Managing the Pricing of Integrated Solutions in Export Partnerships

Little research has been conducted to guide the management of marketing variables, such as pricing, in systems business context. Furthermore, given that international partnering has become a popular mode of operation for SMEs, the objective of the current thesis was to explore the scantly researched topic of managing the pricing of integrated solutions in an export partnership. Specifically, the thesis synthesizes literature findings from the three areas of export pricing, systems business, and export partnerships. The empirical section of the study consists of a qualitative single-case study of a Finnish systems integrator that has recently launched its export operations. Primary data was collected by conducting four interviews of the case company’s managers and by organizing one group interview session. The study findings indicate that a systems integrator’s pricing strategy in an export partnership can be very multidimensional and dependant on international pricing environment and partner characteristics, that an export partnership appears to have unique implications on a systems integrator’s pricing process, and that customer value –based pricing strategies might be particularly suited to pricing integrated solutions.

Supporting Solution Business with an Integrated Enterprise System

Some of the world’s leading companies now compete by providing integrated solutions to identify and solve each customer’s business problem by providing services to design, integrate, operate and finance a product or system during its life cycle. At the same time, because of the requirements of new global economy, companies are implementing new integrated ERP systems. The objective of this thesis was to define how solution offering can be implemented in the integrated ERP system so that it is possible to sell, deliver and maintain solution offering with the new enterprise applications. The research was conducted as a qualitative case study research consisting of literature review, theme-interviews and an analysis phase. For a start this study introduces new insight for combining solution business, offering modeling and modern ERP system theories. The results of this research illustrate the limitations of an integrated ERP system to support solution business and show the need to develop a commercial product model in order to improve the combination of solution offering and IT systems.

Purchasing Process of Industrial Solutions – Added Value, Difficulties and Good Practices

Purpose of this study is to clarify the industrial solutions purchasing process from purchaser companies’ point of view. Also customer’s view on value generating aspects and difficulties in purchases will be discussed as well as different purchas-ing entities where customers have ended up in their solution purchases. Current solution literature is mainly concentrated in supplier views and customer perspec-tive has been left without adequate attention. However, knowledge of the customer and the identification of customer need are at the core of a successful solution business. The focus of this thesis is on Finnish companies’ solution purchases that have been realized during last five years. Industrial solutions in this case are facto-ries or other large industrial plants. Industrial solutions’ purchasing process will be opened all the way from discovering the need until the start-up of the plant. Of in-terest is the customer experience of the success of the acquisition and the pur-chaser’s view on good practices allowing a successful procurement project.

Muutosprosessi laitevalmistajasta teollisten palveluiden tarjoajaksi

Tässä opinnäytetyössä tarkastellaan teollisten laitetoimittajien muutosprosessia teollisten palvelujen tarjoajiksi. Työn tavoitteena on muodostaa kuvaus muutosprosessista yrityksen siirtyessä laitevalmistajasta palveluyritykseksi, kertoa muutostarpeeseen johtaneista syistä, sekä muutosprosessin vaatimuksista ja ongelmista. Kirjallisuustutkimuksessa tarkastellaan laajalti jo olemassa olevia teoriaviitekehyksiä ja yritysesimerkkejä, joiden pohjalta muodostetaan johtopäätös–luvussa esitetty ehdotelma siitä, miten muutosprosessin tulisi edetä ja mitä jatkotutkimustarpeita aihealueella mielestämme on.

Combining Customer Requirements and Modularity in Complete Tap Water Solution

This thesis studies forming a complete solution concept for tap water systems in project business environment. The aim of the study is to find tools and means for the target company to determine the scope of their tap water solution offering and to research what kind of organizational capabilities and resources are needed to supply such system solutions. With the help of literature, the characteristics of systems selling and project business and thematics of systems integration and integrated solutions are examined, and the significance of modularity and customer requirements in the given operational environment is discussed. After this, a checklist tool for customer requirements management is developed for the tap water system along with a module allocation method. The study proposes that with the checklist and module allocation the technical specifications can be extensively and innovatively defined for the system. The tools developed are a part of a complete tap water solution concept, which suggests that integrated solutions might constitute possibilities for the company to outperform its competitors when the traditional business methods of the industry are becoming obsolete.

