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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

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Page 1: Challenges of creating a value proposition for improved ...1461913/...i Challenges of creating a value proposition for improved radiation technology in the society - A case study of

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 TECHNOLOGYSCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

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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 (Lindic,

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)

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5 Analysis and discussion The purpose of the study was to investigate the gain of using advanced radiation scanners and the

pain reliever for using such technology. Then emerging from these two data, a value proposition

canvas is structured. This section will illustrate the analysis of the data that was collected and then

discuss the findings and the potential usage of the research conducted

5.1 Stakeholders of advanced technology nuclear scanner

To have a comprehensive understanding of advanced technology nuclear scanners, it is important

to know the stakeholders of the product and the beneficiary of the product.

Stakeholders are individuals or groups of people who have invested interest in the success of the

product or organizations. Stakeholders are often classified into three categories, Core stakeholders,

primary stakeholders and secondary stakeholders. This Stakeholder analysis is shown in Table 5.1

to illustrate and differentiate the different stakeholders.

Figure 5.1 shows the stakeholder mapping clearly implying which part of the society is interested

in the product, in which market does the product belong to, who are the investors and who the staff

or workers will be.

Figure 5.1.1 Stakeholder mapping

Core Stakeholders

Core stakeholders are strategic stakeholders

who are essential for the survival of the

organization

IAEA, KTH-physics, The Swedish

Radiation Safety Authority, The steering

committee, Swedish Research Council,

Swedish Agency for Innovation

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Primary Stakeholders

Primary stakeholders are who have a direct

interest in a company

State security of each country, Nuclear

facilities. Equipment suppliers

Secondary Stakeholders

Secondary stakeholders are who have an

indirect interest in a company

Security Personals, Society, Media

Table 5.1.1 Stakeholder analysis for a nuclear scanner

This stakeholders analysis and mapping gives a holistic view of who the product is intended for

and who has the most interest in the product. This analysis will help to understand the further

discussion on how the product is better for the society and how it is a pain reliever for the customer.

5.2 Gains associated with advanced radiation technology nuclear scanner

United Nations Member States together have developed 17 sustainable development goals, and

one of the goals aims to promote trade, innovation, and infrastructure. This provided a vital

grounding point for the development of advanced radiation technology. This not only supports the

use of a nuclear scanner but also promotes the product for the betterment of the society. Thus this

eventually acts as a gain creator for value propositions for the nuclear scanner and also strengthens

the customer profile.

Nuclear threats can begin from the source of the materials or from nuclear facilities. These are the

initial places where an illicit use or acquisition of materials can be obtained in the first place. As

illustrated in Figure 2.1.1 and Figure 2.1.2, there are many countries where the level of security is

not of high standards, according to the Nuclear Threat Initiative (NTI). This has been further

elaborated in Section 4.1.2, where the security index of each country having possession of nuclear

materials is ranked. The ranked countries are the only countries that currently have possession of

weapons-usable Nuclear Materials in the world. NTI Index calculated the level of safety as Overall

ranks for 2018; all countries are scored 0–100, where 100 = most favorable nuclear materials

security conditions. By analyzing the data of the ranking, it is observed that half of the countries

(11 out of 22) have scored less than 80 out of 100 which is below the blue zone (Marked as top

Security level) And 5 out of 22 countries score less than 60, in which two countries fall in the red

zone (Marked as least security level) and three countries fall in the yellow zone (Marked as

cautious security level). This implies the level or urgency some countries need to make

improvements in the security department to attain safety measures for the goodwill of society.

Through this analysis, the customer segment can be classified as the countries that lack the level

of high-security rank. The countries which fall on the red and yellow zone need to initiate the

improvement of security level with urgency. So the advanced radiation technology gets a boost in

pain reliever by creating a value proposing to the customers. And the customers get a boost in gain

as the advanced technology will improve the security rank and be able to be marked as a safer

facility. So developing a VPC, the customer segment can be initially categorized as the countries

that are in the yellow and red zone of the Nuclear security index from table 4.1.2, which is the

bottom five countries having weak security conducts.

