Research On The Servitization Decision-making Model In Chinese Heavy Machinery Manufacturing Enterprises

Manufacturing enterprises’servitization is the important trend of economic development and business model innovation. As one of the national fundamental industry, heavy machinery manufacturing is an important index of a country’s modernization level. In the new period, the servitization transformation of heavy machinery manufacturing enterprises is imperative. However, domestic research in this area is mainly about case studies. Systematic servitization decision-making model is still limited. As a result, this paper is aimed to build the systematic servitization decision-making model of Chinese heavy machinery manufacturing enterprises based on servitization theories and enterprises’ related researching status.This paper analyzed current servitization research status home and abroad, the development conditions and difficulties of Chinese heavy machinery manufacturing enterprises, as well as the design method of servitization decision-making model related through literature research method, empirical research method, etc. Coming up with the general decision-making method and process, and the environmental conditions of Chinese heavy machinery manufacturing enterprises, which help to the determination of5evaluation indicators and the model optimizing method——analytic hierarchy process. Multiple targets was proposed and the servitization decision-making model should include both strategy and operation areas.Based on the above contents, this paper reached to5accomplishments. Firstly, determine6kinds of enterprises resources and6kinds of enterprises capabilities, as well as3targeting factors (financial performance, customer performance and environmental performance) by analysis of the servitization requirements and environmental conditions of Chinese heavy machinery manufacturing enterprises. And obtaining7service activities by literature research and empirical research. Secondly, this paper built the strategic decision-making model of Chinese heavy machinery manufacturing enterprises based on above factors and their relationship. Which can be further divided to strategic target-capability model and capability-resources model, and the first model defined the necessary capabilities of servitization transition while the second model, determined the relationship between enterprise capabilities and resources. Thirdly, this paper constructed the operation decision-making model based on above factors to find the way to servitization transition,and this model could also be explained as a cycle decision-making process with continuous improvement method. Fourth, according to expert scoring, this paper identified the relationship between6capabilities and resources, and further referencing QFD theory, clarified the relationship between service activities and enterprises capabilities, and the importance of different service activities to decision-making targets. Fifth, optimizing the strategic and operation servitization decision-making model through analytic hierarchy method. Sixth, the heavy machinery manufacturing enterprises was devided into3types according to enterprise scale, and validating the stragic decision-making model, operation decision-making model, optimizing model and its main conclusion by the servitization practice of3representitive heavy machinery manufacturing enterprises.Further, this paper evaluated the strategic and operation decision-making model according to5indicators related to Chinese heavy machinery manufacturing enterprises’servitization transformation process. And getting the conclusion that both decision-making models could meet the5indicator requirements. Other conclusion included2points. There existed significant positive correlation between enterprise capabities and resources. Different service activities had different requirements for the species and quantity of heavy machinery manufacturing enterprises’capabilities. In addition, the conclusions of optimization model included2points. First, the3operation decision-making targets were affected by enterpeise scale, life-cycle, enterprise capcbility and resource. Second, there existed positive correlation between enterprise scale and type and quantity of service activities. Further, the extended service of product related is very important to all kinds of heavy machinery manufacturing enterprises.The significance of this paper is located in two points. First, this paper helps Chinese heavy machinery manufacturing enterprises to accomplish servitization transformation under a continuous improvement way. Second, this paper analyzed the comprehensive influence of decision-making targets and enterprise capabilities to service activities selection, which has a more important practical significance. The achievements of this paper deepened the research in the area of the servitization prosess of manufacturing enterprises, and enchance the knowledge and points of servitization.