Exploring value proposition of service offerings in telematics system

Abstract: Services are making a huge impact in the business sector especially in the developed countries. As services are customer-centric, there is a need for an enhanced process framework connected to integrated service development. Such a framework should ideally address value propositions meeting specific customer needs in identifying corresponding service offerings. In this context, this thesis aims to explore on how value propositions are defined, developed, and communicated during the introduction of service offerings and to identify the ways to improve the process of value propositions. The work is carried out in the context of a major (Swedish) manufacturing company within a specific product context, namely, the telematics system. The main data collection methods are personal observations, semi-structured interviews, meetings, and company documents. The study seeks to answer three questions: First, what are the value propositions addressed by the current service offerings in telematics system in the context of heavy-duty vehicle equipment? Second, how value propositions are created during the development of these services offerings? Third, how can the service offerings for telematics system be improved through the process of value proposition? The study found that two types of value propositions namely customer value proposition and stakeholder value proposition are addressed by the service offerings in telematics system. Additionally, it is found that value propositions are created in relation to service offerings. Finally, the thesis proposes a six-step conceptual framework to create better value propositions during the development of service offerings. The presented framework is applied to the current value proposition process at the case company and improvement suggestions are proposed, which can impact the service offerings in the near future. The thesis has contributions to enhance or create new service offerings through addressing the value propositions and applying them. The results are beneficial for managers and developers who work in developing the future state scenarios or business models.