As presented in Section 2.2, there are many nuclear facilities that are being decommissioned after

the lifespan of the plant. This has created a requirement for the movement of nuclear materials

safely. On the other hand, as stated in section 4.1.3, the transportation of nuclear material is one

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of the weakest links of security. It is thus creating an increase in the demand for safeguards in

nuclear facilities. Needing security on both receiving ends as well as sending end. This broadens

the customer segment of the scanner for the nuclear facilities. It is adding a gain for the value

proposition for a nuclear scanner as more facilities are decommissioned.

Furthermore, emphasis on security can be observed by Table 4.1.1 where the major incident of

terrorism is observed all around the world. By analyzing the incidents, it is seen that there is no

pattern in location, time, area, or method by the homicides. It is seen that all the major continents

like North America, South America, Europe, Asia, and Africa are affected by the terrorist attacks.

It is also observed that major transportation facilities are also used as a method of homicides e.g.,

Truck, plane, car, etc. Also, from section 4.1.3, we have seen the ways terrorism can acquire

radioactive materials. This helps the country and government to focus on where the security needs

to be improved and where are the weakest links to prevent any illicit act to occur. This created a

different customer segment and jobs to be done at different government departments where

security measures are taken. And the Nuclear scanner acts as a pain reliever for the customer at

the security department as it can detect radioactive material quickly and effectively than other

scanners in the market.

Analyzing all the aspects, it is clear that all countries must always be aware of the danger that it

can uphold, and the security checks need to be assigned in all major cross borders and

transportation sectors. This implies in airport security checks, transportation security check, cargo

security check, full-body screening, etc. This gives a new customer segment, or a more narrowed

down within each country, for any private or government organization and again for the society or

customer.

As per to achieve a security level for the society, all member states, as per section 4.1.2, need to

contribute, which may mean that everyone needs to implement this superior technology for

security. The device fulfills all the jobs to be done by the customers providing the security needed

in the facility or in cross borders. This device is arguably a better scanner compared to other

scanners in the market, as this requires much shorter coincidence time, which means faster

scanning. Apart from that, it can detect, locate, and identify radioactive materials even after some

shielding is applied to the source, as described in section 2.2.1. This provides a smoother

experience for the customer with the lower need of personals for security attaining pain reliever

for VP as well as gain for customers.

According to IAEA, as mentioned in section 2.2.1, the current technology of scanner in the market

(e.g. Radiation portal monitor) uses Helium-3 as an element in detection of radiation, which is

going to have scarcity in the future. So to have sustainability in the future products, IAEA

collaborates with many organizations and countries to come up with a replacement of a radiation

scanner which is more sustainable and does not use Helium-3. And the Nuclear scanner acts as a

more sustainable replacement for the current technology. This not only provides a good marketing

scheme but also adds great worth in the value creation process which behaves as a gain creator for

the product itself.

Analyzing the gains for advanced radiation technology, potentially, it can be said that every state

may not fit one specific VPC. This is because the scanner can be used in several different segments,

such as nuclear facility, airports, driveway security, cargo check-up, etc. This means that there is

a general challenge that one generic VPC may not fit, and one needs to narrow down to a more

specific target segment per VPC. Furthermore, the specific target market may also have different

categories according to different countries. In addition to that, a major gain is achieved when all

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the member states contribute, which means that to acquire the largest gain, all target markets need

to implement the scanner. In other words, it is imperative that the tailoring of VPC’s is constructed

per customer segment to generate the largest success. Both for each VP alone, but also as one large

impact. This is arguably needed to be done one VPC at a time, even though the major impact is

not achieved until several markets are entered. This is even more important as the importance of

efficiency and smooth infrastructure is stressed. It is plausible that the efficiency and infrastructure

of a nuclear scanner of this precision will enhance the number of established scanners on the

market. With those parameters established, it is also arguable that the feeling of safety enhances

with the number of established scanners.

