The value of digitalization of services in the new service development

The purpose of this thesis is to study factors that have an impact on the company’s capabilities to identify and analyze the value of digitalization of services during the early stages of service development process and evaluate them from the perspective of a case company. The research problem was defined: “How digitalization of services affects delivering the services of the future?” The research method of this thesis was based on the qualitative case study which aimed to study both company’s and customer’s set of values. The study included a literature review and a development study. The empirical research part consisted of analyzing three existing services, specifying a new digital service concept and its feasibility analysis as part of a business requirement phase. To understand the set of values, 10 stakeholder interviews were conducted and earlier customer surveys were utilized, and additionally, a number of meetings were conducted with the case company representatives to develop service concept, and evaluate the findings. The impact of the early stages of service development process discovered to reflect directly in the capabilities of the case company to identify and create customer value were related to the themes presented in the literature review. In order to specify the value achieved from the digitalization the following areas of strategic background elements were deepened during the study: Innovations, customer understanding and business service. Based on the findings, the study aims to enhance the case company’s capability to identify and evaluate the impact of the digitalization in delivering services of the future. Recognizing the value of digital service before the beginning of the development project is important to the businesses of both customer and provider. By exploring the various levels of digitalization one can get the overall picture of the value gained from utilizing digital opportunities. From the development perspective, the process of reviewing and discovering the most promising opportunities and solutions is the key step in order to deliver superior services. Ultimately, a company should understand the value outcome determination of the individual services as well as their digital counterparts.

Developing the measurement and management of knowledge: applying the constructive research approach in a knowledge intensive service environment

Intellectual assets have attained continuous attention in the academic field, as they are vital sources of competitive advantage and organizational performance in the contemporary knowledge intensive business environment. Intellectual capital measurement is quite thoroughly addressed in the accounting literature. However, the purpose of the measurement is to support the management of intellectual assets, but the reciprocal relationship between measurement and management has not been comprehensively considered in the literature. The theoretical motivation for this study rose from this paradox, as in order to maximise the effectiveness of knowledge management the two initiatives need to be closely integrated. The research approach of this interventionist case study is constructive. The objective is to develop the case organization’s knowledge management and intellectual capital measurement in a way that they would be closely integrated and the measurement would support the management of intellectual assets. The case analysis provides valuable practical considerations about the integration and related issues as the case company is a knowledge intensive organization in which the know-how of the employees is the central competitive asset and therefore, the management and measurement of knowledge are essential for its future success. The results suggest that the case organization is confronting challenges in managing knowledge. In order to appropriately manage knowledge processes and control the related risks, support from intellectual capital measurement is required. However, challenges in measuring intellectual capital, especially knowledge, could be recognized in the organization. By reflecting the knowledge management situation and the constructed strategy map, a new intellectual measurement system was developed for the case organization. The construction of the system as well as its indicators can be perceived to contribute to the literature, emphasizing of the importance of properly considering the organization’s knowledge situation in developing an intellectual capital measurement system.

Working capital management in the small and medium-sized enterprises Case: Project-based business environment in Flowrox Oy

This Master´s thesis illustrates how growing a business ties up the company´s working capital and what the cost of committed capital. In order to manage a company´s working capital in rapid business growth phase, the thesis suggests that by monitoring and managing the operating and cash conversion cycles of customers´ projects, a company can find ways to secure the required amount of capital. The research method of this thesis was based on literature reviews and case study research. The theoretical review presents the concepts of working capital and provides the background for understanding how to improve working capital management. The company in subject is a global small and medium-sized enterprise that manufactures pumps and valves for demanding process conditions. The company is expanding, which creates lots of challenges. This thesis concentrates to the company´s working capital management and its efficiency through the supply chain and value chain perspective. The main elements of working capital management are inventory management, accounts receivable management and accounts payable management. Prepayments also play a significant role, particularly in project-based businesses. Developing companies´ working capital management requires knowledge from different kind of key operations´ in the company, like purchasing, production, sales, logistics and financing. The perspective to develop and describe working capital management is an operational. After literature reviews the thesis present pilot projects that formed the basis of a model to monitor working capital in the case company. Based on analysis and pilot projects, the thesis introduces a rough model for monitoring capital commitments in short time period. With the model the company can more efficiently monitor and manage their customer projects.

