Developing cost of poor quality calculations with emphasis on business impact

The main aim of this research was to develop cost of poor quality calculation model which will better reflect business impacts of lost productivity caused by IT incidents for the case company. This objective was pursued by reviewing literature and conducting a study in a Finnish multinational manufacturing company. Broad analysis of the scientific literature allowed to identify main theories and models of Cost of Poor Quality and provided better base for development of measurements of business impacts of lost productivity. Empirical data was gathered with semi-structured interviews and internet based survey. In total, twelve interviews with experts and 39 survey results from business stakeholders were gathered. Main results of empirical study helped to develop the measurement model of cost of poor quality and it was tied to incident priority matrix. Nevertheless, the model was created based on available data. Main conclusions of the thesis were that cost of poor quality measurements could be even further improved if additional data points could be used. New model takes into consideration different cost regions and utilizes on this notion.

Data and Inventory Management in Spare Part Business: Developing Operations in the Case Company

After sales business is an effective way to create profit and increase customer satisfaction in manufacturing companies. Despite this, some special business characteristics that are linked to these functions, make it exceptionally challenging in its own way. This Master’s Thesis examines the current situation of the data and inventory management in the case company regarding possibilities and challenges related to the consolidation of current business operations. The research examines process steps, procedures, data requirements, data mining practices and data storage management of spare part sales process, whereas the part focusing on inventory management is reviewing the current stock value and examining current practices and operational principles. There are two global after sales units which supply spare parts and issues reviewed in this study are examined from both units’ perspective. The analysis is focused on the operations of that unit where functions would be centralized by default, if change decisions are carried out. It was discovered that both data and inventory management include clear shortcomings, which result from lack of internal instructions and established processes as well as lack of cooperation with other stakeholders related to product’s lifecycle. The main product of data management was a guideline for consolidating the functions, tailored for the company’s needs. Additionally, potentially scrapped spare part were listed and a proposal of inventory management instructions was drafted. If the suggested spare part materials will be scrapped, stock value will decrease 46 percent. A guideline which was reviewed and commented in this thesis was chosen as the basis of the inventory management instructions.

Business Intelligence: Microsoft Power BI

Työn tavoitteena on tutkia Business Intelligencen ja BI-työkalujen vaatimusten kehittymistä viime vuosien aikana ja tutkia miten Microsoft Power BI -ohjelmisto vastaa modernin päätöksenteon tarpeisiin. Työ on toteutettu suurimmalta osin kirjallisuuskatsauksena, minkä lisäksi Microsoft Power BI:n toiminnallisuutta on tutkittu käytännössä käyttäen ohjelmiston ilmaisversiota. Tutkimuksessa on havaittu, että tiedon lähteiden määrän ja datan monimuotoisuuden kasvaessa on syntynyt tarve uusille, tehokkaille BI-järjestelmäratkaisuille, jotka hyödyntävät uudenlaisia menetelmiä. Modernissa BI 2.0 -mallissa korostuvat kehittyneemmän verkkoinfrastruktuurin ja ohjelmistotekniikan täysi hyödyntäminen, käytön helppous, tiedon tuottaminen ja jakaminen massoille, tiedon rikastamisen mahdollistaminen ja visualisoinnin ja interaktiivisuuden keskeinen asema tiedon tulkinnassa. Tutkimuksen perusteella Microsoft Power BI vaikuttaisi täyttävän keskeneräisyydestään ja muutamista tiedonhallinnallisista puutteistaan huolimatta lähes kaikki toimivan BI 2.0 -järjestelmän määritelmistä. Ohjelmisto tarjoaa riittävät analyyttiset ja esitystekniset työkalut useimpien tyypillisten käyttäjien tarpeisiin, minkä lisäksi paranneltu Location Intelligence -ratkaisu sekä uudet Q&A ja nopea oivallus -toiminnot luovat mielenkiintoisen tavan selata dataa. Jää nähtäväksi, miten ratkaisu kehittyy vielä tulevaisuudessa.

Development of internet-based value added services in housing estate business in Russia

Value added services are becoming increasingly popular as they increase the perceived value of the core product and can be a strong method of attracting customers and motivating them to make a choice. The purpose of this research is to develop internet-based value added services for housing estate business in Russia. The research is a case study of Russian housing estate market utilising a triangulation of methods for better results. For the qualitative data analysis, 7 interviews with heads of regional departments of construction companies from different regions of Russia were conducted. For the quantitative data analysis, a survey of 128 inhabitants of Saint-Petersburg housing estates was held. Factor analysis and descriptive statistics including cross-tabulations and chi-square tests for significance were used to analyse the results. In this study, a list 19 value added services that can be provided through online platforms in housing estate market was developed. These services fall into three big groups: social networking services, compulsory and additional services. Additionally, the question of monetisation of online platforms in housing estate market was discussed and three business models were suggested.

