Abstract
In this paper, we discuss manufacturers' value creation through innovation. In the current situation, where representation of the value added in the value chain by smile shaped curve advances in manufacturing industry, it has become important providing services and solutions with higher customer value to the customers, in addition to basing on the highly competitive, specific-function-featured products. In order to achieve it, while we define the specific-function-featured products as the 0th area, we propose to improve the customer value creation in the business models of the two regions, the first area: services, the second area: solutions, in the value chain downstream. Through examples in construction and mining equipment industry, telematics of construction equipment and autonomous haulage system in mining, it is shown that it is also possible in the value chain downstream to create the customer value and to expand business areas. In order to realize this business model, it is important to reveal the underlying customer needs and problems and to solve the technical problems well-balancing own technology and open innovation.
