Caverion Business Model Analysis-B2B MKT.pptx

Analysis of Caverion Business Model

1. Caverion Group 8 : Fan XU, Lin HU, Qiushi YU, Xiaoxi YUE, Yinjiwen LIU 2021.11.29

2. Business Model Canvas 01. 02. 03. Table of contents Nested Segmentation Need-based Segmentation 04. 05. DMU & Persona Company Profile Customer Journey 06. 07. 08. Competitive Positioning Matrix Evaluation & Change Proposition 09. 10 . OSTM Plan Customer Profile & Value Map

3. Company Profile 01.

4. Company Profile Caverion is a Finnish company whose purpose is to enable performance and people’s well-being by creating smart and sustainable built environment . Caverion has two business units: Services and Projects and the company has about 15,000 employees in 11 countries. Caverion has expertise in heating and sanitation, ventilation and air conditioning, cooling, electricity, information and communication services, security and safety, automation, and industrial installations.

5. Business Model Canvas 02.

6. Key Partners Components/materials/services suppliers Logistics companies Investors Key Activities Procurement R&D Sales & Marketing Logistic Customer service Operation -Design & Build -Maintain -Modernize Value proposition Caverion enable performance and people’s well-being by creating smart and sustainable built environment. Smart/Connected Green/Sustainable Turn-key/ Lifecycle Customer Relationships Trust Reactive support Long-term relationship Customer segments Public sector Real estate users Industry General contractors Real estate investors and developers Cost Structure Research and development Information technology capital cost Restructuring expenses Revenue Streams Projects business Large projects Technical installations Key Resources Channels Equipment R&D power/ Patent Financial resources Face-to face contact Events/ Affaires Official Website Social Media Lease costs Travel expenses Premise costs Wages and salaries Other fixed costs Rents Delivery system & Local service network Skilled employee Extensive service portfolio in large scale Solid relationships with best suppliers Services business Technical maintenance Managed services

7. Nested Segmentation 03.

8. Nested Segmentation 5. Personal Characteristics 4. Situational Factors 3. Purchasing Variables 2. Operating Variab les 1. Firmographic Variables Motivation: improve efficiency and minimise losses and emissions; sustainable, digital and safe environment Buyer-seller 1-to-1 relationship: trust, long term/short term Risk perceptions: low(industry)/high(ex.company building) Buying situation: cost/sustainability/safety/technology/service driven Type of application: part of big projects(ex. ventilation), smart projects(IoT), maintenance; new projects/existing buildings Urgency/size of project; short-term/long-term service Purchasing Policies DMU: SMB : CEO/COO/CFO Major Account: Maintenance Manager, Real Estate Manager, Project Manager, Facilities Director Purchasing Criteria (Operational Cost, Sustainability, User experience, Digitalization…) Smart, green, all in one Customers capabilities: willing and capable to integrate; have no solutions for sustainable maintenance 11 countries in Northern, Central and Eastern Europe Industry(34%), Real estate users(23%), Public sector(16%), Real estate investors and developers(12%) Customer company categories: large and medium-sized companies, public service(local government)

9. Need Based Segmentation 04.

10. Type of Demand Criteria Industrial Real Estate Investor & Developer Real Estate User Public Sector Infrastructure Environment for organizational activities Project Price Safety Sustainability User experience Technology Digitalization Service Diversity Reaction Speed Customization for special needs Low High Medium * Other situational factors: Disruption to main activities; Cooperat ive Project Management with other contractors; Time length for construction….

11. Profit Long-Term Relationship Price Focused Segment - Emphasize minimum fee - Driven by cost killing only Service Focused Segment - Emphasize wide range of service, reaction velocity, Adaptability - Possible to form long-term partnership Quality Focused Segment - Emphasize sustainability, digitalization, specific technology and turnkey solution - The property influences competitive advantage, high willingness to pay

12. Firmographic Industry Real Estate Investor and Developer Real Estate User Public Sector Operating Variables Smart Green All in one Smart Green All in one Smart Green All in one Need-Based Segmentation Quality + Service Quality + Service Quality/ Price Quality+ Service Target Profile Firm needing higher production efficiency; Property needing constant monitoring Firm wish for energy saving; Firm having high CSR; Firm struggling to meet sustainability regulation Firm having fragmented Supplier Real Estate with different end- user; Real Estate needing optimise the facility conditions and reduce costs Firm having high CSR; Firm has green band image; Firm wish for energy efficiency Firm having fragmented Supplier Property needing constant monitoring Project wish for energy efficiency; Project wish to set green building example Project having fragmented Supplier Opportunity Apply new technology; R emote control & data visualization system Energy efficiency monitoring system; Clean energy substitution Turn-key delivery by one supplier Implement data visualization system Energy efficiency monitoring system; Clean energy substitution Turn-key delivery by one supplier Implement remote data visualization system Energy efficiency monitoring system; Clean energy substitution Turn-key delivery by one supplier Arguments Solutions based on decades of industrial experience Simple solution with sustainability expert; help to face tightening regulation Resources saving; Cost saving; Time saving Help to create comfortable environments results in high user satisfaction and well-being of people Energy saving led to cost saving; Good employer image/ brand image; Simple solution with sustainability expert Resources saving; Cost saving; Time saving; Efficient execution Enable risk prevention and remote control Simple solution with sustainability expert Resources saving; Cost saving; Time saving

