IN
DEGREE PROJECT INDUSTRIAL MANAGEMENT, SECOND CYCLE, 15 CREDITS
STOCKHOLM SWEDEN 2020,
Challenges of creating a value
proposition for improved radiation technology in the society
A case study of a nuclear scanner
MISBAH BIN HOSSAIN LINNEA LUNDBLAD
KTH ROYAL INSTITUTE OF TECHNOLOGY
SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT
TRITA TRITA-ITM-EX 2020:202
www.kth.se
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Challenges of creating a value proposition for improved radiation technology in the society
- A case study of a nuclear scanner.
by
Linnea Lundblad Misbah Bin Hossain
Master of Science Thesis TRITA-ITM-EX 2020:202 KTH Industrial Engineering and Management
Industrial Management SE-100 44 STOCKHOLM
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Utmaningar vid framtagning av ett värdeerbjudande för avancerad stålningsteknik i samhället
- En fallstudie av en scanner för radioaktivitet
by
Linnea Lundblad Misbah Bin Hossain
Examensarbete TRITA-ITM-EX 2020:202 KTH Industriell teknik och management
Industriell ekonomi och organisation SE-100 44 STOCKHOLM
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Master of Science Thesis TRITA-ITM-EX 2020:202
Challenges of creating a value proposition for improved radiation technology in the society
- A case study of a nuclear scanner
Linnea Lundblad Misbah Bin Hossain
Approved
2020-June-11
Examiner
Kristina Nyström
Supervisor
Vladimir Koutcherov
Commissioner Contact person
Abstract
The developed radiation detection system, in the form of a nuclear scanner, is in practice applicable and usable in today's society. However, the question still remains on how to create a business around this type of product. It is important to know a product's value, what problems it solves, and what job it is expected to do. This thesis will look upon that value creation. The thesis will aid the growth of understanding of how an engineered solution can be utilized in the best way, and how a value proposition for a radiation detection product can be articulated. In addition to that, the study investigates however elements in the value proposition canvas, being pains and gains, are extractable and, if so what they are. It is found that the world struggles with nuclear and radiation problems, having many application areas and market segments for this type of product. It is also found that countries strive towards a higher level of radiation safety. Moreover, it is also found that safety, integration to the process, and efficiency of the product are heavily valued aspects when it comes to advanced product technology. Given the above, there are arguably both problems in the current situation, and gains to acquire if implementing this type of radiation detection system. However, there are challenges. Not only is there a need for a large implementation around the world to be able to extract the largest impact. The area is yet to be more explored, meaning that the knowledge of the possible customers is not as great as in other areas. Moreover, there is currently a lack of lock-ins, which may be a challenge when expanding one’s business within the nuclear sector. Lastly, it is imperative for ones to value proposition that the functionality of the product matches the customer needs, it is however, shown that the customers do not always know of what they need, creating a challenge for the producer.
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Examensarbete TRITA-ITM-EX 2020:202
Utmaningar vid framtagning av ett
värdeerbjudande för avancerad stålningsteknik i samhället
- En fallstudie av en scanner för radioaktivitet Linnea Lundblad
Misbah Bin Hossain
Godkänt
2020-Juni-11
Examinator
Kristina Nyström
Handledare
Vladimir Koutcherov
Uppdragsgivare Kontaktperson
Sammanfattning
Utvecklingen av ett system som kan notera radioaktivitet, speciellt i form av en scanner, är i nutid applicerbart och nyttigt i samhället. Ändock finns frågan om hur man kan skapa en affär med denna typ av teknik. Det är viktigt att veta en produkts värde, vilka problem den löser och vilket jobb produkten förväntas utföra. Denna studie syftar till att undersöka huruvida värdeskapandet av en sådan produkt kan se ut. Studien gynnar tillväxten av förståelse kring hur en ingenjörslösning kan nyttjas på bästa sätt, och hur ett värdeerbjudande för en radioaktivitetsscanner can artikuleras.
Utöver detta, utforskar studien även hur element som gynnar och som hämmar denna typ av teknik, för att vidare kunna artikulera värdeerbjudandet. Det noteras att världen har problem med radioaktivitet, och det finns många applikationsområden för tekniken. Det finns dessutom länder som strävar efter en högre nivå av säkerhet vad gäller radioaktivitet. Säkerhet, integration av produktens processer, och dess effektivitet noteras som viktiga parametrar för att denna typ av produkt ska erbjuda ett attraktivt värde på marknaden. Detta parametrar är högt värderade av de möjliga kunderna, som bland annat har de högt uppsatta säkerhetsmålen. Det finns det både problem med den nuvarande situationen på marknaden, där en otrygghet tydligt artikuleras, där denna typ av produkt kan bringa nytta. Det finns dock motgångar. Bland annat är det ytters viktigt att för störst inverkan behöver produkten implementeras hos flertalet möjliga kunder. Det är dessutom ett forskningsområde som behöver utforskas vidare, och det finns en brist på tidigare lärdomar att lära från. Utöver detta finns det även en brist på så kallade “lock-ins”, för att binda kunder. Slutligen så är det nödvändigt att värdeerbjudandet artikulerar en funktionalitet som motsvarar det som kunderna efterfrågar. Dessvärre så vet kunderna själva inte alltid vad de vill eller efterfrågar, vilket skapar en stor utmaning vid utvecklandet av ett värdeerbjudandet av denna typ av produkt.
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Table of contents
Abstract iii
Acknowledgment vi
1 Introduction 1
1.1 Background 1
1.2 Aim 1
1.3 Research questions 2
1.4 Delimitations 2
1.5 Sustainability 3
2 Theoretical framework 4
2.1 Nuclear Safeguard 4
2.2 Advanced radiation technology 6
2.2.1 Nuclear scanners and their function 6
2.2.2 Nuclear scanners’ potential 8
2.3 Business model canvas 9
2.3.1 Value proposition 11
2.3.1.1 Value proposition canvas 12
3 Methodology 14
3.1 Research approach 14
3.2 Collection of data 15
3.2.1 Secondary data 16
3.3 Research ethics 16
3.4 Trustworthiness 16
3.5 Limitations 17
4 Empirical findings 19
4.1 Current Nuclear Aspects 19
4.1.1 Major Terrorist attack so far 19
4.1.2 Nuclear security Index of countries 20
4.1.3 Ways of Acquisition of Radioactive Materials / or places requiring high security 22
4.2 Favorable parameters within the Value Proposition 23
5 Analysis and discussion 25
5.1 Stakeholders of advanced technology nuclear scanner 25
5.2 Gains associated with advanced radiation technology nuclear scanner 26
5.3 Pains within current advanced radiation technology 28
5.4 Considerable elements of a VP 29
6 Conclusions 32
7 References 33
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Acknowledgment
First and foremost, we would like to thank our supervisor at KTH - Royal University of Technology, Vladimir Koutcherov, for his aid during this thesis. Thank you for the guidance, feedback, and support you have contributed during this study.
