VIRTUAL ORGANIZATION OF AFTER-SALES SERVICE IN THE ONE-OF-A-KIND INDUSTRY

Transcription

1 VIRTUAL ORGANIZATION OF AFTER-SALES SERVICE IN THE ONE-OF-A-KIND INDUSTRY lngo Hartel 1, Stephan Billinger 1, Gerhard Burger 1, Yoichi Kamio 2 1Swiss Federal Institute of Technology Zurich- Center for Enterprise Sciences (El'HZ-BWI), ZOrichbergstrasse 18, CH-8028 Zurich, SWI1ZERLAND Tel: : lngo.hartel@ethz.ch 2Toyo Engineering Corporation 8-1, 2-Chome Akanehama. Narashino-Shi, Chiba , JAPAN Tel: : kamio@ims.toyo-eng.cojp One-of-a-kind producers face global competition. Companies that do not emphasize service activities often see gradually diminishing profits. Especially in small and medium-sized enterprises (SMEs), current service organi(ijtions are rooted in historical company concepts. These service organi(ijtions often do not support after-sales services in a global and dynamic marketplace. A possible solution is inter-organi(ijtional service collaboration in a virtual organi(ijtion. The paper introduces a model of the virtual service enterprise (VSE), which consists of dynamically arranged companies that are part of a service networlc. Different types of service networks and the process of sening up and operating a VSE are described. 1his organi(ijtional model of the VSE is currently being developed in the framework of the IMS GWBEMEN project. 1. INTRODUCTION Small and medium-sized enterprises (SMEs) manufacturing one-of-a-kind products often focus on engineering, procurement, and construction, while neglecting aftersales activities. Most one-of-a-kind products require advanced after-sales activities that demand distinct skills, abilities and knowledge. Therefore, providing after-sales services is closely linked with the actual service capability of the one-of-a-kind producer. Since SMEs often have very limited human and financial resources, a major problem is how to organize the delivery of after-sales services to the customer site. Within the local or regional market of the one-of-a-kind producer, traditional service organizations are mostly sufficient (i.e. service technician travels by plane to the customer). However, traditional service methods do not fulfill customer needs in distant markets. The cost of plant downtime does not allow for the travel time of a service technician, for example. In these circumstances, after-sales services require new organization to enable quick and reasonably priced service activities worldwide. This paper presents services terminology, evident service challenges particularly for SMEs, and models of existing service organizations. In a further step, the paper discusses the concept of the virtual service enterprise (VSE) as one organizational solution for after-sales services. The original version of this chapter was revised: The copyright line was incorrect. This has been corrected. The Erratum to this chapter is available at DOI: / _68 L. M. Camarinha-Matos (ed.), Collaborative Business Ecosystems and Virtual Enterprises IFIP International Federation for Information Processing 2002

2 406 Collaborative Business Ecosystems and Virtual Enterprises 2. SERVICES TERMINOLOGY AND DEFINITIONS The discussion on services often uses inaccurate service terminologies that lead to imprecise understandings of industrial services. The present authors developed the following terminology and definitions for after-sales services (Figure 1): The Service Component enables the fulfillment of industrial service needs with resources, knowledge, software, and hardware. The Service Organization defines the interaction partners during execution of the service process. The Service Process defines the execution steps of the service component. The Service Module consists of a service component and its interdependent service process and service organization, which are adapted to market needs and the social-cultural environment. The Service Product consists of one or several service modules, which through its single or their combined characteristics target distinct customer needs. Service Product consists or one or scvcnl service modules, which through its single or their combined characteri lies target dislincl customer needs. SerykeMoclgle coa&illl of a service componau aacl ill illfeldepoodeat proccuud lel'yic:e Figure 1 - Service component, module, and product. Examination of various industry cases shows that many one-of-a-kind producers have existing service components that derive from engineering or research departments that have profound knowledge in particular technological fields. The major constraints for these companies are inappropriate service organizations and processes as well as the inexistence of target marketing, which are all essential for the creation of successful service products. The actual situation in many companies usually consists of an array of service modules that are not based on consistent service management. Figure 2 shows a possible categorization for life-cycle oriented service management. One dimension of Figure 2 shows how service modules can be categorized by the type of communication between the one-of-a-kind producer, potential service partners, which are service companies, sub-contractors or suppliers, and the customer (Burger, 2001):

