Value creation through digital solutions in the energy industry : A case study at Skellefteå Kraft AB

Abstract: Purpose – The purpose of this master thesis is to gain a better understanding of how value creation can be achieved with digital solutions in the energy industry. More specifically, this research aims to increase the understanding of factors that affect customer value in form of exploring the customers’ digital wants and needs. Method – This master thesis uses a combination of exploratory and descriptive approach which is based on qualitative data gathered from semi-structured interviews with area experts and focus groups with customers. In this study three area experts and four focus groups were included. The gathered data were analyzed through an abductive analysis approach and a thematic coding. Findings – The research found three main findings that energy company’s need to take into consideration. The first is that the energy industry needs to simplify the energy concept since customers’ state that the industry is too complex at the moment. Second is that value creation can be achieved in form of a superior mobile application where customers’ have the ability to follow their consumption and can gain improved customer care. The last main finding from this study show that there may be a lot of changes in the energy industry in the future, which entails many possibilities for energy companies to improve customer value. Recommendations – The recommendations from this study is that energy companies need to address that the driving force to buy in the energy industry is that customers want to like their energy company. The energy industry must change their focus and provide marketing strategies that are appealing to the customers’ emotions. Companies in the energy industry also need to deal with the increasing digitalization that is affecting society everywhere. The development of a great mobile application will improve a lot of things for the customers such as making their consumption controllable and easier to grasp, which will make them more satisfied. It is also recommended that energy companies in Sweden unite and together make a proposition to the EU to drop the regulations on electricity charges in order to unlock energy companies’ ability to make energy subscription customer friendly. Research contribution – This master thesis contributes to the three dimensions that customer value derived from, in the energy industry digital solutions affect functional and emotional value but has low impact on social value. It also occurred that simplicity, control, better information and customers’ buy with their heart are key factors that contributes to customer value in the industry, which contributes to both theoretical and practical. Digitalization are also moving fast in the energy industry which companies need to embrace right away and take action to not fall behind. Paper type – Master thesis