Furthermore, we thank the support and engagement of the opposing students. Thank you for your feedback and the distribution of important notes. The contribution was valuable for the outcome of the study, and we are very grateful for this.
Stockholm, May 2020, Misbah Bin Hossain, Linnea Lundblad
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List of Figures
Figure 2.1.1: Theft index of countries with weapon usable nuclear materials (2018) (Source: NTI Nuclear Materials Security Index. (2020))
Figure 2.1.2: Theft index of Countries without weapons-usable nuclear materials (2018) (Source:
NTI Nuclear Materials Security Index. (2020))
Figure 2.3.1: The business model canvas (Source: www.strategyzer.com) Figure 2.3.2: Top business fail reasons (Source: www.forbes.com) Figure 2.3.3: The value building blocks. (Source: Hagiu, 2014).
Figure 2.3.4: Value proposition canvas Source: (Source: Pokorná, J,2015) Figure 3.1.1: Thesis process
Figure 5.1.1: Stakeholder mapping
List of Tables
Table 5.1.1: Stakeholder analysis for a nuclear scanner
Table 4.1.1: Major Terrorist attacks (Source: Ferguson, C. (2004); 4U.S. Commission on
International Religious Freedom (2008); 5 Åshild Kolås (2010); 6 Whiteside, C. (2015); 7 Imtiyaz, A. R. M. (2020).)
Glossary
VP - Value Proposition
BMC - Business model Canvas RPM - Radiation Portal Monitors
IAEA - International Atomic Energy Agency NTI - National Theft Index
RQ - Research Question
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1 Introduction
The following chapter describes the background of this study and discusses the problem that is investigated. Thereafter, on this basis of the background, the purpose and the research questions are presented.
1.1 Background
Global threats to human life within the sort of act of terrorism and the proliferation of nuclear weapons are gaining increasing awareness. Vast resources are being spent by governments worldwide in the event of the latest techniques for the detection of radioactive and fissile
materials that will be accustomed to harm the general public or to construct illicit nuclear weapons (The Nuclear Threat, 2015). IAEA, the international atomic energy agency, is strongly involved in such developments, and its member countries like Sweden are contributing to research and development during this field. Recent findings within the area of nucleonics have led to the event of a revolutionary technique to detect and localize special nuclear materials while in transit. This is often of direct benefit to organizations that monitor personnel and shipments to stop the spread of nuclear and radioactive materials, including weapons-grade plutonium. Such systems are commonly referred to as Radiation Portal Monitors (RPMs) (Saver, 2009).
KTH’s new technology may lead to significant improvement in detection quality still as immediate and long-term cost savings for procurement and after-sales service. The new
technology, additionally, performs still or better than standard RPMs for the detection of normally occurring radioactive materials. Not the least, providing an environment for social sustainability to thrive as per the contribution to a safer surrounding. Much relatable to several of UN’s global development goals such as Peace, justice and strong institutions and Reduced inequalities (UNGA, 2015). This type of nuclear safeguard is important for several reasons, and the KTH developed radiation detection system is in practice applicable and usable in today's society (Trombetta, Klintefjord, Axell & Cederwall, 2019). However, the question still remains on how to create a business around this type of product. This is a highly relevant question, as it is imperative to have a well articulated value proposition to become a successful business, not the least as a small- to medium size enterprise (SME) (Macht, 1998). With that in mind, it is hence important to know a product's value, what problems it solves, and what job it is expected to do. To identify this, and to enhance the possibility of a successful business especially for a SME it is important to create a clear value proposition. To do so it is imperative to identify the drivers of value to ensure that the value that is proposed actually is what is appealing for the possible customers. This thesis will look upon that, and contribute to the development of the interplay between science of technology and business creation. More specifically, the study will contribute with 1. Identified value drivers for this type of product and evaluate their importance, and 2. Identify challenges with the creation of a value proposition. A secondary contribution would be the process of how to identify technological features and articulating these as value creators or value drivers.
1.2 Aim
The aim of this paper is to investigate the challenges with the element value propositions when launching a new product within the advanced radiation technology to the market. The focus lies upon the value proposition of a nuclear scanner but is to be applicable for similar products to be launched.
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1.3 Research questions
RQ1: What gains are there from advanced radiation technology?
RQ2: What pains are there within the current application areas for advanced radiation technology?
RQ3: How could a value proposition for advanced technology be structured?
1.4 Delimitations
In this study, we have looked upon the technology focused on the KTH nuclear scanner and its advantage in society. The study is solely looking at value creation parameters related to the value proposition canvas, and other parameters brought up in the empirical section. This means that other plausible value creation parameters are disregarded. Moreover, the study does only contribute with challenges, drivers and considerable aspects when creating a VP. Hence, a full value proposition canvas (VPC) is not explored and illustrated.
The research is carried out fully online due to the outbreak of COVID-19 virus all around the world. This has delimited us to work and study from home, using digital tools for meetups. This has also affected the collection of empirical data. Hence, the study is limited to secondary data as empirical research. There have been little possibility to conduct interviews, and hence the information collected from KTH nuclear department is mainly based on their previously conducted studied on their product.
Moreover, only some relevant similar products have been chosen to explore the current market.
This limitation is done to create a graspable thesis, as the number of explored scanners need to be manageable.
As per previous sections, the detection of radioactivity may bring a sense of safety which is closely related to social sustainability and several of UN’s global development goals. The product itself, and the implementation of the product contributes to a possibility for a less unequal society.
Moreover, there are yet more specters of sustainability to focus upon with this type of product, such as renewable energy sources more related to environmental sustainability and economical sustainability. Nevertheless, it is found that primarily the social sustainability spectra and secondly the environmental sustainability are the most relatable spectras for the aim of this study. As social sustainability is mainly related to the value proposition of the scanner, its value drivers and the challenges, and environmental sustainability is related to the efficiency of the product. Hence, the economical sustainability will not be further elaborated. Moreover, the study is delimited to focusing on how to be able to establish a product and its VP. This will further entail a sustainability contribution.
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1.5 Sustainability
The outcome of this study and the product itself is closely related to sustainability as per chapter 1.1. There are connections to all three pillars of sustainability (Purvis, Mao & Robinson, 2019) on different levels. Hence, this section briefly presents the various pillars and the 17 Sustainable Development Goals. The purpose if the section is to contribute with further understanding for the sustainable contribution of which this type of product entails.
