Working Paper
This paper examines how a traditional industrial distributor can evolve from a reactive maintenance provider into a source of compounding industrial intelligence. Starting from a simple operational intervention - embedding technicians at customer sites - the case shows how proximity enables continuous observation, turning maintenance from episodic repair into a structured flow of data and insight.
Over time, this accumulated knowledge reshapes the business model: from executing predefined tasks to predicting failures, optimizing uptime, and informing customer decisions. Beyond internal performance, the model opens the possibility of a broader shift: from a service provider to a coordination layer across assets, customers, and partners.
The paper highlights the strategic implications of this transition, particularly the tension between linear scaling and intelligence compounding, and the role of acquisitions in accelerating capability building. It ultimately frames a core leadership question: whether the organization is merely extending its current model, or deliberately moving toward a fundamentally different position in the industrial ecosystem.
Faculty
Affiliate Professor of Economics