Business Ecosystem Change in Financial Services – Case Study

The thesis explores how the business ecosystem of financial services has changed and what its drivers of change are. Existing literature in the field of financial industry is concerned with financial innovations and their features, determinants and factors, but also with how to organize innovation activities such as open innovation principles. Thus, there is a clear need for understanding changes in financial service ecosystem. First, the comprehensive theory framework is conducted in order to serve the reader’s necessary understanding of basic theoretical concepts that are related to ecosystem changes. Second, the research is carried out by using qualitative research methods; the data is collected by interviewing 11 experts from the field of financial services in Finland. According to the results of this thesis, the most significant changes in the financial service ecosystem are the new market players. They have increased competition, created new courses of action, set new requirements for financial services, and first and foremost, they have shifted customers into the heart of the whole ecosystem. These new market players have a willingness to cooperate with external partners, which means a shift towards the world of open innovation. In addition, the economic environment has changed which has resulted in tighter regulation for incumbents making them even unyielding. Technology change, together with digitalization, has lead new financial innovations and new digital service channels, which have challenged the traditional business models in the financial industry. They have improved transparency, openness and efficiency, but also lead to the fragmentation of financial services. Thus, customers search for financial services from different sources and different service providers, and finally combine them into a coherent whole, which meets their own needs. The change of customers’ behavior and social environment has enabled and boosted these changes in the financial ecosystem. All in all, the change of the financial ecosystem is not a result of one or a few change forces, but instead it is a combination of many different factors.

New ways to do business plans in multicultural organizations

Business plans are made when establishing new company or when organizations launch new product or services. In this Master Thesis was examined the elements are included in the business plan and emphasized. Business plan is a wide document and can also contain company specific information, the literature review was restricted into three areas which were investigated from the relating literature and articles. The selected areas were Market Segmentation and Targeting, Competitive Environment, and Market Positioning and Strategy. The different business plan models were investigated by interviewing companies who operates in a different industry sectors from each other’s. The models were compared to each other and to the findings from literature. Based on interview results and literature findings, the business plan for fibre based packaging. The created business plan contains three selected areas. It was found that the selected business plan elements can be found from the interviewed companies’ business plans. The market segmentation was done by comparing the market share to known total market size. When analyzing the competitive environment, there was no one selected model in use. The tools to evaluate competitive environment was selected parts from both SWOT analysis and Porter’s five forces model in applicable part. Based on interview results, it can be state that the company or organization should find and built its own model for business plans. In order to receive the benefits for future planning, the company should use the same model for long time.

Utilization of multi-branding in business to business markets

Case company utilizes multi-branding strategy (or house of brands strategy) in its product portfolio. In practice the company has multiple brands – one main brand and four acquired brands – which all utilize one single product platform. The objective of this research is to analyze case company’s multi-branding strategy and its benefits and challenges. Moreover, the purpose is to clarify that how could a company in B2B markets utilize multi-branding strategy more efficiently and profitably. The theoretical part of this thesis consists of aspects of branding strategies; different brand name architectures, benefits and challenges of different strategies and different ways of utilize branding strategies in mergers and acquisitions. The empirical part, on the other hand, includes the description of the case company’s branding strategy and the employees’ perspective on the benefits and challenges of multi-branding strategy, and how to utilize it more efficiently and profitably. This study shows, that the major benefits of utilizing multi-branding are lower production costs, ability to reach wider market coverage, possibility to utilize common sales tools, synergies in R&D and shared resources. On the other hand, the major challenges are lack of product differentiation, internal competition, branding issues in production and deliveries, pricing issues and conflicts, and compromises in product compatibility and suitability. Based on the results, several ways to utilize multi-branding strategy more efficiently and profitably were found; by putting more effort on brand image and product differentiation, by having more co-operation among the brands and by focusing on more precise customer and market segmentation.

