Perussyyanalyysien käyttö ydinvoimalaitosten tapahtumien tutkinnassa

Tämä diplomityö käsittelee perussyyanalyysien käyttöä Loviisan voimalaitoksella tapahtumien tutkinnassa. Diplomityössä käydään läpi erilaisia maailmalla käytössä olevia perussyyanalyysimenetelmiä. Nykyään Loviisan voimalaitoksella ei ole ohjeessa määritelty miten perussyyanalyysit tulee tehdä, joten diplomityön tulosten perusteella on tarkoitus valita Loviisan voimalaitokselle sopiva menetelmä. Diplomityössä tehdään eräs perussyyanalyysi kahdella eri menetelmällä, jotka tuntuivat sopivilta menetelmiltä Loviisan voimalaitoksille. Perussyyanalyysimenetelmät, joita käytetään, ovat Loviisassa käytetty sovellettu HPES-menetelmä ja yhdysvaltalaisten ydinvoimaviranomaisten kehittämä HPIP-menetelmä. Perussyyanalyysien valmistuttua ja tuloksia vertaillessa tultiin siihen lopputulokseen, ettei Loviisan voimalaitoksella ole tarvetta vaihtaa nykyisin käytössä olevaa mutta ohjeistamatonta menetelmää. Loviisan voimalaitokselle tehtävään uuteen perussyyanalyysiohjeeseen liitetään menetelmäkuvaus sovelletusta HPES-menetelmästä. Menetelmäkuvauksessa kuvataan miten HPES-menetelmää käytetään perussyyanalyysien tekoon Loviisan voimalaitoksella.

Dynamic Model of a Small Once-Through Boiler

In this study, a model for the unsteady dynamic behaviour of a once-through counter flow boiler that uses an organic working fluid is presented. The boiler is a compact waste-heat boiler without a furnace and it has a preheater, a vaporiser and a superheater. The relative lengths of the boiler parts vary with the operating conditions since they are all parts of a single tube. The present research is a part of a study on the unsteady dynamics of an organic Rankine cycle power plant and it will be a part of a dynamic process model. The boiler model is presented using a selected example case that uses toluene as the process fluid and flue gas from natural gas combustion as the heat source. The dynamic behaviour of the boiler means transition from the steady initial state towards another steady state that corresponds to the changed process conditions. The solution method chosen was to find such a pressure of the process fluid that the mass of the process fluid in the boiler equals the mass calculated using the mass flows into and out of the boiler during a time step, using the finite difference method. A special method of fast calculation of the thermal properties has been used, because most of the calculation time is spent in calculating the fluid properties. The boiler was divided into elements. The values of the thermodynamic properties and mass flows were calculated in the nodes that connect the elements. Dynamic behaviour was limited to the process fluid and tube wall, and the heat source was regarded as to be steady. The elements that connect the preheater to thevaporiser and the vaporiser to the superheater were treated in a special way that takes into account a flexible change from one part to the other. The model consists of the calculation of the steady state initial distribution of the variables in the nodes, and the calculation of these nodal values in a dynamic state. The initial state of the boiler was received from a steady process model that isnot a part of the boiler model. The known boundary values that may vary during the dynamic calculation were the inlet temperature and mass flow rates of both the heat source and the process fluid. A brief examination of the oscillation around a steady state, the so-called Ledinegg instability, was done. This examination showed that the pressure drop in the boiler is a third degree polynomial of the mass flow rate, and the stability criterion is a second degree polynomial of the enthalpy change in the preheater. The numerical examination showed that oscillations did not exist in the example case. The dynamic boiler model was analysed for linear and step changes of the entering fluid temperatures and flow rates.The problem for verifying the correctness of the achieved results was that there was no possibility o compare them with measurements. This is why the only way was to determine whether the obtained results were intuitively reasonable and the results changed logically when the boundary conditions were changed. The numerical stability was checked in a test run in which there was no change in input values. The differences compared with the initial values were so small that the effects of numerical oscillations were negligible. The heat source side tests showed that the model gives results that are logical in the directions of the changes, and the order of magnitude of the timescale of changes is also as expected. The results of the tests on the process fluid side showed that the model gives reasonable results both on the temperature changes that cause small alterations in the process state and on mass flow rate changes causing very great alterations. The test runs showed that the dynamic model has no problems in calculating cases in which temperature of the entering heat source suddenly goes below that of the tube wall or the process fluid.

