Applications of Industrial Statistics

This dissertation examines knowledge and industrial knowledge creation processes. It looks at the way knowledge is created in industrial processes based on data, which is transformed into information and finally into knowledge. In the context of this dissertation the main tool for industrial knowledge creation are different statistical methods. This dissertation strives to define industrial statistics. This is done using an expert opinion survey, which was sent to a number of industrial statisticians. The survey was conducted to create a definition for this field of applied statistics and to demonstrate the wide applicability of statistical methods to industrial problems. In this part of the dissertation, traditional methods of industrial statistics are introduced. As industrial statistics are the main tool for knowledge creation, the basics of statistical decision making and statistical modeling are also included. The widely known Data Information Knowledge Wisdom (DIKW) hierarchy serves as a theoretical background for this dissertation. The way that data is transformed into information, information into knowledge and knowledge finally into wisdom is used as a theoretical frame of reference. Some scholars have, however, criticized the DIKW model. Based on these different perceptions of the knowledge creation process, a new knowledge creation process, based on statistical methods is proposed. In the context of this dissertation, the data is a source of knowledge in industrial processes. Because of this, the mathematical categorization of data into continuous and discrete types is explained. Different methods for gathering data from processes are clarified as well. There are two methods for data gathering in this dissertation: survey methods and measurements. The enclosed publications provide an example of the wide applicability of statistical methods in industry. In these publications data is gathered using surveys and measurements. Enclosed publications have been chosen so that in each publication, different statistical methods are employed in analyzing of data. There are some similarities between the analysis methods used in the publications, but mainly different methods are used. Based on this dissertation the use of statistical methods for industrial knowledge creation is strongly recommended. With statistical methods it is possible to handle large datasets and different types of statistical analysis results can easily be transformed into knowledge.

Organisational learning and knowledge acquisition. A case study of internationalising manufacturers of wood-based prefabricated buildings

The study investigates organisational learning and knowledge acquisition of wood-based prefabricated building manufacturers. This certain group of case companies was chosen, because their management and their employees generally have a strong manufacturing and engineering background, while the housing sector is characterised by national norms, regulations, as well as local building styles. Considering this setting, it was investigated, how the case companies develop organisational learning capabilities, acquire and transfer knowledge for their internationalisation. The theoretical framework of this study constitutes the knowledge-based conceptualisation of internationalisation, which combines the traditional internationalisation process, as well as the international new venture perspective based on their commonalities in the knowledge-based view of the firm. Different theories of internationalisation, including the network-perspective, were outlined and a framework on organisational learning and knowledge acquisition was established. The empirical research followed a qualitative approach, deploying a multiple-case study with five case companies from Austria, Finland and Germany. In the study, the development of the wood-based prefabricated building industry and of the case companies are described, and the motives, facilitators and challenges for foreign expansion, as well as the companies’ internationalisation approaches are compared. Different methods of how companies facilitate the knowledge-exchange or learn about new markets are also outlined. Experience, market knowledge and personal contacts are considered essential for the internationalisation process. The major finding of the study is that it is not necessary to acquire the market knowledge internally in a slow process as proposed by the Uppsala model. In four cases companies engaged knowledge in symbiotic relations with local business partners. Thereby, the building manufacturers contribute their design and production capabilities, and in return, their local partners provide them with knowledge about the market and local regulations; while they manage the sales and construction operations. Thus, the study provides strong evidence for the propositions of network perspective. One case company developed the knowledge internally in a gradual process: it entered the market sequentially with several business lines, showing an increasing level of complexity. In both of the observed strategies, single-loop and double-loop learning processes occurred.

Container logistic innovations in forest-energy sector: Markets, future service concepts and technical improvements

The report presents the results of the commercialization project called the Container logistic services for forest bioenergy. The project promotes new business that is emerging around overall container logistic services in the bioenergy sector. The results assess the European markets of the container logistics for biomass, enablers for new business creation and required service bundles for the concept. We also demonstrate the customer value of the container logistic services for different market segments. The concept analysis is based on concept mapping, quality function deployment process (QFD) and business network analysis. The business network analysis assesses key shareholders and their mutual connections. The performance of the roadside chipping chain is analysed by the logistic cost simulation, RFID system demonstration and freezing tests. The EU has set the renewable energy target to 20 % in 2020 of which Biomass could account for two-thirds. In the Europe, the production of wood fuels was 132.9 million solid-m3 in 2012 and production of wood chips and particles was 69.0 million solidm3. The wood-based chips and particle flows are suitable for container transportation providing market of 180.6 million loose- m3 which mean 4.5 million container loads per year. The intermodal logistics of trucks and trains are promising for the composite containers because the biomass does not freeze onto the inner surfaces in the unloading situations. The overall service concept includes several packages: container rental, container maintenance, terminal services, RFID-tracking service, and simulation and ERP-integration service. The container rental and maintenance would provide transportation entrepreneurs a way to increase the capacity without high investment costs. The RFID-concept would lead to better work planning improving profitability throughout the logistic chain and simulation supports fuel supply optimization.

