Disruptive innovations at the bottom of the pyramid : can they impact the sustainability of today´s top companies?

Due to the different dynamics required for organizations to serve the emerging market which contains billions of people at the bottom of the pyramid (BOP) coupled with the increasing desire for organizations to grow and be more multinational, organizations need to continually innovate. However, the tendency for large and established companies to ignore the BOP market and rather focus on existing markets, gives an indication of the existence of a vulnerability that potentially disruptive innovations from the BOP will not be recognized in good time for a counter measure. This can be deduced from the fact that good management practice advocates that managers should learn and listen to their customers. Therefore majority of the large existing companies continually focus on their main customer/market with sustaining innovations which leaves aspiring new entrants with an underserved BOP market to experiment with. With the aid of research interviews and an agent-based model (ABM) simulation, this thesis examines the attributes of BOP innovations that can qualify them as disruptive and the possibilities of tangible disruptive innovations arising from the bottom of the pyramid and their underlying drivers. The thesis Furthermore, examines the associated impact of such innovations on the future sustainability of established large companies that are operating in the developed world, particularly those with a primary focus which is targeted towards the market at the top of the pyramid (TOP). Additionally, with the use of a scenario planning model, the research provides an evaluation of the possible evolution and potential sustainability impacts that could emerge, from the interplay of innovations at the two pyramidal market levels and the chosen market focus of organizations – TOP or BOP. Using four scenario quadrants, the thesis demonstrates the resulting possibilities from the interaction between the rate of innovations and the segment focused on by organizations with disruptive era characterizing the paradigm shift quadrant. Furthermore, a mathematical model and two theoretical propositions are developed for further research. As recommendations, the thesis also extends the ambidextrous organizational theory, business model innovation and portfolio diversification as plausible recommendations to limit a catastrophic impact, resulting from disruptive innovations.

Transition management and the sustainable nutrients economy in the Netherlands; positioning paper

In this positioning paper transition management (TM) and the sustainable nutrient economy are addressed. We discuss TM from its scholarly origins in the 1990’s to its implementation as a comprehensive sector-wide policy program on sustainability in The Netherlands during the first decade of the 2000´s. Although the program was innovative and provoked a new approach to environmental policy and governance, the program at large failed to set the right conditions under which sustainable transition take place. Lessons from the Netherlands, both successful and less successful, are addressed in this positioning paper to inform Finnish governmental and knowledge institutes on how (not) to implement TM on environmental issues. When looking at sustainable nutrient economy the paper takes a historical view at how problems with nutrients (especially phosphates) were dealt with in the Netherlands during the post World War II era. This transition did not occur easily. In the agricultural sector environmental policies to prevent nutrient problems were not easily accepted, as large agricultural economic interests were at stake and the sector’s main actors were generally opposed to (radical) environmental transition. Currently, sustainable nutrient economy initiatives are starting to receive attention on the political agenda once again. In 2011 a sector- and chain-wide covenant was signed, showing that sustainable nutrient transition goals get commitment from stakeholders throughout the nutrient chain. We judge that TM provides useful elements that are applicable to Finnish governance modes to support sustainable nutrient economy transition. However, the Finnish government should be careful when implementing TM to prevent making the same mistakes the Dutch government made in previous years.

Comparison of sustainability of technologies for water desalination

The aim of this work is to perform an in-depth overview on the sustainability of several major commercialized technologies for water desalination and to identify the challenges and propose suggestions for the development of water desalination technologies. The overview of those technologies mainly focuses on the sustainability from the viewpoint of total capital investment, total product cost, energy consumption and global warming index. Additionally, a systematic sustainability assessment methodology has been introduced to validate the assessment process. Conclusions are:1) Reverse osmosis desalination (RO) plants are better than multi-stage flash distillation (MSF) desalination plants and multiple-effect distillation (MED) desalination plants from the viewpoint of energy consumption, global warming index and total production cost; 2)Though energy intensive, MSF plants and MED plants secure their advantages over RO plants by lower total capital investment, wider applicability and purer water desalted and they are still likely to flourish in energy-rich area;3) Water production stage and wastewater disposal stage are the two stages during which most pollutant gases are emitted. The water production stage alone contributes approximately 80~90% of the total pollutant gases emission during its life cycle; 4)The total capital cost per m3 desalted water decreases remarkably with the increasing of plant capacity. The differences between the capital cost per m3 desalted water of RO and other desalination plants will decrease as the capacity increases; 5) It is found that utilities costs serve as the major part of the total product cost, and they account for 91.16%, 85.55% and 71.26% of the total product cost for MSF, MED and RO plants, respectively; 6) The absolute superiority of given technology depends on the actual social-economic situation (energy prices, social policies, technology advancements).