The pillars are defined as economical-, environmental and social sustainability. The first one refers to the capability to create new material wealth, to sustain its expenses, (Scotti, Fabricatore, Sepiacci & Manca, 2017). Hence, not to generate profit per se but rather to manage the current resources striving towards a circular economy (Kirchherr, Reike & Hekkert, 2017). As per UN, it should improve human well-being and social equity (UNEP, 2011). The environmental sustainability strives towards a healthy ecosystem, where the human impact is minimized. This is done by for example optimizing renewable resources and minimizing pollution (Scotti, et al., 2017). The last pillar is the social sustainability which approaches an inherent well-being aspect, as the relationship of human rights and environmental justice is explored (Scotti, et al., 2017).
Further, the UN has developed an action plan called The 2030 Agenda for Sustainable Development (UNGA, 2015). This plan contains the 17 Sustainable Development Goals. Each of these 17 goals touches at least one of the three pillars of sustainability, and act as parts of the action plan. These goals are No poverty, Zero hunger, Good health and well-being, Quality education, Gender equality, Clean water and sanitation, Affordable and clean energy, Decent work and economic growth, Industry, innovation and infrastructure, Reduced inequalities, Sustainable cities and communities, Responsible consumption and production, Climate action, Life below water, Life on land, Peace, justice and strong institutions and Partnerships for the goals (UNGA, 2015).
These goals are expressed by the UN as an urgent call for action in a global partnership, and the implementation of relevant strategies to endorse the implementation of the goals are supported (UNGA, 2015).
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2 Theoretical framework
The theoretical framework is structured with a beginning of nuclear safeguards, moving on to nuclear technology and their application in society. Thenceforth, a wide description of the business model canvas concept and its elements is presented. On the basis of the business model canvas knowledge, the concept of the value proposition is introduced and is further investigated.
2.1 Nuclear Safeguard
Imagine a catastrophe in a nuclear facility resulting in a release of radiation as bad or worse than the world saw in 2011 as disasters struck the Fukushima nuclear power plant. Now in this modern world, this disaster can be caused through a cyber attack or by a physical attack or both rather by natural disaster or by human error. The number of countries considering peaceful nuclear energy is growing. And without proper precautions, so is the threat. The world has seen cyber-attacks on government and private companies across all sectors, and this also includes nuclear facilities.
According to the Nuclear Threat Initiative (NTI) index, many countries across the globe fall short dangerously when it is coming to protect the public from the nuclear threat. (The Nuclear Threat, 2015)
NTI is a non-government organization working deeply to prevent catastrophic attacks with weapons of mass destruction. It is continuously working on the security threat from nuclear, biological, radiological, chemical and cyber attacks. They work with presidents and prime ministers, scientists and technicians, educators and students, and people from around the world to develop policies, reduce reliance on nuclear weapons, prevent their use, and end them as a threat (The Nuclear Threat, 2015).
Currently, only the nine major developed countries in the world alone hold nearly 16000 nuclear weapons that are to destroy the planet hundreds of times and more. The existence of these weapons is always a threat to the world. Many small nuclear-weaponized countries have doubtable security measures to have trust in. Also, many countries pose unauthorized nuclear weapons and do not follow or commit to any safeguards, for example, North Korea and Syria.
According to the National Threat Initiative -Index, many countries fail to comply with the security measures needed to maintain public safety and anti-terrorism attack. Figure 2.1.1 shows the countries with 1 kg or more of weapons-usable nuclear materials, and Figure 2.1.2 shows the Countries with less than 1 kg of or no weapons-usable nuclear materials, but that could serve as safe havens, staging grounds, or transit points for illicit nuclear activities. NTI Index calculated the level of safety as Overall, and category scores and ranks for 2018 are shown. All countries are scored 0–100, where 100 = most favorable nuclear materials security conditions (NTI Nuclear Materials Security Index., 2018). The category evaluates on-site physical protection, control and accounting procedures, insider threat prevention, physical security during transport, response capabilities, and cybersecurity.
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Figure 2.1.1 Theft index of countries with weapon usable nuclear materials (2018) Source: NTI Nuclear Materials Security Index. (2020)
Figure 2.1.2 Theft index of Countries without weapons-usable nuclear materials (2018) Source: NTI Nuclear Materials Security Index. (2020)
From figure 2.1.1 and the data from the theft index of NTI, the lowest countries scoring below 50 of the safety score are India, Pakistan, Iran, and North Korea. This is where the possible danger can be created, and serious safety measures should be taken according to the safety and security protocols of nuclear material.
In order to maintain a sustainability level of security, it requires nuclear safeguards, scanning of personal luggage, humans, and other variables requires to be checked in cross borders. Vehicles and cargos, etc. also have to be under screening. And also, the nuclear facilities also need to be screened at every entry and exit level to attain the highest security possible.
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2.2 Advanced radiation technology
Nuclear and Radiation technology have always been a significant contributor to industrial development. The involvement in improving the industrial process and cleaner environment contributes to the accomplishment of many of the global organizations, including the United Nations' sustainable development goals. The ninth goal of the 17 sustainable development goal aims to promote trade, innovation, and infrastructure. The International Atomic Energy Agency (IAEA) helps its 168 Member States to enhance their capabilities within the use of radiation science and technology to improve the standard of lifestyle and enhance sustainability. (Gaspar, M. 2017)
For development, the contribution from science and technology is of utmost importance. And to maintain this development, safety and security framework is even more crucial. The International Atomic Energy Agency is committed to serve countries and train personnel and certify professionals and establish the mandatory safety and security systems to make sure that these innovative technologies still be used for the advantage of society.
Radiation technology is vastly used in the product that we use in our daily life, for example, smartphones, automobile tires, and bandages, etc. The radiation technology is making these products more reliable and safer. This technology is also used for safety checks, cleaning up the water and air pollutants, improving food production and preservation, etc. Through innovation in radiation science, radiation technology’s global impact on sustainable development and the involvement in daily life products continues to grow.
Sustaining this growth requires the proper safety measures in the sector of radiation technology and nuclear safeguards. That is why IAEA uses Radiological crime scene management, which ensures safe, secure, effective, and efficient operations of radiation materials and incurable crime associated with it. Starting from 2010, 15 new safeguards agreements and 30 new additional protocols have been in action, and the amount of nuclear material within safeguards has increased by twenty-four percent. There has been an increase in the demand for safeguards in nuclear facilities since more facilities are decommissioned, which creates a requirement for verification, packaging protocols, movement, and disposition safety for nuclear materials. (Safeguards in practice. 2016)
IAEA safeguard is improving day by day. For timely response to nuclear threats, further optimization and improvements are needed to maintain the safety level of all the IAEA Member States. This is only achieved when all the member state contributes to the security protocols and develop with the modern age technology to improve their cooperation to implement safeguards
2.2.1 Nuclear scanners and their function
In the Field of Nuclear safeguard and security, evaluating and detection of Special Nuclear Materials (SNM), materials that can be used to produce nuclear weapons, is very important for the health and safety of the public and society. All active and passive methods are used for detecting such SNM. Since the neutron is the center of such activity in the SNM, neutron detectors are widely used.
