Title: Strategy, structure, and channel for global leaders of industrial service: a flow chart analysis of the expanded value network

Authors: Yu Sang Chang

Addresses: KDI School of Public Policy and Management, 87 Hoegiro Dongdaemun Gu, Seoul 130-868, South Korea

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 services; service leaders; expanded value chains; service portfolios; front-line services; back-up services; service strategies; service organisations; service structures; global leaders; flow chart analyses; flow charts; service expansion; service integration; core products; Caterpillar; construction equipment; mining equipment; engines; industrial turbines; Johnson Controls; energy efficiency; operational efficiency; automotive batteries; interior systems; automobile industry; Pitney Bowes; mail stream technology; SKF; Sweden; ball bearings; USA; United States; multinational corporations; MNCs; multiple service organisations; independent service organisations; modular structures; organisational structures; service units; combined channels; sales channels; service channels; service sector; global economy; services technology; services management.

DOI: 10.1504/IJSTM.2012.048539

International Journal of Services Technology and Management, 2012 Vol.17 No.2/3/4, pp.138 - 162

Published online: 31 Jul 2014 *

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