Avalon Media System project update: a Hydra solution for digital audio and video access

Presentation at Open Repositories 2014, Helsinki, Finland, June 9-13, 2014

Repository sustainability

Presentation at Open Repositories 2014, Helsinki, Finland, June 9-13, 2014

Value Creation in Crowd-Business: Developing a Framework for Successful Implementation of Crowdsourcing Initiatives

By recent years the phenomenon called crowdsourcing has been acknowledged as an innovative form of value creation that must be taken seriously. Crowdsourcing can be defined as an act of outsourcing tasks originally performed inside an organization, or assigned externally in form of a business relationship, to an undefinably large, heterogeneous mass of potential actors. This thesis constructs a framework for successful implementation of crowdsourcing initiatives. Firms that rely entirely on their own research and ideas cannot compete with the innovative capacity that crowd-powered firms have. Nowadays, crowdsourcing has become one of the key capabilities of businesses due to its innovative capabilities, in addition to the existing internal resources of the firm. By utilizing crowdsourcing the business gains access to an enormous pool of competence and knowledge. However, various risks remain such as uncertainty of crowd structure and loss of internal know-how. Crowdsourcing Success Framework introduces a step by step model for implementing crowdsourcing into the everyday operations of the business. It starts from the decision to utilize crowdsourcing and continues further into planning, organizing and execution. Finally, this thesis presents the success factors of crowdsourcing initiative.

Food system transition towards sustainability: Inside thoughts of pioneers

The objective of this Master’s Thesis is to find individuals’ inducements that assist innovation adoption in the framework of sustainable food system. The purpose of the thesis is to examine the reasons why individuals adopt sustainable approaches, and furthermore, to see by what means the transition to the more sustainable food system could be accelerated. The study’s focal point is on the micro level, even if the wider purpose is to accelerate the holistic change of food system in the near future. The study consists of a literature review and a qualitative research, which is actualized with semi-structured interviews. The results indicate that individuals adopt innovations based on their strong intrinsic motivation. The main inducements were environment-related and health-related aspects, and individual’s deep connection to the countryside. The effect of social circle and doing good actions with the consuming behavior were also highlighted. Strongest barriers to innovation adoption seem to be price sensitivity, lack of easiness, and lack of interest in food. The findings indicate also that the most significant means that could ease the individuals’ decision to adopt an innovation are health-related aspects, educating and learning, environmental aspects, and decreasing the prices. Although the theoretical part of the study highlights the effect of positive reinforcement, the empirical part neglects it.

Implementatiоn оf Sustainability-Оriented Innоvatiоns in Business - Studying Оrganizatiоnal and External Capabilities: Evidence frоm Pоland

The cоncept оf sustainability-оriented innоvatiоn is recent and still under researched. The aim оf the Thesis is tо cоntribute tо the field and investigate hоw dо cоmpanies оperating in Pоland apply sustainability-оriented innоvatiоn (SОI) tо their cоre business activities, what are the differences between variоus business fоrms оf оrganizatiоn in terms оf SОI, and what type оf capabilities facilitate implementatiоn оf SОI. Given early stage оf empirical research оn sustainability-оriented innоvatiоn, an explоratоry-descriptive case study research strategy was taken applying qualitative methоds. 6 interviews with managers and CEОs оf 4 cоmpanies lоcated in Warsaw were cоnducted. In additiоn, twо academic expert panels with specialists frоm University оf Lоdz and Lappeenranta University оf Technоlоgy were carried оut in оrder tо suppоrt the findings. The study fоund оut that in case оf cоmpanies which purpоse is tо create pоsitive impact and develоp sustainable prоducts оr services by using innоvative apprоaches, SОI activities are embedded in оrganizatiоnal culture and prоcess sо that it is difficult tо differentiate between main business activities and SОI. In the оther twо cases SОI practices were in line with cоre business activities thus reflected the main оperatiоns and were determined as a part оf CSR strategy. Activities are industry specific and are cоntingent upоn resоurces and capabilities pоssessed. Amоng list оf success factоrs management suppоrt, CEО’s persоnal values, dedicated and mоtivated team, investments in research and develоpment, оrganizatiоnal culture, nоn-hierarchical cоmmunicatiоns channels, empоwerment оf emplоyees, prоvisiоn оf time and space fоr failures were identified as key оrganizatiоnal capabilities facilitating integratiоn оf SОI practices. Whereas market demand, NGОs’ pressure, regulatiоns enfоrced, access tо external funding, netwоrking and cооperating present external оr cоllabоrative capabilities suppоrting implementatiоn оf sustainability оriented innоvatiоn in cоmpanies. SОI takes a systemic apprоach that drives the transfоrmatiоn tо becоme sustainable business embedding and integrating sоcial, envirоnmental and ecоnоmic value creatiоn tоgether.

