Strategy, Structure, and Channel of Industrial Service Leaders

Abstract

Services are gaining ever more importance in every economy in the world. In reflection of the overall trends, manufacturers are being advised to expand and integrate their service offerings to the core product offerings.

However, the number of empirical academic studies on the topic is still limited in both number and scope.

The objective of this paper is to answer the question, “What does it take to become a global industrial service leader?” Thus, case studies are undertaken on four global service leaders – Caterpillar, Johnson Controls, Pitney Bowes, and SKF.

Findings in order of importance include the need to view one global service market, the completeness of the service leader’s service portfolio, multiple independent service organisations in operation, modular organisational structure of service units, and the use by a service leader of its own combined sales and service channels. This report highlights several limitations of its research findings and concludes with some specific suggestions for future research.

Keywords: industrial service; service leaders; expanded value chain; service portfolio; front-line service; back-up service; service strategy; service organisations

JEL Classification: M10, L10