The role of business model in computer game development organizations

The computer game industry has grown steadily for years, and in revenues it can be compared to the music and film industries. The game industry has been moving to digital distribution. Computer gaming and the concept of business model are discussed among industrial practitioners and the scientific community. The significance of the business model concept has increased in the scientific literature recently, although there is still a lot of discussion going on on the concept. In the thesis, the role of the business model in the computer game industry is studied. Computer game developers, designers, project managers and organization leaders in 11 computer game companies were interviewed. The data was analyzed to identify the important elements of computer game business model, how the business model concept is perceived and how the growth of the organization affects the business model. It was identified that the importance of human capital is crucial to the business. As games are partly a product of creative thinking also innovation and the creative process are highly valued. The same applies to technical skills when performing various activities. Marketing and customer relationships are also considered as key elements in the computer game business model. Financing and partners are important especially for startups, when the organization is dependent on external funding and third party assets. The results of this study provide organizations with improved understanding on how the organization is built and what business model elements are weighted.

Survival competencies in SMEs in changing business environments

The thesis examines the competencies that enable business survival in changing business environments from the perspective of Russian and Finnish micro, small, and medium-sized enterprises in the field of forest industry. Additionally, it studies the competence transformation necessary in SMEs for successful continuation of business operations when a firm considers transferring its business to another industry. The dissertation builds a holistic firm-level view of survival competencies for SMEs facing changes in their business environments. The holistic firm-level view of competencies includes both the individual-level and the firm-level perspectives, regardless of the position of the person in a firm. The findings highlight the importance of high-level individual competencies and the ability to perform versatile tasks in a firm. In addition, continuous business environment scanning, self-evaluation of personal competencies, willingness to renew and change, open-mindedness, and a readiness to network, are competencies that belong to and need to be taken care of by everybody – employees and employers - in a firm. In addition to previous competencies, an ability to manage every-day business also needs to be embedded in SME owners/managers. Furthermore, Russian SMEs seem to be more proactive in change situations, when compared with Finnish SMEs, which are used to operate in a more stable business environment. In conclusion, it can be said that the thesis adds to SME literature by introducing the concept of ‘SME-level competencies’, a combination of previously discussed organisational and networking competencies which are needed in order to survive through change. Furthermore, the thesis concludes with new competence classifications, such as operational and change competencies, which offer new information concerning the required competencies by which a firm may reduce the resistance to change that can hinder business renewal. For SME practitioners, the study suggests proper preparation and proactive operations in their business to reduce the influence of endless changes, and reminds SME owners/managers that changes are, however, a significant source of new business opportunities. For educational players, the study suggests upgrading educational and training systems by improving the training as regards attitudes towards work, and especially training in the comprehensive working abilities needed in SMEs to master diverse tasks. Finally, for public actors the study suggests providing stronger support to entrepreneurs by boosting SMEs entrepreneurial conditions and the existing business possibilities in change situations. This can be done by encouraging a legislative and entrepreneurial climate that responds better to the demands of SMEs.

Business intelligence – enabling self-service: A case study in a global manufacturing company

Business intelligence (BI) is an information process that includes the activities and applications used to transform business data into valuable business information. Today’s enterprises are collecting detailed data which has increased the available business data drastically. In order to meet changing customer needs and gain competitive advantage businesses try to leverage this information. However, IT departments are struggling to meet the increased amount of reporting needs. Therefore, recent shift in the BI market has been towards empowering business users with self-service BI capabilities. The purpose of this study was to understand how self-service BI could help businesses to meet increased reporting demands. The research problem was approached with an empirical single case study. Qualitative data was gathered with a semi-structured, theme-based interview. The study found out that case company’s BI system was mostly used for group performance reporting. Ad-hoc and business user-driven information needs were mostly fulfilled with self-made tools and manual work. It was felt that necessary business information was not easily available. The concept of self-service BI was perceived to be helpful to meet such reporting needs. However, it was found out that the available data is often too complex for an average user to fully understand. The respondents felt that in order to self-service BI to work, the data has to be simplified and described in a way that it can be understood by the average business user. The results of the study suggest that BI programs struggle in meeting all the information needs of today’s businesses. The concept of self-service BI tries to resolve this problem by allowing users easy self-service access to necessary business information. However, business data is often complex and hard to understand. Self-serviced BI has to overcome this challenge before it can reach its potential benefits.