Analyzing and Computing the Sustainability Gains of Building Automation

Smart home implementation in residential buildings promises to optimize energy usage and save significant amount of energy simply due to a better understanding of user's energy usage profile. Apart from the energy optimisation prospects of this technology, it also aims to guarantee occupants significant amount of comfort and remote control over home appliances both at home locations and at remote places. However, smart home investment just like any other kind of investment requires an adequate measurement and justification of the economic gains it could proffer before its realization. These economic gains could differ for different occupants due to their inherent behaviours and tendencies. Thus it is pertinent to investigate the various behaviours and tendencies of occupants in different domain of interests and to measure the value of the energy savings accrued by smart home implementations in these domains of interest in order to justify such economic gains. This thesis investigates two domains of interests (the rented apartment and owned apartment) for primarily two behavioural tendencies (Finland and Germany) obtained from observation and corroborated by conducted interviews to measure the payback time and Return on Investment (ROI) of their smart home implementations. Also, similar measures are obtained for identified Australian use case. The research finding reveals that building automation for the Finnish behavioural tendencies seems to proffers a better ROI and payback time for smart home implementations.

NEW BUSINESS MODELS – Sustainability as a main focus

A business model is a structure frame of an organization that can bring significant benefits and competitive advantage when structured properly. The aim of this paper was to observe and describe development of business models’ and identify factors and elements of a business model that are in a key role from the perspective of an organizational sustainability. One is striving to bring out in this thesis how should truly sustainable business model look like and what are main characteristics of it. Additionally, some recommendations that could be helpful in order to build sustainable and balanced business model in a company are presented in this work. The meaning was to make theoretical and in some extent practical acquaintance with such new business models as open business model and sustainable business model. Long-term sustainability achievement in a company was in a centric role and used as a main criteria when constructing sustainable business model structure. The main research question in this study aims to answer: What a firm should consider in order to develop profitable and sustainable business model? This study is qualitative in nature and it was conducted using content analyze as a main method of this research. The perspective of the target data in this study is an outlook of its producers of how sustainability is reached in an organization throw business model and which practices are important and has to be taken into account. The material was gathered mainly from secondary sources and the theoretical framework was outright built based on secondary data. The secondary data that have been mostly dissertations, academic writings, cases, academic journals and academic books have been analyzed from the point of view of sustainability perspective. As a result it became evident that a structure of a business model and its implementation along with a strategy is often what leads companies to success. However, for the most part, overall business environment decides and delimits how the most optimal business model should be constructed in order to be effective and sustainable. The evaluation of key factors and elements in business model leading organization to sustainability should be examined throw triple bottom line perspective, where key dimensions are environmental, social and economic. It was concluded that dimensions should be evaluated as equal in order to attain total long lasting sustainability, contradicting traditional perspective in business where profit production is seen as only main goal of a business.

