Offshore Sourcing in Software Development: Case Studies of Finnish-Russian Cooperation

The study examines international cooperation in product development in software development organisations. The software industry is known for its global nature and knowledge-intensity, which makes it an interesting setting to examine international cooperation in. Software development processes are increasingly distributed worldwide, but for small or even medium-sized enterprises, typical for the software industry, such distribution of operations is often possible only in association with crossing the company’s boundaries. The strategic decision-making of companies is likely to be affected by the characteristics of the industry, and this includes decisions about cooperation or sourcing. The objective of this thesis is to provide a holistic view on factors affecting decisions about offshore sourcing in software development. Offshore sourcing refers to a cooperative mode of offshoring, where a firm does not establish its own presence in a foreign country, but utilises a local supplier. The study examines product development activities that are distributed across organisational and geographical boundaries. The objective can be divided into two subtopics: general reasons for international cooperation in product development and particular reasons for cooperation between Finnish and Russian companies. The focus is on the strategic rationale at the company level, in particular in small and medium-sized enterprises. The theoretical discourse of the study builds upon the literature on international cooperation and networking, with particular focus on cooperation with foreign suppliers and within product development activities. The resource-based view is also discussed, as heterogeneity and interdependency of the resources possessed by different firms are seen as factors motivating international cooperation. Strategically, sourcing can be used to access resources possessed by an industrial network, to enhance the product development of a firm, or to optimise its cost structure. In order to investigate the issues raised by the theoretical review, two empirical studies on international cooperation in software product development have been conducted. The emphasis of the empirical part of the study is on cooperation between Finnish and Russian companies. The data has been gathered through four case studies on Finnish software development organisations and four case studies on Russian offshore suppliers. Based on the material from the case studies, a framework clarifying and grouping the factors that influence offshore sourcing decisions has been built. The findings indicate that decisions regarding offshore sourcing in software development are far more complex than generally assumed. The framework provides a holistic view on factors affecting decisions about offshore sourcing in software development, capturing the multidimensionality of motives for entering offshore cooperation. Four groups of factors emerged from the data: A) strategy-related aspects, B) aspects related to resources and capabilities, C) organisation-related aspects, and D) aspects related to the entrepreneur or management. By developing a holistic framework of decision factors, the research offers in-depth theoreticalunderstanding of offshore sourcing rationale in product development. From the managerial point of view, the proposed framework sums up the issues that a firm should pay attention to when contemplating product development cooperation with foreign suppliers. Understanding different components of sourcing decisions can lead to improved preconditions for strategising and engaging in offshore cooperation. A thorough decisionmaking process should consider all the possible benefits and risks of product development cooperation carefully.

Management of Customer Co-development in Business-to-Business Markets

Management of customer co-development means involving customers in the development of new products and services, and coordinating the process. In business-tobusiness markets, customer co-development enables the development of innovations that better match customer needs and strengthens customer relationships. However, close collaboration with customers can hamper the innovativeness of new products and lead to overly customized solutions. Therefore, the management of co-development is crucial to its success. Yet the existing research on management of co-development has mainly focused on selecting the right collaboration partners, and the field lacks understanding on how to manage the tensions inherent in customer co-development. The purpose of this thesis is to increase understanding on the management of the codevelopment. The thesis is divided into two parts. The first comprises the literature review and conclusions for the whole study, and the second presents four publications. From the methodological perspective, the research papers follow exploratory qualitative research design. The empirical data comprise interviews with 60 persons, representing 25 different organizations, and a group of 11 end users. The study conceptualizes management of customer co-development in three dimensions 1) relational co-development processes, 2) co-development challenges and paradoxes, and 3) internal customer involvement processes. The findings contribute to the customersupplier relationship, innovation, and marketing management literatures by providing a framework on supplier-customer co-development, addressing co-development paradoxes and their management processes, and suggesting practices for customer involvement. For practitioners, the findings provide tools to manage the challenges related to codevelopment with customers.