Distribution network design and optimization

The objective of this thesis is to examine distribution network designs and modeling practices and create a framework to identify best possible distribution network structure for the case company. The main research question therefore is: How to optimize case company’s distribution network in terms of customer needs and costs? Theory chapters introduce the basic building blocks of the distribution network design and needed calculation methods and models. Framework for the distribution network projects was created based on the theory and the case study was carried out by following the defined framework. Distribution network calculations were based on the company’s sales plan for the years 2014 - 2020. Main conclusions and recommendations were that the new Asian business strategy requires high investments in logistics and the first step is to open new satellite DC in China as soon as possible to support sales and second possible step is to open regional DC in Asia within 2 - 4 years.

Koulutuspalveluyrityksen kansainvälinen laajentuminen

Tämän tutkimuksen tarkoituksena on tarkastella kansallisen palveluyrityksen laajentumista uusille kansainvälisille markkinoille. Kohdemaana oli Venäjä. Päähuomio keskittyy ylimmän johdon toimiin, heidän rooliinsa laajentumisessa ja kuinka luoda onnistunut laajentumisstrategia. Tutkimuksen lähtökohdat poikkeavat perinteisistä laajentumistutkimuksista, sillä tässä tutkimuksessa keskitytään yhteen erityiseen tapaukseen ja laajentuminen tapahtuu Venäjän riskialttiille markkinoille. Yritys operoi myös tuotealan sijaan palvelualalla. Tutkimuksen tulokset osoittavat, että laajentuminen uudelle markkina-alueelle on laaja ja monimutkainen prosessi, jota ei tule väheksyä. Partnerin kanssa toimiminen vähentää suoraa riskiä, mutta toisaalta nostaa esiin toisenlaisia haasteita kuten kulttuurien välisiä näkemyseroja johtajuuteen tai jokapäiväiseen toimenpiteiden suorittamiseen. Uudelle markkina-alueelle vaaditaan ympäristöön sopiva strategia ja sen luominen entuudestaan tuntemattomalle alueelle vaatii uusia valmiuksia. Keskeistä on johtaa aktiivisesti halutun strategian toteuttamiseksi muistaen selkeän viestinnän ja realistisen aikataulusuunnittelun. Kilpailijoiden analysointia ei saa unohtaa ja sitä pitää toteuttaa jatkuvalla aikataululla. Toisin kuin useimmat markkinalaajentumista käsittelevät tutkimukset, tämä tutkimus keskittyy ylimmän johdon toimintaan.

Alkavan yrityksen strategiset vaihtoehdot ja selviytyminen

Työn tavoitteena on soveltaa yrityksen perustamiseen, innovaation diffuusioon ja strategiseen suunnitteluun liittyvää teoriaa Delitaz Oy:n kehitykseen liiketoimintamahdollisuuden havaitsemisesta uudeksi yritykseksi. Työssä etsitään keinoja yrityksen kehittämän innovatiivisen tuotteen saamiseksi nopeammin markkinoille ja lähtökohtia tulevaa liiketoimintasuunnitelman päivitystä varten. Työssä kootaan yhteen uuden yrityksen perustamisen vaiheisiin, selviytymiseen ja menestymiseen liittyvää teoriaa liiketoimintamahdollisuuden havaitsemisesta uuden inno-vatiivisen tuotteen markkinoille tuomiseen ja yrityksen strategiseen suunnitteluun. Tapaus-osiossa perehdytään kohdeyrityksen perustamisen vaiheisiin, toimintaympäristöön, tuotteeseen ja liiketoimintaan. Työn menetelmänä on tapaus- kehittämis- ja toimintatutkimuksen yhdistelmä. Kehittämis- tai toimintatutkimuksen varsinainen käytännön testaamisvaihe jää työn ulkopuolelle, sillä haluttuja muutoksia lähdetään vasta toteuttamaan. Johtopäätöksinä kuvataan yhden liiketoimintamahdollisuuden kehittyminen ideasta tuotteeksi ja teknologiayritykseksi yrityksen perustamisen teoriaan verrattuna ja esitetään keinoja tuotteen markkinoille saamisen nopeuttamiseksi ja mahdollisia strategisia vaihtoehtoja liiketoimintasuunnitelman päivittämiseksi.

