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.

Tutkimus- ja kehitysvaiheen toteuttaminen teknologisessa innovaatioprosessissa

Through the ages technological changes have created new challenges and possibilities to develop products, services, processes or organizations. Management of the technology concerns all of those activities from technical invention to commercial application. Management of the technologic innovation process is the more challenging the more technology is involved in a process. Researches of the technological innovations are seldom concern the implementation of early phases and especially in product manufacturing company. Still there are research and development activities. Therefore the purpose of this research is to develop the pattern for implementation of research and development phases in technological innovation process. This study focuses the main elements of the technological innovation management and main obstacles and drivers. This study also focuses decision making and the other influencing elements of the decision making. The research design of this explorative research applies a qualitative research strategy where a case study method is utilized to collect and analyze the data. The study consisted of a single case to utilize of technological ideas and possibilities. The selected case company was the product manufacturing company which didn’t have own technological research and development organization. The case was a process which was analyzed from two different perspectives. The main unit of analysis was the whole process. The data collecting method of this study included semi-structured and open interviews, participant-observations and experimental tests. Analyzing the case data relies on the theoretical propositions of the framework based on the previous research. Based on this research the key elements of the research and development phases in technological innovation process were technical expertise and preliminary investigation. The obstacles and drivers in the R&D phases by the case were management of the whole process and resources and knowing objectives of process and learning during the process. In addition to the result of the research was the feature of decision making to optimize used time. The findings of this study gave further insight implementation of the technological innovation in the product manufacturing company. The research was based a single case which means the results cannot be generalized to different companies or industry fields. Therefore the results generalizing require further research with multiple researchers.

Tutkimus- ja kehitysvaiheen toteuttaminen teknologisessa innovaatioprosessissa

Teknologiset muutokset ovat kautta aikojen luoneet uusia haasteita ja mahdollisuuksia tuotteiden, palveluiden, prosessien tai organisaatioiden kehittämiseen. Teknologian johtaminen tarkoittaa kaikki niitä toimia, joiden avulla teknologisesta keksinnöstä saadaan kaupallinen sovellus. Teknologisen innovaatioprosessin johtaminen on, sitä haasteellisempaa, mitä enemmän siinä on mukana teknologiaa. Harvoin teknologisten innovaatioiden tutkimukset ovat kohdistuneet prosessin varhaisen vaiheen toteutukseen ja erityisesti tuotannolliseen toimintaan keskittyvissä yrityksissä, vaikka kaikissa tuotteita valmistavissa teollisuuksissa tapahtuu tutkimus- ja kehitystyötä. Siksi tämän tutkimuksen tavoitteena on kehittää toimintamalli teknologisen innovaatioprosessin tutkimus- ja kehitysvaiheen toteuttamiselle. Tutkimus keskittyy teknologisen innovaatioprosessin tärkeimpiin elementteihin johtamisen ja prosessin kannalta sekä sen estäviin ja edistäviin tekijöihin. Tutkimuksessa tarkastellaan myös päätöksentekoa ja siihen vaikuttavia tekijöitä. Tutkimus oli kartoittava ja sillä oli laadullinen tutkimusstrategia. Tarkempi tutkimusmenetelmä kerätä ja analysoida tutkimustietoa oli tapaustutkimus. Tämä tutkimus perustui yhteen tapaukseen teknologisten ideoiden ja mahdollisuuksien hyödyntämisestä. Valittu tapausyritys oli tuotteita valmistava yritys, jolla ei ollut varsinaista tutkimus- ja kehitysorganisaatiota teknologian kehittämistä varten. Itse tapaus oli prosessi, jota analysoitiin kahdesta eri näkökulmasta, mutta primääri analysointiyksikkö oli koko prosessi. Aineiston hankintamenetelmät olivat puolistrukturoidut ja avoimet haastattelut, osallistuva havainnointi ja kokeelliset tutkimukset. Aineiston analysointi perustui aikaisemmin tutkimuksen yhteydessä rakennettuun teoreettiseen viitekehykseen. Teknologisen innovaatioprosessin tutkimus- ja kehitysvaiheen tärkeimmät elementit tutkimuksen mukaan olivat oman teknologian asiantuntemus ja esitutkimusvaihe. Tekijät, jotka tutkimuksen mukaan estivät ja edistivät T&K -vaiheen onnistumista, olivat koko prosessin ja resurssien johtaminen sekä tietoisuus prosessin tavoitteista ja prosessin aikainen oppiminen. Tutkimuksessa löydettiin myös päätöksentekoon liittyvä ominaisuus optimoida siihen käytettävää aikaa. Tutkimuksen tulokset lisäsivät näkemystä teknologisten innovaatioiden toteuttamisesta tuotteita valmistavassa yrityksessä. Tutkimus perustui yhteen tapaukseen, minkä vuoksi tulokset eivät ole yleistettävissä muihin yrityksiin tai toimialoihin. Tulosten yleistämistä varten tutkimuksia tulisi suorittaa lisää ja käyttää useita tutkijoita.