Vasicek interest rate model

Tässä tutkielmassa estimoidaan korkomallin parametrit Maximum likelihood metodilla sekä näytetään kuinka mallintaa lyhyen koron evoluutiota ja korkokäyrän rakennetta.

Improving Cross Direction Basis Weight Profile in a Fourdrinier Paper Machine

The purpose of this study was to improve PM7’s basis weight CD profile in Stora Enso’s Berghuizer mill and to search mechanical defects which affect to the formation of the basis weight CD profile. In the theoretical part PM7’s structure was presented and the formation of the basis weight and caliper CD profiles was examined as well as disturbances which are affecting to the formation. The function of the control system was scrutinised for the side of CD profiles as well as the formation of the measured CD profiles. Tuning of the control system was examined through the response model and filtering. Specification of the response model and filtering was explained and how to determine 2sigma statistical number. In the end of the theoretical part ATPA hardware and a new profile browser were introduced. In the experimental part focus was in the beginning to search and remove mechanical defects which are affecting to CD profiles. The next step was to verify the reliability of the online measurements, to study the stability of the basis weight CD profile and to find out so called fingerprint, a basis weight CD profile which is unique for each paper machine. New response model and filtering value for basis weight CD profile was determined by bump tests. After a follow up period the affect of the new response model and filtering was analysed.

Fatigue analysis of brackets with and without scallop for bridge and other deck structure using effective notch stress.

Due to functional requirement of a structural detail brackets with and without scallop are frequently used in bridges, decks, ships and offshore structure. Scallops are designed to serve as passage way for fluids, to reduce weld length and plate distortions. Moreover, scallops are used to avoid intersection of two or more welds for the fact that there is the presence of inventible inherent initial crack except for full penetrated weld and the formation of multi-axial stress state at the weld intersection. Welding all around the scallop corner increase the possibility of brittle fracture even for the case the bracket is not loaded by primary load. Avoiding of scallop will establish an initial crack in the corner if bracket is welded by fillet welds. If the two weld run pass had crossed, this would have given a 3D residual stress situation. Therefore the presences and absence of scallop necessitates the 3D FEA fatigue resistance of both types of brackets using effective notch stress approach ( ). FEMAP 10.1 with NX NASTRAN was used for the 3D FEA. The first and main objective of this research was to investigate and compare the fatigue resistance of brackets with and without scallop. The secondary goal was the fatigue design of scallops in case they cannot be avoided for some reason. The fatigue resistance for both types of brackets was determined based on approach using 1 mm fictitiously rounded radius based on IIW recommendation. Identical geometrical, boundary and loading conditions were used for the determination and comparison of fatigue resistance of both types of brackets using linear 3D FEA. Moreover the size effect of bracket length was also studied using 2D SHELL element FEA. In the case of brackets with scallop the flange plate weld toe at the corner of the scallop was found to exhibit the highest and made the flange plate weld toe critical for fatigue failure. Whereas weld root and weld toe at the weld intersections were the highly stressed location for brackets without scallop. Thus weld toe for brackets with scallop, and weld root and weld toe for brackets without scallop were found to be the critical area for fatigue failure. Employing identical parameters on both types of brackets, brackets without scallop had the highest except for full penetrated weld. Furthermore the fatigue resistance of brackets without scallop was highly affected by the lack of weld penetration length and it was found out that decreased as the weld penetration was increased. Despite the fact that the very presence of scallop reduces the stiffness and also same time induce stress concentration, based on the 3D FEA it is worth concluding that using scallop provided better fatigue resistance when both types of brackets were fillet welded. However brackets without scallop had the highest fatigue resistance when full penetration weld was used. This thesis also showed that weld toe for brackets with scallop was the only highly stressed area unlike brackets without scallop in which both weld toe and weld root were the critical locations for fatigue failure when different types of boundary conditions were used. Weld throat thickness, plate thickness, scallop radius, lack of weld penetration length, boundary condition and weld quality affected the fatigue resistance of both types of brackets. And as a result, bracket design procedure, especially welding quality and post weld treatment techniques significantly affect the fatigue resistance of both type of brackets.