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In cross-borders, several types of scanning take place. But few of them are capable of identifying radioactive materials. Followings are some of the widely used scanners in cross borders, able to detect radiation.
1. Radiation “pagers”
Radiation pagers are small alarming radiation detectors that can be worn by any personnel.
This device can detect only highly penetrating ionizing radiation and signals an alarm to the person wearing it. It can be used as an early caution to high radiation. This can be used by personnel in all forms of security checks. They are lightweight, inexpensive, and portable. This device does not point out where the source is or what the source is but only can alert the personnel that a highly ionizing source (e.g., gamma2 or neutron) is in harmful range. This device also is not able to detect airborne radiation particles like alpha particles
(SAVER 2006).
2. Radiation portal monitors (RPM)
The radiation portal monitor is a passive radiation detection unit that is widely used for the detection of ionizing radiation. This device consists of two panels facing each other positioned with a gap for passing. The panels are filled with tubes containing Helium-3 and polyvinyl toluene plastic for the detection of significant radiation more than that of background radiation. This device can detect different types of radiations emitted from SNM, nuclear devices, dirty bombs, etc. This is used for the screening of pedestrians, cargos, vehicles, containers, etc. If the device detects any high energy radiation nearby, it alarms the security personnel. Some new RPM is able to detect the source of radiation as
well (Anne L, 2013).
3. Radioactive isotope identification devices (RIIDs)
RIID is an active radiation detector used to measure the energy of emitted gamma radiation.
This is a portable handheld device used by security personnel to further investigate the type of radiation or source of radiation after initially detected by Radiation pagers or Radiation portal monitors. When gamma rays from a radioactive source hit RIID, it converts it to electrical signals and displays a plot of several number of gamma rays at each energy versus energy level, by which source the pattern of the curve can be identified. This device can distinguish the radioactive isotopes such as special nuclear material (SNM), highly enriched Uranium, Medical isotopes, Industrial isotopes, naturally occurring radiation materials (NORM)3, etc. However, limitations of this device can be observed when radioactive sources are shielded, and this provides a misidentified radioactive source even after the data collected as proper after calibration. SAVER (2009).
Currently, Radiation Portal Monitors (RPM) is widely used for detection in cross borders, which uses the thermal neutron gaseous proportional counters based on Helium-3. Neutron coincidence detectors are also used for the Non-destructive Assay of nuclear materials. But from 2011, after the International Atomic Energy Agency (IAEA) addressed that there would be a shortage of Helium-3 in the future, a search for a replacement of neutron detectors started more rapidly.
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Thus, it came up with the efficient detection and identification of gamma rays and fast neutrons with the help of organic scintillators. This device is said to be a Nuclear scanner developed by KTH-physics and The Swedish Radiation Safety Authority collaborating with IAEA. Following is the description of the nuclear scanner taken from the article published by the team developing the scanner.
The nuclear scanner is an innovative product able to detect and identify radioactive sources. It was designed for improvement in nuclear security and safeguards as a device for counter-terrorism and nuclear non-proliferation. It is a passive device with two panels facing each other similarly in structure with Radiation portal monitors (RPM).
This device uses the fundamentals of fast gamma-neutron coincidence for accurate detection with the help of organic scintillators. Organic scintillators 1 have suitable detection efficiency for gamma rays and can also distinguish between neutrons and gamma rays. It uses novel imaging algorithms with the help of deep learning to detect, identify, and locate the radioactive source when an individual or any object carrying special nuclear material (SNM) is passed through the portals. This detector not only acts as a replacement of RPM but also has several advantages over others. This detector requires a much shorter coincidence time than regular detectors, which makes the response time for detection much quicker and effective. This gives this detector a significant advantage for nuclear security systems, even in the presence of moderate amounts of shielding. Apart from that the product provides a more sustainability aspect as it acts as a replacement of current technological product (RPM) which is going to have a scarcity of manufacturing elements in the future according to IAEA. (Trombetta et al. 2019)
1A scintillator is a detector for charged particles and gamma radiations in which scintillations produced in a phosphor are detected and amplified by a photomultiplier, giving an electrical output signal.
2A gamma-ray or gamma is penetrating electromagnetic radiation arising from the radioactive decay of atomic nuclei.
3 (NORM) naturally occurring radioactive materials - Radioactive materials that occur naturally and where human activities increase the exposure of people to ionizing radiation are known by NORM. Examples: Consumer goods like ceramics, fertilizers, and granite tile (NORM, 2020)
2.2.2 Nuclear scanners’ potential
Nuclear safeguard has been improving with modern age and technology. By each decade, people have seen the advancement of safety in many folds. From the mistakes that happened in the past in the nuclear power plants, researchers and associations have taken tough measures on all the aspects that need to be carried on to have the utmost safety level possible. And still, now, no new plant is being opened without proper commissioning where all the safety is checked from materials to workers to the atmosphere. But now the safety that needs to look hard upon is the nuclear safeguard.
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Each year, around 21000 people on average are being killed by terrorists since the past decade (Ritchie, H, 2013). And this has kept all the associations and governments in high alert to maintain the highest level of safety possible. The Nuclear market and safeguard is no exception. According to IAEA, the budgeted amount for Nuclear Safety and Security for the year 2020 is around 37 million USD. This implies the high importance that is given to the security aspect.
The organic scintillator Nuclear scanner can be the safeguard that most countries need to attain the nuclear safety level needed to avoid nuclear threats. The NTI index can be used as a tool to filter out potential countries that can benefit from this high sensitive scanner. As shown in figure 2.1.1, which provides the data for the countries with weapon usable nuclear materials, it can get benefits from this scanner. If the government takes the initiative of increasing the safety level of nuclear safeguard, the scanner can be implemented in all the cross borders of all forms of transportation like Planes, ships, trains, etc. More data is described in section four, Empirical findings.
2.3 Business model canvas
The business model canvas is a tool used to illustrate various important elements within a business.
It is constructed of Key Partners, Key Activities, Key Resources, Cost Structure, Value Proposition, Customer Relationships, Channels, Revenue Streams and Customer Segments.
Within each element, there are various focus areas. As per Strategyzer, there are several questions to be raised within each element to ensure that the element is treated as best possible. The canvas is illustrated in Figure 2.3.1.