3 Virtual organizations of after-sales service General Support consists of service modules that involve the use of basic means of communication, such as spoken words, , fax, Internet chat, and soon. 2. Self Support utilizes aids and information that a one-of-a-kind producer, or service partner, makes available without playing an active role in their use. No person-to-person interaction takes place between the one-of-a-kind producer, or service partner, and the customer. 3. Remote Support is interaction between one-of-a-kind producer, service partner, and customer supported by information and communications technology (ICT). This requires the exchange of images or machine data and can take place with audiovisual aids. 4. On-Site Support requires that an employee of the one-of-a-kind producer or service partner is present at the customer's plant. The second dimension of Figure 2 shows how the categorization of individual service modules allows for utilization of the service model for all sales phases throughout the entire sales life cycle. The service modules shown in Figure 2 are examples of the modules that many companies use. They have distinct underlying service components, processes, and organizations. 1. Geuenl Support E I :2. Sdf Support I (... l"'mw!igo I PrpdiKt ljiiilljiiijriil Pllidws SEn I St(hnn Dmralwd ' ' ltnpubfnlloocim Digltw 3. R-Support 4. Oo-Site Support Ranolt0vtJmtytf91 I RCIMIIc Coptal,,.,._s;ppprt llmpc<siel Figure 2- Service model with existing service modules of a company (Burger, 2001). The service model reveals that many service modules can also be utilized in the sales and pre-sales phases. For example, remote consulting can take place in presales (advice on quoting) as well as in sales (modification of the installation construction during manufacturing) and in after-sales (providing help for the repair of machines). With regard to the arrangement of the modules in this service model, it is important to take into consideration that in the one-of-a-kind industry the distinctions made among the individual sales areas may vary. Moreover, the service model is used to categorize individual service modules, not service products. "24h service," for example, is a service product that might consist of a 24-hour Hotline that can utilize all other services. Using the service model, it is possible for the provider of industrial services to structure its own service products according to predefined classes, to build them up in a unique fashion, and to make them available

4 408 Collaborative Business Ecosystems and Virtual Enterprises to a defined group of users. The users might be, for example, internal departments within the manufacturing company itself, service partners, or customers. 3. INDUSTRIAL SERVICES IN AFTER-SALES One-of-a-kind producers face worldwide competition that challenges traditional strategies aiming towards leadership in technology, quality, or customizability. The customers' willingness to pay more for these aspects is decreasing, due to worldwide awareness and ability to fulfill these customer needs. Finding new fields of business requires the distinction of current products. The field of after-sales services is one opportunity that enables this distinction, because the existing service structure is underdeveloped within many SMEs. For example, customers are unwilling to wait for service technicians who have to travel around the world. As a result, after-sales services for distant customers are inadequate compared to services for near-by customers. As one solution, a number of companies have developed remote services using information and communications technologies (ICf) to assist customers worldwide. Nevertheless, this solution excludes significant aspects of after-sales services, such as having acceptable spare parts on-site. A survey conducted by the Center for Enterprise Sciences (BWI) at the Swiss Federal Institute of Technology in 206 companies in Germany and Switzerland reveals that after-sales services have significant potentials for further developments (Hartel, 2001a). One part of this survey investigated the types of organization and processes found today in after-sales. Figure 3 shows that after-sales is structured primarily according to product groups and functional requirements. Only 17% of after-sales organizations are structured according to local or regional requirements. However, the authors' research has shown that the fulfillment of on-site needs is customers' primary concern. Only large companies have the capability to develop and establish worldwide service structures that enable rapid adequate after-sales services. SMEs lack this capability. According to product groups Functional (according to tasks) Process oriented According to the region or country According to groups of customers Others :JJ =:34 0'1> '1> Figure 3- Organization of after-sales within the company (Hartel, 200la). One solution for the lack of local presence could be cooperation among several SMEs. The BWI survey reveals that numerous examples of service cooperation already exist within various fields (Figure 4). These service cooperation arrangements consist primarily in on-site activities. Rather few companies use