Reputational Risk Management as a key element for business continuity and value maximization

This thesis reveals the topic of reputational risk management as a key element for business continuity and value maximization. The purpose of the work is to investigate reputational risk from the side of its definition, management (including legal requirements on this risk category) and measurement and to analyse reputational risk’s impact on business continuity and value maximization. To be able to do this, different respective articles, reports of financial institutions are gathered and constructive summaries and analysis are made. In order to deeply investigate the impact of reputational risk on business continuity and value maximization, it was chosen to study it from three aspects: 1) check the impact of stock valuation of 7 companies that experienced reputational catastrophe / risk, 2) analyse a case study on disagreements in management of reputational risk among case companies and impact on their respective performance, and 3) conduct a survey of financial sector companies in Liechtenstein to see how reputational risk management works in practice. The findings of the research showed a significant impact of reputation decadence on company’s value and trading volume, and showed crucial importance of post-crisis management for the company’s financial performance. The results of the qualitative research based on survey proved that companies consider reputational risk management as a one of the key elements for their business continuity and value maximization.

Business intelligence – enabling self-service: A case study in a global manufacturing company

Business intelligence (BI) is an information process that includes the activities and applications used to transform business data into valuable business information. Today’s enterprises are collecting detailed data which has increased the available business data drastically. In order to meet changing customer needs and gain competitive advantage businesses try to leverage this information. However, IT departments are struggling to meet the increased amount of reporting needs. Therefore, recent shift in the BI market has been towards empowering business users with self-service BI capabilities. The purpose of this study was to understand how self-service BI could help businesses to meet increased reporting demands. The research problem was approached with an empirical single case study. Qualitative data was gathered with a semi-structured, theme-based interview. The study found out that case company’s BI system was mostly used for group performance reporting. Ad-hoc and business user-driven information needs were mostly fulfilled with self-made tools and manual work. It was felt that necessary business information was not easily available. The concept of self-service BI was perceived to be helpful to meet such reporting needs. However, it was found out that the available data is often too complex for an average user to fully understand. The respondents felt that in order to self-service BI to work, the data has to be simplified and described in a way that it can be understood by the average business user. The results of the study suggest that BI programs struggle in meeting all the information needs of today’s businesses. The concept of self-service BI tries to resolve this problem by allowing users easy self-service access to necessary business information. However, business data is often complex and hard to understand. Self-serviced BI has to overcome this challenge before it can reach its potential benefits.

Social-business tensions and their management in social enterprise: evidence from Finland.

This thesis aims to provide insight into the social-business tensions the social enterprises face in their operation and how they manage them. The social-business tensions are examined from four theoretical perspectives using triangulation approach. The theoretical lenses chosen are organizational identity, stakeholder theory, paradox theory and institutional theory. The theories aim to clarify, how the tensions are formed, how they appear and how they are managed in social enterprises. One viewpoint of this thesis is to examine the competence of these theories in explaining the social-business tensions in practise. The qualitative data was collected by interviewing persons from the management of two social enterprises. The empirical evidence of this thesis suggests that the appearing of social-business tensions varies between the social enterprises and they can be seen both as an advantage and as a challenge. Most of the social-business tensions arise from the enterprise’s multiple incoherent objectives, their stakeholders’ various demands and the differing understanding of the company’s central operation among the members of the organization. According to this thesis, the theories of organizational identity, stakeholder, paradox and institution are all able to provide unique insight into the identification and management of the social-business tensions. However, the paradox theory turned out to be the most abstract of the theories and thus being the farthest from the practise.

