Towards a Framework for Assessing the Customer Value of Digital Solutions

Minna Räikkönen, Joni Keski-Rahkonen, Helena Kortelainen, Mika Tikkanen, Pasi Valkokari, Ari Vehanen, Susanna Pirttikangas

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

Abstract

Digitalization transforms companies, businesses, and ecosystems in several ways. However, digital solutions have still often a supplementary role in company’s operations and the arising monetary benefits are typically hard to define. At the same time as digital technologies get more and more complex, so do the monetization models to create business value from these technologies. This paper focuses on establishing a framework to define the customer value generated by digital solutions and on examining the value creation potential of digital solutions. Firstly, the aim is in increasing understanding of phenomena of a customer value. Secondly, the customer value is researched empirically in case studies in maritime and in forest industry. The case studies focus on analyzing the technology providers’ digital solutions as risk mitigation investments where the cost-effectiveness is of central concern and where the benefits arise largely from the avoidance or reduction of negative consequences in the operation and maintenance phases of the asset life cycle. In the developed value assessment framework, the inherent uncertainty is taken into account by a what-if-analysis i.e. by re-calculating the results if initial parameter values are changed. The framework contributes to refining of the value of the digital solution, and to demonstrating and communicating the costs and risks as well as the benefits achieved by a potential customer.
Original languageEnglish
Title of host publicationeProceedings of the 30th European Safety and Reliability Conference and the 15th Probabilistic Safety Assessment and Management Conference
PublisherResearch publishing services
Number of pages8
Publication statusPublished - 22 Jun 2020
MoE publication typeA4 Article in a conference publication
Event30th European Safety and Reliability Conference ESREL 2020, The 15th Probabilistic Safety Assessment and Management Conference PSAM 15 - Venice, Italy
Duration: 1 Nov 20206 Nov 2020
https://www.esrel2020-psam15.org/index.html

Conference

Conference30th European Safety and Reliability Conference ESREL 2020, The 15th Probabilistic Safety Assessment and Management Conference PSAM 15
Abbreviated titleESREL 2020 PSAM 15
CountryItaly
CityVenice
Period1/11/206/11/20
Internet address

Keywords

  • Digitalization
  • digital twin
  • value
  • cost
  • cost saving
  • risk
  • benefit
  • assessment
  • predictive maintenance
  • reliability
  • IoT solution

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  • Cite this

    Räikkönen, M., Keski-Rahkonen, J., Kortelainen, H., Tikkanen, M., Valkokari, P., Vehanen, A., & Pirttikangas, S. (2020). Towards a Framework for Assessing the Customer Value of Digital Solutions. In eProceedings of the 30th European Safety and Reliability Conference and the 15th Probabilistic Safety Assessment and Management Conference [4455] Research publishing services. https://www.rpsonline.com.sg/proceedings/esrel2020/html/4455.xml