5 Virtual organizations of after-sales service 409 advanced service networking (mutual service conception and management) with other companies. Figure 4 also shows that overall willingness towards future cooperation is low; the only exceptions are the areas of information exchange and planning of services. 61 On-site Servioes... Management of Spare Pans Planning of Servioes 1.1 l8 Information Exchange 2.7 On-site Asset and Organization Management Conception and Management 1.1 of Contracts.., Call Center Management 70'l& O'l& 3 Avmse dilpooition fa< cooperation wilhin the next.- yean (1:.,.u, = Figure 4- Fields of cooperation with other companies (Hartel, 200la). The authors' examination of actual industry cases suggests that the low willingness towards cooperation derives from a lack of inter-organizational service concepts. Service networks amongst several SMEs could create the capabilities required for the establishment of remote after-sales services. hiah> 4. FORMS OF SERVICE ORGANIZATION TODAY There are varying ways in which companies can collaborate. Companies may form strategical alliances, joint ventures, consortia, associations, extended enterprises, or virtual enterprises. Or they may outsource or franchise tasks. In the literature you find a number of different definitions for each of these terms. The most common forms of cooperation in after-sales service are (descriptions follow Arnold, 1995; Gora, 2001; Picot, 2001; Wiwi, 2001): Strategic alliance: Collaborative partnership of two or more companies involving individual or several business functions, whereby each of the partners in an alliance remains a distinct, independent entity. Capacities are pooled in order to achieve advantages of scale through an increased market share or knowledge synergies. Examples: frequently used for markets with strong demand shifts; buying consortia for procuring spare parts to mutual benefit. Outsourcing: Outsourcing is an arrangement where a specialized provider takes over entire areas of function or processes that will no longer be provided inhouse; complete responsibility and obligations to provide the services are turned over to this provider. This form of cooperation is seen in after-sales services where service tasks require special know-how that the producer does not have, for example, or where certain markets cannot be handled economically and efficiently.

6 410 Collaborative Business Ecosystems and Virtual Enterprises Joint Venture: Two or more independent, distinct legal entities with separate assets join together under a contractual agreement to conduct a specific business, technical, or scientific enterprise. Joint ventures are sometimes formed due to political conditions, for example in regions where a producer of installations cannot reach the market unless domestic companies have a share (such as China). Extended Enterprise: Long-term, close collaboration between two or more companies in which all parties invest in modern information and communication technologies for seamless exchange of business data. In after-sales, this form of cooperation may invest in shared teleservice hardware or build a common communications network. Virtual Enterprise: A virtual enterprise is a form of cooperation between legal distinct entities: companies, institutions, and/or persons that are committed to achieving a collective performance goal on the basis of a common business understanding. The companies contribute to the virtual enterprise with their core competencies, and to the customer they appear to be one unit. The virtual enterprise exists only until its business purpose has been fulfilled or is no longer desired. In the area of after-sales, the virtual enterprise approach is in its infancy. One possible example is mentioned in section 5.5. All of these forms of organization vary in the degree of independence of the companies and in the closeness of collaboration. Figure 5 compares application areas for the above-mentioned forms of collaboration and for a company's own services in after-sales of a one-of-a-kind producer in view of these two dimensions. Willingness to cooperate Less cooperation Close cooperation Extended Enterprise ) Strategic Alliance ') Joint Venture ) Outsourcing Virtual Enterprise./ Independent Own Service ) Figure 5 - Forms of organization in the after-sales service. The decision as to what form of organization is the most appropriate for aftersales service in any particular case depends upon a number of further influencing factors.