Intra-organizational knowledge transfer in a Finnish multinational company

The ability of a multinational company to effectively transfer knowledge from one unit to another can create a great source of competitive advantage and is crucial for long-term success. However, in their attempts to disseminate existent knowledge across national boundaries, organizations encounter several obstacles. Especially challenging is the transfer of tacit knowledge, the most valuable kind, as it is embedded in the minds and the behavior of people. The purpose of this study is to identify the main factors and challenges to be considered in intra-organizational knowledge transfer and consequently develop a framework that could be utilized to improve the process. The research is of qualitative nature and it adopts an exploratory approach. The study was further conducted as an intensive single-case study through studying a Finnish multinational company, and the researcher adopted a role as a participant observant in the research setting. Other data collection methods include semi-structured interviews and an online survey. The research findings show that knowledge transfer is currently challenging within the international sales organization of the case company. The majority of knowledge is currently concentrated in the company headquarters, and it is not always systematically distributed to the regional offices abroad. The main factor affecting knowledge transfer seems to be the organizational culture, which does not support or encourage knowledge sharing. The company is struggling in having a common place for information and employees that lack proper social networks have difficulties accessing relevant knowledge. Some recommended improvement suggestions include the institutionalization of knowledge transfer by turning it into an articulated organizational goal, and the implementation of a reward system that includes soft factors, such as teamwork and knowledge sharing behavior. Furthermore, the organizational culture should be more open and supportive in order to reinforce trust. Individuals in regional offices should be given better support by offering them dedicated mentors and increasing the amount of expatriation. Finally, knowledge should actively be codified and stored in commonly shared platforms where it is easily accessible by all employees.

De-escalation of commitment management strategy in IT project management methodology: case of ERP implementation project by IT consulting company

According to several surveys and observations, the percentage of successfully conducted IT projects without over-budgeting and delays in time schedule are extremely low. Many projects also are evaluated as failures in terms of delivered functionality. Nuldén (1996) compares IT projects with bad movies; after watching for 2 hours, one still tries to finish it even though one understands that it is a complete waste of time. The argument for that is 'I've already invested too much time to terminate it now'. The same happens with IT projects: sometimes the company continues wasting money on these projects for a long time, even though there are no expected benefits from these projects. Eventually these projects are terminated anyway, but until this moment, the company spends a lot. The situation described above is a consequence of “escalation of commitment” - project continuation even after a manager receives negative feedback of the project’s success probability. According to Keil and Mähring (2010), even though escalation can occur in any type of project, it is more common among complex technological projects, such as IT projects. Escalation of commitment very often results in runaway projects. In order to avoid it, managers use de-escalation strategies, which allow the resources to be used in more effective. These strategies lead to project termination or turning around, which stops the flow of wasted investments. Numbers of researches explore escalation of commitment phenomena based on experiments and business cases. Moreover, during the last decade several frameworks were proposed for de-escalation strategy. However, there is no evidence of successful implementation of the de-escalation of commitment strategy in the literature. In addition, despite that fact that IT project management methodologies are widely used in the companies, none of them cover the topic of escalation of commitment risks. At the same time, there are no researches proposing the way to implement de-escalation of commitment strategy into the existing project management methodology The research is focused on a single case of large ERP implementation project by the consulting company. Hence, the main deliverables of the study include suggestions of improvement in de-escalation methods and techniques in the project and in the company. Moreover, the way to implement these methods into existing project management methodology and into the company general policies is found.

IT Investment Portfolio Management Over Joint Ventures: Case Study in a Multinational Oil & Gas Company

With information technology (IT) playing an increasing important role in driving the business, the value of IT investment is often challenged because not all of those investment decisions are made in a reasonable way or aligned with business strategies. IT investment portfolio management (PfM) is an effective way to prioritize and select the right IT projects to invest in, by taking all the project proposals into consideration as a whole, based on their business value, risks, costs, and interrelationships. There are different decision models to prioritise projects, and the Analytic Hierarchy Process (AHP) is one of the most commonly-used methods and is discussed in this master thesis. At the same time, there are IT projects on different levels for a multinational company, from global to local. For instance, many of them are probably proposed by joint ventures on local level. In the oil & gas industry, joint ventures are often formed especially in the area of the upstream (exploration & production). How to involve those projects into the IT investment PfM approach of the parent company is a challenge, because the parent company cannot make the decisions on its own. It needs to prioritize all projects in an adequate way, communicate with JVs and influence them. Also, different control levels on JVs need to be considered. This paper hence attempts to introduce a tailored approach of IT investment PfM for a multinational oil & gas company to address the issues around JVs.