Integration in project business : mechanisms for integrating customers and the project network during the life-cycle of industrial projects

This thesis focuses on integration in project business, i.e. how projectbased companies organize their product and process structures when they deliver industrial solutions to their customers. The customers that invest in these solutions run their businesses in different geographical, political and economical environments, which should be acknowledged by the supplier when providing solutions comprising of larger and more complex scopes than previously supplied to these customers. This means that the suppliers are increasing their supply range by taking over some of the activities in the value chain that have traditionally been handled by the customer. In order to be able to provide the functioning solutions, including more engineering hours, technical equipment and a wider project network, a change is needed in the mindset in order to be able to carry out and take the required responsibility that these new approaches bring. For the supplier it is important to be able to integrate technical products, systems and services, but the supplier also needs to have the capabilities to integrate the cross-functional organizations and departments in the project network, the knowledge and information between and within these organizations and departments, along with inputs from the customer into the product and process structures during the lifecycle of the project under development. Hence, the main objective of this thesis is to explore the challenges of integration that industrial projects meet, and based on that, to suggest a concept of how to manage integration in project business by making use of integration mechanisms. Integration is considered the essential process for accomplishing an industrial project, whereas the accomplishment of the industrial project is considered to be the result of the integration. The thesis consists of an extended summary and four papers, that are based on three studies in which integration mechanisms for value creation in industrial project networks and the management of integration in project business have been explored. The research is based on an inductive approach where in particular the design, commissioning and operations functions of industrial projects have been studied, addressing entire project life-cycles. The studies have been conducted in the shipbuilding and power generation industries where the scopes of supply consist of stand-alone equipment, equipment and engineering, and turnkey solutions. These industrial solutions include demanding efforts in engineering and organization. Addressing the calls for more studies on the evolving value chains of integrated solutions, mechanisms for inter- and intra-organizational integration and subsequent value creation in project networks have been explored. The research results in thirteen integration mechanisms and a typology for integration is proposed. Managing integration consists of integrating the project network (the supplier and the sub-suppliers) and the customer (the customer’s business purpose, operations environment and the end-user) into the project by making use of integration mechanisms. The findings bring new insight into research on industrial project business by proposing integration of technology and engineering related elements with elements related to customer oriented business performance in contemporary project environments. Thirteen mechanisms for combining products and the processes needed to deliver projects are described and categorized according to the impact that they have on the management of knowledge and information. These mechanisms directly relate to the performance of the supplier, and consequently to the functioning of the solution that the project provides. This thesis offers ways to promote integration of knowledge and information during the lifecycle of industrial projects, enhancing the development towards innovative solutions in project business.

Customer value assessment in business markets

Understanding how firms create, communicate, and deliver value to customers is a key factor when firms seek to differentiate in increasingly competitive and commoditized business markets. As product and price have become less important differentiators in many industries, suppliers are increasingly seeking ways to differentiate themselves based on delivered customer value. Therefore, to gain a holistic understanding on what their offerings are worth to the customer, suppliers need to conduct customer value assessment, which quantifies the impact of a supplier´s offering to customers’ costs and returns. However, from a managerial perspective, customer value assessment is the single most critical challenge for firms in business markets. Consequently, developing holistic frameworks for customer value assessment is seen as one of the most important research priorities for marketing research. The purpose of this study is to explore the process of customer value assessment in business markets. Business markets represent a context where an increasing number of industrial firms are transitioning from basic product offerings towards service-based and solution-oriented hybrid offerings, which emphasize value co-creation and realization in the long term, thus making it difficult to quantify their monetary value. This study employs exploratory and qualitative research design by applying inductive and discovery-oriented grounded theory and multiple case research methods. The empirical data comprise interviews with 61 managers from 12 industrial firms, including seven best practice firms in customer value assessment. The findings of this study show that customer value assessment is essentially a crossfunctional process, which involves several organizational functions. The process begins well before and continues long after the actual delivery, often until the end of a supplier´s offering’s life-cycle. Furthermore, the findings shed light on alternative strategies that firms in business markets can adopt to implement the customer value assessment process. Overall, the findings contribute to customer value research, the sales and organizational management literature, the service marketing and solutions business literature, and suggest several managerial implications on how firms in business markets can adopt a holistic approach to assess value created for customers.

