The Innovation Process – Aiming towards Innovativeness in a Construction Company

The bachelor’s thesis concentrates on the innovativeness in the construction industry. The purpose of the thesis is to define the innovation as a concept reflected on a context of the construction industry. The second objective is to examine how the construction companies could foster and increase the innovativeness. The third objective was to find out tools, methods and phases of the front-end of the innovation process. The construction industry is often considered as a traditional and an old-fashioned manufacturing industry. The innovation or the innovativeness rarely linked to the construction industry. Productivity is a common problem in the construction industry. The construction industry needs to increase the productivity to compete in a globalized world. The productivity can be increased by the innovation. The thesis based on a literature review. The findings from the literature include a description of the innovation as a concept, the innovative culture and the innovation process as a context of the construction industry. The phases of the front-end of the innovation process were explained. Customers centered approach was taken into account in the innovation process. The required tools and methods for managing the front-end of the innovation process were illustrated. The thesis ensures the importance of the innovation facing challenges of the construction industry. Managing the front-end of the innovation is the most important aspect to stand out from the less innovative companies. To take a full advantage of the innovation companies cannot fear of changes. The innovation process requires a full support of the top management of the company. Taking into consideration a theoretical aspect of the thesis a further research is required to respond practical needs of the company. Tools and methods should be considered according the company’s needs and activities. Company’s existing state and culture should be examined before implementing the front-end of the innovation process to ensure the functionality.

Process Interfaces in an After Sales Organization

Työn tavoitteena oli selvittää Larox Oy:n, Lappeenranta, palveluorganisaation prosessit ja prosessien väliset rajapinnat. Prosesseja ja prosessien kehittämistä ja innovointia tarkasteltiin ensin kirjallisuuden perusteella. Rajapintojen selkeää esittämistä varten kehitettiin yksinkertainen metodologia mind mapping -tekniikan pohjalta. Nykyisten prosessien tila ja rajapinnat analysoitiin ja dokumentoitiin haastattelemalla Larox Oy:n työntekijöitä ja asiakkaita sekä tutustumalla prosessikuvauksiin ja muihin olennaisiin dokumentteihin. Analyysin tulosten perusteella tunnistettiin suurimmat ongelmakohdat rajapinnoissa ja pohdittiin mahdollisia ratkaisuja niihin. Pieniä prosessinkehitysaloitteita kehitettiin yhteistyössä Larox Oy:n työntekijöiden kanssa. Työn lopussa on pohdittu mahdollisia tulevaisuuden malleja Larox Oy:n palveluorganisaation toimintamalleiksi.

Managing the Front End of Innovation in a Networked Company Environment - Combining Strategy, Processes and Systems of Innovation

The objective of the thesis is to enhance the understanding about the management of the front end phases of the innovation process in a networked environment. The thesis approaches the front end of innovation from three perspectives, including the strategy, processes and systems of innovation. The purpose of the use of different perspectives in the thesis is that of providing an extensive systemic view of the front end, and uncovering the complex nature of innovation management. The context of the research is the networked operating environment of firms. The unit of analysis is the firm itself or its innovation processes, which means that this research approaches the innovation networks from the point of view of a firm. The strategy perspective of the thesis emphasises the importance of purposeful innovation management, the innovation strategy of firms. The role of innovation processes is critical in carrying out innovation strategies in practice, supporting the development of organizational routines for innovation, and driving the strategic renewal of companies. The primary focus of the thesis from systems perspective is on idea management systems, which are defined as a part of innovation management systems, and defined for this thesis as any working combination of methodology and tools (manual or IT-supported) that enhance the management of innovations within their early phases. The main contribution of the thesis are the managerial frameworks developed for managing the front end of innovation, which purposefully “wire” the front end of innovation into the strategy and business processes of a firm. The thesis contributes to modern innovation management by connecting the internal and external collaboration networks as foundational elements for successful management of the early phases of innovation processes in a dynamic environment. The innovation capability of a firm is largely defined by its ability to rely on and make use of internal and external collaboration already during the front end activities, which by definition include opportunity identification and analysis, idea generation, profileration and selection, and concept definition. More specifically, coordination of the interfaces between these activities, and between the internal and external innovation environments of a firm is emphasised. The role of information systems, in particular idea management systems, is to support and delineate the innovation-oriented behaviour and interaction of individuals and organizations during front end activities. The findings and frameworks developed in the thesis can be used by companies for purposeful promotion of their front end processes. The thesis provides a systemic strategy framework for managing the front end of innovation – not as a separate process, but as an elemental bundle ofactivities that is closely linked to the overall innovation process and strategy of a firm in a distributed environment. The theoretical contribution of the thesis relies on the advancement of the open innovation paradigm in the strategic context of a firm within its internal and external innovation environments. This thesis applies the constructive research approach and case study methodology to provide theoretically significant results, which are also practically beneficial.

