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

Service economy
Logic
Value creation
Service business
Firm value
Business model
Conceptualization
Communication
Co-creation of value
Microeconomics
Macroeconomics

Keywords

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

Cite this

Rajala, Antti ; Westerlund, Mika ; Murtonen, Mervi ; Starck, Kim. / Servitization in a security business : Changing the logic of calue creation. In: Technology Innovation Management Review (TIM Review). 2013 ; Vol. 3, No. 8. pp. 65-72.
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Servitization in a security business : Changing the logic of calue creation. / Rajala, Antti; Westerlund, Mika; Murtonen, Mervi; Starck, Kim.

In: Technology Innovation Management Review (TIM Review), Vol. 3, No. 8, 2013, p. 65-72.

Research output: Contribution to journalArticleScientificpeer-review

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