Efficient installed base information management and utilization in global after sales service business

This Master´s thesis explores how the a global industrial corporation’s after sales service department should arrange its installed base management practices in order to maintain and utilize the installed base information effectively. Case company has product-related records, such as product’s lifecycle information, service history information and information about product’s performance. Information is collected and organized often case by case, therefore the systematic and effective use of installed base information is difficult also the overview of installed base is missing. The goal of the thesis study was to find out how the case company can improve the installed base maintenance and management practices and improve the installed base information availability and reliability. Installed base information management practices were first examined through the literature. The empirical research was conducted by the interviews and questionnaire survey, targeted to the case company’s service department. The research purpose was to find out the challenges related to case company´s service department’s information management practices. The study also identified the installed base information needs and improvement potential in the availability of information. Based on the empirical research findings, recommendations for improve installed base management practices and information availability were created. Grounding of the recommendations, the case company is suggested the following proposals for action: Service report development, improving the change management process, ensuring the quality of the product documentation in early stages of product life cycle and decision to improve installed base management practices.

Strategic external deployment of intellectual assets

Globalization, pervasiveness of technology and ICT, and the buildup of information societies and policies have lead to a growing abundance of knowledge and highly educated labour supply that is distributed widely. These changes have shifted the foundation of competitiveness to valuable knowledge resources which are now distributed widely across the globe, across actors in the value chain and across educated individuals in multiple organizations. Against this backdrop, the paradigm of open innovation (OI) has emerged as a new response to managing the increased amount of boundary-spanning knowledge flows in and out of the innovation process. The outbound mode of open innovation, that is to say the external exploitation of knowledge assets outside of the firm’s own products and services, has been the less-researched aspect of the concept and so far typically seen as concerning the outlicensing of unused technological assets to generate additional revenue. Given that open innovation is essentially a framework for the holistic structuring and management of crossboundary knowledge flows to improve a firm’s innovative performance, a close integration to corporate strategy seems imperative in order to fully benefit from it. Integrating open innovation to strategy leads to elevating its role from a fringe activity to a central innovation management issue that needs to be systematically managed. Building a structure that allows effective management necessitates linking open innovation activities to each phase of the innovation process. Previously, the connection between outbound OI and the earlier stages of innovation has not been studied. The thesis finds that connecting outbound OI to the entire innovation process of the firm, including the fuzzy front end of innovation, is critical for attaining strategic objectives and to the successful implementation and management of the activity. The practical purpose for the research is to enable companies to fully utilize their potential for outbound open innovation and to be able to implement and manage it from a strategic standpoint.