The Role of Universities in the Triple Helix model of innovation management within the biotechnology industry, Case example: Turku Science Park Network

Biotechnology has been recognized as the key strategic technology for industrial growth. The industry is heavily dependent on basic research. Finland continues to rank in the top 10 of Europe's most innovative countries in terms of tax-policy, education system, infrastructure and the number of patents issued. Regardless of the excellent statistical results, the output of this innovativeness is below acceptable. Research on the issues hindering the output creation has already been done and the identifiable weaknesses in the Finland's National Innovation system are the non-existent growth of entrepreneurship and the missing internationalization. Finland is proven to have all the enablers of the innovation policy tools, but is lacking the incentives and rewards to push the enablers, such as knowledge and human capital, forward. Science Parks are the biggest operator in research institutes in the Finnish Science and Technology system. They exist with the purpose of speeding up the commercialization process of biotechnology innovations which usually include technological uncertainty, technical inexperience, business inexperience and high technology cost. Innovation management only internally is a rather historic approach, current trend drives towards open innovation model with strong triple helix linkages. The evident problems in the innovation management within the biotechnology industry are examined through a case study approach including analysis of the semi-structured interviews which included biotechnology and business expertise from Turku School of Economics. The results from the interviews supported the theoretical implications as well as conclusions derived from the pilot survey, which focused on the companies inside Turku Science Park network. One major issue that the Finland's National innovation system is struggling with is the fact that it is technology driven, not business pulled. Another problem is the university evaluation scale which focuses more on number of graduates and short-term factors, when it should put more emphasis on the cooperation success in the long-term, such as the triple helix connections with interaction and knowledge distribution. The results of this thesis indicated that there is indeed requirement for some structural changes in the Finland's National innovation system and innovation policy in order to generate successful biotechnology companies and innovation output. There is lack of joint output and scales of success, lack of people with experience, lack of language skills, lack of business knowledge and lack of growth companies.

Price spike forecasting in a competitive day-ahead energy market

Electricity price forecasting has become an important area of research in the aftermath of the worldwide deregulation of the power industry that launched competitive electricity markets now embracing all market participants including generation and retail companies, transmission network providers, and market managers. Based on the needs of the market, a variety of approaches forecasting day-ahead electricity prices have been proposed over the last decades. However, most of the existing approaches are reasonably effective for normal range prices but disregard price spike events, which are caused by a number of complex factors and occur during periods of market stress. In the early research, price spikes were truncated before application of the forecasting model to reduce the influence of such observations on the estimation of the model parameters; otherwise, a very large forecast error would be generated on price spike occasions. Electricity price spikes, however, are significant for energy market participants to stay competitive in a market. Accurate price spike forecasting is important for generation companies to strategically bid into the market and to optimally manage their assets; for retailer companies, since they cannot pass the spikes onto final customers, and finally, for market managers to provide better management and planning for the energy market. This doctoral thesis aims at deriving a methodology able to accurately predict not only the day-ahead electricity prices within the normal range but also the price spikes. The Finnish day-ahead energy market of Nord Pool Spot is selected as the case market, and its structure is studied in detail. It is almost universally agreed in the forecasting literature that no single method is best in every situation. Since the real-world problems are often complex in nature, no single model is able to capture different patterns equally well. Therefore, a hybrid methodology that enhances the modeling capabilities appears to be a possibly productive strategy for practical use when electricity prices are predicted. The price forecasting methodology is proposed through a hybrid model applied to the price forecasting in the Finnish day-ahead energy market. The iterative search procedure employed within the methodology is developed to tune the model parameters and select the optimal input set of the explanatory variables. The numerical studies show that the proposed methodology has more accurate behavior than all other examined methods most recently applied to case studies of energy markets in different countries. The obtained results can be considered as providing extensive and useful information for participants of the day-ahead energy market, who have limited and uncertain information for price prediction to set up an optimal short-term operation portfolio. Although the focus of this work is primarily on the Finnish price area of Nord Pool Spot, given the result of this work, it is very likely that the same methodology will give good results when forecasting the prices on energy markets of other countries.