Innovaatiojohtaminen ja sen vaikutuksia metsäteollisuudessa

Työn tavoitteena on selvittää metsäteollisuuden innovaatiotoiminnan johtamisprosessia ja sen vaikutuksia yksittäisissä innovaatioissa. Tarkoituksena on tuoda esiin uutta tietoa metsäteollisuuden innovaatiotoiminnan nykytilasta, innovaatiojohtamisesta ja sen merkittävimmistä tekijöistä, sekä analysoida tätä tietoa toiminnan kehittämiseksi. Yrityshaastattelujen avulla työssäselvitetään johtamisprosessia ja sen toimintoja, sekä siihen vaikuttavia sisäisiä ja ulkoisia tekijöitä. Innovaatiojohtamisen vaikutuksista tutkitaan kaupallistettujen innovaatioiden kehitysaikoja ja eri yhteistyösuhteiden merkitystä SIN-mallin (System Integration and Networking) mukaan. Työssä havaittiin, että metsäteollisuusyritykset ovat viime vuosina jossain määrin alkaneet kehittää innovaatiotoimintaansa, mutta systemaattisempi innovaatioprosessi ja selkeät strategiset suuntaukset toiminnan ohjaamiseen ja prosessin hallintaan puuttuvat. Innovaatiotoiminnan epäjärjestelmällisyyteen vaikuttaa ristiriita eri aikavälien tavoitteissa: toisaalta yritykset tavoittelevat nopeasti kustannustehokkuutta ja toisaaltapitkäjänteisempää uudistumista. Tärkeimpiä yhteistyökumppaneita innovaatiotoiminnassa ovat asiakkaat, alihankkijat ja toimittajat. Verkostoituminen, innovaatioprosessin tehokkuus ja kyky tuottaa menestyviä innovaatioita korostuvat tulevaisuudessa. Lisäksi innovaatiojohtamisella on tuettava innovaatioiden lähteitä ja radikaalimpia innovaatioita, sekä pyrittävä alentamaan muutosvastarintaa.

Information System ProcessInnovation Adoption, Adaptation, Learning, and Unlearning: A Longitudinal Case Study

This thesis examines the history and evolution of information system process innovation (ISPI) processes (adoption, adaptation, and unlearning) within the information system development (ISD) work in an internal information system (IS) department and in two IS software house organisations in Finland over a 43-year time-period. The study offers insights into influential actors and their dependencies in deciding over ISPIs. The research usesa qualitative research approach, and the research methodology involves the description of the ISPI processes, how the actors searched for ISPIs, and how the relationships between the actors changed over time. The existing theories were evaluated using the conceptual models of the ISPI processes based on the innovationliterature in the IS area. The main focus of the study was to observe changes in the main ISPI processes over time. The main contribution of the thesis is a new theory. The term theory should be understood as 1) a new conceptual framework of the ISPI processes, 2) new ISPI concepts and categories, and the relationships between the ISPI concepts inside the ISPI processes. The study gives a comprehensive and systematic study on the history and evolution of the ISPI processes; reveals the factors that affected ISPI adoption; studies ISPI knowledge acquisition, information transfer, and adaptation mechanisms; and reveals the mechanismsaffecting ISPI unlearning; changes in the ISPI processes; and diverse actors involved in the processes. The results show that both the internal IS department and the two IS software houses sought opportunities to improve their technical skills and career paths and this created an innovative culture. When new technology generations come to the market the platform systems need to be renewed, and therefore the organisations invest in ISPIs in cycles. The extent of internal learning and experiments was higher than the external knowledge acquisition. Until the outsourcing event (1984) the decision-making was centralised and the internalIS department was very influential over ISPIs. After outsourcing, decision-making became distributed between the two IS software houses, the IS client, and itsinternal IT department. The IS client wanted to assure that information systemswould serve the business of the company and thus wanted to co-operate closely with the software organisations.