"Fuzzy front end" ja sen menestyksekäs johtaminen teollisuusyrityksessä

Työssä käsitellään innovaatioprosessin ensimmäistä ”fuzzy front end” -vaihetta, jota työssä kutsutaan front end -vaiheeksi. Front end -vaihe on innovaatioprosessin alustava tutkimus ja suunnittelu vaihe ennen teknistä kehittämisvaihetta. Front end -vaihetta on tutkittu innovaatioprosessin osista vähiten, sekä se on useimmille yrityksillä sumea ja vaikeasti käsitettävä. Tutkimusten mukaan front end -vaiheen osaaminen on kuitenkin erittäin merkittävä tekijä yrityksen innovatiivisuudelle. Työssä avataan innovaatioprosessin sisältöä ja tavoitteita, sekä vertaillaan käytössä olevia malleja front end -vaiheen rakenteesta. Työssä selvitetään avaintekijöitä front end -vaiheen menestykseen ja tehokkuuteen. Lisäksi käsitellään johtamisen tekijöitä, jotka edesauttavat onnistumaan front end -vaiheessa.

Roadmapping yrityksen strategisessa johtamisessa

Työssä tarkastellaan teknologia- ja teollisuusyritysten strategiaprosesseissa käytettyä roadmapping-menetelmää ja kartoitetaan roadmapping-menetelmän tutkimusta johtamiskirjallisuudessa ja tieteellisissä julkaisuissa. Roadmapping on strategisen johtamisen välineenä vahva visuaalisen ja aikasidonnaisen luonteensa ansiosta. Menetelmää käytetään kaikilla teollisuuden aloilla, mutta eniten informaatio- ja kommunikaatiotekniikan aloilla. Työssä käsitellään eri tilanteisiin soveltuvia roadmapping-prosesseja ja pohditaan strategisen johtamisen vaatimuksia työkaluille. Roadmapping-työkalun käyttö asiantuntijoiden yhteistyön orkestroinnissa on yleistä ja muihin johtamisjärjestelmiin integroituja kaupallisia roadmapping-sovelluksia on tarjolla yhä useampia. Roadmapping-menetelmän hyödyt saadaan esille kiinnittämällä huomiota prosessiin. Roadmapping-menetelmän tarkoituksenmukainen käyttötapa ja motivoituneet käyttäjät ovat tehokkaasti toimivan organisaation sydän.

Excelling in procurement : IT Contract Management with Lean and Six Sigma. Case study on legacy contract management at Philips Global IT.

Few people see both opportunities and threats coming from IT legacy in current world. On one hand, effective legacy management can bring substantial hard savings and smooth transition to the desired future state. On the other hand, its mismanagement contributes to serious operational business risks, as old systems are not as reliable as it is required by the business users. This thesis offers one perspective of dealing with IT legacy – through effective contract management, as a component towards achieving Procurement Excellence in IT, thus bridging IT delivery departments, IT procurement, business units, and suppliers. It developed a model for assessing the impact of improvements on contract management process and set of tools and advices with regards to analysis and improvement actions. The thesis conducted case study to present and justify the implementation of Lean Six Sigma in IT legacy contract management environment. Lean Six Sigma proved to be successful and this thesis presents and discusses all the steps necessary, and pitfalls to avoid, to achieve breakthrough improvement in IT contract management process performance. For the IT legacy contract management process two improvements require special attention and can be easily copied to any organization. First is the issue of diluted contract ownership that stops all the improvements, as people do not know who is responsible for performing those actions. Second is the contract management performance evaluation tool, which can be used for monitoring, identifying outlying contracts and opportunities for improvements in the process. The study resulted in a valuable insight on the benefits of applying Lean Six Sigma to improve IT legacy contract management, as well as on how Lean Six Sigma can be applied in IT environment. Managerial implications are discussed. It is concluded that the use of data-driven Lean Six Sigma methodology for improving the existing IT contract management processes is a significant addition to the existing best practices in contract management.

