Servitization of Machine-Tool Trading  Company to Value Orchestration  Platform: Visualization of Japanese Integral-Modular Strategie

Kazuhiko Goda; Kyoichi Kijima

doi:10.4236/jssm.2015.83037

Home > Journals > Business & Economics > JSSM

Journal of Service Science and Managemen... > Vol.8 No.3, June 2015

Servitization of Machine-Tool Trading Company to Value Orchestration Platform: Visualization of Japanese Integral-Modular Strategie ()

Kazuhiko Goda¹, Kyoichi Kijima²

¹Goda Shoji Co. Limited, Takamatsu, Japan.
²Graduate School of Decision Science and Technology, Tokyo Institute of Technology, Tokyo, Japan.

DOI: 10.4236/jssm.2015.83037 PDF HTML XML 3,103 Downloads 3,599 Views Citations

Abstract

It is controversial whether or not Japanese manufacturing is already in decline and the Japanese model of manufacturing that drove past decades of the industrial and economic growth has lost the power. It is though true that Japan needs to develop a new and innovative business model for manufacturing in the years ahead. The present paper aims at (1) arguing that Japanese manufacturing requires transformation from integral-technology-based to modular-technology-based as well as their co-existence and (2) visualizing strategies for supporting them in practical terms. We in particular claim that in the transformation Machine-Tool Trading (MTT) companies should play a crucial role in getting servitizatized and functioning as project producers. We discuss roles and functions to be expected from servitized MTT companies by using the value orchestration platform model with quality control 7 tools as a reference. We also illustrate a roadmap for an MTT company to be servitized based on some real observations as well as the authors’ experiences.

Keywords

Servitization, Value Orchestration Platform, Quality Control, Modular Business Model, Machine-Tool Trading Company

Share and Cite:

