Elements of installed base information value

Abstract

Installed base information (IBI) is used in industrial service operations, but currently there are challenges with maintaining and utilizing this information to its full potential. The purpose of this paper is to aid in improving the realized value of IBI. We conducted two case studies of IBI collection and utilization with two industrial product-service system suppliers. From this material, we identified four elements contributing to the value of IBI and constructed a framework for managing this value. Furthermore, we identified the sources of the difference between the potential value and the realized value of IBI. The elements contributing to the value of IBI are its management, scope, utilization and quality. These elements form interconnected leaves in the proposed value clover framework. Each element potentially contributes to the difference between the theoretical maximum value and the realized value of IBI. Future research should look into the different elements and their relationships in more detail. Our framework helps managers in identifying shortcomings in the different elements of IBI value and in deciding on investments in this area. Previous literature has recognized the need for IBI, but not analyzed the different elements affecting its value. Our research offers industrial service operations a novel framework of IBI value.

Forecasting spare part demand with installed base information: A review

“…As such, even when companies build large databases, they can fail to accurately analyze the collected data. A possible cause is identified by Mahlamäki et al (2016), who state that it is difficult to see the value of installed base information before it is utilized.…”

Remote monitoring technology and servitised strategies – factors characterising the organisational application

“…Kuschel (2009) found that companies struggle to integrate data from RMT into their information systems. Mahlamäki et al (2016) found that companies are not able to form a comprehensive view of the installed base due to restricted interaction between various information systems (e.g. product development or service operations).…”

“…Another practical benefit of having the configuration data is in knowing the service history of each component that makes a product. The potential challenge here is data integration which has already been recognised in the literature (Brax and Jonsson 2009;Kuschel 2009;Mahlamäki et al 2016). Namely, status and structure data are collected by and reside in different systems, developed to support different purposes.…”