ISEC– Innovative Service
CTI 8000.1 ESPP-ES
Researchers:
F. Seite, Dr. R. Alard, Prof. P. Schönsleben
Partners:
Academic:
Institute of Technology Management at the University of St. Gallen (ITEM HSG)
Industrial:
Bucher-Gyer AG, Foodtech;
Bosch Sigpack Services;
Bystronic-Glass AG;
Joseph Koch AG;
Saurer Textile AG;
Witschi AG;
Funding:
partially financed by CTI 8000.1 ESPP-ES
Motivation
The machining and plant industry in Switzerland is constantly facing more intensive competition. Led by this pressure, many companies managed to establish industrial services as a competitive advantage and as a source for greater revenue. In Asia and especially China customers do not seem to be attracted by the service offerings, and Swiss companies exporting their goods to China struggle to attain the same success that they have with services in Europe. Meeting Chinese customers’ needs
and raising service profits must be made possible through redesigning traditional service products, improving local marketing, and performing attractive services in China.
Objectives
ISEC aims at raising service revenue of the Swiss machining and plant industry in China. Through analysis of Chinese customers the partner companies will be enabled to establish profitable service businesses in China. The following aspects will be examined:
- Identify customer needs concerning industrial services and barriers in selling services in the Chinese market;
- Adapt service products of partner companies in order to meet Chinese customer demand;
- Enable companies to set up a stable service organization in China;
- Show opportunities to drive local marketing of services;
- Develop methods to manage a balance between charging for services and using them as a sales argument.
Results
Based on interviews with customers of our industrial partners, requirements regarding service products were identified, showing differences in comparison to their European customers. Chinese customers’ demands are more heterogeneous than in developed economies. With minor changes in conditions, service contracts could be sold to some customers from the well-developed coastal areas. In less developed areas, a large amount of customers still tend to invest little in the maintenance of their equipment and strive for minimal costs in the short term. Additionally, topics like employee recruitment, qualification and retention were addressed with the partner companies, allowing an exchange of good practices. The results can be found in several scientific and practical publications.