In Search of Corporate Renewal: How to Benefit from Corporate Venturing?

Despite the rapid change in today's business environment there are relatively few studies about corporate renewal. This study aims for its part at filling that research gap by studying the concepts of strategy, corporate renewal, innovation and corporate venturing. Its purpose is to enhance our understanding of how established companies operating in dynamic and global environment can benefit from their corporate venturing activities. The theoretical part approaches the research problem in corporate and venture levels. Firstly, it focuses on mapping the determinants of strategy and suggests using industry, location, resources, knowledge, structure and culture, market, technology and business model to assess the environment and using these determinants to optimize speed and magnitude of change.Secondly, it concludes that the choice of innovation strategy is dependent on the type and dimensions of innovation and suggests assessing market, technology, business model as well as novelty and complexity related to each of them for choosing an optimal context for developing innovations further. Thirdly, it directsattention on processes through which corporate renewal takes place. On corporate level these processes are identified as strategy formulation, strategy formation and strategy implementation. On the venture level the renewal processes are identified as learning, leveraging and nesting. The theoretical contribution of this study, the framework of strategic corporate venturing, joins corporate and venture level management issues together and concludes that strategy processes and linking processes are the mechanism through which continuous corporate renewaltakes place. The framework of strategic corporate venturing proposed by this study is a new way to illustrate the role of corporate venturing as a purposefullybuilt, different view of a company's business environment. The empirical part extended the framework by enhancing our understanding of the link between corporate renewal and corporate venturing in its real life environment in three Finnish companies: Metso, Nokia and TeliaSonera. Characterizing companies' environmentwith the determinants of strategy identified in this study provided a structured way to analyze their competitive position and renewal challenges that they arefacing. More importantly the case studies confirmed that a link between corporate renewal and corporate venturing exists and found out that the link is not as straight forward as indicated by the theory. Furthermore, the case studies enhanced the framework by indicating a sequence according to which the processes work. Firstly, the induced strategy processes strategy formulation and strategy implementation set the scene for corporate venturing context and management processes and leave strategy formation for the venture. Only after that can strategies formed by ventures come back to the corporate level - and if found viable in the corporate level be formalized through formulation and implementation. With the help of the framework of strategic corporate venturing the link between corporaterenewal and corporate venturing can be found and managed. The suggested response to the continuous need for change is continuous renewal i.e. institutionalizing corporate renewal in the strategy processes of the company. As far as benefiting from venturing is concerned the answer lies in deliberately managing venturing in a context different to the mainstream businesses and establishing efficientlinking processes to exploit the renewal potential of individual ventures.

Hiokerejektien käsittely MC-sakeudessa

Työn tavoitteena oli optimoida LWC-paperitehtaan kahden hiomolinjan rejektinkäsittelyt. Uusituilla rejektilinjoilla on käytössä keskisakeusrejektinjauhatus. Työn keskeinen osa oli teräkoeajot, teräsarjoja tutkittiin kuusi, kolme molemmilla linjoilla. Kahdessa ensimmäisessä teräkoeajossa oli molemmilla linjoilla samanlaiset jauhinterät. Teräkoeajojen tuloksista havaittiin yleisellä tasolla, että suurin osa mitatuista ominaisuuksista parani jauhatusastetta nostettaessa. Ainoastaan repäisylujuus heikkeni. Terävaihtoehdoista pystyttiin poimimaan molemmille linjoille sopiva terävaihtoehto. Rejektinlajittelun havaittiin parantavan edelleen massan laatuominaisuuksia, paitsi repäisylujuutta. Toisena osuutena vertailtiin keskisakeusjauhimen terävaihtoehtoa, jolla saavutettiin hyviä tuloksia, toisen paperitehtaan korkeassa sakeudessa jauhettuun rejektiin. Korkeasakeusjauhimen terää ei erityisesti valikoitu koeajoa varten. Tuloksista havaittiin, että keskisakeusjauhimella saadaan aikaan varsin hyvää LWC-paperiin käytettävää massaa. Keskisakeudessa jauhettu massa oli monilta ominaisuuksiltaan jopa parempaa kuin korkeasakeusjauhimen massa. Työn kolmannessa osuudessa ajettiin rejektilinjalla sakeuskoeajo. Sakeuskoeajosta havaittiin, että optiset ominaisuudet olivat parhaimmillaan jauhimen MC-sakeusalueen keskivaiheilla. Jauhatussakeuden noustessa kuidut jäivät jäykemmiksi ja karkeammiksi. Tikkupitoisuus oli sitä pienempi, mitä alhaisempaa jauhatussakeutta käytettiin. Sakeudella ei ollut selvää vaikutusta lujuusominaisuuksiin. Tulosten perusteella paras jauhatussakeus keskisakeusjauhimella oli sakeusalueen puoliväli. Työn viimeisenä osana selvitettiin miten kytkentämuutos, jossa rejektilinjan viimeisen lajittimen rejekti käännettiin palaamaan jälkilajittelun sijaan rejektilinjan kaariseulalle, vaikutti koko hiomon kapasiteettiin ja rejektilinjan massan laatuun. Koeajojen tuloksena havaittiin, että kytkentämuutolla pystyttiin nostamaan koko hiomon kapasiteettia ja rejektilinjan akseptin laatu parani.