Goda, K. and Kijima, K. (2015) Servitization of Machine-Tool Trading Company to Value Orchestration Platform: Visualization of Japanese Integral-Modular Strategie. Journal of Service Science and Management, 8, 349-364. doi: 10.4236/jssm.2015.83037.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	Fujimoto, T. (2013) The Prospects to Manufacturing 2030 in Japan. Harvard Business Review Japan, March. (In Japanese)
[2]	Fujimoto, T. (2006) Manufacturing Theory and the Software—From a Viewpoint of Organization Capability and Architecture. Material of the 25th Software Quality Symposium (Union of Japanese Scientists and Engineers), Tokyo, 14-15 September 2006. (In Japanese) http://d.hatena.ne.jp/sessamian/20060917
[3]	Baldwin, Y. and Kim, C. (2000) Design Rules: The Power of Modularity. MIT Press, Cambridge.
[4]	Fujimoto, T. (2004) Japanese Manufacturing Industry Strategy and Cooperation between Companies—From a Viewpoint of Organization Capability and Architecture. Document of the 2nd Management Support Sectional Meeting of Ministry of Economy, Trade and Industry, Tokyo, 14 October 2004. (In Japanese) http://www.meti.go.jp/committee/downloadfiles/g41007c40j.pdf
[5]	Vargo, S., Maglio, P. and Akaka, M. (2008) On Value and Value Co-Creation: A Service Systems and Service Logic Perspective. European Management Journal, 26, 145-152. http://dx.doi.org/10.1016/j.emj.2008.04.003
[6]	Neely, A. (2007) The Servitization of Manufacturing. Proceedings of the 14th EurOMA Conference, Ankara, 17-20 June 2007. http://www.cambridgeservicealliance.org/uploads/downloadfiles/2011-The%20servitization%20of%20manufacturing.pdf
[7]	Chino, M. (2010) Does The Problem in 2012 of a Post-Baby Boom Generation Occur? The Bureau of Statistics of the Ministry of Internal Affairs and Communications Website.
[8]	Baldwin, Y. and Kim, C. (2004) Modularity in the Design of Complex Engineering Systems. Division of Research, Harvard Business School, Boston.
[9]	Kijima, K. (2014) Service Systems Science: Translational and Trans-Disciplinary Approach to Service Systems. In: Kijima, K., Ed., Service Systems Science, Springer, Tokyo, 37-54.
[10]	Kijima, K., Rintamaki, T. and Mitronen, L. (2013) Value Orchestration Platform and Value Co-Creation Process: A Hierarchical Service Systems Model and Its Implications. A Presentation at the Naples Forum on Service, Naples.
[11]	Toivonen, M. (2004) Expertise as Business: Long-Term Development and Future Prospects of Knowledge-Intensive Business Services (KIBS). Helsinki University of Technology. https://aaltodoc.aalto.fi:443/handle/123456789/2469
[12]	Kosaka, M. (2013) Progressive Trends in Knowledge and System-Based Science for Service Innovation. IGI Global, Hershey.
[13]	Spohrer, J., Vargo, S.L., Caswell, N. and Maglio, P.P. (2008) The Service System is the Basic Abstraction of Service Science. Proceedings of the 41st Hawaii International Conference on System Sciences, Big Island, 7-10 January 2008, 1-10. http://dx.doi.org/10.1109/hicss.2008.451
[14]	Matsushita, H. and Kijima, K. (2014) Value-in-Context of Healthecare: What Human Factors Differentiate Quality of Nursing Service? Service Science, 6, 149-160. http://dx.doi.org/10.1287/serv.2014.0075
[15]	Asaka, T. (1980) Quality Control. Japan Standards Association. (In Japanese)
[16]	Berger, W. and Benbow, R. (2007) The Certified Quality Engineer Handbook. ASQ Quality Press.
[17]	Nonaka, I. and Takeuchi, H. (1995) The Knowledge Creating Company. Oxford University Press, New York.
[18]	Mori Seiki Company (2004) Annual Report on Final Accounts of Mori Seiki Co. Ltd. Mori Seiki Co.
[19]	Goda, K. and Kijima, K. (2014) Servitization of Machine-Tool Trading Company to Value Orchestration Platform: Japanese Integral-Modular Strategies in Quality Control Perspective. Proceedings of the International Conference of Knowledge and Systems Science, Sapporo, 1-2 November 2014, 161-168.
[20]	Kano, N. (1996) Guide to Tqm in Service Industries. Asian Productivity Org.
[21]	Prahalad, C. and Hamel, G. (1990) The Core Competence of the Corporation. Harvard Business Review, May-June.
[22]	Sanno University (2008) Research Institute—Business Ethics Research Project. “Practice”—Business Ethics and Corporation Compliance. SANNO Institute of Management Publication, October.
[23]	Winslade, J. and Monk, G. (2008) Practicing Narrative Mediation. John Wiley & Sons, Hoboken.
[24]	Ito, Y. (2004) Machine Tool Engineering. Corona Publishing, Tokyo. (In Japanese)
[25]	Yamane, Y. (2013) Basic Knowledge to Perform the Cutting of Difficulty Cut Materials. Machine Technology. Nikkan Kogyo Shimbun. (In Japanese)
[26]	Yokoyama, A. (2012) Basic Knowledge of Steel Materials and the Cutting from the Viewpoint of Elements. Nikkan Kogyo Shimbun. (In Japanese)
[27]	Smith, T. (2008) Cutting Tool Technology. Springer Science & Business Media, London.
[28]	Brown, T. (2009) Change by Design. Harper Business, New York.
[29]	Ito, J. (2013) Practice of “The Learning” to Begin with Deviation: Change a Town by Power of the Innovation. MIT Media Lab Creative Talk “Learning Creative Learning” Academy Hills Website.
[30]	Lai, C. (2010) How to Use the Concept of Servitization of Manufacturing to Increase the Value-Added to Its Product Towards Its Customers. Etd.Lib.Nsysu.Edu.Tw, Kaohsiung.
[31]	Ping, W. (2010) Research on Servitization Based on Circulation Economy. Advanced Management Science (ICAMS).
[32]	Lee, J. and AbuAli, M. (2011) Innovative Product Advanced Service Systems (I-PASS): Methodology, Tools, and Applications for Dominant Service Design. The International Journal of Advanced Manufacturing Technology, 52, 1161-1173.