Service innovation and capability evolution of manufacturing firms paper - the case study of DFSTW in china

Servicizing development is very popular in manufacturing firms. Service activities have become important value-created instrument in competitions under the background of knowledge - economy and globalization of economics. Service value is not identified with customer value, which doesn't include provider's value. It is manufacturers and customers together during the interactive value-creating processes who create the value, not only manufacturers themselves in factories. Manufacturing firms should develop service capabilities based on traditional manufacturing capabilities to adapt service tendency in manufacturing. Transferring from manufacturing competencies to,"manufacturing + service" capabilities can brings firms competitive capabilities in the new environment. In this paper, by the case study of DFSTW we introduce the service innovation capabilities, which are, new capabilities by the transferring and evolutionary processes from manufacturing original competencies. We expatiate the paths that DFSTW achieve new capabilities respectively from three aspects: reintegration of resources and capabilities, construction of service value chain and servicizing entirely.