Balancing creativity and risk intelligence in professional knowledge-intensive business services

The main strengths of professional knowledge-intensive business services (P-KIBS) are knowledge and creativity which needs to be fostered, maintained and supported. The process of managing P-KIBS companies deals with financial, operational and strategic risks. That is why it is reasonable to apply risk management techniques and frameworks in this context. A significant challenge hides in choosing reasonable ways of implementing risk management, which will not limit creative ability in organization, and furthermore will contribute to the process. This choice is related to a risk intelligent approach which becomes a justified way of finding the required balance. On a theoretical level the field of managing both creativity and risk intelligence as a balanced process remains understudied in particular within KIBS industry. For instance, there appears to be a wide range of separate models for innovation and risk management, but very little discussion in terms of trying to find the right balance between them. This study aims to shed light on the importance of well-managed combination of these concepts. The research purpose of the present study is to find out how the balance between creativity and risk intelligence can be managed in P-KIBS. The methodological approach utilized in the study is strictly conceptual without empirical aspects. The research purpose can be achieved through answering the following research supporting questions: 1. What are the characteristics and role of creativity as a component of innovation process in a P-KIBS company? 2. What are the characteristics and role of risk intelligence as an approach towards risk management process implementation in a P-KIBS company? 3. How can risk intelligence and creativity be balanced in P-KIBS? The main theoretical contribution of the study conceals in a proposed creativity and risk intelligence stage process framework. It is designed as an algorithm that can be applied on organizational canvas. It consists of several distinct stages specified by actors involved, their roles and implications. Additional stage-wise description provides detailed tasks for each of the enterprise levels, while combining strategies into one. The insights driven from the framework can be utilized by a vast range of specialists from strategists to risk managers, and from innovation managers to entrepreneurs. Any business that is designing and delivering knowledge service can potentially gain valuable thoughts and expand conceptual understanding from the present report. Risk intelligence in the current study is a unique way of emphasizing the role of creativity in professional knowledge-intensive industry and a worthy technique for making profound decisions towards risks.

A Business continuity management maturity model : the search for an ISO 22301 Compliant BCM Maturity model

BCM (business continuity Management) is a holistic management process aiming at ensuring business continuity and building organizational resilience. Maturity models offer organizations a tool for evaluating their current maturity in a certain process. In the recent years BCM has been subject to international ISO standardization, while the interest of organizations to bechmark their state of BCM agains standards and the use of maturity models for these asessments has increased. However, although new standards have been introduced, very little attention has been paid to reviewing the existing BCM maturity models in research - especially in the light of the new ISO 22301 standard for BCM. In this thesis the existing BCM maturily models are carefully evaluated to determine whetherthey could be improved. In order to accomplish this, the compliance of the existing models to the ISO 22301 standard is measured and a framework for assessing a maturitymodel´s quality is defined. After carefully evaluating the existing frameworks for maturity model development and evaluation, an approach suggested by Becker et al. (2009) was chosen as the basis for the research. An additionto the procedural model a set of seven research guidelines proposed by the same authors was applied, drawing on the design-science research guidelines as suggested by Hevner et al. (2004). Furthermore, the existing models´ form and function was evaluated to address their usability. Based on the evaluation of the existing BCM maturity models, the existing models were found to have shortcomings in each dimension of the evaluation. Utilizing the best of the existing models, a draft version for an enhanced model was developed. This draft model was then iteratively developed by conducting six semi-structured interviews with BCM professionals in finland with the aim of validating and improving it. As a Result, a final version of the enhanced BCM maturity model was developed, conforming to the seven key clauses in the ISO 22301 standard and the maturity model development guidelines suggested by Becker et al. (2009).