Green Service Level Agreement under Sustainability Lens in IT Industry

Nowadays, when most of the business are moving forward to sustainability by providing or getting different services from different vendors, Service Level Agreement (SLA) becomes very important for both the business providers/vendors and as well as for users/customers. There are many ways to inform users/customers about various services with its inherent execution functionalities and even non-functional/Quality of Services (QoS) aspects through negotiating, evaluating or monitoring SLAs. However, these traditional SLA actually do not cover eco-efficient green issues or IT ethics issues for sustainability. That is why green SLA (GSLA) should come into play. GSLA is a formal agreement incorporating all the traditional commitments as well as green issues and ethics issues in IT business sectors. GSLA research would survey on different traditional SLA parameters for various services like as network, compute, storage and multimedia in IT business areas. At the same time, this survey could focus on finding the gaps and incorporation of these traditional SLA parameters with green issues for all these mentioned services. This research is mainly points on integration of green parameters in existing SLAs, defining GSLA with new green performance indicators and their measurable units. Finally, a GSLA template could define compiling all the green indicators such as recycling, radio-wave, toxic material usage, obsolescence indication, ICT product life cycles, energy cost etc for sustainable development. Moreover, people’s interaction and IT ethics issues such as security and privacy, user satisfaction, intellectual property right, user reliability, confidentiality etc could also need to add for proposing a new GSLA. However, integration of new and existing performance indicators in the proposed GSLA for sustainable development could be difficult for ICT engineers. Therefore, this research also discovers the management complexity of proposed green SLA through designing a general informational model and analyses of all the relationships, dependencies and effects between various newly identified services under sustainability pillars. However, sustainability could only be achieved through proper implementation of newly proposed GSLA, which largely depends on monitoring the performance of the green indicators. Therefore, this research focuses on monitoring and evaluating phase of GSLA indicators through the interactions with traditional basic SLA indicators, which would help to achieve proper implementation of future GSLA. Finally, this newly proposed GSLA informational model and monitoring aspects could definitely help different service providers/vendors to design their future business strategy in this new transitional sustainable society.

Improving oral healthcare in Scotland with special reference to sustainability and caries prevention

Brett Duane Improving oral healthcare in Scotland with special reference to sustainability and caries prevention University of Turku, Faculty of Medicine, Institute of Dentistry, Community Dentistry, Finnish Doctoral Program in Oral Sciences (FINDOS-Turku), Turku, Finland Annales Universitatis Turkuensis, Sarja- Ser. D, Medica-Odontologica. Painosalama Oy, Turku, Finland, 2015. Dentistry must provide sustainable, evidence-based, and prevention-focused care. In Scotland oral health prevention is delivered through the Childsmile programme, with an increasing use of high concentration fluoride toothpaste (HCFT). Compared with other countries there is little knowledge of xylitol prevention. The UK government has set strict carbon emission limits with which all national health services (NHS) must comply. The purpose of these studies was firstly to describe the Scottish national oral health prevention programme Childsmile (CS), to determine if the additional maternal use of xylitol (CS+X) was more effective at affecting the early colonisation of mutans streptococci (MS) than this programme alone; secondly to analyse trends in the prescribing and management of HCFT by dentists; and thirdly to analyse data from a dental service in order to improve its sustainability. In all, 182 mother/child pairs were selected on the basis of high maternal MS levels. Motherswere randomly allocated to a CS or CS+X group, with both groups receiving Childsmile. Theintervention group consumed xylitol three times a day, from when the child was 3 months until 24 months. Children were examined at age two to assess MS levels. In order to understand patterns of HCFT prescribing, a retrospective secondary data analysis of routine prescribing data for the years 2006-2012 was performed. To understand the sustainability of dental services, carbon accounting combined a top-down approach and a process analysis approach, followed by the use of Pollard’s decision model (used in other healthcare areas) to analyse and support sustainable service reconfiguration. Of the CS children, 17% were colonised with MS, compared with 5% of the CS+X group. This difference was not statistically significant (P=0.1744). The cost of HCFT prescribing increased fourteen-fold over five years, with 4% of dentists prescribing 70% of the total product. Travel (45%), procurement (36%) and building energy (18%) all contributed to the 1800 tonnes of carbon emissions produced by the service, around 4% of total NHS emissions. Using the analytical model, clinic utilisation rates improved by 56% and patient travel halved significantly reducing carbon emissions. It can be concluded that the Childsmile programme was effective in reducing the risk for MS transmission. HCFT is increasing in Scotland and needs to be managed. Dentistry has similar carbon emissions proportionally as the overall NHS, and the use of an analytic tool can be useful in helping identify these emissions. Key words: Sustainability, carbon emissions, xylitol, mutans streptococci, fluoride toothpaste, caries prevention.