Servitization in a construction machinery industry by using M2M and cloud computing systems

Servitization is a new competitive strategy for companies to create differentiation advantages in a growing number of industries on a global scale. Also, applications of information technology such as machine-to-machine (M2M) are emerging as one of the major enablers for manufacturers to transform their business models. This M2M is utilized in the servitization of manufacturing companies such as healthcare, vehicular telematics, utilities (smart grid), and maintenance (e.g., elevators and construction machines). However, there are still several issues such as improvements to investments and returns and expansion of applications. Utilization of cloud computing can provide suitable solutions because it can change the relationship with customers and co-create personalized value. This study investigates the Global e-Services of Hitachi Construction Machine Co. as a successful case, which is utilizing the Trade Winds on eXtranet-21 (TWX-21) cloud computing services of Hitachi Ltd.