Management of Soft Information in Sales and Operations Planning

With a Sales and Operations Planning (S&OP) process, a company aims to manage the demand and supply by planning and forecasting. The studied company uses an integrated S&OP process to improve the company's operations. The aim of this thesis is to develop this business process by finding the best possible way to manage the soft information in S&OP, whilst also understanding the importance and types (assumptions, risks and opportunities) of soft information in S&OP. The soft information in S&OP helps to refine future S&OP planning, taking into account the uncertainties that affect the balance of the long-term demand and supply (typically 12-18 months). The literature review was used to create a framework for soft information management process in S&OP. There were not found a concrete way how to manage soft information in the existing literature. In consequence of the poor literature available the Knowledge Management literature was used as the base for the framework creation, which was seen in the very same type of information management like the soft information management is. The framework created a four-stage process to manage soft information in S&OP that included also the required support systems. First phase is collecting and acquiring soft information in S&OP, which include also categorization. The categorization was the cornerstone to identify different requirements that needs to be taken into consideration when managing soft information in S&OP process. The next phase focus on storing data, which purpose is to ensure the soft information is managed in a common system (support system) in a way that the following phase makes it available to users in S&OP who need by help of sharing and applications process. The last phase target is to use the soft information to understand assumptions and thoughts of users behind the numbers in S&OP plans. With this soft management process the support system will have a key role. The support system, like S&OP tool, ensures that soft information is stored in the right places, kept up-to-date and relevancy. The soft information management process in S&OP strives to improve the relevant soft information documenting behind the S&OP plans into the S&OP support system. The process offers an opportunity to individuals to review, comment and evaluate soft information in S&OP made by their own or others. In the case company it was noticed that without a properly documented and distributed soft information in S&OP it was seen to cause mistrust towards the planning.

Development of project cash flow forecasting process

Process management refers to improving the key functions of a company. The main functions of the case company - project management, procurement, finance, and human resource - use their own separate systems. The case company is in the process of changing its software. Different functions will use the same system in the future. This software change causes changes in some of the company’s processes. Project cash flow forecasting process is one of the changing processes. Cash flow forecasting ensures the sufficiency of money and prepares for possible changes in the future. This will help to ensure the company’s viability. The purpose of the research is to describe a new project cash flow forecasting process. In addition, the aim is to analyze the impacts of the process change, with regard to the project control department’s workload and resources through the process measurement, and how the impacts take the department’s future operations into account. The research is based on process management. Processes, their descriptions, and the way the process management uses the information, are discussed in the theory part of this research. The theory part is based on literature and articles. Project cash flow and forecasting-related benefits are also discussed. After this, the project cash flow forecasting as-is and to-be processes are described by utilizing information, obtained from the theoretical part, as well as the know-how of the project control department’s personnel. Written descriptions and cross-functional flowcharts are used for descriptions. Process measurement is based on interviews with the personnel – mainly cost controllers and department managers. The process change and the integration of two processes will allow work time for other things, for example, analysis of costs. In addition to the quality of the cash flow information will improve compared to the as-is process. Analyzing the department’s other main processes, department’s roles, and their responsibilities should be checked and redesigned. This way, there will be an opportunity to achieve the best possible efficiency and cost savings.

Tietojärjestelmän omistajuuden siirtoprojektin osaamis- ja tarvekartoitus

Tutkimuksen tarkoitus on selventää tietojärjestelmän omistajuuden muutoksessa olevan organisaation osaamisen kartoittamista, määrittämistä ja mittaamista. Yksilön, ryhmän sekä organisaation oppiminen nähdään keskeisenä tekijä organisaation kilpailukyvyn ylläpitämisessä ja kehittämisessä. Aihepiiriä on tutkittu paljon, kuitenkin on edelleen paljon erilaisia näkemyksiä oppimiseen liittyvistä aiheista ja siihen vaikuttavista tekijöistä. Tutkimuksen kohteena ovat myös oppimiseen ja osaamiseen läheisesti liittyvät teemat, innovointi ja muutosjohtaminen, niiltä osin, kun ne vaikuttavat organisatoriseen ja/tai yksilön oppimiseen ja osaamiseen. Tutkimuksen kohteena ovat kaksi julkishallinnon organisaatiota joiden välillä tapahtuu tietojärjestelmien omistajuuden vaihdon yhteydessä kohtuullisen laajamittaista osaamisen siirtoa. Tutkimuksen empiirisessä osassa perehdyttiin organisaation osaamisen hallinnan prosessiin ja sen kehittämismahdollisuuksiin. Organisatoriseen oppimiseen ja osaamiseen vaikuttavat tekijät, niin sisäiset kuin ulkopuoliset, on selvitetty tutkimuksessa. Myös eri tekijöiden vaikutusta organisaation kilpailukykyyn ja kykyyn luoda uutta osaamista ja innovointia on selvitetty tutkimuksessa. Tutkimuksen tulokset ja empiirinen osuus antavat samankaltaisia ratkaisuja osaamiseen, yksilön ja organisaation, oppimisen osalta.