Innovaatiojohtaminen suunnittelutoimistossa

Työn tavoitteena oli tutkia konsulttiyrityksen metsäteollisuusliiketoimintaryhmän innovatiivisuutta sekä sitä, onko johdon asettamia innovatiivisuuden tavoitteita saavutettu. Tavoitteena oli myös laatia innovaatiojohtamisen malli sekä antaa toimenpide-ehdotuksia ja suosituksia. Tutkimuksen teoriaosuus tehtiin kirjallisuustutkimuksena ja siinä selvitettiin, mitä innovatiivisuus merkitsee yrityksille, mitkä asiat vaikuttavat organisaation innovatiivisuuteen ja mitä innovaatiojohtamisessa tulee ottaa huomioon. Tutkimuksen empiirinen osuus suoritettiin case-analyysinä, ja se toteutettiin linjajohdon henkilöhaastattelujen, ja henkilöstölle tehtyjen kyselyjen avulla. Innovaatio on idean toimeenpano käytännössä, markkinoille saatettu toteutus tai uusittu prosessi. Jos innovaatioiden avulla saavutetaan radikaalia parannusta, niin kaizen-filosofia on pienin askelin tehtävää jatkuvaa parantamista. Yritysten innovatiivisuuteen vaikuttaa sekä kovia että pehmeitä asioita. Kovia asioita ovat mm. strategia, organisaation rakenne ja järjestelmät. Pehmeitä asioita taas ovat mm. yhteiset arvot, osaaminen, henkilöstö ja johtamistyyli. Kaikki edellä mainitut asiat tulee huomioida innovatiivisuuden kehittämisessä. Yritysten tietopääoma syntyy kyvystä käyttää hyväksi aineetonta pääomaa, joka on mm. dataa, informaatiota, immateriaalioikeuksia, osaamista, motivaatiota ja sitoutumista. Tutkitun konsulttiyrityksen metsäteollisuusliiketoimintaryhmällä on johdon asettamat innovatiivisuustavoitteet. Yrityksessä on valtavasti irrallista tietoa. Henkilöstön osaaminen ja motivaatio ovat korkeata luokkaa. Yritykselle on määritelty strategia, mutta sen jalkauttaminen henkilöstölle ei ole ollut tehokasta. Tutkitulla yrityksellä on monia innovatiivisuuteen kannustavia järjestelmiä. Järjestelmien käyttö on vain pienen ryhmän käytössä. Yrityksen innovatiivisuuspotentiaali on valtava. Toimenpide-ehdotuksina ja suosituksina esitetään yritykselle innovaatiojohtamisen mallia. Esitetyssä mallissa määritellään mm. innovaatiojohtamisen vastuut uudelleen. Innovaatioprosessi määritellään kokonaisvaltaisena asiana. Nykyisten järjestelmien käyttö laajennetaan koko henkilöstön käytettäväksi

Innovative Culture – Searching for Innovativeness in a Construction Company

The purpose of the thesis is to study innovativeness in a context of the construction industry especially the front-end of the innovation process. The construction industry is often considered an old-fashioned manufacturing industry. Innovations and innovativeness are rarely linked to the industry. The construction industry, as well as other industries in Finland, is facing challenges such as productivity, the climate change and internationalization. The meaning of innovations is greater than ever in continuously changing markets, for standing out from competitors or increasing the competitiveness. Traditional production methods, tight building regulations, unique buildings, one-of-a-kind project organizations and highlighting the cheapest price in building contracts are particular challenges in the construction industry. The research questions of the thesis were: - What kind of factors shift the existing company culture towards innovativeness? - What are the phases of the front-end of the innovation process? - What kind of tools and methods enable managing the front-end of the innovation process? The theoretical part of the thesis bases on the literature review. The research methodology of the empirical part was the action research and qualitative approach. Empirical data was collected by the theme interviews from three companies. The results were practical methods and experiences from innovation activities of the companies. The results of the thesis can be clarified as follows: enhancement of the innovation activities requires support and commitment of the top management, innovative culture and innovation strategy. Innovativeness can be promoted by systematical methods for example collecting ideas from employees. Controlling and managing the front-end phase is essential to succeeding. Despite that managing the front-end is the most challenging part of the innovation process, development and management of that save companies’ money, resources and prevents useless investments. Further clarification and studies are needed to find out furthermore functional tools and methods to manage innovations and implementing them to the culture of the companies.