7 Virtual organizations of after-sales service 411 These may be, among others: technical factors (technical feasibility, available ICT or electronic documentation), organizational factors (abilities of employees), company policy factors (trust in others, market strategies, social and financial reasons) or specific market factors (regulations, cultures, languages). Inter-enterprise collaboration in the form of a virtual service enterprise (VSE) as described in detail in the following is not possible without efficient and powerful ICT. This is particularly crucial where one-of-a-kind producers cannot afford to set up worldwide service networks, but customers demand short reaction time and rapid problem solutions or where potential markets for services is difficult to penetrate. The increasing automation of new machines and installations, in conjunction with their increased complexity in operating and maintenance means that ever more special know-how is required in servicing as well. This opens up new opportunities for SMEs, which often can apply their special abilities and knowledge in only limited areas. It is also conceivable that a virtual service organization can be built through companies that do not have their own products. 5. VIRTUAL ORGANIZATION Within the scope of virtual organizations, organizational units are created that are restricted to the primary business processes; this structural simplicity allows maximum efficiency to be achieved (Scholz, 1997). With regard to virtual organization and degree of virtuality, intra- and interorganizational forms can be differentiated. Inter-organizational forms of virtual organization are often called virtual enterprises, which are generally understood as partnerships of dispersed organizational units or independent companies (Malhotra, 2000). 5.1 Virtual Enterprise The types of enterprises in the network from which the virtual enterprises are generated and of the deliverables of the virtual enterprise can be categorized in four groups (Table 1). The virtual consulting enterprise investigates the customer's requirements for a product (such as a production facility), provides consulting so that the requirements are satisfied, and creates a proposal. The virtual project enterprise builds the product (the production facility) on the basis of the proposal. Usually, the customer of these two virtual enterprises is a member company of the virtual operation enterprise, which is the owner of the production facility. This virtual enterprise uses the production facility to produce the planned products (chemicals, for example). The virtual service enterprise offers services such as maintenance support, repair, or operation support to each company of the virtual operation enterprise (Kamio, 2001).

8 412 Collaborative Business Ecosystems and Virtual Enterprises T a bl e 1 - T o fv' ale aldlo, : lrtu nterpnses (K. 2001) Type of Virtual Examples of Type of Enterprises in Enterprise Deliverables the Network Virtual Consulting Proposal Documentation, System Integrators, One- Enterprise Consulting Service of-a-kind producers, IT Tool Vendors Virtual Project Manufacturing Systems, System Integrators, One- Enterprise Plant Systems, Machines of-a-kind producers, IT Tool Vendors Virtual Operation Processing Service, One-of-a-kind producers, Enterprise Assembling Service Service Companies Virtual Service Consulting and One-of-a-kind producers, Enterprise Maintenance Service, Service Companies, Sub- Repair, Training, Contractors, Suppliers Documentation In addition to the deliverables and types of enterprises in the network, the following characteristics generally distinguish these four types of virtual enterprises (Hartel, 2001b): Length of time required to build the virtual enterprise: time required for design and implementation (roll-out) of the virtual enterprise, Lifetime of the virtual enterprise: the period of time between roll-out and termination of the virtual enterprise, Number of network partners that, depending on specific market opportunity, band together to form the various virtual enterprises, Number of partners in the virtual enterprise that generate the deliverable (the product or service), Information and communications technologies and applications that are implemented during the lifetime of the virtual enterprise. Depending on the enterprise type, these characteristics can be expressed to very different degrees. In case of the virtual service enterprise, the time available for rolling out the enterprise and the lifetime of the enterprise are rather short. The number of partners that make up this enterprise is small. On the other hand, the number of partners in the network that can form a virtual service enterprise is rather large, because the service has to be provided to geographically dispersed customers. If on-site support is required, then one company must be on-call and in geographical proximity to the customer. The service network is thus made up of a great many companies having the same or similar core competencies. In the use of information and communications technologies and applications, the virtual service enterprise requires a higher mobility and standardization in order to be able to communicate among its parts rapidly and from frequently changing locations. 5.2 Model of the Virtual Service Enterprise With the focus on the one-of-a-kind industry, the virtual service enterprise (VSE) is defined as "a short-term form of cooperation to fulfill services among legally independent one-of-a-kind producers, service companies, suppliers or sub-

