The development of equipment manufacturing industry: service innovation

Abstract Recently, Deloitte & Touche Co., Ltd. and China Machinery Industry Federation jointly released the report “Innovative Survey on China's Equipment Manufacturing Industry in 2014”. The report emphasizes that manufacturing service and service innovation are Chinese manufacturing...
Recently, Deloitte & Touche Co., Ltd. and the China Machinery Industry Federation jointly released a report on "Fangyuan's Innovation and Innovation--2014 China Equipment Manufacturing Service Innovation Survey". The report emphasizes that manufacturing service and service innovation is one of the important ways to upgrade China's manufacturing industry, and it is also an important manifestation of the integration of industrialization and informationization.

The report pointed out that the equipment manufacturing industry is a core component of the manufacturing industry and an important indicator for measuring the degree of industrialization of a country. The service manufacturing level and service innovation capability of the equipment manufacturing industry are the epitome of the current situation of service innovation in the entire manufacturing industry. Based on the survey results of 198 equipment manufacturing companies and interviews with leading companies, the report deeply explores and analyzes the development direction and goals of China's equipment manufacturing industry on the long journey of service innovation, and the space for improvement in the future.

Dong Weilong, managing partner of Deloitte China's manufacturing industry, said: “Manufacturing service innovation means that manufacturing companies not only provide tangible products, but also improve existing service processes, improve service quality and service efficiency through new ideas and technologies in the service process. Expand service scope, update service content or increase service projects to provide customers with more professional, standardized or personalized services, and create new value for customers. Compared with technological innovation, service innovation explores how to satisfy customers and more. Close to the user, extending the value chain of the product."

In the face of market turmoil and complex market environment, in order to strengthen competitive advantage and enhance business growth, it is necessary to strive to meet market demand and explore new sources of profit. The survey found that China's equipment manufacturing enterprises have a strong driving force for service transformation and service innovation, but enterprises are still in the initial stage of service transformation. Although the concept of service transformation has become quite popular and highly valued in the industry, most Chinese equipment manufacturers have also developed a wide variety of service content, from the “quality remedy” stage to the “differentiated competitor” stage, but The net profit contribution rate of these service activities is generally lower than 10%, which shows that the role of manufacturing services has not yet reached the stage of “profit creator”.

The survey also found that the value orientation of equipment manufacturing service innovation is more from the supply side rather than the demand side, and the product-based extension service is mainly based on the lack of attention to other stakeholders. The center's total solution or independent service business.

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