Service Business Management Environment – What is it?

Industrial Internet holds a great promise for manufacturing industries. Yet, turning plans for Industrial Internet and digital services into actionable and lucrative business has remained difficult.

The new approach developed by Future Industrial Service WP3 helps to build and manage digital services – and thus promotes Industrial Internet with confidence. We call the approach Service Business Management Environment (SBME).

On the whole, service business management (SBM) belongs to the larger area of information technology (IT) service management and calls attention to handling IT’s role in the more comprehensive business strategy. It also stresses delivering IT processes that are centered on an understanding of the organization’s most critical requirements. Improving relationships with customers, uncovering revenue-producing opportunities and improving quality of service is the final purpose of SBM. Service business management processes are focused on the service delivery and profit creation through the assistance of technology in a more proactive, rather than reactive, manner.

Service Business Management Environment (SBME) is a comprehensive decision-making and managing environment (concept, processes, and tools) for manufacturing companies to build and manage service business based on installed base and service data. It functions by establishing a cross-functional working process for developing and managing service business. Through cross-functional alignment, SBME provides manufacturing companies with the “missing link” of Industrial Internet.

The framework of the SBME identifies key functions for developing digital services and it is ubiquitous, which means that any one of the functions can take the lead. Besides, it is hierarchically scalable including services process, unit, geography and corporation. Finally, it spans entire service ecosystem starting from customers to suppliers, channel partners, etc.

The functions of the SBME include Service Business Data, which combines data from installed equipment and customer operations, aggregated across individual equipment and customers into a fleet view involving the entire installed and customer base. Then, there is Service Operations that is connecting people at work or on the move, any time to support more intelligent design, operations, maintenance, and higher service quality and safety. Furthermore, Advanced Analytics combines the power of physics-based analytics, predictive algorithms, automation and deep domain expertise. Finally, Business Strategy combines service strategies, offering development, contract management and effort to commercialize novel services.

How is the SBME approach to digital business development novel? In the current management approaches all datasets are silo-based whereas in the SBME environment datasets are integrated, stakeholders are aligned and focus is on value co-creation opportunities instead of operations data. Working style is collaborative and aims at joint success instead of zero-sum adversarial success in the current management approaches.

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