Atlas Copco: from selling compressors to providing compressed airs as a service

Abstract

The Atlas Copco Group is a world leader when it comes to providing industrial productivity solutions. For over a century, the group has maintained its leadership position by designing and offering pioneering industrial tools and equipment, characterized by a very high level of quality and efficiency. The origins of the Atlas Copco Group date back to 1873 where it started to manufacture and sell railway equipment. In the years that followed, it became the largest manufacturing company in Sweden. In the 1950s, Atlas Copco Group started to focus on compressed air and embarked on a journey toward global leadership in this area. In the decades that followed, a number of strategic acquisitions paved the way for a broader range of products and larger markets. By the 2010s, the group consisted of four established business areas: Compressor, Construction and Mining Equipment, Industrial Tools and Vacuum Solutions. All five units had an outstanding track record in product innovation and obtained leading market positions as a result. While the tradition of innovation dates back to the group’s founding, in recent years, the Atlas Copco Group has extended its innovation strategy from technology and product design to services and solutions. More specifically, Atlas Copco has evolved from a product business model to a service platform and then to a solution business model. This business model transformation was underpinned by the design and delivery of a range of new physical and digital services that complement the products and, when deployed together, better satisfy needs of Atlas Copco´s customers. It discusses the business model transformation towards services and solutions by Atlas Copco´s largest unit, and an international leader in compressor industry, Atlas Copco Compressor Technique.