Abstract

PurposeThe purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and requirements of Industry 4.0, here denoted as Service Management 4.0.Design/methodology/approachThe study is an in-depth and descriptive case study of the Swedish railway system with specific focus on a railway vehicle maintainer. Public reports, statistics, internal documents, interviews and dialogues forms the basis for the empirical findings.FindingsThe article describes the complex business environment of the deregulated Swedish railway industry. Main findings are in the form of identified business opportunities and new business model propositions for one of the key actors, a vehicle maintainer.Originality/valueThe article provides valuable understanding of business strategy development within complex business environments and how maintenance related business models could be developed for reaching Service Management 4.0.

Highlights

  • The railway transportation industry is characterized by complexity

  • Viewed as a technical system, it consists of fixed infrastructure as well as rolling equipment that interact with each other, and with the surrounding environment

  • The concept of Service Management 4.0 describes a direction towards service-based business models that are in alignment with Industry 4.0

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Summary

Introduction

The railway transportation industry is characterized by complexity. Viewed as a technical system, it consists of fixed infrastructure as well as rolling equipment that interact with each other, and with the surrounding environment. The Swedish railway transportation service has four main targets: punctuality, capacity, robustness and traffic safety (Swedish Transport Administration, 2020). The target for punctuality is 95% of all passenger trains arriving within not later than 5 min behind the timetable. This target has not been met during the past decade, as the punctuality has been around 90%, but a positive change was seen in 2019 when it reached 91.3%. The capacity is highly dependent on the number and type of trains available for traffic. Even though the annual fatalities have decreased during the period, the target is far from met; the average number of deaths have been around 80 per year. The deaths are due to accidents and suicides, and measures to hinder and detect trespassing are mainly applied to reduce the fatalities

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