Innovation Process Management and System Modelling

Työn tavoitteena oli perehtyä innovaatiojohtamisen ja järjestelmän soveltamiseen prosessiteollisuuden toimintaympäristöön. Kirjallisuuslähteitä apuna käyttäen perehdyttiin liiketoimintaympäristön innovaatiojohtamiselle asettamiin vaatimuksiin ja erilaisiin innovaatiojärjestelmiin. Olennaisena osana innovaatiojohtamiseen liittyy sidosryhmien tarpeiden ja niiden tarjoamien resurssien huomioiminen toiminnassa. Myöskin tuotekehityksen menetelmät ja työkalut ovat omalta osaltaan merkittävässä asemassa toiminnan tehokkuutta arvioitaessa. Innovaatiojärjestelmä tulee sopeuttaa yrityksen toimintoihin ja sen erityispiirteet huomioonottaen siten, että toiminnan johtaminen prosessina tuo yritykselle ja sen sidosryhmille lisäarvoa. Innovaatiojärjestelmän luominen yritykselle on ainayksilöllinen prosessi ja siihen ei ole olemassa yleispätevää menetelmää, joka voitaisiin ottaa käyttöön sellaisenaan. Yritys, jonka liiketoiminta keskittyy kuitupohjaisten pakkausmateriaalien valmistamiseen, joutuu täyttämään toiminnassaan materiaalintoimittajien, omien tuotantoprosessiensa ja asiakkaiden sekä jopa loppukäyttäjien uusille tuotteille luomat odotukset. Innovaatiojohtamista sävyttää toiminnan tulosten suuri epävarmuus ja sen vaativien aineellisten ja henkisten resurssien mittavuus. Innovaatiotoiminnan johtaminen prosessina, käyttäen hyväksi järjestelmämallia, tavoittelee systemaattista ja asetettujen kriteerien täyttämää lähestymistapaa tuotekehityksen ja uusien liiketoimintainnovaatioiden alueella. Kehitetyn mallin tulee palvella monimutkaista liiketoimintaympäristöä, jokatoisaalta perustuu tehokkaaseen massatuotantoon ja toisaalta pyrkii erilaistumaan palvelemalla sekä huomioimalla asiakkaidensa tuotteille asettamat vaatimukset.

Supporting knowledge creation and sharing in the early phases of the strategic innovation process

The driving forces of technology and globalization continuously transform the business landscape in a way which undermines the existing strategies and innovations of organizations. The challenge for organizations is to establish such conditions where they are able to create new knowledge for innovative business ideas in interaction between other organizations and individuals. Innovation processes continuously need new external stimulations and seek new ideas, new information and knowledge locating more and more outside traditional organizational boundaries. In several studies, the early phases of the innovation process have been considered as the most critical ones. During these phases, the innovation process can emerge or conclude. External knowledge acquirement and utilization are noticed to be important at this stage of the innovation process giving information about the development of future markets and needs for new innovative businessideas. To make it possible, new methods and approaches to manage proactive knowledge creation and sharing activities are needed. In this study, knowledge creation and sharing in the early phases of the innovation process has been studied, and the understanding of knowledge management in the innovation process in an open and collaborative context advanced. Furthermore, the innovation management methods in this study are combined in a novel way to establish an open innovation process and tested in real-life cases. For these purposes two complementary and sequentially applied group work methods - the heuristic scenario method and the idea generation process - are examined by focusing the research on the support of the open knowledge creation and sharing process. The research objective of this thesis concerns two doctrines: the innovation management including the knowledge management, and the futures research concerning the scenario paradigm. This thesis also applies the group decision support system (GDSS) in the idea generation process to utilize the converged knowledge during the scenario process.

Integrating Group Support Systems to innovation process of a forest company

The objective of this study was to analyze the effects of Group Support Systems (GSS) to overall efficiency of innovation process. Overall efficiency was found to be a sum of meeting efficiency, product effectiveness, and learning efficiency. These components were studied in various working situations common in early stages of innovation process. In the empirical part of this study, the suitability of GSS at the forest company was assessed. The basics for this study were idea generation meetings held at LUT and results from the surveys done after the sessions. This data combined with the interviews and theoretical background was used to analyze suitability of this technology to organizational culture at the company. The results of this study are divided to theory and case level. On theory level GSS was found to be a potentially valuable tool for innovation managers, especially at the first stages of the process. On case level, GSS was found to be a suitable tool at Stora Enso for further utilization. A five step implementation proposal was built to illustrate what would be the next stages of GSS implementation, if technology was chosen for further implementation.