Drivers and Barriers of Collaboration in the Value Chain of Paperboard-Packed Consumer Goods

Value chain collaboration has been a prevailing topic for research, and there is a constantly growing interest in developing collaborative models for improved efficiency in logistics. One area of collaboration is demand information management, which enables improved visibility and decrease of inventories in the value chain. Outsourcing of non-core competencies has changed the nature of collaboration from intra-enterprise to cross-enterprise activity, and this together with increasing competition in the globalizing markets have created a need for methods and tools for collaborative work. The retailer part in the value chain of consumer packaged goods (CPG) has been studied relatively widely, proven models have been defined, and there exist several best practice collaboration cases. The information and communications technology has developed rapidly, offering efficient solutions and applications to exchange information between value chain partners. However, the majority of CPG industry still works with traditional business models and practices. This concerns especially companies operating in the upstream of the CPG value chain. Demand information for consumer packaged goods originates at retailers' counters, based on consumers' buying decisions. As this information does not get transferred along the value chain towards the upstream parties, each player needs to optimize their part, causing safety margins for inventories and speculation in purchasing decisions. The safety margins increase with each player, resulting in a phenomenon known as the bullwhip effect. The further the company is from the original demand information source, the more distorted the information is. This thesis concentrates on the upstream parts of the value chain of consumer packaged goods, and more precisely the packaging value chain. Packaging is becoming a part of the product with informative and interactive features, and therefore is not just a cost item needed to protect the product. The upstream part of the CPG value chain is distinctive, as the product changes after each involved party, and therefore the original demand information from the retailers cannot be utilized as such – even if it were transferred seamlessly. The objective of this thesis is to examine the main drivers for collaboration, and barriers causing the moderate adaptation level of collaborative models. Another objective is to define a collaborative demand information management model and test it in a pilot business situation in order to see if the barriers can be eliminated. The empirical part of this thesis contains three parts, all related to the research objective, but involving different target groups, viewpoints and research approaches. The study shows evidence that the main barriers for collaboration are very similar to the barriers in the lower part of the same value chain; lack of trust, lack of business case and lack of senior management commitment. Eliminating one of them – the lack of business case – is not enough to eliminate the two other barriers, as the operational model in this thesis shows. The uncertainty of the future, fear of losing an independent position in purchasing decision making and lack of commitment remain strong enough barriers to prevent the implementation of the proposed collaborative business model. The study proposes a new way of defining the value chain processes: it divides the contracting and planning process into two processes, one managing the commercial parts and the other managing the quantity and specification related issues. This model can reduce the resistance to collaboration, as the commercial part of the contracting process would remain the same as in the traditional model. The quantity/specification-related issues would be managed by the parties with the best capabilities and resources, as well as access to the original demand information. The parties in between would be involved in the planning process as well, as their impact for the next party upstream is significant. The study also highlights the future challenges for companies operating in the CPG value chain. The markets are becoming global, with toughening competition. Also, the technology development will most likely continue with a speed exceeding the adaptation capabilities of the industry. Value chains are also becoming increasingly dynamic, which means shorter and more agile business relationships, and at the same time the predictability of consumer demand is getting more difficult due to shorter product life cycles and trends. These changes will certainly have an effect on companies' operational models, but it is very difficult to estimate when and how the proven methods will gain wide enough adaptation to become standards.

Biopolttoaineiden on-line -laadunmittauksen hyödyt energiantuotannossa

Biopolttoaineet ovat tärkeä energianlähde suomalaisessa energiantuotannossa. Biopoltto- aineille on kuitenkin ominaista laadun vaihtelevuus. Yksi tärkeimmistä laatutekijöistä on kosteus, joka vaikuttaa myös polttoaineen energiasisältöön. Laatutekijät puolestaan vai- kuttavat polttoainekäsittelyyn, polttoprosessiin ja koko laitoksen hyötysuhteeseen. Tämän työn tarkoituksena oli tutkia voisiko biopolttoaineiden online-laadunmittaus tuoda lisäarvoa energiantuotantolaitokselle. Esimerkkinä käytettiin yhtä online-laadunmittaus- sovellusta, InrayFuel-röntgenmittausjärjestelmää. Sillä voidaan seurata biopolttoaineiden kosteutta ja polttoaineen sisältämiä vierasaineita. Työssä on laadittu kustannusanalyysi, jolla pyritään selvittämään, onko nykyisen kertaluontoisen mittausmenetelmän korvaami- nen jatkuvatoimisella kannattavaa. Esimerkkilaitoksena on Etelä-Savon Energian Pur- sialan voimalaitos, jossa röntgenmittausjärjestelmään on testattu. Saatujen tulosten mukaan investoiminen esimerkkimittausjärjestelmään maksaisi itsensä takaisin alle vuodessa. Kun laitoksella pystytään seuraamaan polttoaineen laatua jatkuva- toimisesti, laadunhallinta paranee ja sitä kautta voidaan saavuttaa kustannussäästöjä. Polt- toaineesta johtuvat häiriötilanteet vähenevät, polttoaine on mahdollista optimoida edulli- semmaksi polton kannalta ja poltto-olosuhteita voidaan säätää paremmin, jolloin päästöt vähenevät ja hyötysuhde kasvaa. Työssä käytetty laskenta analysoi kuitenkin hyvin ylei- sellä tasolla, sillä käytössä ei ollut laitoksen omaa taselaskentajärjestelmää. Laskenta siis sisältää paljon oletuksia. Tämän ja rohkaisevien tulosten vuoksi tutkimusta jatkuvatoimi- sen laadunmittauksen hyödyistä kannattaa tehdä enemmän.