Developing a New Customer Value Proposition (CVP) Design Approach for Minerals Processing Plants Project Business

Abstract

Various global market drivers are enforcing changes in the B2B mining and metals industry to focus on value-in-use. The case firm, a premier technology and projects company, serves the mining and metals industry through various offerings. The objective of this thesis is to create a new customer value proposition (CVP) design approach for the minerals processing plants project business of the case firm to meet the service driven changes in the industry. One customer segment of the case firm, Junior & Start-up, was chosen as the study premise.

The thesis followed the applied research approach as the focus was to put theory into practice, using the qualitative research method along with few mathematical tools. The research design consisted of five steps. The literature research guided the creation of the conceptual framework, which was applied in analysing the existing CVP of the case firm, developing and validating the new CVP. The current state analysis revealed key weaknesses, such as isolated CAPEX and Services sales; lacking customer focus, for instance, in solution design.

The new CVP design included customer need profiling, creating a value map, checking of problem-solution fit, creating customer specific resonating focus and alternate revenue logics to deliver the CVP. The new CVP was validated internally and externally through customer cases and feedback was used to improve it. The thesis outcomes include a new CVP structure to find customer specific CVP for the target segment, a customer value calculator to deliver the focus CVP through alternate revenue models, and an overall new approach for CVP design. Finally recommendations for future actions are also included in the thesis.