9 Virtual organizations of after-sales service 413 contractors in a service network of long-term duration" (Hartel, 200lb). The services aim to provide support to the customer in the operation of their machines and installations and to solve problems as immediately and as cost-effectively as possible. The main elements of the model are customers of one-of-a-kind producers, the service network with the network partners, and the resulting virtual service enterprises (Figure 6, Hartel, 200lb). Service network 0 Customers Figure 6 - Model of the virtual service enterprise (Hartel, 200 I b). Customers can be characterized by production location, type of the machines and installations, production processes, history of services, and modifications since production start-up. The size of the customer company may range from small and medium-sized enterprises with one production location to large corporations with a number of globally distributed locations. The customer plant can be made up of machines or installations purchased from one or more one-of-the-kind producers. A one-of-a-kind producer delivers machines or installations to the customers, which may be competitors. The service network consists of network partners. Network partners can be oneof-a-kind producers and a multitude of independent service companies, suppliers or sub-contractors. If there is only one one-of-a-kind producer in the network, then as a rule this producer will be responsible for network operation and customer contacts. The service companies, sub-contractors or suppliers would then fulfill service tasks (such as on-site inspections or the manufacturing of spare parts). The distinctive features of network partners are competencies, technical aids, and available ICT, locations, and capacities. The virtual service enterprise is formed of selected network partners. Together the network partners can fulfill the specified service. The service is divided into different tasks. Each network partner in the VSE is responsible for performing a part of these tasks in accordance with its competencies and available technical aids and ICf. Sometimes collaboration is necessary in order to perform a task, such as, for example, when a local service company repairs a machine by installing new spare parts but does not have the know-how to reset machine controls after completion of the repairs. Under the direction of the one-of-a-kind producer, however, the service company can do the resetting. Here the network partners depend upon modem ICT for coordination. Communication can be very efficient using video conferencing and application sharing, for example.

10 414 Collaborative Business Ecosystems and Virtual Enterprises An example of a virtual service enterprise is shown in Figure 7. The realized service product contains different service modules from the categories General Support, Remote Support, and On-Site Support (compare Figure 2). Figure 7 - Example of a virtual service enterprise. Scenario: A customer in Asia is experiencing machine down time. The cause of the failure is unknown. The customer contacts the Call Center of the service network. The Call Center registers the data and establishes a connection to the oneof-a-kind producer in Germany. Via a modem connection, the producer logs into the machine controls and performs diagnostics using special simulation software (Module: Remote Diagnostic). A failure database is searched for matches to the resulting diagnostic data. It becomes apparent that the problem is caused by the press roll in the machine. The measures required to solve this problem are now established and possible network partners chosen. As each hour of machine down time is very costly to the customer, the virtual service enterprise is configured in the way that best minimizes the time it will take to execute the service. A service company in proximity to the customer sets out for the customer's company. At the same time, a supplier in Australia is contracted to manufacture the new press roll (Module: Spare Part Management); the one-of-kind producer provides support for this complex manufacturing process (Module: Remote Training). The finished spare part is sent to the customer by courier. There, the technician of the service company has already begun to dismantle the press roll (Module: Repair). As this is a service task that the technician rarely performs, he receives support from a specialist at the one-of-a-kind producer (Module: Remote Consulting). For this support, an audio and video connection is set up between the customer and one-of-a-kind producer. As the diagnostics executed by the one-of-a-kind producer have revealed that the machine parameters were not set optimally, the technician optimizes the machine controls after completing the repair task (Module: Optimization). This scenario shows that the customer's demands (rapid repair of the machine failure at a reasonable cost) can be met only through joint problem resolution. In the common endeavor, each selected partner in the network contributes its skills, core competencies, or capacities. The one-of-a-kind producer alone would not be in a position to resolve the problem in a comparable period of time.

