Creating a customer profitability accounting model

Customer profitability accounting is a well-researched topic in the academic field, and it has been proved to posses rather undisputable benefits. However, the calculation of the customer profitabilities can be challenging, therefore the usage of the accounting is not self-explanatory in organizations. The aim of this study was to create a customer profitability accounting model for a wholesales unit in the case company to function as a sales management tool. The literature review of the study presents certain fundamental issues related to customer profitability accounting, in addition a theoretical framework for accounting model design is provided. The creation of the model was commenced by setting the requirements for it and examining the foundation of the model design, which consisted of for instance price setting and cost structure of products. This was followed by selecting approaches to the creation of the model. The result of the study was an accounting model, for which a determination of included revenues and costs was executed, along with the formulation of an allocation criteria of the costs. Lastly, the customer profitabilities were calculated in accordance with the accounting principles and the calculation logic of the model. The attained figures proved the model to provide an appropriate solution for obtaining the customer profitabilities and thus to use the accounting information as a sales management tool in for instance decision making and negotiation situations.

Success factors of customer and supplier master data system

Especially in global enterprises, key data is fragmented in multiple Enterprise Resource Planning (ERP) systems. Thus the data is inconsistent, fragmented and redundant across the various systems. Master Data Management (MDM) is a concept, which creates cross-references between customers, suppliers and business units, and enables corporate hierarchies and structures. The overall goal for MDM is the ability to create an enterprise-wide consistent data model, which enables analyzing and reporting customer and supplier data. The goal of the study was defining the properties and success factors of a master data system. The theoretical background was based on literature and the case consisted of enterprise specific needs and demands. The theoretical part presents the concept, background, and principles of MDM and then the phases of system planning and implementation project. Case consists of background, definition of as is situation, definition of project, evaluation criterions and concludes the key results of the thesis. In the end chapter Conclusions combines common principles with the results of the case. The case part ended up dividing important factors of the system in success factors, technical requirements and business benefits. To clarify the project and find funding for the project, business benefits have to be defined and the realization has to be monitored. The thesis found out six success factors for the MDM system: Well defined business case, data management and monitoring, data models and structures defined and maintained, customer and supplier data governance, delivery and quality, commitment, and continuous communication with business. Technical requirements emerged several times during the thesis and therefore those can’t be ignored in the project. Conclusions chapter goes through these factors on a general level. The success factors and technical requirements are related to the essentials of MDM: Governance, Action and Quality. This chapter could be used as guidance in a master data management project.

Modeling and developing a customer-oriented configuration process in a mass customization environment

In this thesis the main objective is to examine and model configuration system and related processes. When and where configuration information is created in product development process and how it is utilized in order-delivery process? These two processes are the essential part of the whole configuration system from the information point of view. Empirical part of the work was done as a constructive research inside a company that follows a mass customization approach. Data models and documentation are created for different development stages of the configuration system. A base data model already existed for new structures and relations between these structures. This model was used as the basis for the later data modeling work. Data models include different data structures, their key objects and attributes, and relations between. Representation of configuration rules for the to-be configuration system was defined as one of the key focus point. Further, it is examined how the customer needs and requirements information can be integrated into the product development process. Requirements hierarchy and classification system is presented. It is shown how individual requirement specifications can be connected for physical design structure via features by developing the existing base data model further.

Phase voltage control and filtering in a converter-fed single-phase customer-end system of the LVDC distribution network