POLITICAL ENVIRONMENT AND BUSINESS DEVELOPMENT IN THE ARCTIC Strategic opportunities and threats for Finnish companies

The Arctic environment is changing constantly. There are several factors that constitute to the rate and immensity of the development. The region differs from the surrounding markets that most of the countries in the region have been used to. Therefore the purpose of the study was to understand how the political environment affects Finnish companies’ strategies and business operations. The issues analyzed were the political environment in the region, the business environment and economic development, and the opportunities and threats that the Finnish companies have in Arctic. The main theories were found from strategic management and market analysis tools. The different theories and definitions were gone through in order to understand the context of the study. This is a qualitative study that uses content analysis as its main method of analyzing the data. Therefore the data analyzed was gathered from already existing material and it was analyzed until the saturation point was found. This was done in order to minimize the risks related to using secondary data. The data collected was then categorized into themes accordingly. First the general political environment in the Arctic was studied, especially the Arctic Council and its work as the main political entity. From there the focus shifted to the business environment and the general opportunities and threats that are found from Arctic economic development. China offered another point of view to this as it represented a non-Arctic state with a keen interest on the region. Lastly the two previous objectives were combined and looked through from a Finnish perspective. Finnish companies have a great starting point to Arctic business and the operational business environment gives them the framework with which they have to operate in. As a conclusion it can be said that there are three main factors leading the Arctic economic development; the climate change, the development of technology, and the political environment. These set the framework with which the companies operating in the region must comply with. The industry that is likely to lead the development is the marine industry. Furthermore it became evident that the Finnish companies operating in the Arctic face many opportunities as well as threats which can be utilized, taken advantage of or controlled through effective strategic management. The key characteristics needed in the region are openness and understanding of the challenging environment and the ability to face and manage the arising challenges.

Managing Finnish-Russian Business Relationships and Networks During Conflicts

This thesis examines management of business relationships during conflicts. The context of this study is the international political conflict which started in 2013 and is still affecting international trade relations in 2016. More specifically, this study researches the effects of the conflict in Finnish-Russian trade. The research aim is to identify the implications of a political conflict in the Finnish-Russian business relationships and networks. Furthermore, the study will explore how does a company adapt or overcome the challenges and barriers posed by the international business environment. This research combines relevant theories in management of business relationships and networks in order to review the research data through a critical research frame. The theoretical frameworks are different structures of business relationship development processes, various stages of interaction, and characteristics and functions of business relationships. Moreover, this study will examine the effect of interdependency, commitment and trust in trade relations. Also, what are the important exchange processes and how do these processes affect business relationship and overall performance of joint business operations. Qualitative single case study method was used in this research. Case company was a Finnish multinational company. To understand the changes, the data was collected and analysed through process research approach by pattern-matching and drawing temporal bracketing over two different periods of time, first period in years 2011-2013 and second period in years 2014-2016. Empirical data was collected through a semi-structured interview and additional data was collected from internal and external secondary data sources. The findings of the study confirmed the relationship between trade and conflict. However, the effects are not significant for a company in grocery retail industry which has had earlier experience in Russia and has managed its business relationships and operations effectively. Macroeconomic factors affect companies operating in foreign dynamic markets and in order to sustain changes and to adapt, companies should invest in their business relationships. Trust-based relationships and a higher level of commitment allow companies to have more efficient and beneficial outcomes before and during uncertainty. Furthermore, well-maintained and coordinated business relationships provide the ability to adapt and overcome challenges during uncertainty. Such relationships have information, financial and social exchange processes which allow the partnering firms to have successful business relationship management in dynamic market environments.

Opportunity meets uncertainty. Towards sustainable business in the Arctic region

The Arctic region is experiencing a significant change in terms of climate change and a growing economic interest towards its natural resources and emerging business opportunities. The purpose of this study is to explore how can Finnish companies create sustainable business in the Arctic. This is done by examining the arctic business environment, identifying sectors with growth potential, addressing challenges related to operating in the Arctic and suggesting how to ensure sustainability and succeed in the globally competed arctic market. The theoretical framework is based on theories of sustainable development, corporate social responsibility and the role of strategy in creating sustainable business. Empirical data was collected by using qualitative research methods: first, background knowledge was formed based on written documents and, secondly, six expert interviews were conducted in early 2014. The interviewees represented the viewpoints of companies, political decision makers and NGO’s. The analysis of the data was conducted using thematic categorization. The empirical findings of the study suggest that in order to create sustainable business in the Arctic companies should adopt a long-term perspective, embrace a holistic approach to sustainability, understand interdependencies between the dimensions of sustainability and aim at high-level engagement in responsible behavior. To succeed in the arctic market core competencies, customer needs, multivendor cooperation and long-term presence need to be invested in on a company level. In addition, to promote and advance arctic development on a national level support is needed in terms of investments in infrastructure, funding research and design, creating a regulative framework and removing barriers of trade.

Business modeling in turbulent environments

This study presents an agile tool set for the business modeling in companies, entering the turbulent environment. The study’s aim is to explore business modeling techniques and their tooling by utilizing a case study of a Finnish media monitoring company, expanding to the Russian market. This work proposes a tailored “two-approach” of business modeling development that analyzes both the past and future conditions of two key factors of business modeling for companies – internal and external environments. The study explores a case company by investigating the benefits and disadvantages of firm’s present business modeling tools, developing a new tooling and applying it to the case company. Among primary data utilization, such as interviews with media monitoring industry analysts and representatives of the competing companies, and academic experts, study leans up on the comprehensive analysis of Russian media monitoring niche and its players. This study benefits the business modeling research area and combines traditional analysis tools, such as market, PESTLE and competitor analyses, in a systemic manner, with the business modeling techniques. This transformation proceeds through applying of the integrated scenario, heat map and critical design issues’ analyses in the societal, industrial and competitive context of turbulent environments. The practical outcome of this approach is the development of agile business modeling tool set, customizable by company’s requirements.