11 Virtual organizations of after-sales service Models of further types of Service Networks On the basis of the structure described for the service network (section 5.2), further types of networks are possible (see Figure 8). Service network with hosting provider: A hosting provider, rather than the one-of-kind-producer, takes on responsibility for network operation and contacts with customers. The hosting provider is in this case independent of the one-of-akind producer. Service network as marketplace: The service network contains several one-ofa-kind producers. With this, the number of customers that access the service network increases. Each one-of-a-kind producer makes its capacities in after-sales service available to the network. Here the one-of-a-kind producers are basically characterized by size, branch, and position in the value chain. Thus, networks can be comprised of companies of the same or different sizes and in the same or different branches. In this connection, size refers to the size of the company's own service department and, if it exists, the extent of its own network at external service centers. As to position in the value chain, company activities can be at the same level (socalled horizontal) or downstream or upstream levels (so-called vertical). Collaboration among companies within the same branch, and thus potential competitors, is necessary when a critical mass is required in global markets in order to gain an advantage over local service companies. Service network Service network wltb hosting provider Service network as marketplace Q Customer 0 Network panner One-of-kind produter.,6 Hosting provider Figure 8 - Service network models. If there are various one-of-a-kind producers in a network, the question of responsibility for network operation and contacts with customers must be clarified. Figure 9 shows some possible variants. External: None of the one-of-a-kind producers is responsible for network operation and customer contacts. Here an external company takes on these tasks as the hosting provider. Single: One of the one-of-a-kind-producers takes on the role of hosting provider. The company may exercise this role for the entire lifetime of the network or tum responsibility over to another one-of-a-kind producer at a later time. Mutual: All of the one-of-a-kind producers in the network share in the tasks of the hosting provider.

12 416 Collaborative Business Ecosystems and Virtual Enterprises "External" Hosting provider "Single" Hosting provider "Mutual" Hosting provider 0 Customer D Network plll1ner 0 One-of-kind producer 6,. Hosting provider Figure 9 - Responsibility in the service network type marketplace. Further differentiation of hosting provider tasks could lead to hybrid forms of host providing. For instance, the one-of-kind-producers might divide up the various tasks. Each would be responsible for particular part-tasks. Hierarchical structures are also possible. Responsibilities might also be divided up according to market or customer segmentation. 5.4 Process of setting up a Virtual Service Enterprise The fundamental processes of setting up and operating a virtual service enterprise take on a central role. If a customer reports a problem, it is essential that suitable network partners be selected as rapidly as possible - according to the criteria of competency, location, availability, and so on - and that the service tasks to be provided are managed and controlled. The following outlines a possible schema for proceeding that comprises four steps (see Figure 10). It starts with identification and analysis of the problem and proceeds to set-up of the VSE and fulfillment of the service and, finally, to documentation, feedback, and billing (Hartel, 2001b). Jdentiftcatlon and Service ) Documentation, analysis of tbe Enterprise fulftllment feedback, configuration problem and billing, ;;_....J ' J ' '. Figure 10 - Process of setting up a virtual service enterprise 1. Identification and analysis of the problem: The goal of this step is to identify the problem the customer is experiencing and to rapidly produce as accurate as possible a description of the problem. Once the problem has been identified, the measures required to solve the problem can be determined. If there is no clearly identifiable cause of the problem, measures to aid identification may be undertaken. These may include, for example, additional investigations with the help of electronic aids and systems (problem tree, diagnostic and expert systems,...j

13 Virtual organizations of after-sales service 417 and so on) or on-site analysis by a specialist. Once the measures have been decided upon, a VSE is set up and contracted to provide the service (see steps 2 and 3). 2. Enterprise configuration: The goal of enterprise configuration is to set up the VSE that can best deliver the service as defined by the given requirements. Based on the results of problem identification and analysis, the service needed is broken down into individual tasks and the competencies and aids that these tasks will require are identified. Taking the network partners' capacities into account, possible VSE combinations to fulfill the tasks are worked out. For each of these possible combinations, costs and time required for service fulfillment are calculated based on the location of customers and network partners. The optimal configuration of the VSE is finally determined on the basis of the given costs, time, and other restrictions using a solution procedure such as a heuristic, decision tree, or complete enumeration (see Figure 11 ). The division of tasks, the temporal process of collaboration, and the required ICT are documented in a process representation (such as an organization-oriented process diagram) and turned over to the companies involved. The diagram is constructed through the aid of a process and ICT library that contains standard processes and possible ICT combinations. Input Information Customer data - Type of machine and installation - History of fulfilled services L..{ Descripcion of the problem -Tasks - On-Site Support (yes/no) Network data -Capacities Customer data -Location Nerwork data -Location Customer Requirements -given cost - given time Restrictions and addit.ional factors Process and Icr library Determination of the required competencies and aids for the identified tasks Establishment of possible VSE combinations taking into account network partners' capacities Calculation of costs and time for service fulfilment Decision-making and determination of the q Required Cost Required Time Useoflcr Optlmal VSE v Process description Aids Figure 11 - Methodology for configuration of the virtual service enterprise 3. Service fulfillment: Service fulfillment begins with activating the necessary ICT infrastructure among the network partners involved. Depending upon the problem, service is fulfilled on-site, remotely, or on-site with remote support. In the case of on-site service fulfillment, in this step of the process - in addition to the electronic availability of information, data, and documents on the machine -