Ravinnekierron sulkemisen haasteet suomalaisessa ruokaketjussa

Suomi on sitoutunut pyrkimään ravinnetalouden mallimaaksi. Tämä diplomityö on osa Suomi kes-tävän ravinnetalouden mallimaaksi -hanketta. Diplomityön tarkoituksena on kartoittaa ravin-teidenkäytön tehokkuuteen liittyvät ongelmakohdat suomalaisessa ruokaketjussa ja selvittää oh-jauskeinot, joilla näihin pullonkauloihin voitaisiin puuttua. Ravinnehäviöt aiheuttavat suuria ympä-ristöhaittoja ja käytettävät primääriravinteet pohjaavat uusiutumattomiin luonnonvaroihin. Ravinnehäviöitä syntyy ruokaketjun jokaisessa osassa, ja ravinnetehokkuutta voidaan parhaiten edistää pyrkimällä kokonaisvaltaisiin ratkaisuihin. Tutkimus suoritettiin haastattelemalla 20:tä ruokaketjun asiantuntijaa. Haastatteluaineistoa tarkasteltiin laadullisen analyysin menetelmin. Haastatteluiden perusteella ruokaketjun suurimmat ongelmakohdat ovat alkutuotannossa, panos-teollisuudessa ja kulutuksessa. Sekä hallinnollisilla, taloudellisilla että informatiivisilla ohjauskei-noilla on kaikilla tärkeä rooli ravinnetehokkuuden edistämisessä.

Developing customer-based e-solutions

Logistiikkapalveluiden markkinat ovat viime vuosina muuttuneet. Kilpailtu toimiala ja asiakasvaatimusten muuttuminen ovat pakottaneet yritykset pyrkimään entistä tehokkaampaan jakeluketjuun. Työn tarkoituksena oli tutkia sähköisten asiakasliittymien toimivuutta asiakkaan näkökulmasta Euro Express tuotannossa ja prosessissa. Tarkoituksena oli selvittää eri sidosryhmien vaatimukset prosessille huomioiden sähköisen liiketoiminnan tuomat edut ja ominaispiirteet. Tavoitteena oli kuvata olemassa oleva prosessi ja tutkia prosessin rajapinnat –asiakas, tuotanto ja ulkoiset sidosryhmät. Tutkielmassa sähköisten ratkaisujen ominaispiirteet on käyty läpi ja tulevaisuuden kehitysnäkökulmista keskusteltu. Kehittyneiden tietoteknisten ratkaisujen avulla jatkuva prosessien uudistaminen (Business Process Reengineering) on mahdollista. Yleisesti epäolennaisuudet asiakasrajapinnassa, informaation kulussa ja yhteyksissä eri järjestelmien välillä aiheuttavat ongelmia sähköisten ratkaisujen toteuttamisessa. Tulevaisuudessa logistiikka yritykset ottavat entistä enemmän käyttöönsä uudenaikaisia teknologisia ratkaisuja tilaukseen, tuotantoon ja asiakaspalveluun. Näiden uudenlaisten ratkaisujen kehittämisestä on hyötyä sekä käyttäjälle että tarjoajalle, mutta ne ovat myös pakollisia palveluntarjoajalle kehittyäkseen markkinoilla. Tulevaisuudessa kilpailun tiivistyessä ja asiakkaiden vaatimusten kasvaessa on kiinnitettävä entistä suurempaa huomiota koko prosessiketjun toimivuuteen. Uudet teknologiset ratkaisut ja niiden käyttäminen tehokkaasti tuovat yrityksille kilpailuetuja, joita ei muuten olisi saavutettavissa.