Business process re-engineering -menetelmät myyntiprosessin tehokkuuden parantamisessa (Case-yritys)

Tämän Pro Gradu-tutkielman tavoite on tutkia Business Process Re-engineering menetelmiä myyntiprosessien tehostamisessa. Tutkimuksen teoreettinen viiteke-hys rakentuu myynninjohtamisen, myyntiprosessien ja Business Process Mana-gementin ja Business Process Re-enineeringin ympärille. IT-järjestelmät ovat myös oleellinen osa-alue tutkimuksen kannalta ja niiden osuutta kuvataan niin myyntiprosesseissa kuin Business Process Re-engineering -menetelmien yhtey-dessä. Tutkielmassa perehdytään aikaisempaan tutkimusmateriaaliin ja akateemiseen kirjallisuuteen yllämainituilla osa-alueilla. Tavoitteena on löytää aikaisempia tutki-muksia myyntiprosessien tehostamisesta ja BPR:n roolista näissä tapauksissa. Myös myynninjohtamisen vaikutusta tehokkaaseen myyntiprosessiin tutkitaan, kuten myös IT-järjestelmien erilaisia rooleja tehokkaissa myyntiprosesseissa. Tutkielman empiirinen osio on kvalitatiivinen Case-tutkimus eräässä rahoitusalan yrityksessä. Tutkimus tehdään haastattelemalla myyntihenkilöstöä ja esimiehiä. Lisäksi analysoidaan yrityksen myyntiprosessiin liittyvää muuta materiaalia. Case-tutkimuksen tuloksia peilataan aiempaan akateemiseen tutkimukseen ja tuloksista pyritään löytämään ratkaisuja, miten BPR -menetelmillä voidaan tehostaa yrityksen myyntiprosessia.

Investigating the Existence of Business-IT Alignment Trap in Finnish IT Organizations

The overall purpose of this master's thesis is to investigate the existence of business-IT alignment trap in Finnish IT organizations. The alignment trap refers to the inability of IT investments to deliver the expected business benefits. The basis for this investigation is due to the previous knowledge that high level of IT alignment practice with very low efficacy in an organization can lead to alignment trap. The theory which was established on the dimensions of IT-alignment and efficacy of IT as a whole with considerations for cost reduction and revenue growth benefits. This study explored the same dimensions with the previous study but identified additional benefit (profitability). The study was conducted using the Finnish IT barometer data from different IT organizations. A quantitative research method was used in conducting this study which was built on positivist philosophical stance. The empirical data is based on survey data, an excerpt from the Finnish IT barometer data that captured the annual survey results of IT significance to Finnish organizations as evaluated by business and IT professionals. The survey data comprised of 249 respondents and their responses were categorized into high and low IT intensive which form the basis of the statistical analysis conducted. Overall, five analyses were conducted using the variables of cost reductions, revenue growth and profitability in the 2x2 matrix dimensions of IT alignment and efficacy of IT, grouped into alignment trap, maintenance zone, well-oiled IT and IT-enabled growth. The empirical results, revealed a partial existence of alignment trap in Finnish IT organizations. This is due to a very minute number of organizations that were ensnared in the alignment trap zone on the analyses conducted. Although they recorded considerable high performances in terms of revenue growth rate with IT spending below the average companies, their profitability was considered very low. Generally it was observed that Finnish IT organizations with high efficacy of IT practices had good performances, while those with low efficacy of IT experienced low performances, especially in the aspect of profitability, regardless of the degree of IT alignment. The study proposes that organizations should improve on practices that enhance effectiveness of IT more in order for them to realize the full benefits of IT and to avoid alignment trap.