5.3 Pains within current advanced radiation technology

During the last decade, it has been a challenging time for nuclear development. The world has seen

great success in nuclear energy sustainability, by which all major developed countries were

electrified sustainably from the nuclear power plants.. But with that, also came some downfall of

nuclear facilities. This planet has suffered many accidents caused by nuclear facilities, like three

mile Island incident and the Chernobyl incident where humans are still abandoned from the whole

city due to the high contamination of radioactivity from the accident. Not only accidents from

nuclear facilities, but the world has also seen monstrous disasters created from nuclear bombs that

were detonated in Hiroshima and Nagasaki in Japan in August 1945. This has created fear inside

the society of anything that is associated with nuclear or radiation technology. The majority of

society does not have a proper understanding of how nuclear material acts or how it functions, but

most of them know what disaster it can create to the Earth. This deficiency of knowledge in this

matter acts as a negative catalyst for any product which uses radiation technology, or in other

words, acts as a ‘pain’ in the customer segment.

Another cause of pain for the customer may emerge from the current technology that is being used

in the market currently. Each piece of equipment has a lifespan of its own. And the owner may not

be willing to invest in a new technology instantly as they have already invested heavily in the

current technology, which has promised to run for a fixed amount of bounded life-time. This acts

as a pain for the customer to replace an existing technology before its initiated life span.

In some countries, manual labor or security personnel are not of the high cost. This creates a

problem in the marketing department of the scanner to propose the intended value created from

less use of personals. This not only nullifies the intended value for the customer, but also makes

the calculation of the return of investment complicated and somewhat irrelevant as the cost of

saving security personal is not significant in those countries. It is thus creating a pain for the

customer or countries with low personal cost, on implementing such a high technology scanner.

The radiation scanners that are currently used in the market are sold in vast quantities due to the

demand and popularity, thus minimizing the production cost of the product. This will have an

impact on the advanced technology scanner that is coming new to the market, which, having new

technology, will not be of low price. So the customers or the security sector sensitive to price and

budget will face this as a ‘pain’ if the new technology is implemented or purchased.

As described in section 2.2.1, there are some few radiation scanners present in the market. But

each has limitations using it. Which in all acts as problems for the current application of advanced

radiation technology or regarded as a ‘pain creator’ for the society.

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● Radiation pagers vastly used around all sectors of security checks. The limitations

compared to a nuclear scanner is that pagers can not identify the source of radiation; it can

not locate the source nor can measure how intense the radiation is.

● Radiation portal monitors (RPM) is also another scanner which is found in most border

crossings like airports. This device uses Helium-3 as an important element in detecting

radiation. But due to scarcity creation of this element, IAEA has started looking for an

alternative device that does not use Helium-3, which acts as a pain for the customer (Airport

or cross border security checks) as they need to implement an alternative device when the

lifetime of the device is finished. Also, the device can also only alert the security personnel

of nearby radioactive sources, not identifying the source, not measuring the intensity or

energy.

● Radioactive isotope identification devices (RIIDs) are also used vastly as a secondary

scanner after the initial alert from passive radiation scanners like pagers or RPM to identify

the source further. This device requires security personnel to scan different places, holding

RIID steady to identify the source properly. This gives many unreliability and time

consumability. Also this device gives misleading identification when the source is shielded.

5.4 Considerable elements of a VP

It is obvious that a value proposition needs to be well articulated to have a successful business.

The best way to do so is to develop a clear VPC. Otherwise, there is a risk of failure for the nuclear

scanner. One important parameter within the VPC is the customer segment, which is relatable to

which potential target markets there are for this type of technology. It is arguably a large potential

within markets that are affected by nuclear terrorism and feel the need for this type of product. In

other words, they have a job to be done.

Furthermore, as presented, functionality is an important parameter that the customers focus upon.

However, this can be difficult to meet up at the customers sometimes does not know what they

want. And if so is the case, they may not know what kind of functionality is possible to meet their

needs. This may be particularly obvious within radiation technology as it is a quite advanced

technology and the customers may not know what they can ask for. This may cause a challenge

for when articulating a value proposition.