13. DMU & Persona 05.

14. Decision Making Unit of Technopolis Name Position Role Preference Motivation Power Kari Kokkonen Chief Real Estate Officer Decision Makers - Green building - Wide service portfolio - Potential as partner - Sustainability - Carry the company growth 5 Ville Nieminen Project Manager Buyer - On-time project delivery - Justified costs Promotion possibility 4 Piritta Lehmus Specialist of Real Estate Data Management Influencer Efficient data management system To Prove capable of managing the new job 3 Johanna Kivelä Concept Development & Sustainability Manager Influencer & Champion Green building Sustainability 3 Kirsi Nyberg Legal Specialist Gatekeeper - Certificated supplier - Project complies with regulations - Learn and experience new things - Cares about Environment, Health and Human Rights 4 Karolina Čubrinskė Service Manager User & Influencer - User-friendliness of system - To Prove capable of managing the new job - Excellence and success 3

15. Job title & role Chief Real Estate Officer, CREO He plans and directs all the company’s aspects Pain points Financial problem / Budget division Unpredictable safety problem Goals To ensure optimization of the company’s portfolio based on the objectives of the company Value the company Values Efficiency Committed Success Happy Defines success by assuming challenges positively Persona: large company/CREO Kari Kokkonen Background: Male/58 Education: M.Sc., Real Estate, construction economics Comment: “Get better with age!”

16. Job title & role Project manager Cost Management Time Management Design Coordination Fit-Out Construction Documentation and Reporting Purchase Orders Change Orders Pain points Spends too much time on projects to make them perfect Unexpected extra costs Goals Making sure every project he oversees is well supplied and organized Values Dedication Desire for promotion Persona: large company/project manager Ville Nieminen Background: Male Education: Master of Science( MSc), Civil Engineering Comment: Reserve NCO in the Finnish Defence Forces

17. Customer Profile & Value Map 06.

18. Customer Profile Technopolis Decision Maker: Kari Kokkonen Buyer: Ville Nieminen Unsatisfied customer support Unexpected extra costs Construction safety problem Low risk high reward Life-cycle maintenance Flexible and adaptable service Increased productivity Cost management Long term partnership Best industry choice Project delayed delivery Energy Efficiency Sustainable building Hard to monitor the detailed working processes Budget division Process management

19. Value Map Caverion Regularly conduct safety auditing Introducing predictable maintenance cost Long experience in various production Designing adaptable structures to meet future demands Providing fully autonomous services Integrating digital systems into structures to increase productivity Increasing transparency on status reports Set ambitious sustainability targets Uninterrupted production through comprehensive maintenance High reliability Wide range of services Combine design and delivery Digitalising buildings reduce CO2 emissions Decision Maker: Kari Kokkonen Buyer: Ville Nieminen

20. Fit analysis Good fit ✓ No fit X Unknown ? Set ambitious sustainability targets ✓ High reliability ✓ Wide range of services ✓ Combine design and delivery ✓ Uninterrupted production through comprehensive maintenance ✓ Designing adaptable structures to meet future demands ✓ Integrating digital systems into structures to increase productivity ✓ Providing fully autonomous services ✓ Digitalising buildings reduce CO2 emissions ✓ Regularly conduct safety auditing ✓ Long experience in various production ? Increasing transparency on status reports ✓ Introducing predictable maintenance cost ✓ Low risk high reward ? Flexible and adaptable service ✓ Increased productivity ✓ Energy efficiency ✓ Life-cycle maintenance ✓ Budget division ? Project delayed delivery ? Unsatisfied customer support ? Unexpected extra costs ✓ Long term partnership ✓ Sustainable building ✓ Best industry choice ✓ Cost management ✓ Process management ✓ Construction safety problem ✓ Hard to monitor the detailed working processes ✓

21. Customer Journey 07.

22. Customer Journey Map Ville Nieminen Project manager of Technopolis Working on a new project of sustainable working space in Finland Research First Contact Benchmark Implementation Maintenance Ville hears about Caverion from a colleague Ville searches the company on Google and visit the official website Ville calls Caverion and meets with sales Ville evaluates offers from suppliers and decides to choose Caverion Ville signs the contract with Caverion Ville tracks the ongoing project Ville reviews the property data of maintenance “The company values a lot sustainability.” “Limited info. And there’s an overlap of solutions. ” “The operator gives clear info and understands well my needs.” “No direct contact info of sales. I waits too long for the sales to contact me .” “Caverion’s solution outperforms others.” “Caverion’s *BIM is impressive.” “Communication issues results in delay.” “It’s easy to monitor building performance.” “Minor communication issues.” Opportunities: SEO Website optimization Reduce wait time by improving internal process Improve communication by employee training

