Case reflection

This project was initiated in an attempt to get a complete view of value. It was carried out in the commercialization stage of an offering. At that point the core technology was available. The team was seeking to design the whole offering around this groundbreak-ing technology. This technology is unique due to the possibility of instant online meas-urement. The rest of the offering to be designed is as follows:

 The device

 The service

The device in which the technology is embedded must be designed in a way that is sim-ple and cheap, in order to be given for free. It has to be accurate though, since the data it produces is the basis for the revenue generating source, the service. The service must be designed carefully with all of its elements. The data analysis and consulting that is where the team wishes to differentiate themselves is clarified in this stage.

The analysis of value was required to make this analysis based on facts. Throughout this project first the capabilities of the technology were studied. Next, the competing market offerings where researched. The value they offer and the target market they pursue were analyzed. This analysis brought to light the prospective customers that can be targeted in later stages. The offerings in the market clarified the kind of value offering that is expected.

According to the findings of this study, the path to commercialization was designed.

The study of the market, namely the customers and the rivals, gave the company a great

insight. They brought to light the gaps in the market where there was also potential for a technology with such capabilities. What is more, the partner companies validated the idea.

The analysis of the competing offerings showed a gap in service. It proved that the infi-nite possibilities offered by the development of cloud technology are not exploited in this industry yet. The team believes that exploiting the cloud technology gives them a considerable edge in the competition. The integration of cloud system into their product and service offering is an innovation in the market, according to the study. Figure 44 illustrates how the framework developed so far applies in this particular case.

Value Exploration

Figure 44. The application of the marketing model to this case.

The study of the market clarified how there is need for online measurement in the pro-cesses that have liquids and suspensions as their material. Online measurement could result in less downtime and more accurate and on time information that can optimize the process. The market could also benefit from some expert consulting based on the infor-mation acquired through online measurement. The team, comprised of material scien-tists, is capable of analyzing the measured data and provide insights on the efficiency of the process, the suitability of the raw material and improvement potentials.

The team realized that with the innovative measurement system they could decrease the price of the measurement device while significantly increasing the efficiency by online measurement. The case team also knew that the cloud systems and big data analysis is being integrated in all industries with great results. They knew that this particular indus-try had not taken advantage of this technology yet, and wished to be the pioneer. The analysis of the competition clarified that there was a favorable position for this offering.

They aimed to offer a measurement device paired with analysis of the data stored in cloud. In other words, a product-service mix. This product-service mix is then analyzed

from the value point of view according to the thorough value framework introduced in this thesis. This analysis is presented in Figure 45.

Measurement

Figure 45. The dual value analysis of the project.

The case project of this thesis proved the importance of value analysis in the develop-ment stage of a service and product solution for the cost-reduction and efficiency in-crease of an industrial process. The value analysis brings to attention certain matters that assist the company in planning their commercialization and entrance to market. It also determines how their marketing plan unfolds as time goes by.

The value analysis demonstrated how perceived customer value and customer lifetime value are closely interrelated. The analysis of this relationship can help the decisions more, their company must allow information to flow freely in the process of the devel-opment. It is preferred also that they are strong players in the market so that later in the marketing process their reputation and network can be used for the development of the

offering. The company could also consider how the partner client’s data could be used as a basis for service offering to the other members of their network. Their rivalry with other players in the industry must not pose as a threat to the company’s future growth.

Their processes must be suitable for the generic design of the measurement device to be developed so that it can be utilized in different industries.

Second, the value analysis can form a background for future client selection. Consider-ing how the company has limited means it is important to target clients with the most lifetime value. The value analysis puts forth a method for comparing clients on a gen-eral scale in order to prioritize them.

Last, the value analysis can guide the design of the offering. The clients who have the most customer lifetime value are the ones who dictate the product design. Their insights and processes must be taken into account throughout the design. Besides, their needs and preferences are to be taken into account in the service offering paired with the product.