Servitization in a Security Business: Changing the Logic of Value Creation
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.
|Keywords||co-creation, customer value creation, objectification, products, security, services, servitization, value provision|
|Journal||Technology Innovation Management Review|
Rajala, Arto, Westerlund, M, Murtonen, Mervi, & Starck, Kim. (2013). Servitization in a Security Business: Changing the Logic of Value Creation. Technology Innovation Management Review, 65–72.
|Publisher's version Final Version|