The Early Phases of Innovation Process - Case: New Wireless E-Business Opportunities in Forest Industry

Tutkimuksen tavoitteena oli soveltaa innovaatioprosessiteorioita käytäntöön konteksti huomioonottaen, koska langattoman sähköisen liiketoiminnan nopeat muutokset, metsäteollisuuden erityispiirteet ja ei-kaupallisuus asettavat erityistarpeita innovoinnille. Painopiste on prosessin aikaisissa vaiheissa, koska ne ovat kriittisiä koko innovaatioprosessin menestymisen kannalta. Tähtäimenä oli löytää yrityssektorille uusia langattomia sähköisen liiketoiminnan mahdollisuuksia, jotka hyödyttävät tutkimuksessa mukanaolevaa yritystä. Tutkimuksessa käytettiin konstruktiivista tutkimusotetta ja metodeina sähköistä aivomyrskyä, tarkistuslistaa sekä GDSS- ja postikyselyä.Tutkimuksen tuloksena on esitetty innovaatioprosessin aikaiset vaiheet kirjallisuudesta, metsäteollisuuden erityispiirteet ja innovaatioprosessisovellus. Lisäksi tämä tutkimus tuotti uusia sähköisen liiketoiminnan ideoita, suoritti niille seulonnan ja kävi läpi alustavan tutkimuksen.

Innovation process management of complex consumer products and services in new innovation paradigm – case location based business

Innovation is the word of this decade. According to innovation definitions, without positive sales impact and meaningful market share the company’s product or service has not been an innovation. Research problem of this master thesis is to find out what is the innovation process of complex new consumer products and services in new innovation paradigm. The objective is to get answers to two research questions: 1) What are the critical success factors what company should do when it is implementing the paradigm change in mass markets consumer business with complex products and services? 2) What is the process or framework one firm could follow? The research problem is looked from one company’s innovation creation process, networking and organization change management challenges point of views. Special focus is to look the research problem from an existing company perspective which is entering new business area. Innovation process management framework of complex new consumer products and services in new innovation paradigm has been created with support of several existing innovation theories. The new process framework includes the critical innovation process elements companies should take into consideration in their daily activities when they are in their new business innovation implementing process. Case company location based business implementation activities are studied via the new innovation process framework. This case study showed how important it is to manage the process, look how the target market and the competition in it is developing during company’s own innovation process, make decisions at right time and from beginning plan and implement the organization change management as one activity in the innovation process. In the end this master thesis showed that all companies need to create their own innovation process master plan with milestones and activities. One plan does not fit all, but all companies can start their planning from the new innovation process what was introduced in this master thesis.

The Impact of National Innovation System on Entrepreneurial Venture Creation Process

The important role of entrepreneurship in countries’ economic development and overall society well-being is widely recognized by researchers, experts as well as policy makers. Every phase of the process of starting a new business is related to the interaction with at least one player of country innovation system and therefore the efficiency of this interaction may have an influence on the success of whole entrepreneurial process and consequently on the willingness of potential entrepreneurs to engage into this process. The study proposes a System Dynamics model for studying the impact of National Innovation System (NIS) on the entrepreneurial venture creation process. The developed model also takes country population aspect into account and provides results for estimation the effect various demographic tendencies on the process performance. The special impact is made on possible ways to facilitate the development of entrepreneurial framework conditions. Business incubators are seen as one of the effective tool for accomplishing such task. The study also provides the result for estimation of possible impact arising from properly functioned Business Incubators.

Innovation process development and business process integration - a multiple case study

The main objective of this study was to find out the bases for innovation model formulation in an existing organization based on cases. Innovation processes can be analyzed based on their needs and based on their emphasis on the business model development or R&D. The research was conducted in energy sector within one company by utilizing its projects as cases for the study. It is typical for the field of business that development is slow, although the case company has put emphasis on its innovation efforts. Analysis was done by identifying the cases’ needs and comparing them. The results were that because of the variances in the needs of the cases, the applicability of innovation process models varies. It was discovered that by dividing the process into two phases, a uniform model could be composed. This model would fulfill the needs of the cases and potential future projects as well.