Web Presence Building and Performance Measuring in Business-to-Business Markets

Tutkimuksen tavoite oli selvittää yrityksen web toiminnan rakentamisen vaiheita sekä menestyksen mittaamista. Rakennusprosessia tutkittiin viisiportaisen askelmallin avulla. Mallin askeleet ovat; arviointi, strategian muotoilu, suunnitelma, pohjapiirros ja toteutus. Arviointi- ja toteutusvaiheiden täydentämiseksi sekä erityisesti myös internet toiminnan onnistumisen mittaamisen avuksi internet toiminnan hyödyt (CRM,kommunikointi-, myynti-, ja jakelukanava hyödyt markkinoinnin kannalta) käsiteltiin. Toiminnan menestyksen arvioinnin avuksi esiteltiin myös porrasmalli internet toimintaan. Porrasmalli määrittelee kauppakulissi-, dynaaminen-, transaktio- ja e-businessportaat. Tutkimuksessa löydettiin menestystekijöitä internet toimintojen menestykselle. Nämä tekijät ovat laadukas sisältö, kiinnostavuus, viihdyttävyys, informatiivisuus, ajankohtaisuus, personoitavuus, luottamus, interaktiivisuus, käytettävyys, kätevyys, lojaalisuus, suoriutuminen, responssiivisuus ja käyttäjätiedon kerääminen. Mittarit jaettiin tutkimuksessa aktiivisuus-, käyttäytymis- ja muunnosmittareihin. Lisäksi muita mittareita ja menestysindikaattoreita esiteltiin. Nämä menestyksen elementit ja mittarit koottiin yhteen uudessa internet toimintojen menestyksenarviointimallissa. Tutkielman empiirisessä osuudessa,esitettyjä teorioita peilattiin ABB:n (ABB:n sisällä erityisesti ABB Stotz-Kontakt) web toimintaan. Apuna olivat dokumenttianalyysi sekä haastattelut. Empiirinen osa havainnollisti teoriat käytännössä ja toi ilmi mahdollisuuden teorioiden laajentamiseen. Internet toimintojen rakentamismallia voidaan käyttää myös web toimintojen kehittämiseen ja porrasmalli sopii myös nykyisten internet toimintojen arvioimiseen. Mittareiden soveltaminen käytännössä toi kuitenkin ilmi tarpeen niiden kehittämiseen ja aiheen lisätutkimukseen. Niiden tulisi olla myös aiempaatiiviimmin liitetty kokonaisvaltaisen liiketoiminnan menestyksen mittaamiseen.

