrading of China’s equipment manufacturing industry lies in the development of servitization, while the driving force of service-oriented equipment manufacturing industry is service outsourcing. Some other scholars tend to believe that a certain key factor restricts its driving force. For example, Jianqiang Luo and other scholars believe that services can promote the development of service of the equipment manufacturing industry [7]. However, the organic integration of service and information technology of the manufacturing industry leads to new technology – information manufacturing service technology [16].
In summary, the existing literature is sufficient and mature in the aspects of servitization path, driving force and development process, but there are limitations in the following two aspects. First, there is a lack of research on how to complete the process of interaction and cooperative production between service equipment manufacturing enterprises and customers. Second, there is a lack of research on the organic integration of academic theory and business practice to guide equipment manufacturing enterprises on how to better service transformation.
Postponement strategy mechanism
The diversification speed of commodity categories is promoted, and this trend also brings problems to the mass customization production of enterprises, such as increasing difficulty in manufacturing flexibility, extending delivery cycle, and increasing process cost. The strategy is to postponement the forms and characteristics of a product change backward delayed [23] as far as possible, but in the postponement, strategy between the stages of push and pull between the cut-off point is called decoupled points of customer requirements, namely the COPD (customer order decoupling point). It is based on the products produced by enterprises in the supply chain. It is a turning point (key point) from product prediction to meeting customers’ special needs [10], which directly affects the scale and change of customized production of enterprises. The specific postponement mechanism of manufacturing enterprises is shown in Fig. 1.
Mechanism diagram of postponement strategy.
The business starting point before processing comes from the stage of equipment manufacturing enterprises, which is called the pushing stage. After the assembly business, all comes from the customer order demand stage, known as the pull stage. The essence of postponement is to reset the product structure or process so that the COPD degree of the product is delayed backward, where the COPD degree refers to the relative position of COPD. As can be seen from Fig. 1, the specific mechanism process is as follows: If COPD is delayed to the upstream position and is in the stage of generalized production of parts, we need to try to keep it in a neutral state to reduce the structural differences of products. If the enterprise delays the prediction of production, corresponding economies of scale can be generated. On the contrary, if COPD is delayed to the downstream, the enterprise can take advantage of customers’ individual needs to process, assemble and ship, and finally complete differentiated customization.
Therefore, the postponement strategy can make the general production stage, form the general parts of scale production standard, and finally achieve the maximum profit. At the same time, when the enterprise has customer orders, it can complete the differentiated products and delivery process as soon as possible, thus shortening the delivery cycle of products and reducing the inventory accumulation generated in the process of product scale customization.
SYMG (Shenyang Machine Tool Co., Ltd) has set up product stores all over the world. This sales model that breaks the traditional equipment manufacturing enterprises is an organic combination of manufacturers and service providers. Given this mode, the 4S service pilot mode of the equipment manufacturing industry is proposed properly handling the position of COPD in the production supply chain is the key to obtain more value. Therefore, the theory combined with practice is more convincing. It is urgent to have a medium that can reflect the location of COPD and customer demand – 4S service pilot to conduct high-end equipment manufacturing products-customer interaction service experience. Among them, 4S service refers to the standard of 4 aspects, ranging from science and technology production, the satisfaction of customer demand, service of the brand and service-oriented manufacturing standard. Firstly, the 4S service pilot high-end product-customer interaction mode can provide decision-makers with a more comprehensive information program of competitive advantage in the exclusive equipment manufacturing industry. And it can timely feedback customers’ demand direction through product-customer interaction service experience, and improve the efficiency of optimizing resource allocation and technological innovation ability of enterprises. Secondly, 4S service pilot mode is a bridge of communication between manufacturers and customers, which facilitates customized cooperation and production with customers and broadens the realization space of enterprise value. Finally, the 4S service pilot mode increases the feasibility of green manufacturing large-scale production, realizes the sustainable development in the process of enterprise service transformation, and improves the environmental friendliness of the equipment manufacturing industry. The specific 4S service pilot model is shown in Fig. 2.
4S service pilot high-end equipment manufacturing products-postponement theoretical model of customer interaction experience.