In recent years, the network vulnerability to natural hazards has been noticed. Moreover, operating on the limits of the network transmission capabilities have resulted in major outages during the past decade. One of the reasons for operating on these limits is that the network has become outdated. Therefore, new technical solutions are studied that could provide more reliable and more energy efficient power distributionand also a better profitability for the network owner. It is the development and price of power electronics that have made the DC distribution an attractive alternative again. In this doctoral thesis, one type of a low-voltage DC distribution system is investigated. Morespecifically, it is studied which current technological solutions, used at the customer-end, could provide better power quality for the customer when compared with the current system. To study the effect of a DC network on the customer-end power quality, a bipolar DC network model is derived. The model can also be used to identify the supply parameters when the V/kW ratio is approximately known. Although the model provides knowledge of the average behavior, it is shown that the instantaneous DC voltage ripple should be limited. The guidelines to choose an appropriate capacitance value for the capacitor located at the input DC terminals of the customer-end are given. Also the structure of the customer-end is considered. A comparison between the most common solutions is made based on their cost, energy efficiency, and reliability. In the comparison, special attention is paid to the passive filtering solutions since the filter is considered a crucial element when the lifetime expenses are determined. It is found out that the filter topology most commonly used today, namely the LC filter, does not provide economical advantage over the hybrid filter structure. Finally, some of the typical control system solutions are introduced and their shortcomings are presented. As a solution to the customer-end voltage regulation problem, an observer-based control scheme is proposed. It is shown how different control system structures affect the performance. The performance meeting the requirements is achieved by using only one output measurement, when operating in a rigid network. Similar performance can be achieved in a weak grid by DC voltage measurement. An additional improvement can be achieved when an adaptive gain scheduling-based control is introduced. As a conclusion, the final power quality is determined by a sum of various factors, and the thesis provides the guidelines for designing the system that improves the power quality experienced by the customer.

Customer relationship management through life cycle analysis, case professional service firm in B2B market

The objective of this master’s thesis was to study how customer relationships should be assessed and categorized in order to support customer relationship management (CRM) in the context of business-to-business (B2B) and professional services. This sophisticated and complex market is utilizing possibilities of CRM only rarely and even then the focus is often on technology. The theoretical part considered first CRM from the value chain point of view and then discussed the cyclical nature of relationships. The case study focused on B2B professional service firm. The data was collected from company databases and included the sample of 90 customers. The research was conducted in three phases first studying the age, then the service type of relationships and finally executing the cluster analysis. The data was analysed by statistical analysis program SAS Enterprise Guide. The results indicate that there are great differences between developments of customer relationships. While some relationships are dynamically growing and changing, most of customers are remaining constant. This implies expectations and requirements of customers are similarly divergent and relationships should be managed accordingly.

Ambidextrous leadership in customer contact centre organization

In a modern dynamic environment organizations are facing new requirements for success and competitive advantage. This also sets new requirements for leaders. The term of ambidexterity is used in relation with organizations that are able to manage short-term efficiency and long-term innovation simultaneously. Ambidextrous leaders have the same capability at an individual level. They are able to balance between efficiency and flexibility. This study examined the confrontation of these two competing concepts in the leadership perspective. The aim of the study was to understand this recently arisen concept and its antecedents and examine what is currently known about ambidextrous leadership. This was a case study with data collected through theme interviews in a result orientated customer centre organization that has a cultural change at hand when it comes to leadership and empowerment. Organization wants to be efficient and flexible at the same time (a.k.a. ambidextrous) and that requires new type of leadership. In this study the aim was to describe the capabilities and criteria for ambidextrous leader and examine the leadership roles related to ambidextrous leadership in different hierarchical levels. The case organization had also created systematic means to support this cultural change and the effects of the process related to leadership were studied. This study showed that the area is yet widely unexplored and contradictory views are presented. This study contributes to the deprivation of study of ambidexterity in leadership and individuals. The study presents a description of ambidextrous leadership and describes the capabilities of ambidextrous leader. Ambidextrous leaders are able to make cognitive decisions between their leadership style according to situation that requires either leadership related to efficiency such as transactional leadership or leadership related to flexibility such as transformational leadership. Their leadership style supports both short-term and long-term goals. This study also shows that the role of top management is vital and operational leaders rely on their example.