Railcarrier in Intermodal Freight Transportation Network

The major objective of this thesis is to describe and analyse how a railcarrier is engaged in an intermodal freight transportation network through its role and position. Because of the fact that the role as a conceptualisation has a lot of parallels with the position, both these phenomena are evaluated theoretically and empirically. VR Cargo (a strategical business unitof the Finnish railway company VR Ltd.) was chosen to be the focal firm surrounded by the actors of the focal net. Because of the fact that networks are sets of relationships rather than sets of actors, it is essential to describe the dimensions of the relationships created through the time thus having a past, presentand future. The roles are created during long common history shared by the actors especially when IM networks are considered. The presence of roles is embeddedin the tasks, and the future is anchored to the expectations. Furthermore, in this study role refers to network dynamics, and to incremental and radical changes in the network, in a similar way as position refers to stability and to the influences of bonded structures. The main purpose of the first part of the study was to examine how the two distinctive views that have a dominant position in modern logistics ¿ the network view (particularly IMP-based network approach) and the managerial view (represented by Supply Chain Management) differ, especially when intermodalism is under consideration. In this study intermodalism was defined as a form of interorganisational behaviour characterized by the physical movement of unitized goods with Intermodal Transport Units, using more than one mode as performed by the net of operators. In this particular stage the study relies mainly on theoretical evaluation broadened by some discussions with the practitioners. This is essential, because the continuous dialogue between theory and practice is highly emphasized. Some managerial implications are discussed on the basis of the theoretical examination. A tentative model for empirical analysis in subsequent research is suggested. The empirical investigation, which relies on the interviews among the members in the focal net, shows that the major role of the focal company in the network is the common carrier. This role has some behavioural and functional characteristics, such as an executive's disclosure expressing strategic will attached with stable and predictable managerial and organisational behaviour. Most important is the notion that the focal company is neutral for all the other operators, and willing to enhance and strengthen the collaboration with all the members in the IM network. This also means that all the accounts are aimed at being equal in terms of customer satisfaction. Besides, the adjustments intensify the adopted role. However, the focal company is also obliged tosustain its role as it still has a government-erected right to maintain solely the railway operations on domestic tracks. In addition, the roles of a dominator, principal, partner, subcontractor, and integrator were present appearing either in a dyadic relationship or in net(work) context. In order to reveal differentroles, a dualistic interpretation of the concept of role/position was employed.

Achieving Traceability

Tämä diplomityö käsittelee vaatimusmäärittelyä. Erityinen keskittymisalue on vaatimusten jäljitettävyys. Vaatimusmäärittely on osa ohjelmistokehitysprosessia. Insinöörit tietävät, että ymmärtääkseen ongelmaa on sen lähtökohdat ymmärrettävä. Tästä huolimatta määrittelyvaihe epähuomioidaan helposti. Diplomityössä kartoitetaan ensin vaatimusmäärittelyä järjestelmäprojektin osana. Vaatimusmäärittelyn rakennetta tarkennetaan ja sen sisältöä tuodaan esille. Olemassaolevana projektina analysoidaan, kuinka Soneran Mobile Pay osaston suorittama vaatimusmäärittely on toteutunut Mobile Payment Platform projektin alkuvaiheessa. Lähinnä keskitytään näyttämään, kuinka vaatimukset on kirjattu ylös. Tämän jälkeen tarkastellaan jäljitettävyyden olemusta. Työssä kartoitetaan lukijalle, mitä jäljitettävyys tarkoittaa. Kartoituksen jälkeen käydään läpi jäljitettävyyttä tukevia toimenpiteitä Sonera Mobile Payn tuotekehitysprosessissa.

