Creating and measuring customer value in digital businesses

Most economic transactions nowadays are due to the effective exchange of information in which digital resources play a huge role. New actors are coming into existence all the time, so organizations are facing difficulties in keeping their current customers and attracting new customer segments and markets. Companies are trying to find the key to their success and creating superior customer value seems to be one solution. Digital technologies can be used to deliver value to customers in ways that extend customers’ normal conscious experiences in the context of time and space. By creating customer value, companies can gain the increased loyalty of existing customers and better ways to serve new customers effectively. Based on these assumptions, the objective of this study was to design a framework to enable organizations to create customer value in digital business. The research was carried out as a literature review and an empirical study, which consisted of a web-based survey and semi-structured interviews. The data from the empirical study was analyzed as mixed research with qualitative and quantitative methods. These methods were used since the object of the study was to gain deeper understanding about an existing phenomena. Therefore, the study used statistical procedures and value creation is described as a phenomenon. The framework was designed first based on the literature and updated based on the findings from the empirical study. As a result, relationship, understanding the customer, focusing on the core product or service, the product or service quality, incremental innovations, service range, corporate identity, and networks were chosen as the top elements of customer value creation. Measures for these elements were identified. With the measures, companies can manage the elements in value creation when dealing with present and future customers and also manage the operations of the company. In conclusion, creating customer value requires understanding the customer and a lot of information sharing, which can be eased by digital resources. Understanding the customer helps to produce products and services that fulfill customers’ needs and desires. This could result in increased sales and make it easier to establish efficient processes.

Selling customer value in B2B markets - Case KONE JumpLift

Skepticism of promised value-added is forcing suppliers to provide tangible evidence of the value they can deliver for the customers in industrial markets. Despite this, quantifying customer benefits is being thought as one of the most difficult part in business-to-business selling. The objective of this research is to identify the desired and perceived customer benefits of KONE JumpLift™ and improve the overall customer value quantification and selling process of the solution. The study was conducted with a qualitative case analysis including 7 interviews with key stakeholders from three different market areas. The market areas were chosen based on where the offering has been utilized and the research was conducted by five telephone and two email interviews. The main desired and perceived benefits include many different values for example economical, functional, symbolic and epistemic value but they vary on studied market areas. The most important result of the research was finding the biggest challenges of selling the offering which are communicating and proving the potential value to the customers. In addition, the sales arguments have different relative importance in studied market areas which create challenges for salespeople to sell the offering effectively. In managerial level this means need for investing into a new sales tool and training the salespeople.

Reasoning over knowledge-based generation of situations in context spaces to reduce food waste

With the ever-growing amount of connected sensors (IoT), making sense of sensed data becomes even more important. Pervasive computing is a key enabler for sustainable solutions, prominent examples are smart energy systems and decision support systems. A key feature of pervasive systems is situation awareness which allows a system to thoroughly understand its environment. It is based on external interpretation of data and thus relies on expert knowledge. Due to the distinct nature of situations in different domains and applications, the development of situation aware applications remains a complex process. This thesis is concerned with a general framework for situation awareness which simplifies the development of applications. It is based on the Situation Theory Ontology to provide a foundation for situation modelling which allows knowledge reuse. Concepts of the Situation Theory are mapped to the Context Space Theory which is used for situation reasoning. Situation Spaces in the Context Space are automatically generated with the defined knowledge. For the acquisition of sensor data, the IoT standards O-MI/O-DF are integrated into the framework. These allow a peer-to-peer data exchange between data publisher and the proposed framework and thus a platform independent subscription to sensed data. The framework is then applied for a use case to reduce food waste. The use case validates the applicability of the framework and furthermore serves as a showcase for a pervasive system contributing to the sustainability goals. Leading institutions, e.g. the United Nations, stress the need for a more resource efficient society and acknowledge the capability of ICT systems. The use case scenario is based on a smart neighbourhood in which the system recommends the most efficient use of food items through situation awareness to reduce food waste at consumption stage.