The requirements of a feasible plastic packaging material for cultured dairy products

The objective of this Master´s Thesis was to conduct a wide scale preliminary survey regarding the package requirements of a cultured dairy package, and to compare the currently used material polystyrene to other suitable packaging materials. Polystyrene has a long history of use in dairy cups, but in recent years its price has increased significantly compared to other common packaging materials. The overall environmental effects of a package and a package material are today a part of designing a sustainable product life cycle. In addition, in certain contexts there has been discussion of the risks posed by styrene polymer for the environment and for humans. These risks are also discussed in this thesis. Polystyrene (PS) is still the most widely used material in dairy cups. In recent years, polypropylene (PP) cups have appeared in increasing numbers on market shelves. This study focuses on the differences of the suitable polymers and examines the suitability of alternative “suitable” polymers with regards to dairy packaging. Aside from focusing on the cup manufacturer, this thesis also examines its subject matter from the viewpoint of the dairy customer, as well as observing the concrete implications of material changes in the overall value chain. It was known in advance that material permeability would be one of the determining factors and that gas transmission testing would be a significant part of the thesis. Mechanical tests were the second part of the testing process, providing information regarding package strength and protectiveness during the package’s life cycle. Production efficiency, along with uninterrupted stable production, was another important factor that was taken into consideration. These two issues are sometimes neglected in similar contexts due to their self-evident nature. In addition, materials used in production may have a surprising significance to the production and efficiency. Consistent high quality is also partly based on material selection. All of the aforementioned factors have been documented and the results have been analyzed by the development team at Coveris Rigid Finland. Coveris is now calculating the total finance effects and capacities should the material changes be implemented in practice. There are many factors in favor of switching to polypropylene at the moment. The overall production costs, as well as the environmental effects of resin production are the primary influences for said switch from the converters’ perspective.

A Phase Model for Building a Customer Value Based Sales Tool – Case Mining and Metals Industry

The objective of this research is to observe the state of customer value management in Outotec Oyj, determine the key development areas and develop a phase model with which to guide the development of a customer value based sales tool. The study was conducted with a constructive research approach with the focus of identifying a problem and developing a solution for the problem. As a basis for the study, the current literature involving customer value assessment and solution and customer value selling was studied. The data was collected by conducting 16 interviews in two rounds within the company and it was analyzed by coding openly. First, seven important development areas were identified, out of which the most critical were “Customer value mindset inside the company” and “Coordination of customer value management activities”. Utilizing these seven areas three functionality requirements, “Preparation”, “Outotec’s value creation and communication” and “Documentation” and three development requirements for a customer value sales tool were identified. The study concluded with the formulation of a phase model for building a customer value based sales tool. The model included five steps that were defined as 1) Enable customer value utilization, 2) Connect with the customer, 3) Create customer value, 4) Define tool to facilitate value selling and 5) Develop sales tool. Further practical activities were also recommended as a guide for executing the phase model.

Haitallisen liikenteen havaitseminen ja suodattaminen operaattoriverkoissa

Suomen Viestintävirasto Ficora on antanut määräyksen 13/2005M, jonka mukaan internet-palveluntarjoajalla tulee olla ennalta määritellyt prosessit ja toimintamallit sen omista asiakasliittymistä internetiin lähtevän haitallisen liikenteen havaitsemiseksi ja suodattamiseksi. Määräys ei sinällään aseta ehtoja, kuinka asetetut vaatimukset kukin internet-palveluntarjoaja täyttää. Tässä diplomityössä annetaan määritelmät haitalliselle liikenteelle ja tutkitaan menetelmiä, joilla sitä voidaan havainnoida ja suodattaa paikallisen internet-palveluntarjoajan operaattoriverkoissa. Suhteutettunapaikallisen internet-palveluntarjoajan asiakasliittymien määrään, uhkien vakavuuteen ja tällaisen systeemin kustannuksiin, tullaan tämän työn pohjalta ehdottamaan avoimen lähdekoodin tunkeutumisenhavaitsemistyökalua nopeaa reagointia vaativiin tietoturvaloukkauksiin ja automatisoitua uudelleenreitititystä suodatukseen. Lisäksi normaalin työajan puitteissa tapahtuvaan liikenteen seurantaan suositetaan laajennettua valvontapöytää, jossa tarkemmat tutkimukset voidaan laittaa alulle visualisoitujen reaaliaikaisten tietoliikenneverkon tietovoiden kautta.