Figure 2.3.1 The business model canvas Source: (www.strategyzer.com)
The canvas is built upon an efficiency focus on the left, and value focus on the right. Hence, Key partners are on the far left and Customer segments on the fast right (Osterwalder & Pigneur, 2009).
Looking at the Customer segment, it is a composition of the customers ready to pay for the service in mind, all possessing similar needs. There are different types of segments, and hence different
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approaches to meet the segments (Ladd, 2018). Amongst these are diversification, niche, and multi-sided, related to Porter (1980).
The Channels element represents the method of how the venture will reach out to its customers often related to communications or other distribution channels. It is via the channels that a Customer Relationship can be established. This relationship can either be a one on one experience or to a larger setting (Ladd, 2018). The Revenue stream is the focus on the transfer of money from the customers to the company, generated from various sales. This element includes the pricing mechanism, which focuses on various ways to charge. Key resources are yet another component in the business model canvas, which refers to the intellectual, physical, and financial capital that may support the Key Activities.
With increasing tools of communication, companies are establishing larger Key Partnerships, which may take form in joint ventures or alliances. Yet another element is the cost structure, referring to the which defines the costs and expenses of the company. Lastly, the value proposition is a description of the product or the service. In addition to that, it is also a description of the benefits it provides and which needs it addresses (Ladd, 2018).
The business model is considered essential for a business to survive. It is also stated that a failed business model is one of the top reasons why startups fail, as per Figure 2.3.2 (McCarthy, 2017).
Figure 2.3.2 Top business fail reasons Source: (www.forbes.com)
Furthermore, it is stated that the canvas can be used as a framework, especially for SMEs to avoid tremendously costly and time-consuming activities on business models (Macht, 1998). After scrutinizing each of the elements, the canvas is filled with sub-elements, which together illustrate the focus areas that define the business model of the company.
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2.3.1 Value proposition
The value proposition (VP) is the building block that represents the value that the products of service create for the customer segment. This is the reason why the product or service is chosen over others, as it solves a problem or satisfies a need. Hence, the VP caters to the customer segment (Osterwalder & Pigneur, 2009). Some VPs are innovative and pictures a new type of offer, while others can be similar to other offers. To increase value, the performance can be adapted, for instance, by improving the capacity or power of a product. However, increased performance is not always mirrored with increased value interpreted by the customer segment. Instead, customizing for specific focus groups, the customer segment, one can create larger value. Osterwalder and Pigneur (2009) also state that a design focus that corresponds to a certain preference can increase the value. It can, in fact, be particularly important for the VP. The VP can also be focused on branding, which can increase status. An example presented by Osterwalder and Pigneur (2009) is how a Rolex speaks of wealth. This is a part of the Rolex VP. Other aspects that are brought into the VP are price and cost reductions, risk reduction, accessibility, and usability. Yet another important aspect of getting the job done, which is closely related to Jobs to be done (Jtbd), which is a central part of the Value Proposition Canvas (VPC) (Osterwalder & Pigneur, 2009).
Some main central question to be asked and answered when looking at the VP are according to Osterwalder and Pigneur (2009);
● Which one of our customer’s problems are we helping to solve?
● Which customer needs are we satisfying?
● What bundles of the product are services we are offering to each customer segment?
Business modeling is the managerial equivalent of the scientific method – you start with a hypothesis, which you then test in action and revise when necessary (Osterwalder et al., 2014). It is imperative to have the product or service in focus and to ask oneself how the product or service answers to the questions previously mentioned. Osterwalder (2011) presents the VP as the job the customer need to be done, and illustrates its measure of success as if one is to purchase a certain type of shoe, and uses a search engine to acquire this certain type of shoe, the measure of success is how well the engine fulfills the user's job to be done. Moreover, it is imperative to understand how other companies are providing a similar job for the customers. Together, this makes the market size. Lastly, a question to ask if how important the job to be done actually is. Is it economically sustainable and possible to execute? Osterwalder (2011) continues stating that the VP provides a holistic business model approach to ensure a long term competitive advantage.
It is of great significance to explore what the value of one's product presents and if customers are ready to pay for that. Hagiu (2014) proposes that of all the content that is presented in today's society, it is imperative to provide a service or product that fulfills the values the best. To illustrate the building blocks of value, Hagiu presents Information, Product, Customer Experience, and Internal- and External platform, as per Figure 2.3.3, all closely related to the VP.
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Figure 2.3.3. The value building blocks. Source: (Hagiu, 2014).
Other important factors for one's value to look upon a complementaries, such as services that will complement one's original service and “Lock-ins” such as low budget versions of the original service. The efficiency, referring to how cost-saving it is, is yet another important factor as per Hagiu (2014). Lastly, Novelty is pinpointed to be focused upon. This is what captures the degree of the business model innovation, which is embodied in the product/service. Hagiu (2014) continues, claiming that the presence of these factors will enhance the potential of value creation.
It is also claimed that it is beneficial to have synergies between the various value drivers.
2.3.1.1 Value proposition canvas
The Value Proposition Canvas illustrates explicitly how the value is created for your customers. It helps the company design products and services that their customers want (Osterwalder et al., 2014). The creation of the Value Proposition Canvas is based on creating Value Propositions for (1) Product & Services - what products/services are the value proposition based on (2) Gain Creators - How are they delivering gains? (3) Pain Relievers - How are they killing pains? Using experience in the area of the customer segments of (1) Customer Jobs (2) Gains (3) Pains (Lindič, Silva, 2011). Moreover, it is a tool for communicating the benefits for a certain product or service in terms of technical, economic, and social to customers (Wouters, Anderson and Kirchberger, 2018).
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Figure 2.3.4 Value proposition canvas Source: (Pokorná, J,2015)
As illustrated in Figure 2.3.4, the value proposition contains two building blocks, which is the customer profile and the company’s VP (Osterwalder et al., 2014). The latter contains three slots.
Firstly, the gain creator. This part focuses on how the service or product created gains for the user, and also how it will add value for that user. Thereafter there is the pain reliever, which describes how the service or product removes the pains that the user has. Lastly, the slot for products and services, which is what creates gains and relieves from pain, and hence is the underlying creation of value for the user. Moreover, on the right-hand side of Figure 2.3.3, the canvas the customer profile is located. This profile primarily contains a customer job. This is the task that the user is trying to do, such as a problem that is wanted to be solved. Secondly, the gain is a part of the profile, which is the benefits of which the user is expecting to receive from the product or service.
This slot involves looking at what the user would like, and what may cause the value proposition to be adopted. Lastly, the pains are the negative experiences that the user relate to getting the job done (Osterwalder et al., 2014).