Facilitating corporate entrepreneurial behavior: A study of corporate entrepreneurial behavior in corporate banking

This study discusses the pronounced importance of corporate entrepreneurial behavior, CEB, facilitation and enablement as a key dimension in the rapidly changing business environment within companies. The research target is a large finance company in Finland, where regulations, compliance and processes restrict and refine extensively business approach. The purpose of this study is to foster the understanding of corporate entrepreneurial behavior and requirements and identify the supporters and inhibitors of facilitation of it. Furthermore, this study examines who should be driving the implementation and offer concrete outcome for the company to get the facilitation started and berth it as part of the organizational culture and values. The theoretical background is constructed from literature related to concept of corporate entrepreneurial behavior, factors supporting and hindering the facilitation based on previous studies and innovation management. Furthermore theoretical framework of middle managers entrepreneurial behavior in facilitation process was researched. Additionally top down and bottom up approach of conversational space building within the organization in order to foster innovation and involving mindset and behavior was in the core literature. The empirical research conducted for the study consists three parts; innovation audit questionnaire, semi-structured interviews and secondary data from previously made research within the case company. Questionnaire and interviews were targeted to eight middle managers within the company, the head of branch regions in corporate segment. The secondary data was collected from over 300 employees in the case company by an external company. Research results were analyzed mainly by themes and source division in adaption with the theoretical framework. The study finds that facilitation of CEB should be a strategic choice and requires strong management support and examples. Behavior should be involved with organizational culture, values, structures and processes. The companies´ willingness to take risks and encourage employees at all levels to participate and be involved by taking ownership and responsibility is in the core. CEB is found to be a key dimension in increasing employee satisfaction and engagement, competitive advantages and economic growth of companies. There is increased interest towards CEB in the case company but there is lack in the mutual consensus of it. CEB is not in the strategy although the mindset and support from management is in place. There is no concrete enablement and space for innovation and CEB although the platform would be receptive. Further research is needed to build shared vision of CEB and how to make it a part of the organizational culture and values in addition to building the conversational space.

Scouring uncharted waters – managing outbound open innovation in maritime industry

This thesis discusses the unexplored opportunities of open innovation, with a special focus on outbound open innovation. The extant literature indicates that the field of outbound open innovation still lacks of research, and especially the managerial issues lack of practicality. Also, the applicability to SME’s and traditional fields has been argued. The purpose of this study is to investigate how the outbound open innovation activities can be managed in maritime industry. By combining existing literature from the field of open innovation and innovation management, this study suggests first a theoretical management model, and contributes how it can be applied to industry- and company specifics; and then develops a practical model by constructing from the case company’s current management processes. As a result, the study synthesises a theoretical model of how the outbound open innovation activities can be managed. This model positions the outbound open innovation activities, the theoretical concepts found from the literature review, R&D processes, and the outbound open innovation implementation stages identified by previous research; and thus responses the need for practical steps for any company planning outbound open innovation activities. Practical tool for managers is also provided by identifying issues that are applied to industry- and company specifics. Then, open-ended case study questions are formulated accordingly and expert interviews selected by chain referral sampling, are conducted. Interviews provide information for the current management processes. By identifying the best practices and main challenges it is possible to outline and evaluate current outbound open innovation management processes and strategic choices in it. The researcher considers also the networks and their spheres of influences for the actors, activities and resources in the processes. Thus, the study provides a novel approach, and practical tools for the researchers and practioners in the field of open innovation. All in all, the study has come up that outbound open innovation is applicable to maritime industry; and the case company indeed has perfected its processes as cost-effective as possible, and so found its balance between the costs and benefits. However, several issues for future development are pointed out, and the study offers proposals for theory building. Findings are piloting in kind, but provide several theoretical and managerial implications, and reveal new research needs for the field.