Implementation of an Integrated Activity-Based Costing in a Holistic Database Management System and its Implications for Operations Management

Diplomityössä on tutkittu reaaliaikaisen toimintolaskennan toteuttamista suomalaisen lasersiruja valmistavan PK-yrityksen tietojärjestelmään. Lisäksi on tarkasteltu toimintolaskennan vaikutuksia operatiiviseen toimintaan sekä toimintojen johtamiseen. Työn kirjallisuusosassa on käsitelty kirjallisuuslähteiden perusteella toimintolaskennan teorioita, laskentamenetelmiä sekä teknisessä toteutuksessa käytettyjä teknologioita. Työn toteutusosassa suunniteltiin ja toteutettiin WWW-pohjainen toimintolaskentajärjestelmä case-yrityksen kustannuslaskennan sekä taloushallinnon avuksi. Työkalu integroitiin osaksi yrityksen toiminnanohjaus- sekä valmistuksenohjausjärjestelmää. Perinteisiin toimintolaskentamallien tiedonkeruujärjestelmiin verrattuna case-yrityksessä syötteet toimintolaskentajärjestelmälle tulevat reaaliaikaisesti osana suurempaa tietojärjestelmäintegraatiota.Diplomityö pyrkii luomaan suhteen toimintolaskennan vaatimusten ja tietokantajärjestelmien välille. Toimintolaskentajärjestelmää yritys voi hyödyntää esimerkiksi tuotteiden hinnoittelussa ja kustannuslaskennassa näkemällä tuotteisiin liittyviä kustannuksia eri näkökulmista. Päätelmiä voidaan tehdä tarkkaan kustannusinformaatioon perustuen sekä määrittää järjestelmän tuottaman datan perusteella, onko tietyn projektin, asiakkuuden tai tuotteen kehittäminen taloudellisesti kannattavaa.

Customer References as Marketing Practice in Company Web sites - Content and Discourse Analysis

Työn tarkoituksena oli tutkia sisältö- ja diskurssianalyysin avulla kuinka yritykset viestivät asiakasreferenssejä verkkosivuillaan. Työssä keskityttiin tutkimaan yritysten referenssikuvausten teemoja ja diskursseja, sekä sitä kuinka referenssisuhde rakentuu diskursiivisesti referenssikuvauksissa. Tutkimukseen valittiin kolme suomalaista ICT-alan yritystä: Nokia, TietoEnator ja F-Secure. Aineisto koostuu 140:stä yritysten WWW-sivuilta kerätystä referenssikuvauksesta. Sisältöanalyysin tuloksena havaittiin, että referenssikuvaukset keskittyvät kuvaamaan yksittäisiä tuote- tai projektitoimituksia referenssiasiakkaille kyseisten asiakassuhteiden valossa. Analyysin tuloksena tunnistettiin kolme diskurssia: hyötydiskurssi, sitoutumisen diskurssi sekä teknologisen eksperttiyden diskurssi. Diskurssit paljastavat referenssikuvausten retoriset keinot ja konstruoivat referenssisuhteen ja toimittajan subjektiposition eri näkökulmista. Pääpaino referenssikuvauksissa on toimittajan ratkaisun tuomissa hyödyissä. Diskurssit tuottavat referenssisuhteesta kuvan hyötyjä tuovana ja läheisenä asiakassuhteena, joka tarjoaa väylän ulkopuolisiin kyvykkyyksiin ja teknologioihin. Toimittaja esitetään referenssikuvauksissa diskurssista riippuen hyötyjen tuojana, luotettavana partnerina sekä kokeneena eksperttinä. Referenssiasiakas sen sijaan esitetään vain yhdestä näkökulmasta stereotyyppisesti tärkeänä ja tyytyväisenä asiakkaana.