14 418 Collaborative Business Ecosystems and Virtual Enterprises the possibility for mobile, online communication with other VSE partners is particularly important. 4. Documentation, feedback, and billing: After completion of service fulfillment, the process of problem solution with all steps, utilized resources, and required time is documented. Any unusual experiences are reported to all network partners in the form of feedback. Finally, the services performed by the VSE are reviewed for quality control. If the service performed for the customer is billable (not a goodwill or warranty service), an invoice is prepared. The revenue is divided among the members of the VSE. Once this step is completed, the VSE is terminated. The network partners return to the service network and wait for the next customer request for service. Unanticipated problems during service fulfillment may require reconfiguration of the virtual service enterprise. It may be necessary to replace certain partners or to add new partners. The process described is thus not linear, as it may at times proceed through loops. 5.5 Industrial case GLOBEMEN Initial situation: A one-of-a-kind producer ("OKP1 ") develops and sells large chemical installations. For the manufacture of these installations, it has a large network of suppliers and sub-contractors. Worldwide there are 100 of these installations in operation by customers. In the past, OKPl developed service components, such as a remote plant monitoring system and a training simulation system, to support after-sales services. However, OKPl does not have its own team of service technicians. A customer ("Cl ") operates several installations in Asia and has its own teams for inspection and maintenance. Another large one-of-a-kind producer ("OKP2"), which is not a direct competitor of OKP1 but works at the same level in the value chain, has a number of its own external service centers. OKP2 receives support from various service enterprises if there are capacity bottlenecks or if time is critical. OKPl would like to be more active in after-sales service in Asia in the future and provide to its customers the service components it has developed. However, not having any of its own technicians, it is dependent upon collaboration. Structure of the service network: The service network is made up of OKPl with selected suppliers and sub-contractors, OKP2 with its service stations and service enterprises in Asia, and C1 's service teams. As only OKP1 customers receive the after-sales services, OKP1 takes on the role of hosting provider (see Figure 12). Enterprise configuration: If a customer requires maintenance on a reactor and replacement of spare parts of the supply pipes, a virtual service enterprise ("VSEl ") could take the following configuration: A service technician from OKP2, who has reactor training, goes on-site to the customer. At the same time, a supplier delivers to the customer the pipes it has manufactured or drawn from inventory. During the repair procedures, the service technician receives additional required information from a developer at OKPl. If, in another case, the installation was not producing the quantity or quality of product that the customer desired, the virtual enterprise might consist of a service technician from customer C1 and a specialist from OKPl ("VSE2"). Here the

15 Virtual organizations of after-sales service 419 service technician would, for instance, optimize the installation on-site. He would require the results of a simulation trial that the OKPl specialist would run using simulation software developed by OKPl, and he would receive the results via E mail. Virtual Service Enterprise 1 - OKPI: Remote Support - OKP2: On-Site Support - Supplier: Spare Part Supply Virtual Service Enterprise 2 - OKPI: Remote Support - Customer Cl: On-Site Support Service Network - OKPI with suih:ontractors and supphers - OKP2 with service enterprises - Customer with maintenance teams (Cl) Customers > 100 worldwide from OKPI 0 Customer 0 Network partner c:j One-of-kind producer,6hosting provider Figure 12- Industrial case- GLOBEMEN. Benefits: The form of cooperation described above would allow OKPI to actively offer after-sales services. Through implementing its various service components, OKPl can gather new experience and data on the operation of the installation. This information can be used profitably in new development of the installation. OKP2 and Cl benefit from collaboration with OKPl, because they will have better utilization of their service capacities. In addition, technicians from Cl will benefit from enlarged experience through service work at other companies. They can apply this experience knowledge within their own company. 6. CONCLUSION AND FURTHER RESEARCH The rapid development of information and communication technologies and the massive expansion of the Internet are facilitating geographically independent communications - existing organizations contain ever more virtual components. New markets are opening up for service in the one-of-a-kind industry, but even small and medium-sized enterprises can enter into such networks with their