Practical Solutions for Increased Safety in Paper Mill Operations

Tämä diplomityö käsittelee työterveys- ja työturvallisuushallinnan (TTT) sekä ympäristönsuojelun ongelmia ja riskejä, joita tehdasalueen toiminnanharjoittaja kohtaa ulkoistaessaan tehdastoimintojaan ja siirtyessään käyttämään 24 h ulkoisia kunnossapitopalveluja. Teoriaosa selventää ulkoistukseen liittyviä lainmukaisia määräyksiä ja vaatimuksia koskien terveyden, turvallisuuden ja ympäristöongelmien hallintaa sellu-, paperi- ja kartonkitehtaissa Euroopassa, Yhdysvalloissa ja Suomessa. TTT-toiminnan tason sekä ympäristönsuojelun tason mittaamisen ongelmat tuodaan esille. Olemassa olevia kansainvälisiä TTT-johtamisjärjestelmien ja ympäristöjärjestelmien standardeja, riskien hallintatyökaluja ja ohjelmia esitellään lyhyesti. Käytännön osa toteutettiin tapaustutkimuksena, jonka kohteena oli Äänekosken tehdaskombinaatti ja kemianteollisuuden laitos, Noviant CMC Oy. TTT-hallintatoimien ja ympäristönsuojelun ongelmia tutkitaan tehdastoimintoja ulkoistettaessa. Integroidun johtamisjärjestelmän auditointimenettelyt, ulkoistuksen kohdealueet, pk-yrityksien riskien hallinta ja ulkoisten työntekijöiden turvallisuuskoulutus ovat erityisen tarkastelun alla. Käyttäen hyväksi kerättyä TTT- ja ympäristöaineistoa, suunniteltiin malli ja sisältöehdotus uudelle internet-selain tyyppiselle työkalulle TTT- ja ympäristöasioiden hallinnan avuksi. Työkalu on tarkoitettu palvelemaan Noviant CMC Oy:n eri sidosryhmien tarpeita. Diplomityön käytännön osa muodostaa pohjan JP MILLSAFE - pilottiprojektille, joka käynnistettiin internet-selain tyyppisen turvallisuuspalvelusovelluksen kehittämiseksi palvelemaan Äänekosken tehdaskombinaatin eri sidosryhmien tarpeita.

Multi-axis solutions in packaging machines in Europe

The objective of this thesis was to examine the potential of multi-axis solutions in packaging machines produced in Europe. The definition of a multi-axis solution in this study is a construction that uses a common DC bus power supply for different amplifiers running the axes and the intelligence is centralized into one unit. The cost structure of a packaging machine was gained from an automation research, which divided the machines according to automation categories. The automation categories were then further divided into different sub-components by evaluating the ratio of multi-axis solutions compared to other automation components in packaging machines. A global motion control study was used for further information. With the help of the ratio, an estimation of the potential of multi-axis solutions in each country and packaging machine sector was completed. In addition to the research, a specific questionnaire was sent to five companies to gain information about the present situation and possible trends in packaging machinery. The greatest potential markets are in Germany and Italy, which are also the largest producers of packaging machinery in Europe. The greatest growth in the next few years will be seen in Turkey where the annual growth rate equals the general machinery production rate in Asia. The greatest market potential of the Nordic countries is found in Sweden in 35th position on the list. According to the interviews, motion control products in packaging machines will retain their current power levels, as well as the number of axes in the future. Integrated machine safety features together with a universal programming language are the desired attributes of the future. Unlike generally in industry, the energy saving objectives are and will remain insignificant in the packaging industry.

Surface studies of limestones and dolostones : characterisation using various techniques and batch dissolution experiments with hydrochloric acid solutions

