Trends and Issues in Service Business Innovations in Japanese Manufacturing Industry

Abstract

Trends and issues in service business innovation in the Japanese manufacturing industry are discussed in this chapter. The manufacturing industry in Japan is rapidly changing to not only supply products but also provide solutions to customers. However, the business procedures and evaluations to manufacture products and supply services seem to have quite different aspects. That might raise issues for doing service business in manufacturing firms: service business models, quality and productivity of services, cost estimates and prices of services, establishment of management systems for service businesses, collaboration between second and third industrial sectors with service businesses, stable business management with products as flows, and services as stock businesses. These subjects and two case studies on advanced service businesses, such as a construction machinery company and an instrumentation company, are discussed.