Customer involvement in lean startup principles: case of game development studio

The objective of this thesis is to better understand customer’s role in lean startup methodology. The aim is to find out how customers are involved in lean startup methodology implantation and increase the likelihood of new venture survival. This study emphasizes the usage of customers in shaping of new product development processes within companies, through iteration and constant communication. This communication facilitates the development of features that are requested by the customers and enhances the prospects of the new venture. The empirical part of the study is a single qualitative case study that uses action research to implement the lean startup methodology into a pre-revenue venture and examines its customer involvement processes. The studied case company is Karaoke d.o.o., developing a game called kParty. The study used the theory discussed in the literature review: customer involvement (in the survey and interviews conducted for the lean startup methodology), lean principles (through the implementation of lean startup methodology) and lean startup methodology, which are the central building parts of this thesis as a whole. The thesis contributes to the understanding of customer involvement in lean startup methodology, while giving practical implications of customer orientation and product market fitting.

Konsernistrategiasta johdetun kiinteistöstrategian toimeenpanosuunnitelma

Kiinteistöosasto on yksi liiketoimintaa tukeva toiminto ja osaston strategia on johdettu pääosin konsernin strategiasta. Kiinteistöjen osuus Pirkanmaan Osuuskaupan tasearvosta on kuitenkin niin merkittävä, että kiinteistöstrategiassa on myös omia erityispiirteitä kuten kiinteistöjen salkutus. Strategiassa keskitytään tukemaan osuuskaupan omaa liiketoimintaa ja kaikki toimet tähtäävät loppuasiakkaan parempaan tyytyväisyyteen. Toimeenpanosuunnitelmassa on suuri rooli yhdessä tekemisellä ja kirjoittaja uskoo vahvasti sitoutumisen muutokseen muodostuvan asioiden keskustelemisen ja muutoksen merkityksen ymmärtämisen kautta. Tutkielman teoriaosuudessa käydään läpi kiinteistöstrategian teorioita, päästrategian ja tukitoimintostrategian suhdetta ja teorioita strategian toimeenpanosta. Prosessi eteni koko kiinteistöosaston henkilökunnan muutamasta yhteisestä päivästä ja päättyi kiinteistöstrategian toimeenpanosuunnitelmaan. Kaksi suurinta tekijää strategian toimeenpanon onnistumisessa ovat viestintä ja johtaminen. Yhteisten keskustelujen ansiosta saamme paremman lopputuloksen ja koko kiinteistöosaston henkilöstö on sitoutunut uuteen kiinteistöstrategiaan.

Outsourcing and Subcontracting Strategy Creation in a Global Manufacturing Company

Työn tavoitteena oli tutkia lähestymistapoja ostaa-valmistaa - päätöksentekotilanteessa. Näillä päätöksillä voi olla lopputulemana joko oma valmistus tai ulkopuolisen toimittajan käyttäminen, jolloin puhutaanjoko ulkoistetusta tai alihankitusta valmistuksesta. Päätökseen vaikuttavista tekijöistä merkittävimmät on koottu viitekehykseen, joka opastaa huomioimaan eri tekijät, jotka toistuvat olosuhteista riippumatta. . Toimittajakentän mahdollisuuksilla on vaikutusta päätöksentekotilanteessa. Olennainen osa ulkoistamis- ja alihankintastrategiaa liittyy toimittajavalintaan, sekä valittavaan yhteistyömalliin.

The New Era of Value Creation. Case: Sonera Zed

Tutkielman tavoitteena on selvittää kuinka arvonluonti-ideologia on muuttunut arvoketjuajattelusta arvoverkkomalliin ja mitä tekijöitä tarvitaan toimivan arvoverkon rakentamiseen. Teoriaosuus käsittelee arvonmuodostuksen muutosta kokonaisvaltaisesti. Tuloksena saavutetaan arvoverkko. Tutkielman empiirisessä osassa käytetään hyväksi laadullista case-tutkimusta. Teemahaastattelut ovat pääasiallinen empiirisen tiedon lähde. Tuloksena saatuja empiirisen osan tietoja verrataan teoriakappaleen vastaaviin tuloksiin. Case-yritys, Sonera zed, on suomalainen mobiiliportaaliyritys, joka tarjoaa matkapuhelimien lisäarvopalveluita loppuasiakkaille. Case-yrityksen operaatiomalli on rakentaa näitä palveluita yhteistyössä muiden yritysten kanssa. Empiirisen osan tavoite on selvittää toimiiko teoreettinen arvoverkkomalli myös tosielämässä. Arvoverkkomallia hyödynnetään case-yrityksessä vain osittain. Mallia käytetään hyväksi osa-alueilla missä yrityksellä ei ole omia kompetensseja. Sen sijaan alueilla joilla yritys omaa ydinosaamista, ei arvoverkkomallia hyödynnetä tarpeeksi. Tästä huolimatta uskotaan, että oikein hyödynnettynä arvoverkko kykenisi tarjoamaan merkittävää kilpailuetua kilpailijoihin nähden, mikäli mallia hyödynnettäisiin matkapuhelimien lisäarvopalvelutuotannon joka vaiheessa.