Paperirullan kannatushihnan kestoiän pidentäminen

Työn tavoitteena oli selvittää kannatushihnapituusleikkurissa paperin rullaukseen käytettävän kannatushihnan kestoikään vaikuttavia tekijöitä ja ratkaisuja liian lyhyeen kestoikään liittyviin ongelmiin. Työssä selvitettiin ensin kannatushihnatyyppisen pituusleikkurin toimintaa ja tarkemmin sen rullausosaa ja rullausprosessin parametreja. Kannatushihnan kestoikään vaikuttavia tekijöitä on käsitelty kirjallisuuden ja kohdeyrityksessä olevan materiaalin perusteella. Seuraavaksi esitettiin ideoita kannatushihnan rakenteesta ja materiaaleista sekä vertailtiin niitä keskenään ja nykyiseen hihnan rakenteeseen. Työssä tehtiin nykyistä kannatushihnaa simuloiva kaksiulotteinen elementtimalli. Tämän elementtimallin mukaan pituusleikkurin telojen suunnassa epätasainen hihnan kuluminen johtuu hihnan paksuussuuntaisten jännitysten eroista. Hihnan kulkua arvioitiin kokeellisesti kahdella erityyppisellä hihnalla. Hihnan kulkuun eniten vaikutti esikiristysvoima, jota pienennettäessä kehänopeusero paperirullaa simuloivan kuormittavan telan ja hihnatelan välillä pieneni. Työssä löydettiin mahdollinen yhteys rullauksessa tulostietona saatavan datan sekä hihnan geometrian välille. Polyeteenivaahtomuovit ovat kitkansa puolesta lupaavia hihnan kitkapinnoitteen materiaaliksi. Toisaalta polyeteenivaahtomuovien mekaanisia ominaisuuksia ei juuri tunneta, eikä niitä ole käytetty kulutuskestoa vaativissa sovelluksissa. Hihnan ulkopinnan kulumismekanismia ei täysin tunneta.

Newsprint Demand and Supply Scenarios

Diplomityön tavoitteena oli sanomalehtipaperin kysyntään ja tarjontaan vaikuttavien tekijöiden identifiointi ja analysointi. Nämä tekijät käytiin yhteisesti läpi skenaarioiden avulla. Aluksi kuvattiin teollisuuden ala ja esiteltiin tärkeimmät alaa kuvaavat mittarit. Analyysi tehtiin Porterin kilpailuteorian tekijöiden pohjalta. Työssä listattiin yksittäiset tekijät, jotka vaikuttavat sanomalehtipaperin kysyntään ja tarjontaan. Näistä tekijöistä valittiin tärkeimmät ja niiden pohjalta rakennettiin skenaarioita. Skenaariot kuvaavat erilaisia mahdollisia tulevaisuuksia.Kysyntä kuten myös tarjonta on jakautunut epätasaisesti maailmassa. Alueelliset erot ovat hyvinkin merkittäviä. Tästä johtuu laajamittainen kaupankäynti eri alueiden välillä. Käynnissä oleva paperiteollisuuden konsolidoitumisprosessi auttaa vähentämään sanomalehtipaperin hinnan ja tarjonnan heilahtelua. Tämä puolestaan johtuu alan keskittymisestä ja järkevästä kapasiteetin hallinnasta.Diplomityö korostaa sanomalehtipaperin tuottajien vastuuta tarjonnan lisäämisessä. E-median uhkaa tai mahdollisuutta on myös spekuloitu ja kysynnän alueellisen kysynnän kehitystä on analysoitu. Diplomityö antaa ehdotuksia erilaisiksi tulevaisuuden kehitysvaihtoehdoiksi. Sanomalehtipaperin kysyntä tulee kasvamaan maailmanlaajuisesti, tuotanto tulee siirtymään lähemmäksi markkinoita, kaupankäynti Aasiaan tulee kasvamaan ja yrityksen tulevat keskittymään viisaaseen kapasiteetin hallintaan.