From the perspective of the production supply chain, the 4S service pilot high-end equipment manufacturing product customer interaction experience production activity is divided into two stages of COPD upstream and downstream. The design of parts and raw materials and the standardized production of high-end products promoted the large-scale manufacturing activities of enterprises, which belonged to the upstream push stage of the 4S service pilot. According to customers’ differentiated demand for products, the order of customized high-end equipment manufacturing products is the downstream pull stage of 4S service pilot. In 4S service pilot upstream of high-end equipment manufacturing products – customer interactive experience stage, the intangible service elements, and tangible modular, standardized high-tech craft and the equipment manufacturing industry under postponement strategies increasing use in high-end service make the manufacturing enterprises based on the 4S service pilot provided by the market dynamic information, design a more feasible parts commonality and differential delay, generalize the production process can be shared parts and technology to maximize. Whenever there is a new customer order differentiation, 4S service pilot can aggregate demand information quickly and will send customized information feedback to the corresponding manufacturing companies. It reduces the uncertainty risk of equipment manufacturing enterprises in predicting production customer demand. At the same time, 4S service pilot experience can also promote manufacturing enterprises to mass production of modular, technological innovation, and other aspects, research, and development of collaborative rapid assembly module, the production of strong applicability of the general standard accessories, to reduce the complexity of products or processes. 4S service pilot strengthens the flexible manufacturing level of equipment manufacturing enterprises. It improves the product quality and efficiency of products, and reduces the production cost and transaction cost, and creates more value for enterprises. In Fig. 2, equipment manufacturing enterprises are divided into core layer and an additional layer. The core layer includes logistics capacity and production capacity. Additional layers include R&D, sales, information management, human resources, and modular production and intermediary services.
Under the participation of customers manufacturing enterprises will have a clear and quick understanding of market demand, this will drive a service-oriented development in manufacturing enterprises in the aspects of scientific and technological innovation, environmental and cultural and recreation. In 4S service pilot sales of high-end equipment manufacturing products – customer interactive experience mode, the evolution of service has three steps. From service attachment to product to integration of service and product, service is sold as a commodity eventually. From the principle of the smile curve, it can be found that if this state continues, the gap with international equipment manufacturing enterprises will become larger and larger. 4S service pilot under the postponement strategy can feedback information about order demand and service satisfaction, motivate manufacturing enterprises to improve product craft and improve the service level and this mode of customer participation and interactive experience encourages equipment manufacturing enterprises to carry out service-oriented customized production based on customers’ different needs. 4S service pilot high-end equipment manufacturing products-customer interactive platform improves the efficiency of the equipment manufacturing enterprise service and the accuracy of the postponement strategy, optimizes the allocation of resources to obtain more economic benefits, and makes new and exclusive competitive advantage in the high-end equipment manufacturing market, and eventually make the successful transition of service equipment manufacturing enterprises in China.
Selection of 4S service pilot cases
This paper takes Liaoning province as a case study. The main reasons are as follows: Liaoning is a heavy industry province based on equipment manufacturing industry, which based on the equipment manufacturing industry. Liaoning province has a number of exclusive equipment manufacturing industry advantages of enterprises. The equipment manufacturing industry is in urgent need of transformation. Secondly, Liaoning equipment manufacturing industry started earlier in service-oriented development.For example, Dalian Shipyard, Shenyang Aircraft and other equipment manufacturing enterprises have begun to try the service-oriented transformation. Finally, The high-end equipment manufacturing industry in Liaoning Province has a higher market share. For example, Fig. 3 shows the proportion of equipment manufacturing industries in Liaoning Province in the whole country in 2016, which is representative to a certain extent.
Selection of factors influencing servitization and data analysis
Market needs and customer needs is the key to promote the development of service-oriented equipment manufacturing industry. Therefore, this paper uses the experience of predecessors. The author suggests that Liaoning 4S service pilot equipment manufacturing products-customer interaction experience is mainly restricted by five factors: sales output value, inventory, total profit, main business cost, and management cost. In this paper, the relevant data of Liaoning in 2016 was searched, which is shown in Table 1.
The competitiveness of Liaoning in national equipment manufacturing industries based on the financial perspective
The competitiveness of Liaoning in national equipment manufacturing industries based on the financial perspective
Liaoning’s sales position in the equipment manufacturing industry in China.
It can be found from Table 1 that general fabricated metal products in Liaoning ranks top than any other industry’s, and have lagged behind the other five power equipment manufacturing industry and compared with the 31 provinces in China, the equipment manufacturing industry in Liaoning is above average.