Improving business processes in a globally dispersed make-to-order supply chain. Case study on outbound logistics in a Multinational Corporation

The purpose of this thesis is to find out how outbound logistics process can be improved by reducing unnecessary waste in a globally dispersed make-to-order (MTO) supply chain. The research problem was addressed by a multinational corporation that aims to find a solution for reducing unnecessary waste in their outbound logistics process. The focus is on customized products that are delivered via sea transportation. Theoretical framework for improving outbound logistics processes in globally dispersed MTO supply chain was created based on business process management, Porter’s value chain theory, value stream mapping and current reality tree. The empirical research was conducted by using constructive approach due to its ability to research a practical problem and to improve the existing practices. The data was collected from ten semi-structured interviews and three non-participant observations. By analysing the data and applying the theoretical framework, five types of waste were detected in the process that were seen to derive from six root causes. Practical solution was constructed to reduce the waste in the process by combining the existing literature with the ideas raising from empirical data. The results of this thesis suggest that a MNC with a globally dispersed MTO supply chain can improve its outbound logistics process by applying activities that enhance internal and external integration, collaboration and coordination, and increase predictability of the process. This research has practical relevance both for the case company as well as for other MNCs with globally dispersed MTO supply chains that aim to improve their outbound logistics processes. This research contributes to the BPM and CRA research by providing an evidence for their applicability in the new context.

Business models for Finnish biobanks

This study concentrates on developing a suitable business model for Finnish biobanks, with particular emphasis on value creation to stakeholders. The sub-objective of this thesis are to map the commercial possibilities of biobanks and potential barriers for business development. The study approaches the subject from the biobanks’ as well as the stakeholders’ point of view, integrating their hopes and needs considering current and future co-operation into the findings. In 2013 the Biobank Act came into effect, after which six biobanks have been established and several other pending biobank projects are in process. There is relatively little research in regard to the commercial opportunities of this newcomer of the biomedical industry, and particularly in the Finnish markets. Therefore, the aim of this study is to partially fill the research gap of the commercial potential of biobanks and particularly outline the problematic elements in developing business. The theoretical framework consists of a few select theories, which depict business modeling and value creation of organizations. The theories are combined to form a synthesis, which best adapts to biobanks, and acts as a backbone for interviews. The empirical part of the study was conducted mainly by seven face-to-face interviews, and complemented by two phone interviews and an e-mail questionnaire with four responses. The findings consist mainly of the participants’ reflections on the potential products and services enabled by consumer genomics, as well as perceptions on different obstacles for biobanks’ business development. The nature of the study is tentative, as biobanks are relatively new organizations in Finland, and their operation models and activities are still molding. The aim is to bring to surface the hopes and concerns of biobanks’ representatives, as well as the representatives of stakeholders, in order to transparently discuss the current situation and suggestions for further development. The study concludes that in principle, the interviewees’ agree on the need for development in order not to waste the potential of biobanks; regardless, the participants emphasize different aspects and subsequently lean on differing methods.

Helsinki hub – new traffic flows and business networks

This thesis is the Logistics Development Forum's assignment and the work dealing with the development of the Port of Helsinki as part of Helsinki hub. The Forum aims to develop logistics efficiency through public-private co-operation and development of the port is clearly dependent on both factors. Freight volumes in the Port of Helsinki are the biggest single factor in hub and, therefore, the role of the port of the entire hub development is strong. The aim is to look at how the port will develop as a result of changes in the foreign trade of Finland and the Northern European logistics trends in 25 years time period. Work includes the current state analysis and scenario work. The analyses are intended to find out, which trends are the most important in the port volume development. The change and effect of trends is examined through scenarios based on current state. Based on the work, the structure of Finnish export industry and international demand are in the key role in the port volume development. There is significant difference between demands of Finnish exporting products in different export markets and the development between the markets has different impacts on the port volumes by mass and cargo type. On the other hand, the Finnish economy is stuck in a prolonged recession and competition between ports has become a significant factor in the individual port's volume development. Ecological valuesand regulations have changed the competitive landscape and maritime transport emissions reductions has become an important competitive factor for short routes in the Baltic Sea, such as in the link between Helsinki and Tallinn.