The purpose of this dissertation was to bring out the importance of customer orientation and the significance of the customer's value production when developing a new service. The objective of the work was to create for the client company a customer-oriented service model which adds value and supports the marketing of their fire alarm installation business and the development of their services.

The dissertation is based on a constructivist research method. It investigates customers’ needs for fire alarm services, focusing on the customer point of view and the customers’ value production. This research work is qualitative; in other words, the purpose was to produce information about the situations in which customers feel they are receiving good value. This information increases understanding on the part of the service developers.

The theoretical part of the thesis deals with the importance of understanding one’s customers and the value which customers produce for the company. These issues are a source of competitive advantage and a starting point for developing a new service business. The theoretical part also presents the operations of the fire alarm installation business and its present service processes. The empirical part of the work consists of the survey of customer need. Based on the theoretical and empirical information, a new service process which emphasizes customer value was developed. Services are by their nature processes and the customers participate in their production. It is important to involve customers in the development of the service because most services are produced in interaction between the customer and the service company. The developed service process which produces the value describes significance, interaction in the service development among customers, service suppliers, the authorities, and partner companies. The creation of service innovations requires information on the day-to-day problems of customers. According to the value production process model, the challenge for the company is to participate in the production of the service together with the customer. The findings of the survey show that the customers’ biggest need is training in the maintencance of the fire alarm equipment. Further research on training needs should be undertaken, for example developing a course for the people who maintain the fire alarm systems.