Innovation process management of complex consumer products and services in new innovation paradigm – case location based business

Innovation is the word of this decade. According to innovation definitions, without positive sales impact and meaningful market share the company’s product or service has not been an innovation. Research problem of this master thesis is to find out what is the innovation process of complex new consumer products and services in new innovation paradigm. The objective is to get answers to two research questions: 1) What are the critical success factors what company should do when it is implementing the paradigm change in mass markets consumer business with complex products and services? 2) What is the process or framework one firm could follow? The research problem is looked from one company’s innovation creation process, networking and organization change management challenges point of views. Special focus is to look the research problem from an existing company perspective which is entering new business area. Innovation process management framework of complex new consumer products and services in new innovation paradigm has been created with support of several existing innovation theories. The new process framework includes the critical innovation process elements companies should take into consideration in their daily activities when they are in their new business innovation implementing process. Case company location based business implementation activities are studied via the new innovation process framework. This case study showed how important it is to manage the process, look how the target market and the competition in it is developing during company’s own innovation process, make decisions at right time and from beginning plan and implement the organization change management as one activity in the innovation process. In the end this master thesis showed that all companies need to create their own innovation process master plan with milestones and activities. One plan does not fit all, but all companies can start their planning from the new innovation process what was introduced in this master thesis.

Value creation through business model in international entrepreneurship

Business model in the context of international entrepreneurship is a rather new topic in academic literature. The objective of this thesis is to examine value creation through business models in internationally entrepreneurial firms. The study examines value creation through the two partner interfaces and the customer interface of a company. Central for the study is the consideration of also the partners’ incentives. Business model construct is studied by defining the concept, examining its elements and the relationship with strategy – concluding with value creation through the concept. The international entrepreneurship chapter focuses on internationally entrepreneurial firms, inspecting the drivers behind international entrepreneurship and studying value network concept. Value creation functions as a driving theme in the theory discussion. The empirical research of the study focuses on eight Finnish internationally entrepreneurial software companies. The study is conducted as a qualitative cross-case analysis building on the single case company business model analyses. The findings suggest that the business models of software companies incorporate vast similarities. However, the degree of international experience has influence on the companies’ value creation and the way they organize their activities both in upstream and downstream of the value chain.

Methods of genetic diversity creation and functional display for directed evolution experiments

Protein engineering aims to improve the properties of enzymes and affinity reagents by genetic changes. Typical engineered properties are affinity, specificity, stability, expression, and solubility. Because proteins are complex biomolecules, the effects of specific genetic changes are seldom predictable. Consequently, a popular strategy in protein engineering is to create a library of genetic variants of the target molecule, and render the population in a selection process to sort the variants by the desired property. This technique, called directed evolution, is a central tool for trimming protein-based products used in a wide range of applications from laundry detergents to anti-cancer drugs. New methods are continuously needed to generate larger gene repertoires and compatible selection platforms to shorten the development timeline for new biochemicals. In the first study of this thesis, primer extension mutagenesis was revisited to establish higher quality gene variant libraries in Escherichia coli cells. In the second study, recombination was explored as a method to expand the number of screenable enzyme variants. A selection platform was developed to improve antigen binding fragment (Fab) display on filamentous phages in the third article and, in the fourth study, novel design concepts were tested by two differentially randomized recombinant antibody libraries. Finally, in the last study, the performance of the same antibody repertoire was compared in phage display selections as a genetic fusion to different phage capsid proteins and in different antibody formats, Fab vs. single chain variable fragment (ScFv), in order to find out the most suitable display platform for the library at hand. As a result of the studies, a novel gene library construction method, termed selective rolling circle amplification (sRCA), was developed. The method increases mutagenesis frequency close to 100% in the final library and the number of transformants over 100-fold compared to traditional primer extension mutagenesis. In the second study, Cre/loxP recombination was found to be an appropriate tool to resolve the DNA concatemer resulting from error-prone RCA (epRCA) mutagenesis into monomeric circular DNA units for higher efficiency transformation into E. coli. Library selections against antigens of various size in the fourth study demonstrated that diversity placed closer to the antigen binding site of antibodies supports generation of antibodies against haptens and peptides, whereas diversity at more peripheral locations is better suited for targeting proteins. The conclusion from a comparison of the display formats was that truncated capsid protein three (p3Δ) of filamentous phage was superior to the full-length p3 and protein nine (p9) in obtaining a high number of uniquely specific clones. Especially for digoxigenin, a difficult hapten target, the antibody repertoire as ScFv-p3Δ provided the clones with the highest affinity for binding. This thesis on the construction, design, and selection of gene variant libraries contributes to the practical know-how in directed evolution and contains useful information for scientists in the field to support their undertakings.