In this thesis, stepwise titration with hydrochloric acid was used to obtain chemical reactivities and dissolution rates of ground limestones and dolostones of varying geological backgrounds (sedimentary, metamorphic or magmatic). Two different ways of conducting the calculations were used: 1) a first order mathematical model was used to calculate extrapolated initial reactivities (and dissolution rates) at pH 4, and 2) a second order mathematical model was used to acquire integrated mean specific chemical reaction constants (and dissolution rates) at pH 5. The calculations of the reactivities and dissolution rates were based on rate of change of pH and particle size distributions of the sample powders obtained by laser diffraction. The initial dissolution rates at pH 4 were repeatedly higher than previously reported literature values, whereas the dissolution rates at pH 5 were consistent with former observations. Reactivities and dissolution rates varied substantially for dolostones, whereas for limestones and calcareous rocks, the variation can be primarily explained by relatively large sample standard deviations. A list of the dolostone samples in a decreasing order of initial reactivity at pH 4 is: 1) metamorphic dolostones with calcite/dolomite ratio higher than about 6% 2) sedimentary dolostones without calcite 3) metamorphic dolostones with calcite/dolomite ratio lower than about 6% The reactivities and dissolution rates were accompanied by a wide range of experimental techniques to characterise the samples, to reveal how different rocks changed during the dissolution process, and to find out which factors had an influence on their chemical reactivities. An emphasis was put on chemical and morphological changes taking place at the surfaces of the particles via X-ray Photoelectron Spectroscopy (XPS) and Scanning Electron Microscopy (SEM). Supporting chemical information was obtained with X-Ray Fluorescence (XRF) measurements of the samples, and Inductively Coupled Plasma-Mass Spectrometry (ICP-MS) and Inductively Coupled Plasma-Optical Emission Spectrometry (ICP-OES) measurements of the solutions used in the reactivity experiments. Information on mineral (modal) compositions and their occurrence was provided by X-Ray Diffraction (XRD), Energy Dispersive X-ray analysis (EDX) and studying thin sections with a petrographic microscope. BET (Brunauer, Emmet, Teller) surface areas were determined from nitrogen physisorption data. Factors increasing chemical reactivity of dolostones and calcareous rocks were found to be sedimentary origin, higher calcite concentration and smaller quartz concentration. Also, it is assumed that finer grain size and larger BET surface areas increase the reactivity although no certain correlation was found in this thesis. Atomic concentrations did not correlate with the reactivities. Sedimentary dolostones, unlike metamorphic ones, were found to have porous surface structures after dissolution. In addition, conventional (XPS) and synchrotron based (HRXPS) X-ray Photoelectron Spectroscopy were used to study bonding environments on calcite and dolomite surfaces. Both samples are insulators, which is why neutralisation measures such as electron flood gun and a conductive mask were used. Surface core level shifts of 0.7 ± 0.1 eV for Ca 2p spectrum of calcite and 0.75 ± 0.05 eV for Mg 2p and Ca 3s spectra of dolomite were obtained. Some satellite features of Ca 2p, C 1s and O 1s spectra have been suggested to be bulk plasmons. The origin of carbide bonds was suggested to be beam assisted interaction with hydrocarbons found on the surface. The results presented in this thesis are of particular importance for choosing raw materials for wet Flue Gas Desulphurisation (FGD) and construction industry. Wet FGD benefits from high reactivity, whereas construction industry can take advantage of slow reactivity of carbonate rocks often used in the facades of fine buildings. Information on chemical bonding environments may help to create more accurate models for water-rock interactions of carbonates.

Integrated energy storage tank for large scale power-to-gas applications

The global interest towards renewable energy production such as wind and solar energy is increasing, which in turn calls for new energy storage concepts due to the larger share of intermittent energy production. Power-to-gas solutions can be utilized to convert surplus electricity to chemical energy which can be stored for extended periods of time. The energy storage concept explored in this thesis is an integrated energy storage tank connected to an oxy-fuel combustion plant. Using this approach, flue gases from the plant could be fed directly into the storage tank and later converted into synthetic natural gas by utilizing electrolysis-methanation route. This work utilizes computational fluid dynamics to model the desublimation of carbon dioxide inside a storage tank containing cryogenic liquid, such as liquefied natural gas. Numerical modelling enables the evaluation of the transient flow patterns caused by the desublimation, as well as general fluid behaviour inside the tank. Based on simulations the stability of the cryogenic storage and the magnitude of the key parameters can be evaluated.

Integrated environmental research and networking of economy and information in rural areas of Finland

Selostus: Kestävän kehityksen integroidun tutkimuksen ja verkostotalouden teorian tutkimusmenetelmälliset ongelmat