It is stated that a customer profile should be executed for each and every customer segment (Osterwalder et al., 2014). The underlying reason for this creation is that every segment has specific gains, pains, and jobs. This becomes even more clear as to when the gain creator and pain relievers are located, as they should be ranked from reasonable to acquire to essential for the user.
This is done by listing, validating information, collecting feedback, and insights, iterating forth a ranking. When the product or service in question answers to the main pains and gains in the customer profile, a fit is achieved. Hence a tailored VPC is created (Osterwalder et al., 2014).
Moving on, one should investigate whether there is a competitive advantage in certain areas associated with the customer profile. This can ensure that the VP is differentiated and even unique (Wouters, Anderson, and Kirchberger, 2018).
As per Christensen (2016) in the theory of Jobs-to-be-Done, the understanding of the job of which customers are looking for aids business to more accurately develop and elaborate products and services that are answering to what its users already are struggling to accomplish.
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3 Methodology
The study will be based on a literature review and an empirical study using an abductive approach.
The literature review will investigate previous research written in scientific articles, journals, and books. The nuclear safeguard industry and the business model canvas will be explained, and the concept of value proposition will be thoroughly presented.
The empirical study will be based on primary data from the firm, qualitative secondary data on creating a value proposition, and secondary data on nuclear products.
3.1 Research approach
The research process starting phase was a literature review that gave a holistic view of VP. The review is based on scientific articles, books and case studies. Once this review was executed the study of the empirical data began. The empirical data was executed by investigating the company's product where informational documents were obtained. The approach was an abductive research approach, which hence involved several parts of deductive or inductive approaches.
Abductive research approach is to abduce (or take away) a logical explanation, assumption, conclusion, inference, explanation or hypothesis from an observation or several observations. This approach is suitable for this research as in our research we have looked into several observations and have abducted logical explanation, conclusion, inferences, etc. (Dubois, A.,2002) Abductive research can explain, develop or change the theoretical framework before, during or after the research process. Another advantage of using an abductive research method is that the process can move back and forth between inductive reasoning and open-ended setting, which helps to verify hypotheses from more hypothetical and deductive attempts (Friedrichs, J., 2009). Figure 3.1.1 illustrates the abductive process used in the thesis through a figure to have an understanding about the process more clearly.
Moreover, secondary data on important aspects during the creation of a VP and nuclear product- related secondary data was researched. This to be able to locate possible pains and gains, and how to prioritize these. The collected literature constructed a basis of facts for what kind of empirical data was necessary for the study and hence contributed to the creation of the thesis layout. Thus, in an abductive process, an inductive phase. (Davidson & Patel, 2015).
The correspondence from the secondary data was later on analyzed on the foundation of the previously collected data from the literature. During both, the collection of the empirical data and the analysis, there appeared to be a gap of information. Hence the Research Questions were adapted, as well as the literature. This shows upon a deductive part in the abductive process. In addition to this, in coherency with feedback from supervisors at KTH, the structure of the study was adapted to be more suited to the aim and to narrow down the containing information. The abductive process of the work is illustrated in Figure 3.1.1.
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Figure 3.1.1 Thesis process
The empirical study is based upon secondary data, which is conducted from many data from articles, books and sources including an article published by the Nuclear scanner team. This data is based on interpretations and assumptions of what would be more or less preferred by the market for a relatively small and untested niche of products. Hence, a quantitative study is not to prefer in this situation, and thus a qualitative study was conducted.
As per an abductive approach, there were alterations to the literature, presentation of empirical findings and analysis to best apply to the RQs. There RQs where elaborated to present a more centered and focused conclusion, which would aid the research towards fulfilling the aim. being the following:
RQ1: What gains are there from advanced radiation technology?
RQ2: What pains are there within the current applicable areas for advanced radiation technology?
RQ3: How could a value proposition for advanced technology be structured?
3.2 Collection of data
This section presents the assortment of secondary data that have been practiced. The data depends on writings from the literature study and the information of the nuclear product collected from studies conducted by the case company, the KTH nuclear department.
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3.2.1 Secondary data
Secondary data refers to data that is collected by someone other than the user. This includes censuses, information collected by government departments, organizational records and data that was originally collected for other research purposes. Secondary data also includes the previous research which were already tried and tested which increases the reliability of the secondary research. (Vartanian, T. P., 2010)
This data collection is the collection from the database or other existing studies, which includes the collection of existing information from different journals and sources (Collis & Hussey, 2014).
The literature is collected from books, scientific journals, and articles from DiVA and other scientific databases. This also includes the article published by the Nuclear scanner team.
Literature review includes the basic understanding of the terms and concepts that is required to reach the conclusion of the research. The empirical findings, which is section 4, includes a collection of secondary data which is later analyzed to answer the research questions of the paper.
During the collection, certain keywords were focused upon, which had been pinpointed earlier on.
Their words are Value proposition, Value proposition canvas, nuclear scanner, new products, business model canvas, jobs to be done. Every selected product of data was scrutinized to ensure that it was fitted for the aim of the study. Moreover, there was a focus on ensuring that the research was relatively new. This, however, was seldom a problem as an article related to the keywords were mainly released within the closing decade. The secondary data is a large basis of the study as per its importance during certain limitations. These are mentioned in chapter 1.4. Moreover, as the product used as a basis of the case is an issue of a data confidentiality concern when conducting the primary research, secondary data carries large importance.
3.3 Research ethics
The supervisor at the company was informed about the study in the beginning of the process and was informed of RQ changes parallel to the study work. It was made sure that all participants were aware of the aim to the study. The background of the study was constructed by the company themselves; hence a well-raised awareness of this from the beginning of the study. All participants and contributors of the primary data have approved the final result.
3.4 Trustworthiness
It is claimed by Bryman and Bell (2007) that the trustworthiness of research is able to be analyzed by looking at four different parameters. These are transferability, credibility, dependability, and, lastly, confirmability. Bryman and Bell (2007) argue that each of these four parameters is as important when concluding the trustworthiness of any research. The following section presents these four parameters, as well as analyses and evaluates these aspects for this specific study. This, with the scope, to identify the trustworthiness of this study.
Credibility
During a qualitative study, Bryman and Bell (2007) argue that a chance of misinterpretation of the answers is relevant. More specifically, there is a risk that the researchers do not capture the essence of the information that is gained. Therefore, it is presented that the relevance of ensuring that the interpretation is correct is massive. Bryman and Bell (2007) propose that the researchers are to present the interpretation of the contributor of the information to minimize the risk of
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misinterpretation. In this case, the used case company was presented with the data that was extracted and hence assured that the interpretation of the data was correct. This is also stated, by Bryman and Bell (2007), to be an effective approach. Thus, the respondent's validation increases the credibility of the study.
