Abstract:Under the background of “New Industrial Revolution” of developed countries, China as the great power of manufacturing has promoted machinery and equipment manufacturing(MEM) industry, which is the footstone of manufacturing industry to national strategy level. It is necessary to develop service-oriented MEM if China intends to have a position in the high-end of industrial chain under the bilateral pressure from high-end backflow to developed countries and middle & low-end flow to developing countries. In this paper, firstly, the characteristics of service-oriented MEM is analyzed by comparing the product-oriented MEM; then the value generative mechanism of service-oriented MEM is analyzed based on the value chain structure analysis; based on the above analysis, the transformation path is designed and the key points are identified in detail. Through the paper, we hope that we can fill in the gaps in current studies as well as provide strategic guidance to enterprises that intend to transform to service-oriented MEM.