Mapping out customer segments and marketing channels in the Finnish Homelift market

Työn tavoitteena oli saada selville ketkä ovat uuden tuotteen, eli kotihissin asiakkaat. Mitkä ovat tuotteen mahdollisuudet Suomen markkinoilla ja onko markkinoilla odotettavissa kasvua, sekä miten tähän mahdolliseen kasvuun päästäisiin käsiksi. Kotihissin ominaisuudet vaikuttavat siihen, että se on tarkoitettu asennettavaksi yksityisiin pientaloihin. Uuden tuotteen ansiosta KONE voi liittää nykyiseen vahvaan toimialaansa, eli kerrostaloihin, uuden aluevaltauksen; Pientalot. Tämä 'laajentuminen' tuo mukanaan kuluttajamarkkinoiden haasteet. Markkinatilanteen selvittämiseen käyttin jo olemassa olevaa tietoa hyväkseni; sanomalehdistä markkinatutkimuksiin. Asiakasryhmät kartoitin tutustumalla messutapahtumissa saatuihin kontakteihin. Päätutkimusmenetelmänä käytin haastatteluja. Niihin osallistui kaikkiaan 14 vastaajaa. He vasatsivat kysymyksiin ostomotiiveista ja tuotteesta. Eräs haastattelujen tärkeimmistä teemoista liittyi yhteydenpito- ja jakelukanaviin, joista 12 vastaajaa antoivat mielipiteitään. Työni tulokset viittaavat siihen, että markkinatilanne näyttää positiiviselta KONEen kannalta. Tutkimuksesta sain selville kotihissin asiakassegmentit ja myös miten nämä potentiaaliset asiakkaat saadaan tehokkaimmin tavoitettua.

Reporting customer information for sales management

Elektroniikan alihankintapalveluiden (EMS) liiketoimintaympäristössä yritykset toimivat pääasiassa asiakkaiden projektien ja ulkoistamispäätösten keskellä. Tämän tyyppisessä liiketoimintaympäristössä on asiakas keskeisessä roolissa, kuten liiketoiminnassa yleensäkin. Termi EMS sisältää koko tuotteen elinkaaren aina suunnittelusta myynnin jälkeisiin palveluihin. Asiakkaan olessa erittäin tärkeä yritykselle, on myös selvitettävä mitkä asiakkaat ovat yrityksen kannalta arvokkaimmat. Tämän tutkimuksen tavoitteena oli selvittää myyntijohdon tietotarpeet sekä löytää selkeä ja helppokäyttöinen tapa tuoda tarvittava informaatio heidän käyttöönsä. Tietotarpeet selvitettiin haastatteluilla ja kyselytutkimuksella ja sopivan järjestelmän löytämisessä käytettiin prototyyppi-lähestymistä, jotta saataisiin selville täyttääkö valittu järjestelmä myyntijohdon tarpeet. Nk. dashboard-mittaristot ovat hyvä tapa tuoda asiakasinformaatiota päätöksenteontueksi. Tälläisillä mittaristoilla voidaan myös yhdistellä eri lähteistä olevaa tietoa ja tuoda se ymmärrettävässä muodossa esiin. Tässä tutkimuksessa kuvataan mittariston suunnittelu myyntijohdon tarpeisiin. Ensimmäisenä tutkitaan kyselyn avulla myyntijohtajien tiedon tarpeet ja tämän jälkeen etsitään sopiva tekninen sovellus ja ratkaistaan tiedon siirtoihin liittyvät ongelmat. Kun ensimmäinen versio on valmis, esitellään se myyntijohdolle, jotta saadaan kerättyä kommentit seuraavaan versioon.