Transferability
A qualitative study based on various empirical data, applied at a specific case, has limited transferability. Firstly, the case product has a patent which makes a full transferability impossible.
Secondly, the VP may vary depending on where one decides to launch the product. Parameters such as segment markets in different countries, or events that affect the nuclear business environment, can affect the transferability. However, the process itself proven in the study is transferable, meaning that the reasoning and usage of the VPC is a process transferable to any other product or service. With that said, the aim of this study is not to create a VPC for a nuclear scanner, but rather to prove the process and encounters during the process of creating a VP. This, with the tool of the VPC. Hence, the previously mentioned aspects that create a non-transferability are not as important to consider and should, therefore, not affect the result significantly.
Thenceforth the conclusion is not perfectly applicable to any situation, but the study itself is a method on how to achieve reasoning around VP.
Dependability
The study is conducted by two researchers, which improved the focus of observations of the case.
The information in relation to the case study was mainly received by the company themselves or acquired by the researchers. Bryman and Bell (2007) point out that qualitative studies require a great effort to audit, which is followed for the primary data. However, a majority of the empirical study is secondary data. This reduces the dependability, as the audit of the secondary data is less controllable.
Confirmability
Total objectivity is not possible in social studies (Byman & Bell, 2007). However, the ambition has been to objectively interpret the secondary data. Quantitative illustrations have helped in that part, but as nuclear science may cause large opinions, it is difficult to ensure and confirm statements in the secondary data. In other words, VPs and nuclear science is a subject that is easily reflected by personal values in comparison to, for instance, gender equality. The thesis has also been peer-reviewed to increase credibility.
3.5 Limitations
If this study was conducted once more, it would be relevant to look at the outcome of each of the aspects brought up from the empirical study, not only related to the VPC, but related to any other value proposition related tool. This, as the VPC is a small part of the value creation, and there is yet more to explore. It would also be interesting to look at a specific business where this type of technology is applicable and conduct an empirical study to investigate how the VP should be articulated to fit that specific business. Lastly, it would be interesting to dig deeper into the data on nuclear materials in various countries and explore even more application areas for the product than the given ones. Moreover, we believe that the secondary data which brought up aspects not fully applicable to the VPC affected the outcome somewhat, thus making the former interesting to further investigate.
The choice of relevant pains and gains were made based on previous research. As per the delimitation, the VP and VPC was the chosen tool to illustrate value. Hence, some elements and
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drivers in the study could have been valued differently with another framework as a base for the study. This may have caused a specific identification of pains and gains. This is however disregarded in the conclusion. It would be interesting to, in the future, look at more possible pains, gains, Jobs to be done, etc. applying to the same conditions and distinguish what makes one of those relevant to focus upon or not.
Moreover, the application of the product can be categorized vastly. The research chosen was conducted based on general use and application areas and a corresponding VPC was suggested.
The use of the product can extend to diversifying models and uses which may shift from the value creation process suggested in the research. However, further research could be done specifying each model of products and the selected department it is able to serve initially intended.
The data collected for the research are based on the previous data available from the research that was conducted before. If the research was re-conducted at a different time, the empirical data collected at the time of research may not coherence with the research that was conducted, making a different customer segment and different gains for the product.
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4 Empirical findings
This chapter presents the empirical findings and various aspects that may trigger pains and gains within nuclear safeguard as well as parameters affecting the VP. Firstly, the case on various types and areas of terrorist attacks is presented, then security ranking of each country is presented and lastly important parameters for the VP and VPC are investigated.
4.1 Current Nuclear Aspects
To analyze and discuss the research question in hand, the following empirical data are collected and organized in order to reach our goal to answer the intended question in hand. These data will correspond to the gain of the nuclear scanner and categorize the customer segment for the initial market
4.1.1 Major Terrorist attack so far
As part of secondary data collection, countries affected by terrorism, and the major incident of terrorist attacks occurred during the past four decades are collected. This information would reflect the urgency to implement nuclear safeguards and security for future precautions for similar attacks and also serve an aspect of implementing the scanner in different security departments with urgency.
Year Methode Place Casualty
1988 Plane hijack Pan Am #103,
Airline plane
270 dead
1992 Car Bomb Buenos Aires,
Argentina, South America
242 dead
1993 Truck Bomb World Trade Center,
USA, North America
6 dead, 1042 injured
1995 Truck Bomb Oklahoma City,
USA, North America
168 dead, 500 injured
1996 Truck Bomb Sri Lanka, Asia 90 dead, 1400
injured
1996 Truck Bomb Saudi Arabia, Asia 19 dead, 515 injured
1998 Truck Bomb U.S Embassy,
Kenya, Africa
212 dead, 4022 injured
1999 Apartment block
bombs
Moscow, Russia, Europe
200 dead
2001 World Trade center World Trade Center, 3062 dead
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collapse (9/11) USA, North America
2002 Bombing, Suicide
bomb
Bali, Indonesia, Asia 190 dead, 300 injured
2004 Train Bomb Madrid, Spain,
Europe
191 dead, 1800 injured
2007 Communities
Bombing 4
Iraq, Asia 769 dead
2008 Coordinated
Bombing 5
Mumbai, India, Asia 166 dead
2014 Massacre 6 Iraq, Asia 1700 dead
2019 Church Suicide
Bombing 7
Colombo, Sri Lanka, Asia
259 dead, 500+
Injured Table 4.1.1 Major Terrorist attacks
Source: Ferguson, C. (2004); 4U.S. Commission on International Religious Freedom (2008); 5 Åshild Kolås (2010); 6 Whiteside, C. (2015); 7 Imtiyaz, A. R. M. (2020).
According to the ITDB - The Incident Trafficking Database of IAEA 2018, it has been reported that around 166 cases of unauthorized activities of SNM or trafficking and improper use of radioactive materials were detected in 34 IAEA member countries. And since the year 1993, there were a total of 278 incidents that confirmed misuse or trafficking of radioactive materials, which includes SNM, plutonium, highly enriched uranium and plutonium beryllium neutron sources.
(Fact Sheet, 2018)
Radiation Portal Monitors (RPMs) at cross borders, ports, cargos, and other areas of security concern (such as nuclear facilities and tunnels) to screen objects and persons passing through them are a key component in the efforts to detect and prevent trafficking of nuclear and radiological materials. But with current technology, they are not sensitive enough
4.1.2 Nuclear security Index of countries
It is also important to know where the course of nuclear terrorism might start. So it is important to look for the countries that possess the materials for nuclear weapons. Along with that, the security level that the facility possesses is also an important aspect that needs to be taken into account.
These data would reflect where the security must be tightened, especially the countries which are being acted as a source of nuclear weapon materials. This would also reflect to the gain and customer segment which would be described in the section 5.2.
