The objective of this thesis was to assist the case company to identify value propositions and co-creation possibilities in the context of the digital environment. Marketing research in value creation has traditionally focused on the goods perspective where the organization is seen as the value creator. Shift in marketing thinking has moved the focus to service logic which sees the customer as a value creator. Therefore, an organization can offer value propositions which the customer can later turn into value. Despite the interest in value creation, there are only a few studies on how value creation emerges and how it can be managed. The approach in the present study was qualitative. The primary data was collected by conducting two in-depth interviews. The interviewees were in an operational role in the case company and they had academic and practical experience in online service development so that they could provide insight into the company’s value creation processes. The results showed that the case company relied on financial, strategic and functional value propositions. The co-creation process rose from the organization, which indicated that even though the customers were part of the co-creation processes, the main ideas for innovation emerged from inside of the case company. This suggests that the case company puts significance on resource-based innovation and less weight on co-creation and development of the service. Recommendations were given to the case company based on the conclusion on the co-creation and value proposition possibilities. Although the results were limited to the case company, the theoretical framework could be used in other settings.