The feasibility of system dynamic modeling in value assessment of industrial services

This paper aims at revealing the possibilities of system dynamic approach in value assessment of industrial services. The novelty of the paper lies in the fact that current theoretical approaches and current practices of comprehensive value assessment in companies do not fully meet the needs of industrial firms. These needs relate to bringing forth the customer value elements and foundations for service pricing which firms need to communicate to their customers. The presented approach is based on integrating the theoretical frameworks found in the literature and practical needs derived from interviews of industrial maintenance service firms. An illustrative example of simulating different investment options and maintenance strategies is finally presented to clarify the multiple benefits and aspects of system dynamic modeling of industrial service system value.