Identifying critical success factors in implementing air conditioning servitization to encourage business model innovation

Abstract

In Indonesia, the air conditioning market has barely grown in the last decade. This stagnant market will result in tough competition for air conditioning companies. Some companies begin to realize service offering is able to increase their profit through integrating goods and services to satisfy customer's needs and enhance customer’s productivity. This business model called servitization will change the point-of-view of distributors from product-centered to service-centered. Servitization business model in Indonesia's air conditioning market is not new, but not widely implemented and some implementation is not successful. There are still a few numbers of studies regarding ventilation and air conditioning business model in Indonesia. It is important to recognize the elements of successful servitization implementation and their impact on successful implementation. This paper aims to identify and evaluate the critical success factors of ventilation and air conditioning servitization in Indonesia and how those factors will help the stakeholders. Through literature reviews, interviews with experts, and surveys, the author will determine a set of candidate success factors. Then, the DEMATEL method is used to identify and rank the critical success factors. This research will contribute to the understanding of the servitization business model in Indonesia and encourage the innovation towards servitization model.