Performance indication system supporting transition of networked industrial service business

Manufacturing companies that are expanding their product offering to cover also lifecycle services in the customers´ facilities are facing the increasing complexity and risk to execute continuous business transition. Continuous relationship with customer and customer process supports life cycle learning and knowledge catching. Whole the value network around the customer process is continuously searching balance between effectiveness and profitability over the life cycle. Business transition is difficult to execute if the networked business is not understood from system point of view through "big picture" of the business and if suitable collaborative performance metrics is not used. There have been many attempts to describe industrial service in the form of "big picture". Some of them have been too complicated, some too simple, some are biased serving only single point of view. Service excellence means understanding of the whole business picture. That system model leads us to the roots of service excellence. Service excellence can be continuously measured and followed by indicators looking from various viewpoints. Some of the indicators are based on balance scorecard key performance indicators. Some of the viewpoints are such that there have not been used any indicators. Emotional aspects or future service opportunities are not yet addressed by any indicators. Emotional factors become more and more important on service implementation. Enterprise brand image is also important in successful service marketing. By mastering innovation in open environment over customer process life cycle it is possible to achieve leadership in life cycle business transition. Innovation is taking place in three dimensions, business, customer and life cycle innovation. Spiral innovation process over the three dimensions of this hybrid innovation enables new type of business transition with lower risk level. Business co evolution is taking place on boundaries of business models, networks and deliverables. Performance metrics should align to translate vision to action and establish the criteria for business process optimization. This article introduces new concept on management of business transition by system model of the networked business and new type of performance indication system. The concept has been developed and validated according grounded theory in the deep collaboration with ten enterprises.