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Upgrading models, evolutionary mechanisms and vertical cases of service-oriented manufacturing in SVC leading enterprises: Product-development and service-innovation for industry 4.0

Author

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  • Hongda Liu

    (Tongji University)

  • Haifeng Zhao

    (Tongji University)

Abstract

To address Industry 4.0, service-oriented manufacturing unifies the development track of product development and service innovation and constructs a high-quality transformation path based on the service value chain. Therefore, analyzing the specific strategy of service-oriented manufacturing and clarifying its static connotation and dynamic evolution direction have become important topics in academic circles. First, based on the core logic of value creation, the upgrade model and critical contents of service-based manufacturing are studied and summarized using upgrade theory, guided by the evolutionary theory of enterprise deoxyribonucleic acid (DNA). Combining the service value chain (SVC) characteristics of leading enterprises, the influence mechanism of autonomy and otherness on service-oriented manufacturing is clarified. Second, the upgrade model content and upgrade evolution mechanism of service-oriented SVC manufacturing among leading enterprises are summarized. Four upgrade patterns—traditional manufacturing, service-based manufacturing progressive upgrade, and service-based manufacturing breakthrough upgrade I and II—are formed. The Hai Feng Ju Zhen (in Chinese; HFJZ) matrix of the guiding framework of service-oriented manufacturing development is finally formed using the service and manufacturing trends of enterprise revenue-cost. Finally, the complete process of service-oriented manufacturing is identified, presented, and explored using the vertical case of Aviation Industry Corporation of China (AVIC) High Tech. The logical evolutionary framework of resource–capability–advantage–development guides enterprises to construct a spiral development system involving the static upgrading-dynamic evolution of service-oriented manufacturing. We also verify the practicability and regularity of each stage in service-oriented manufacturing through the actual case of AVIC High Tech. We find that enterprises should follow the logic of value creation and use the active introduction of service factors to break the bondage of diminishing production factors. The product development and service innovation of service-oriented manufacturing can double-track and thus should achieve the synergistic construction of the supply chain, value chain, and innovation chain. The upgrade mode of service-oriented manufacturing should be compatible with the state of an enterprise and should not blindly service and lead to the stagnation of development. Scientific research and judgment in terms of a service-oriented manufacturing trajectory and the construction of a development state compatible with service-oriented manufacturing are the keys to the formation of SVC-leading enterprises.

Suggested Citation

  • Hongda Liu & Haifeng Zhao, 2022. "Upgrading models, evolutionary mechanisms and vertical cases of service-oriented manufacturing in SVC leading enterprises: Product-development and service-innovation for industry 4.0," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-24, December.
    • Handle: RePEc:pal:palcom:v:9:y:2022:i:1:d:10.1057_s41599-022-01409-9
    DOI: 10.1057/s41599-022-01409-9
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