Tim Kessler

Service transition in the automotive industry

Service transition has found its way into the automotive industry in recent years. However, the comparison with the mechanical engineering industry reveals that the service business of the automotive industry is still at the beginning. We raise the questions of why automotive companies increasingly diversify into services and if they have any advantages compared to other firms. To answer these questions we investigate the changing business environment in the automotive industry and take a closer look at general characteristics and advantages of services as compared with manufacturing activities. In the paper, we develop a process model of service diversification on the theoretical grounds of the resource-based view of the firm. The process model aims to explain the service transition process in the automotive industry. In the case study of BMW, a corporate strategic approach to becoming an integrated mobility provider is presented and analysed.

Competence-based Strategies of Service Transition

As an answer for the limited growth potentials of diversification and internationalization, services became increasingly important for industrial firms in recent years. Based on existing and established business concepts, companies explore new segments in their traditional value chains beyond traditional market penetration strategies: they pursue service transition strategies to open up new sources for growth, even in markets that do not promise great expansion potential. Our paper addresses the issue of economies of scope of service transition. In this context, we first explore the question, to what extent the insights about product diversification strategies from physical goods sectors can be transferred to the service sector. Using competence-based considerations on diversification we focus on dynamic economies of scope, whose central idea is exploration and development of new resources rather than the static exploitation of existing ones. Furthermore, we integrate the largely neglected issue of how the phenomenon of service diversification depends on the industrys life cycle stage. In a small empirical study of the German mechanical engineering industry we demonstrate that diversification steps into services require a shift in the resource and competence base of firms. Using a dynamic perspective, we construct a conceptual framework for analyzing and explaining the advantages of service transition strategies. The developed model describes a service diversification trajectory and points out that the establishment of a profitable service business requires the exploration and development of competences and adequate organizational structures.

How Digitization Affects Mobility and the Business Models of Automotive OEMs

Digitization has affected almost every industry during the past decade. The unprecedented pace at which digital technologies spread and penetrate society, individual life, and businesses specifically puts mature companies at risk. Within the automotive industry, digitization brings new players to the table, shifts the technological focus from physical to IT, enables customers to bring in their changing understanding of mobility, and makes them an ever more valuable source of information. Moreover, digitization affects the value creation process and emphasizes the importance of multilateral cross-company cooperations. This is also highlighted by the fact that most automotive companies currently lack the necessary competences to succeed in an increasingly software- and IT-dominated environment. The companies BMW, Porsche, and Tesla serve as examples for how car manufacturers deal with the digitization challenge and how they adapt their technological and service portfolio accordingly. We seek to enrich the understanding of how the rise of digital and networked technologies affects the business and business models of car manufacturers and provide suggestions on how they should react to turn these disruptive forces into business advantage. In this context we take a look at how automotive OEMs can integrate themselves into digital business models and mobility concepts of the future.

Gesundheits- und Fitness-Apps : Fluch oder Segen für das Gesundheitswesen?

Mobile Applikationen (Apps) stellen die haufigste Mensch-Maschine-Schnittstelle dar und durchdringen samtliche Bereiche des Alltagslebens ihrer Nutzer. Getrieben durch den Aufbau und die Auslegung mobiler Okosysteme kommen zahlreiche neue Anbieter auf den Markt. Das Angebot an und die Nachfrage nach Apps fur den Gesundheitsmarkt steigt unaufhaltsam und stellt somit ein vielfaltiges Feld fur Innovationen und Entrepreneure dar. Aufgrund der niedrigen Zugangsbarrieren konnen bereits Privatpersonen ohne tiefgreifende Programmierkenntnisse uber Software Development Kits Apps jedweder Art und jedweden Inhalts uber die jeweiligen Appstores anbieten. Dies fuhrt auch auf dem Gesundheitsmarkt zu einer massiven Ausdehnung des Wertangebots fur die Nutzer mobiler Okosysteme. Das Kapitel beleuchtet die Wirkungsmechanismen und die Innovationskraft der App-Markte, zeigt einen Marktuberblick uber aktuelle Angebote auf und wurdigt die Entwicklung aus Sicht des Gesundheitswesens kritisch.

The automotive industry on its way towards integrated mobility services

Service transition has found its way into the automotive industry in recent years. However, the comparison with the mechanical engineering industry reveals that the service business of the automoti...