Autor: Felix Pütz

Traditionally product focused companies diversify into the industrial service business and recognize the transition to solution provider as a key idea for their business. But the historically grown organizational structures do only support this transition to a certain extent. Existing structures need to be replaced by organizational design which supports the new strategies of the companies. Product business and service business will need to be organizationally detached from each other. These changes in organizations are often accompanied by conflicts and challenges which need to be addressed.

Confronted with intensive product price competition in China, industrial firms are forced to invest in extending the service business. Extending the service business is far from easy. Chinese competitors offer faked spare parts. Local service skills are very poor and service requirements force industrial firms to invest in logistic infrastructure. This article offers a guideline for managers seeking to professionalize the human resource management in the service organization, to adapt service offerings to the local customer needs, and to set-up a logistic infrastructure.