The contributions of netnography in new product development

Netnography has been studying in various aspects (e.g. definitions of netnography, application of netngoraphy, conducting procedure…) within different industrial contexts. Besides, there are many studies and researches about new product development in various perspectives, such as new product development models, management of new product development project, or interaction between customers and new product design, and so on. However, the connection and the interaction between netnography and new product development have not been studied recently. This opens opportunities for the writer to study and explore unrevealed issues regarding to applying netnography in new product development. In term of the relation between netnography and new product development, there are numerous of matters need to be explored; for instance, the process of applying netnography in order to benefit to new product development, the involvement degree of netnography in new product development process, or eliminating useless information from netnography so that only crucial data is utilized, and so on. In this thesis, writer focuses on exploring how netnography is applied in new product development process, and what benefits netnography can contribute to the succeed of the project. The aims of this study are to understand how netnography is conducted for new product development purpose, and to analyse the contributions of netnography in the new product development process. To do so, a case-study strategy will be conducted with triple case studies. The case studies are chosen bases on many different criteria in order to select the most relevant cases. Eventually, the writer selected three case studies, which are Sunless tanning product project (HYVE), Listerine (NetBase), and Nivea co-creation and netnography in black and white deodorant. The case study strategy applied in this thesis includes four steps e.g. case selection, data collection, case study analysis, and generating the research outcomes from the analysis. This study of the contributions of netnography in the new product development process may be useful for the readers in many ways. It offers the fundamental knowledge of netnography market research method and basic understanding of new product development process. Additionally, it emphasizes the differences between netnography and other market research methods in order to explain the reasons why many companies and market research agents recently utilized netnography in their market research projects. Furthermore, it highlights the contributions of netnography in the new product development process in order to indicate the importance of netnography in developing new product. Thus, the potential readers of the study can be students, marketers, researchers, product developers, or business managers.

The early activities of front end of innovation in oem companies using a new fei platform as a framework for renewal

The main goal of this study is to create a seamless chain of actions and more detailed structure to the front end of innovation to be able to increase the front end performance and finally to influence the renewal of companies. The main goal is achieved through by the new concept of an integrated model of early activities of FEI leading to a discovery of new elements of opportunities and the identification of new business and growth areas. The procedure offers one possible solution to a dynamic strategy formation process in innovation development cycle. In this study the front end of innovation is positioned between a strategy reviews and a concept creation with needed procedures, tools, and frameworks. The starting point of the study is that the origins of innovation are not well enough understood. The study focuses attention on the early activities of FEI. These first activities are conceptualized in order to find out successful innovation initiatives and strategic renewal agendas. A seamless chain of activities resulting in faster and more precise identification of opportunities and growth areas available on markets and inside companies is needed. Three case studies were conducted in order to study company views on available theory doctrine and to identify the first practical experiences and procedures in the beginning of the front end of innovation. Successful innovation requires focus on renewal in both internal and external directions and they should be carefully balanced for best results. Instead of inside-out mode of actions the studied companies have a strong outside-in thinking mode and they mainly co-develop their innovation initiatives in close proximity with customers i.e. successful companies are an integral part of customers business and success. Companies have tailor-made innovation processes combined their way of working linked to their business goals, and priorities of actual needs of transformation. The result of this study is a new modular FEI platform which can be configured by companies against their actual business needs and drivers. This platform includes new elements of FEI documenting an architecture presenting how the system components work together. The system is a conceptual approach from theories of emergent strategy formation, opportunity identification and creation, interpretation-analysis-experimentation triad and the present FEI theories. The platform includes new features compared to actual models of FEI. It allows managers to better understand the importance of FEI in the whole innovation development stage and FEI as a phase and procedure to discover and implement emergent strategy. An adaptable company rethinks and redirects strategy proactively from time to time. Different parts of the business model are changed to remove identified obstacles for growth and renewal which gives them avenues to find right reforms for renewal.