Servitization in a security business: Changing the logic of calue creation

Antti Rajala, Mika Westerlund, Mervi Murtonen, Kim Starck

Research output: Contribution to journalArticleScientificpeer-review

Abstract

How can a firm change its value-creation logic from providing technology to selling technology-based services? This is a question many security companies face today when trying to apply a solutions-based business model in response to recent macro- and microeconomic trends. The fact that customers increasingly demand security as a service, rather than technical equipment, challenges the basis of a security firm's value provision and alters the logic of its operation. In this article, we investigate a technology- and product-oriented security business that is now rapidly transforming into a service business. We use data from a case study to propose a 4C model (conceptualization, calculation, communication, and co-creation of value) that can help security providers to objectify their service offerings and succeed in the servitization of their security businesses.
Original languageEnglish
Pages (from-to)65-72
JournalTechnology Innovation Management Review (TIM Review)
Volume3
Issue number8
DOIs
Publication statusPublished - 2013
MoE publication typeA1 Journal article-refereed

    Fingerprint

Keywords

  • servitization
  • security
  • products
  • services
  • value provision
  • co-creation
  • customer value creation
  • objectification

Cite this