Nuclear Security index has observed and analyzed the facilities all around the world and has measured the level of security according to the following aspects (NTI Nuclear Materials Security Index., 2018):
(a) Onsite physical protection,
(b) Control and accounting procedures,
(c) Mitigation of threats from within nuclear facilities (The risk of the personals with access to the facility to steal or help or being manipulated to take nuclear weapon used materials) (d) Physical security during transport,
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(e) Response capabilities, and
(f) Cybersecurity of nuclear facilities
The following are the countries and their rank in the world and their security ranking index according to the NTI 2018.
Rank Countries Security Ranking
1 Australia 94
1 Switzerland 94
3 Canada 89
4 Germany 88
4 Japan 88
6 Norway 85
7 Belarus 84
7 Netherlands 84
9 Belgium 81
9 Italy 81
11 France 80
12 United Kingdom 79
12 United States 79
14 China 71
14 Kazakhstan 71
16 South Africa 70
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17 Russia 67
18 Israel 58
19 India 46
20 Pakistan 44
21 Iran 37
22 North Korea 24
Table 4.1.2 Countries with Weapons-Usable Nuclear Materials Source: NTI Nuclear Materials Security Index. (2018)
In the 1990s, the number of countries having possession of weapon usable nuclear materials was 50, which later in the year 2000 become 40, and now in 2018, it is 22. The reduction in the number of countries possessing weapon usable nuclear materials implies a positive condition as the no. of sources for nuclear theft has decreased, and more focus can be given to the countries.
4.1.3 Ways of Acquisition of Radioactive Materials / or places requiring high security
Nuclear weapons are the most dangerous weapon which can be used for mass destruction.
Terrorists are in constant thinking of how to acquire such materials or weapons. This provides the weakest link in SNM management and provides considerable awareness to improve security level which would be described more in detail in section 5.2.
According to (Ferguson, C. 2004, p271-279), followings are the possible ways terrorists might acquire material for nuclear weapons from the weakest links of safety.
I. Deliberate Transfer by a National Government
It is when sometimes countries with lower security measures transfer any nuclear materials, and there is no evidence that the transfer is to a terrorist group or not.
II. Unauthorized Insider Assistance: Government Official or Facility Custodian
This is when some higher government officials or facility personnel are involved with the transfer, or theft of nuclear materials
III. Looting During Times of Political or Societal Unrest
When a state or country is busy in war or dispute, and the nuclear facility or higher officials of the facility lose focus of the security.
IV. Licensing Fraud
Fake licensing or fraudulent licenses is also an act that has occurred before even in high- security countries like United states
V. Organized Crime
Through the criminal activity, the terrorist might acquire the weapon-grade radiation materials, which happened in Ecuador 2002
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VI. Theft from Facilities
Materials that are potential Radiological Dispersal Device (RDD) can also be stolen, which happened in 2003 from Russian lighthouse
VII. Transportation Links
According to IAEA, around 10 million packages that contain radioactive materials are being transported each year. And transportation links are supposedly the weakest link of security
VIII. Orphan Sources
Many abandoned facilities may contain radioactive materials. It is estimated that around several thousand radioactive materials are orphaned and might fall into terrorist groups without our knowledge.
IX. Transporting the Weapon or Device to Its Target
Terrorists might not have to transport the device, and they might just use the
explosiveness of the nuclear material to get what they want as nuclear weapons usually have high radial coverage of impact.
X. Detonation or Dispersion of Radiation
Terrorists might not need a large amount of radioactive materials; making a bomb or detonator would not require much technical knowledge.
4.2 Favorable parameters within the Value Proposition
During a qualitative study on what business customers value, based on interviews, various drivers were identified (Sakyi-Gyinae & Holmlund, 2018). The study looks upon how customers articulate benefits and value, and the evaluation of these drivers is based on six types of offers that a service or product provides. These are system, infrastructure, integration, usage, relationship, and price. Hence, important for the customers yet not all specifically defined in the VP or in the elements of the VPC. The six drivers were all identified as the most pushed for dimensions during the interviews.
The functionality of the system, and the perception of that by the customers, is something that is imperative. There is a necessity that the product or service meets the expectation of the customers.
Sakyi-Gyinae and Holmlund (2018) found that there is a possibility that even the seller and the customers can disagree upon the functionality. Therefore, this offer should not be overlooked.
Furthermore, the offer of infrastructure refers to the effort needed to use the product. The interviewees clearly stated that, the product or service should take less effort to use, than other options on the market. It is even stated that this is a feature that can take a product or service from inferior to superior.
The third offer looked upon is integration. The provider and the customer must agree upon that the initiation of the product of service is minor than what it would be for other similar products or services hence referring to a simple integration to its applied area. One interviewee remarks on the importance of integration, as he previously had needed to test an already proven product in a mock up environment to ensure the usability in his specific business. He also pushes the value of what is mentioned as “effortless integration”.
Usage looks upon the step after integration and is stated to ensure the so-called health of the service or product. The interviewees mean that a well run ongoing operation demonstrates its health,
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nevertheless, given that the ongoing operation once more is superior to other industry offerings.
Sustainable functioning and the correct possibility to manage and update the product is pushed towards by the interviewees.
The relationship is an offering that looks upon the handling of the customer problems. Fast technical support and quick troubleshooting are prioritized aspects. One situation mentioned that is wished to be avoided, is that problems can not be solved if someone is on vacation. Hence, the importance of a good relationship between seller and customer with the smooth handling of problems is important (Sakyi-Gyinae & Holmlund, 2018).
Lastly, price is an important parameter. The revenue model is wished to be synchronized with the customers, to have an as anchored pricing model as possible. It is coherently stated that the price should be competitive but reasonable, stating, amongst others;
“...make sure that you figure out what customers are going to need and if it is going to cost you twice as much…. you have got to be competitive too at the same time…” (Sakyi-Gyinae
& Holmlund, 2018, p. 40)
Furthermore, Achi (2018) conducted an empirical study looking at customer value and stakeholder value and their relationship in the telematics industry. For the customers, it is clear that safety is an important factor. Not only that, the well being of the operator is secured, but also for its surrounding. Nevertheless, uptime in the means of an always available and usable machine is a valued benefit. Yet another benefit that is of importance is the overall performance of the machine, and that it is efficient. Looking at the stakeholder's value, Achi (2018) found that quality, customer satisfaction, and customer insight are important factors. Furthermore, it is reflected upon how continuous contact with customers, and having employees being the co-creators of value. This is shown to be met by having thorough observations of the customers to ensure that the correct resources are available and the execution is fulfilling the expectations (Achi, 2018)