4S service pilot interactive experience scheme and structure model creation
4S Service Pilot High-end Equipment Manufacturing Mathematical Products – Customer Interaction Experience Program. In this paper, in the Liaoning 4S service pilot project, the problem of assigning products from various equipment manufacturing industries to experience share was transformed into a mathematical problem, and the model was established for quantitative research, to make the 4S service pilot project more feasible. The mathematical problem described as 4S service pilot of Liaoning equipment manufacturing industry product-customer service experience will be carried out, and the products allow customers to experience early Liaoning equipment manufacturing product performance. Meanwhile, the service development of the Liaoning equipment manufacturing industry is also affected by many factors, such as sales value, total profit, inventory, administrative expenses, and main business costs. Then, to better promote the service-oriented development of Liaoning equipment manufacturing industry, how to allocate products of various equipment manufacturing industries to carry out 4S pilot experience service under the postponement strategy, so that they can not only meet customer needs but also provide effective production information for the transformation and upgrading of Liaoning manufacturing enterprises? Establishment of a hierarchical structure model. The hierarchical model of product-customer interaction experience is mathematiccal problems for high-end equipment manufacturing products in Liaoning 4S service pilot project is specifically shown in Fig. 4.
Hierarchy chart of 4S service pilot of Liaoning equipment manufacturing industry.
Grey correlation determines the degree of factor correlation in the structure drawing [24]. Due to the qualitative features of simple chromatography, the decision making results obtained by it are not convincing. Therefore, the grey relational degree analysis on the factors of criterion layer A and scheme layer B in the AHP structure diagram in Table 1 has improved the credibility of AHP decision-making. First of all, the five factors in the criteria layer A are calculated by a grey relational degree. The data in Table 1 was dimensionless processed through the mean value method, and the sales value reference sequence was used as the difference sequence, in which the maximum number and the minimum number of the two poles Second, the grey relational degree of seven factors in plan B is calculated. The industry sequence data in Table 1 are processed in A standardized manner. The calculation process and method are similar to the criteria layer A, which is not repeated here. With the metal products industry as a reference sequence, the results are AHP is used to analyze 4S pilot high-end equipment manufacturing products – customer interaction service experience ranking. To deeply analyze the actual distribution problem, the factors of the hierarchical structure diagram in Fig. 4 were decomposed from top to bottom according to their attributes and based on the results of grey correlation degree and Santyit’s 1–9 scale method, a discriminant matrix of the hierarchical structure diagram of 4S service pilot was established. The calculation steps were as follows.
Firstly, the discriminant matrix A from the criterion layer to the target layer is established according to the grey relational degree calculation results. The maximum eigenvalue lambda Max of matrix A and its corresponding Maximum eigenvalue (
Random consistency index RI
one-time index
random consistency index RI
The AHP conclusion is calculated, which based on the ranking data in Table 1. The particularity of the ranking problem is taken into consideration. In other words, the smaller the ranking result is, the better the performance will be. Therefore, contrary to the conclusion of AHP under normal circumstances, the decision-making conclusion of AHP obtained in this paper is that the smaller the weight, the better the objective decision. And according to weight calculation results from the hierarchical analysis, fabricated metal products accounted for 30.3%, with 7.3% of general equipment manufacturing, 9.3% of special equipment manufacturing, 8.1% of transportation equipment manufacturing industry, 17.7% of electrical machinery and equipment manufacturing industry, 19.9% of communications equipment, computers, and other electronic equipment manufacturing industry, 15% of instrumentation and machinery manufacturing for office. According to the above results, general equipment manufacturing is the best, transportation equipment manufacturing and special equipment manufacturing are the second, and the metal products industry is the worst. Then, when Liaoning 4S service pilot implements equipment manufacturing product-customer interaction experience under the guidance of postponement strategy, which manufacturing industry product experience should be focused on when 4S service pilot realizes high-end service of equipment manufacturing? Therefore, based on the above AHP results, the three-stage development plan of Liaoning 4S service pilot was obtained as follows: The first stage, the first is a priority to show the general equipment manufacturing high-end equipment products experience, followed by the showing of high-end products the transportation equipment manufacturing industry and special equipment manufacturing, and then under the action of delaying tactics to collect customer experience information feedback and orders demand in 4S pilot, postponement production forecast products, provide the basis for customized and large-scale of manufacturing enterprise, and other equipment manufacturing high-end products are trying to participate in the 4S service pilot and pushes forward the development of service-based equipment manufacturing enterprises. The second stage, the 4S service pilot maintain state of the first stage of the three services industry product experience, and under the postponement strategy we focus on such three industry experience of high-end product display, ranging from instrumentation and cultural office machinery manufacturing, electric machinery and equipment manufacturing and communications equipment, computers and other electronic equipment manufacturing industry. At this time, the 4S pilot involved more kinds of interactive products and attracted more orders from customers, which stimulated the technological research and development of equipment manufacturing enterprises. The manufacturing enterprises were able to postpone customized production and present a scale, which advanced the service-oriented transformation of Liaoning equipment manufacturing enterprises. The third stage, six equipment manufacturing development of service industry in the first two-phase drives the development velocity of fabricated metal products, and the 4S in Liaoning pilot focus on high-end product display and service experience of fabricated metal products should be taken at first place, which made seven of Liaoning equipment manufacturing industry to achieve international manufacturing standards and realized the brand benefit of “made in Liaoning province”. Only in this way can Liaoning 4S service pilot high-end equipment manufacturing product-customer interaction experience be maximized in a short period with limited resources and technical environment so that Liaoning equipment manufacturing enterprises can successfully realize high-end service transformation.