16 420 Collaborative Business Ecosystems and Virtual Enterprises specialized skills. Existing service strategies must be reviewed and redesigned - collaboration with other companies demands a minimal measure of trust and accommodation. The present contribution introduced an initial model of what future collaboration might look like in after-sales services in the one-of-a-kind industry. This model is based on the principles of the virtual organization. In the framework of the IMS GLOBEMEN research project (GLOBEMEN, 2000), the Center for Enterprise Sciences (BWI) at the Swiss Federal Institute of Technology in Zurich is developing together with partners from other IMS regions the model of the virtual service enterprise described above. The general objective is to work out fundamental connections and approaches for inter-organizational and global cooperation in dynamic networks for after-sales services in the one-of-a-kind industry. Research topics in the future will include a description of the type of network partners and competencies that are required for different services and a definition of the business rules required for management of the service network. In addition, the processes of setting up and operating a VSE will be modeled in greater detail, and a tool to support enterprise configuration will be developed. 7. REFERENCES 1. Arnold 0, Hllrtling M. Virtuelle Untemehmen - Begriffsbildung und Definition: Arbeitspapier aus der Reihe "Informations- und Kommunikationssystme als Gestaltungselement virtueller Unternehmen", Universitllten Bern (CH), Leipzig (D), Erlangen-NUmberg (D), Burger G, Hartel I, Billinger S. Electronic service using advanced information and communication technologies: In Stanford-Smith B, Chiozza E. E-work and E-commerce, Novel solutions and practices for the global networked economy. Volume 2, Section 2.1 Mobile Applications for Business and Work, pp los Press I Ohmsha, Berlin (D), Also in Conference Proceedings of the e2001- ebusiness and ework Conference, Venice (1), October GLOBEMEN (Ref. IMS 99004), "Global Engineering and Manufacturing in Enterprise Networks": Project of the IMS-program. The Swiss region is sponsored by the Swiss government, CTI - Swiss Commission for Technology & Innovation, Switzerland, January January Gora W, Bauer H. Virtuelle Organisationen im Zeitalter von E-Business und E-Government: Springer Verlag, Berlin (D), Hartell, Burger G, Schnetzler M, RUf C. Unternehmensbefragung "Erfolgreiches Servicemanagement -Trends und Praktiken im After-Sales": ZUrich (CH), June 2001a. 6. Hartell, Burger G. Virtual Service Enterprise - A Model for virtual collaboration in after-sales service in the one-of-a-kind industry: Conference Proceedings of the IMS Project Forum, Ascona (CH), 8-10 October 2001b. 7. Kamio Y, Kasai F, Okano A, Kawashima K, Mori K, Nishioka Y, Kimura T. Demonstration scenario for GLOBEMEN/Japan: GLOBEMEN internal document, Chiba (JP), Malhotra Y. Knowledge Management and Virtual Organizations: Chapter ll, Idea Group Publishing, Hershey (USA), Scholz C. Das Virtuelle Unternehmen - Schlagwort oder echte Vision: Manager Bilanz, WM Wirtschaftsmedien AG, ZUrich (CH), Release 1/1997, page Picot A, Reichwald R, Wigand RT. Die grenzenlose Untemehmung: Betriebswirtschaftlicher Verlag Dr. Th. Gabler GmbH, Wiesbaden (D), Wiwi. Glossar zur Unternehmenskooperation: Wirtschaftswissenschaftliche Fakultltt der Universitllt MUnster (D), October 2001.