23. Competitive Positioning Matrix 08.

24. Competitive positioning Matrix Ville Nieminen Project manager of Technopolis Working on a new project of sustainable working space in Finland Attributes Weight Apleona Are Caverion Mean Price 25% 7 8 6 7 Sustainability 20% 5 5 9 6,3 Digitalisation and automation 20% 6 4 8 6 Easy-to-use 10% 5 6 6 5,7 Customer support 10% 5 7 4 5,3 Delivery time 15% 6 5 3 4,7 Total 100% 5,7 5,8 6 5,8

25. The Blue Ocean Approach

26. Evaluation & New Value Proposition 09.

27. Value Proposition Evaluation

28. Business Model Evaluation

29. Change Proposition Proposition 2: Comprehensive offers in Digitalization Industrial: Integrated plant management solution over the entire lifecycle Residencial: Smart room automation control device Commercial: Digital solution for efficient workplace …. Proposition 1: Expand offers in Real Estate Consulting Services Fund & Portfolio Management Financial Audit & Lease Administration ….

30. Key Partners Components/materials/services suppliers Logistics companies Investors Key Activities Procurement R&D Sales & Marketing Logistic Customer service Operation -Design & Build -Maintain -Modernize Value proposition Caverion enable performance and people’s well-being by creating smart and sustainable built environment. Smart/Connected Green/Sustainable Turn-key/ Lifecycle Customer Relationships Trust Reactive support Long-term relationship Customer segments Public sector Real estate users Industry General contractors Real estate investors and developers Cost Structure Research and development Information technology capital cost Restructuring expenses Revenue Streams Projects business Large projects Technical installations Key Resources Channels Equipment R&D power/ Patent Financial resources Face-to face contact Events/ Affaires Official Website Social Media Lease costs Travel expenses Premise costs Wages and salaries Other fixed costs Rents Delivery system & Local service network Skilled employee Extensive service portfolio in large scale Solid relationships with best suppliers Services business Technical maintenance Managed services Proposition 1 Real Estate Manager Financial Expert Training System ERP System Consulting HR Cost ERP System Develop Cost Market Information Cost Consulting Commision

31. Value Proposition Evaluation Gain Creator: Enable full control over real estate management based on tailored analyses and property data systems Pain Reliever: - Avoid Property-Strategy align problem - Avoid Project financing problem

32. Business Model Evaluation

33. Comprehensive offers in Digitalization

34. Key Partners Components/materials/services suppliers Logistics companies Investors Key Activities Procurement R&D Sales & Marketing Logistic Customer service Operation -Design & Build -Maintain -Modernize Value proposition Caverion enable performance and people’s well-being by creating smart and sustainable built environment. Smart/Connected Green/Sustainable Turn-key/ Lifecycle Customer Relationships Trust Reactive support Long-term relationship Customer segments Public sector Real estate users Industry General contractors Real estate investors and developers Cost Structure Research and development Information technology capital cost Restructuring expenses Revenue Streams Projects business Large projects Technical installations Key Resources Channels Equipment R&D power/ Patent Financial resources Face-to face contact Events/ Affaires Official Website Social Media Lease costs Travel expenses Premise costs Wages and salaries Other fixed costs Rents Delivery system & Local service network Skilled employee Extensive service portfolio in large scale Solid relationships with best suppliers Services business Technical maintenance Managed services Proposition 2 IT Exp ert Patent IT Infrastructure UX/UI Designer HR Cost R&D Cost IT Infrastructure Cost IT system installation fee IT supplier

35. Value Proposition Evaluation Gain Creator: - M aximum data transparency lead to efficiency - Easy to implement & user friendly Pain Reliever: Avoid incompatibility between different system

36. Business Model Evaluation

37. Change Proposition Proposition 2: Comprehensive offers in Digitalization Industrial: Integrated plant management digital solution over the entire lifecycle Residencial: Smart room automation control device Commercial: Digital solution for efficient workplace …. Proposition 1: Expand offers in Real Estate Consulting Services - Higher Synergy with current business - Large overlap with current strategic asset - Reinforce Positioning Fund & Portfolio Management Financial Audit & Lease Administration ….

38. OSTM Plan 10 .

39. OSTM Plan Objectives Strategies Tactics Measures Objective 1 Make Caverion more visible Objective 2 Generate customer leads in a digital way Create and communicate engaging content on important channels and make it more accessible Diversify digital channels to communicate with potential customers Regularly publish solutions and cases on social media ( 2-3 contents/week on 4 social media) Increase traffic by SEO - SEA Present solutions on the forums Attend exhibitions (e.x. smart city) Construction websites Improve solutions segmentations on the website KPIs Reach > 100k/quarter Engagement > 4k/quarter Increase conversion rate by 5% Organise webinars to reach potential customers ( 2 webinars/quarter) Build virtual showroom ( 1 virtual showroom/quarter) Offer e-mail address and add online instant customer service Targeted emailing > 100 participants/webinar Increase online visits by 5% > 100 leads /month

40. THANK YOU !