4S service pilot experience of high-end equipment manufacturing products-customer interaction under postponement strategy is a kind of equipment manufacturing industry production and organization of high-end new development mode of service, the equipment manufacturing enterprise cooperation and communication with the customer’s production idea, mass customization production of high-end equipment manufacturing industry products, and then extended manufacturing enterprise production chain, service chain, value chain, to achieve green equipment manufacturing to improve the efficient allocation of resources, improve the competitive power of manufacturing enterprises. This paper focuses on the equipment manufacturing industry of high-end customer interactive mode with the bulk of the postponement of service customization production research, from the perspective of postponement strategy applied in commercial practice, analyzes the feasibility of the 4S service pilot high-end equipment manufacturing product – customer interactive model applied in the equipment manufacturing industry development around China, and get the conclusion of the following aspects.
4S service pilot mode will become an important way for the service transformation of China’s equipment manufacturing industry. And it can not only help enterprises to achieve cooperation with customers to produce, can also inspire the innovation of science and technology development of the enterprise, reduce manufacturing enterprise high-end products production cycle and consumption, realize the scale of green manufacturing, at the same time, drive manufacturing enterprise in the smile curve of service value chain of low-end to carry out service-oriented production, create more product value, and improve the transformation of service-oriented equipment manufacturing enterprises. postponement strategy is the hub of 4S service pilot high-end equipment manufacturing product-customer interaction experience model. The postponement strategy can scientifically develop the high-end equipment manufacturing products of 4S service pilot – the customer interaction experience process in two stages, namely, the upstream standard universal parts or modular scale production stage of COPD. And COPD downstream mined customized production stage of customer demand starting from customer value makes the development of 4S service pilot more targeted and scientific. Therefore, the postponement strategy can not only make the manufacturing enterprises and customers in the 4S service pilot achieve a win-win result but also be the key to promote the service-oriented development of equipment manufacturing enterprises. The development of high-end equipment manufacturing products in 4S service pilot – customer interaction experience largely depends on the industrial strength of equipment manufacturing enterprises. From the perspective of the strength and industrialization development status of service manufacturing enterprises in Europe and America, the gap between the most industrial technical strength and equipment manufacturing enterprises in China is obvious, and many key technologies need to be imported, which also determines that the development of high-end service manufacturing in China still has a long way to go 4S service pilot development not only emphasizes product-customer interaction but also focuses on the industrial strength of manufacturing enterprises, which provide effective technical support and basic guarantee for high-end equipment manufacturing products and promote the harmonious coexistence of manufacturing and service.
Footnotes
Acknowledgments
This article is funded by: High-quality backbone professional project of the Ministry of Education “Liaoning Province high level characteristic specialty group – e-commerce specialty group”.
Project of China Talent Research Association “Research on the Construction of Talents Team Promoting the ‘One Belt And One Road’ Strategy” (Grant NO: ZRH-2044).
Shenyang Social Science Project“Research on talent chain cultivation of cross-border e-commerce merchants in Shenyang based on the integration of industry and education” (Grant NO: SYSK2020-29-06).
Shenyang science project “Research on the system and mechanism of Shenyang industrial technology innovation research institute” (Grant NO: 17-232-5-08).
Shenyang industry innovation resource report preparation (Grant NO: 2019-0-43-027).
Shenyang Vocational and Technical College project “Project construction and research of online store operation course resource database”.