Why are some companies more successful than others? An exploration into organizational culture and dynamic capabilities

Why are some companies more successful than others? This thesis approaches the question by enlisting theoretical frameworks that explain the performance with internal factors, deriving from the resource-based view, namely the dynamic capabilities approach. To deepen the understanding of the drivers and barriers towards developing these higher order routines aiming at improving the operational level routines, this thesis explores the organisational culture and identity research for the microfoundational antecedents that might shed light on the formation of the dynamic capabilities. The dynamic capabilities framework in this thesis strives to take the theoretical concept closer to practical applicability. This is achieved through creation of a dynamic capabilities matrix, consisting of four dimensions often encountered in dynamic capabilities literature. The quadrants are formed along internal-external and resources-abilities axes, and consist of Sensing, Learning, Reconfiguration and Partnering facets. A key element of this thesis is the reality continuum, which illustrates the different levels of reality inherent in any entity of human individuals. The theoretical framework constructed in the thesis suggests a link between the collective but constructivist understanding of the organisation and both the operational and higher level routines, evident in the more positivist realm. The findings from three different case organisations suggest that the constructivist assumptions inherent to an organisation function as a generative base for both drivers and barriers towards developing dynamic capabilities. From each organisation one core assumption is scrutinized to identify its connections to the four dimensions of the dynamic capabilities. These connections take the form of drivers or barriers – or have the possibility to develop into one or the other. The main contribution of this thesis is to show that one key for an organisation to perform well in a turbulent setting, is to understand the different levels of realities inherent in any group of people. Recognising the intangible levels gives an advantage in the tangible ones.

A Research of Resource Scheduling Algorithm Based on Hadoop

With the development of electronic devices, more and more mobile clients are connected to the Internet and they generate massive data every day. We live in an age of “Big Data”, and every day we generate hundreds of million magnitude data. By analyzing the data and making prediction, we can carry out better development plan. Unfortunately, traditional computation framework cannot meet the demand, so the Hadoop would be put forward. First the paper introduces the background and development status of Hadoop, compares the MapReduce in Hadoop 1.0 and YARN in Hadoop 2.0, and analyzes the advantages and disadvantages of them. Because the resource management module is the core role of YARN, so next the paper would research about the resource allocation module including the resource management, resource allocation algorithm, resource preemption model and the whole resource scheduling process from applying resource to finishing allocation. Also it would introduce the FIFO Scheduler, Capacity Scheduler, and Fair Scheduler and compare them. The main work has been done in this paper is researching and analyzing the Dominant Resource Fair algorithm of YARN, putting forward a maximum resource utilization algorithm based on Dominant Resource Fair algorithm. The paper also provides a suggestion to improve the unreasonable facts in resource preemption model. Emphasizing “fairness” during resource allocation is the core concept of Dominant Resource Fair algorithm of YARM. Because the cluster is multiple users and multiple resources, so the user’s resource request is multiple too. The DRF algorithm would divide the user’s resources into dominant resource and normal resource. For a user, the dominant resource is the one whose share is highest among all the request resources, others are normal resource. The DRF algorithm requires the dominant resource share of each user being equal. But for these cases where different users’ dominant resource amount differs greatly, emphasizing “fairness” is not suitable and can’t promote the resource utilization of the cluster. By analyzing these cases, this thesis puts forward a new allocation algorithm based on DRF. The new algorithm takes the “fairness” into consideration but not the main principle. Maximizing the resource utilization is the main principle and goal of the new algorithm. According to comparing the result of the DRF and new algorithm based on DRF, we found that the new algorithm has more high resource utilization than DRF. The last part of the thesis is to install the environment of YARN and use the Scheduler Load Simulator (SLS) to simulate the cluster environment.

Reasoning over knowledge-based generation of situations in context spaces to reduce food waste

With the ever-growing amount of connected sensors (IoT), making sense of sensed data becomes even more important. Pervasive computing is a key enabler for sustainable solutions, prominent examples are smart energy systems and decision support systems. A key feature of pervasive systems is situation awareness which allows a system to thoroughly understand its environment. It is based on external interpretation of data and thus relies on expert knowledge. Due to the distinct nature of situations in different domains and applications, the development of situation aware applications remains a complex process. This thesis is concerned with a general framework for situation awareness which simplifies the development of applications. It is based on the Situation Theory Ontology to provide a foundation for situation modelling which allows knowledge reuse. Concepts of the Situation Theory are mapped to the Context Space Theory which is used for situation reasoning. Situation Spaces in the Context Space are automatically generated with the defined knowledge. For the acquisition of sensor data, the IoT standards O-MI/O-DF are integrated into the framework. These allow a peer-to-peer data exchange between data publisher and the proposed framework and thus a platform independent subscription to sensed data. The framework is then applied for a use case to reduce food waste. The use case validates the applicability of the framework and furthermore serves as a showcase for a pervasive system contributing to the sustainability goals. Leading institutions, e.g. the United Nations, stress the need for a more resource efficient society and acknowledge the capability of ICT systems. The use case scenario is based on a smart neighbourhood in which the system recommends the most efficient use of food items through situation awareness to reduce food waste at consumption stage.