Digital Transformation of Municipal Services in Finland

Digitalization has been widely adopted by private organizations of all sizes. As customers we are starting to expect a certain level of digital services from businesses and these expectations are evolving to consider the public sector services as well. Moreover, the Finnish municipalities are under pressure to cut costs and make their operation more efficient. This research aims in exploring the field of municipal digitalization in Finland with three main questions to answer: what are the motivations for municipalities for digital service transformation, what the main benefits of this transformation are and what are the challenges for the transformation. The research starts with examining the characteristics of municipal operation and reviewing some of the relevant digital service opportunities. In the empirical part of the research, 11 professionals related to the municipal field were interviewed using a semi-structured interview design. These interviewees were chosen from three important groups for the change: the service provider, municipal administration and municipal employees. The data gained from the interviews was first summarized according to the main topics chosen from the literature and then reflected on the digital services opportunities presented in the research. The motivations discovered in both the service provider and the city of Porvoo interviews were: tightening resources combined with increasing expectations, transparent structuring of information, supporting the shift into mobile and providing new channels for customers to participate. The benefits discovered in all groups were: efficiency, customer experience, transparent structuring of information, reducing manual input and responding to customer needs in service development. The challenges perceived by multiple groups were: change resistance, innovating new with no best practices and defining the scope and new operation model. The results of this research suggest that even with some challenges along the way, digitalization is a likely future for the Finnish public sector. The business case for the transformation is becoming increasingly evident on both municipal- and governmental levels.

Developing sustainable value proposition: A case study from manufacturing industry

Increasing pressures to reduce costs, inprove productivity, and lower the environmental impact are forcing suppliers to present evidences of the monetary and societal value they create for the customers and society around. The extant academic literature on the practical activities related to topic is still sparse and this study addresses the gap by developing sustainable customer value proposition for Valmet’s recycled fibre line solution for the Chinese market. The research is based on literature review and single case study method. Theoretically the study is connected to the emerging literature of customer value and life cycle engineering, and to the research of sustainable development in the field of marketing. For exloiting empirical evidences, in-depth supplier interviews and customer survey were conducted. The results suggest that selling of recycled fibre line solution requires tangible and credible evidence of the value and utility which is delivered for the customer. In addition to the economic benefits also societal benefits should be included in the value proposition that are the focus of attention in China. Still, the role of discovered benefits may be contradictory until they are communicated to appropriate decision makers. Managerially the study contributes to the customer value management and quantification knowledge and practices in Valmet’s organization.