Moreover, the so-called infrastructure, the effort needed to use the product, is a major factor of

success, as per the interviewees. As the product is a development of already existing technology,

this is arguably not a problem when creating a value proposition for radiation technology products.

It is a more secure solution, hence a favorable infrastructure. However, this parameter does not

consider the effort in terms of money. If that was a part of the parameter, there is a possibility that

is would be a challenge for the value proposition. As the technology is greater, the cost is possibly

greater as well. This is very relevant as it is coherently stated that the price should be competitive

but reasonable.

The same goes for the integration aspect. Primarily, similar products are already established in the

market, and the effort to replace certain products is less than if introducing new ones. There is also

an aspect of the correctness in the scanning procedure, which is yet more improved than competing

products. Hence the integration of the product will arguably be even smoother than previous

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solutions. This arguing is also applied for the usage of the product. An even more correctly

scanning and simpler solution may lead to a simpler usage. The relationship between the producer

and the clients is something that is difficult to analyze as the product and its company is not yet

established as a business. Hence this parameter is overlooked.

An important aspect of addressing is the scare of terrorism. This is a large pain that is present in

any market presented, but the more affected arguably, the larger the scare. Hence also the larger

the pain. Closely related to social sustainability, as the scare of terrorism is arguably smaller in

areas where the pain is minimized. Thus the aspect of removing the scare is not solely a value

driver focus in form of safety, but simultaneously a driver for social sustainability. Furthermore,

the pain remover for this scare is the sense of safety as per an efficient solution that minimizes the

risk of nuclear terrorism. This is a recurring parameter, as the empirical data does not only address

the attacks in the society, and hence various target markets, but also addresses the safety of the

operator. This would, in other words, be the personnel operating the scanner in i.e an airport of in

the entrance of an arena. We then have that the pain of the customer, being the arena or the airport,

as well as the aspect of the personnel. Furthermore, it is possible to argue yet one more dimension,

stating that the safety of the customers is kept in mind. This contributes to the customer and their

VP towards their customers. This identified pain would possibly be a great driver for a clearly

identified VPC, and VP, and would not be looked upon as a challenge. To recall, customer value

proposition is a tool in communicating benefits in terms of technical, economic, and social to their

customers.

It is identified that other important factors for success for relevant for the proposed value is to look

upon are complementaries, such as services that will complement ones original service and “Lock-

ins” such as low budget versions of the original service. This is however, not relevant for the

current case. Mainly due to the fact that it is a single product that is developed, and a launch to the

market is yet to come, and secondly because it is not currently any knowledge on what a fitting

lock-in would be. This could be considered as a challenge, as an important factor that may generate

even greater value to propose to one's customers is disregarded. The challenge then lies in still

having a strong VP, which makes the product relevant for the market, even though one parameter

is not used to its full potential.

Furthermore, the business modeling industry presents a lot of previous theories. However, these

are not applied in the advanced radiation technology spectra of research that is relevant for the

case product. This is arguably a challenge for creating a value proposition, as there is less

possibility to apply lessons learned from previous cases to improve the current VP. A part of the

challenge also lies in being able to transfer lessons learned from similar industries and apply those

to the current situation. However, there is a possibility that the challenge for the VP is minimized,

as this is a new type of technology. This means that the competition is small and that the focus on,

for example, diversification is not relevant. Hence, the focus can be solely on 1. the customer

segment, and 2. the value proposition. In other words, the VPC. The creation of pain relievers and

gain creators can be isolated to the job to be done, as well as the customers' pains and gains. It is

stated that one should investigate whether there is a competitive advantage in certain areas

associated with the customer profile. As the competition is relatively small, the focus on the

competitive advantage may not be as important as for other products. On the other hand, it is also

stated that the VP provides a holistic business model approach to ensure a long term competitive

advantage. Hence, the focus on the VP will provide a competitive advantage itself. The challenge

then arguably lies in identifying the customer segment with little previous research.