Sahan kustannustenjakomalli toimintolaskentaa apuna käyttäen

Työn tavoitteena oli rakentaa sahan kustannuksille laskentamalli, jolla kustannukset voidaan kohdistaa markkinasegmenteille. Työssä käytettiin toimintolaskentaa, joka kohdistaa kustannuksia tarkemmin, kuin perinteiset kustannuslaskentamenetelmät. Toimintolaskenta on kaksivaiheinen menetelmä, jossa ensin resurssit kohdistetaan käytön mukaan toiminnoille ja näiltä edelleen laskentakohteille toimintojen kulutuksen mukaan. Suuri osa mallin rakentamisajasta kului toimintojen määrittelyyn, analysointiin, tiedonhakuun ja laskentainformaation keräämiseen. Rakennettua kustannustenjakomallia voidaan käyttää apuna esim. segmentti-, asete- tai tuotekohtaista kannattavuutta laskettaessa. Kustannustenjakomalli kohdistaa sahan kustannukset kolmelle eri kustannusobjektille. Nämä objektit ovat tuote, segmentti ja tehdas. Tehdastason kustannukset kohdistetaan ainoastaan tuotteiden tehdashintojen määrittämisessä. Nämä kustannukset eivät vaikuta mitenkään tuotteen tai markkinasegmentin kannattavuuteen. Laskentamallin rakenne riippuu mallin käyttötarkoituksesta. Kustannustenjakomallia kokeiltiin kolmelle erilaiselle sahaukselle. Mallissa tarkasteltiin normaalikokoisen tukin, Japanin sahatavaran (lyhyt tukki) ja pienen tukin sahauksia sekä näiden aiheuttamia kustannuksia. Toimintolaskenta soveltuu hyvin sahan kustannusten kohdistamiseen. Koska sahan tuotanto on prosessimaista, niin toimintoja on vähän. Vaikka segmenttitason palvelutoimintojen osuus kustannuksista onkin pieni, niin toimintolaskenta toimii usein todellisena silmien avaajana, kun toimintoja ja niiden kustannuksia analysoidaan.

Competitors' Financial Performance Monitoring Model

The objective of the thesis was to develop a competitors’ financial performance monitoring model for management reporting. The research consisted of the selections of the comparison group and the performance meters as well as the actual creation of the model. A brief analysis of the current situation was also made. The aim of the results was to improve the financial reporting quality in the case organization by adding external business environment observation to the management reports. The comparison group for the case company was selected to include five companies that were all involved in power equipment engineering and project type business. The most limiting factor related to the comparison group selection was the availability of quarterly financial reporting. The most suitable performance meters were defined to be the developments of revenue, order backlog and EBITDA. These meters should be monitored systematically on quarterly basis and reported to the company management in a brief and informative way. The monitoring model was based on spreadsheet construction with key characteristics being usability, flexibility and simplicity. The model acts as a centered storage for financial competitor information as well as a reporting tool. The current market situation is strongly affected by the economic boom in the recent years and future challenges can be clearly seen in declining order backlogs. The case company has succeeded well related to its comparison group during the observation period since its business volume and profitability have developed in the best way.

Theoretical background for market emergence framework : Case: Electricity Distribution Industry

Both the competitive environment and the internal structure of an industrial organization are typically included in the processes which describe the strategic management processes of the firm, but less attention has been paid to the interdependence between these views. Therefore, this research focuses on explaining the particular conditions of an industry change, which lead managers to realign the firm in respect of its environment for generating competitive advantage. The research question that directs the development of the theoretical framework is: Why do firms outsource some of their functions? The three general stages of the analysis are related to the following research topics: (i) understanding forces that shape the industry, (ii) estimating the impacts of transforming customer preferences, rivalry, and changing capability bases on the relevance of existing assets and activities, and emergence of new business models, and (iii) developing optional structures for future value chains and understanding general boundaries for market emergence. The defined research setting contributes to the managerial research questions “Why do firms reorganize their value chains?”, “Why and how are decisions made?” Combining Transaction Cost Economics (TCE) and Resource-Based View (RBV) within an integrated framework makes it possible to evaluate the two dimensions of a company’s resources, namely the strategic value and transferability. The final decision of restructuring will be made based on an analysis of the actual business potential of the outsourcing, where benefits and risks are evaluated. The firm focuses on the risk of opportunism, hold-up problems, pricing, and opportunities to reach a complete contract, and finally on the direct benefits and risks for financial performance. The supplier analyzes the business potential of an activity outside the specific customer, the amount of customer-specific investments, the service provider’s competitive position, abilities to revenue gains in generic segments, and long-term dependence on the customer.