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Moreover, it is clear that there is a customer segment within areas that comes to mind when

thinking about the nuclear industry. This is also what would be a starting point then tailoring a

VPC. Related to the sustainable development goals and innovation, there are certainly other

applicable areas for this type of nuclear scanner which is not yet revealed. It is then clear that the

element of VP may stand before a challenge when it comes to breaking new implementation

grounds. The process of illustrating the VP is, as based on previous chapter 2 and 4, is arguably

smoother when based on available data, but it is also possible that, as per chapter 3, some areas

are missed or not yet explored. These areas that are unexplored are not only a challenge for the

creation of the VP, but also a challenge in terms of how to actually extract the relevant data. As

per example, how do you know where an unknown nuclear scanner customer can be found, and if

so how do you know that you should develop a VP for that specific segment instead of keep on

looking for a more profitable segment. On the other hand, there is a challenge with the VP when

it comes to available data, as presented as this may put more pressure on diversification. The more

available the data of pains, gains, and jobs to be done, the larger the possibility that similar products

are developed that provide the same service that is requested by the customers. However, as there

is impactful profitability when it comes to a large establishment in previously stated industries,

one may argue that the challenge of implementing in already localized possible customer segments

is smaller than the challenge of finding new segments.

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6 Conclusions

It is clear that there are certain specific industries and areas of implementation where a nuclear

scanner of this precision is relevant. A majority of current pains within these customer segments

are related to aspects that this type of scanner will act as a pain reliever. Safety, efficiency, and

implementation are recurring aspects articulated from several stakeholders, both core and

secondary stakeholders. Not only that but when relieving one pain, there is also a possibility that

the impact of each aspect grows stronger together. However, there is a challenge for the VP as a

whole, as there is a need for a VP per possible market, but at the same time, the product must be

launched within several markets for the largest impact and to reach the full VP potential. Moreover,

there is also a detected challenge of exploring new areas of usage other than those explicitly

expressed from the presented stakeholders. There is little possibility of lessons to be learned, hence

creating a large challenge when exploring new possibilities. Furthermore, the aspect of lock-ins,

and the lack of that is yet another challenge, which is also related to the challenge of exploring

new possibilities. This does however, open up the possibility to fully focus on the current market,

thus creating a challenge in the form of larger competition.

Nevertheless, it is obvious that there is a necessity to clearly define a VP, whereas a VPC is a great

tool for that illustration. However, the aspects important to the focus upon customers may not

always cohere with the tool, as per money in relation to the job to be done is a recurring aspect for

the customers, which is not a part of the VP but rather of the BMC itself.

There are also distinct aspects that are articulated as important for the possible customers, but at

the same time, it is shown that the customers may not always know what they want or what is

possible to want. This is especially interesting as functionality is an expressed important aspect.

This creates yet another challenge when developing a VP, as it is difficult to know what to strive

towards and which pains and gains should be primarily focused upon to relieve and enhance.

It is concluded that implementing a single VPC will not be applicable to the scanner market. As

the scanner market or customer segment consists of different security segments and also different

rank and category of countries with different levels of security present, a tailored VPC needs to be

implemented for all different categories of customer.

In conclusion, to structure a VP is possible and should involve the various presented value drivers

and be prioritized as such. However, there are challenges with the process, which are related to the

various drivers. When creating a VP for this type of product, the challenges concluded are to be

considered.

Lastly, the scientific contribution of this study is found to be not only the identification of the

various value drivers but also the evaluation of their worth in relation to this type of product.

Finding safety as a large impact driver and integration and/or infrastructure being not as impactful.

With this in mind, the second contribution concludes the identified challenges for the VP creation.

An interesting next step would be to analyse these identified value drives by conducting a

qualitative study of one isolated customer segment. It would also be interesting to further

investigate how the Safety value driver relates to social sustainability. In addition to that it would

be interesting to conduct a similar study but with another value proposition framework in mind.

Mainly to identify whether the same challenges are identified or not. Lastly, it would be relevant

to further investigate each identified challenge and scientifically contribute with how those

challenges could be avoided.

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