Interaction with industrial customers from a project selling company's perspective

This thesis studied the issue of interaction in industrial buyer-seller relationships. The aim of the thesis was to study the interaction from the seller’s perspective, especially from a project selling company’s perspective. The purpose of the thesis was to offer suggestions for the case company on how to improve interaction. The theoretical part of the study introduced the interaction framework of buyer-seller interaction, and the concept of interaction mechanisms. The focus was on studying the seller’s ways and means to utilize the interaction mechanisms. A case study research was conducted in the empirical part of the study, in which interaction in the case company was observed at a general level and through three different projects. The case company of the study was a project selling company. The case study data was gathered through individual interviews. Content Analysis was used as a research method for analyzing the case study data. Based on the case study findings, the results were drawn. The results indicated what should be done, in order to develop interaction in the case company. Finally, suggestions were provided for the case company on how to improve interaction, and a suggested interaction model was established for the case company. Although the thesis studied the topic from the viewpoint of only one specific company, it also offers outlook for other seller companies to improve their interaction.

Improving the inventory management and valuation process, Case: The Switch Drive Systems

The goal of this study is to create a new inventory valuation process for The Switch Drive Systems and to improve its inventory management practices. In the matter of inventories the main problems in the case company are that it doesn’t have consistent valuation methods throughout the company and that information received in ERP system isn’t trustful. The research is qualitative case study. The empirical data is gathered through observing and unstructured interviews. The research shows that material flow process and the inventory valuation must be divided and handled separately but they should interact with each other. The result is a new inventory valuation process which takes many factors of material process under the consideration in order to receive reliable value for inventories.

The role of due diligence in cross-border acquisitions

Mergers and acquisitions (M&A) have become an important strategy for international expansion, even though numerous acquisitions fail to achieve their financial and strategic objectives. The risk associated with transactions partly depends on the extent to which the insight into the target company actually holds true. Due diligence is performed to eliminate this information asymmetry. Due diligence is an audit conducted prior to the planned transaction. It can be described as a purposeful and systematic investigation of business opportunity and risk during on-going sale negotiations. The importance of due diligence is emphasized widely in the academic literature as well as among M&A practitioners. On the other hand, researches and practitioners have differing views on what and how much is enough for a due diligence audit. Therefore, this study examines the role of due diligence in a cross-border acquisition process. The main objective of the research is fulfilled by examining the reasons for conducting due diligence, recognizing the elements affecting effective due diligence and analyzing the need and opportunities for enhancing the utilization of due diligence. For the empirical part of this qualitative study five expert interviews were conducted among experienced Finnish acquirers and advisors. In addition, five expert interviews conducted for a distinct study were utilized as a secondary source of data. The results of this study present fundamental reasons for conducting due diligence. However, conducting due diligence is not always self-evident. Doubtful attitude towards due diligence exists, though it is exceptional. Carefully planning the focus of due diligence and compiling and managing the team conducting due diligence are identified as the main elements affecting effective due diligence. Altogether, due diligence can have plural roles which in this study are categorized as the confirmatory, preparative, and cross-functional roles of due diligence. The older academic literature tends to emphasize the confirmatory role whereas the current academic discussion also supports the preparative role of due diligence. It can be argued that the roles of due diligence differ among experienced due diligence practitioners based on several factors. In attempt to increase the value of due diligence for acquirers, more than one role of due diligence is likely to exist. As a result of the different approaches and the controversy regarding the concept of due diligence, the demand for a new, wider definition of due diligence can be claimed to exist.

The analysis of knowledge retention mechanisms for leaving experts

The goal of this thesis is studying knowledge retention mechanisms used in cases of single experts’ leaving in the case company, analyzing the reason for the mechanisms choice and successfulness of knowledge retention process depending of that choice. The theoretical part discusses the origins of knowledge retention processes in the theoretical studies, the existing knowledge retention mechanisms and practical issues of their implementation. The empirical part of the study is designed as employees’ interview with later discussion of the findings. The empirical findings indicate the following reasons for knowledge retention mechanisms choice: type of knowledge retained, specialty of leaving experts and time and distance issues of a particular case. The following factors influenced the success of a retention process: choice of knowledge retention mechanisms, usage of combination of mechanisms and creation of knowledge retention plans. The results might be useful for those interested in factors influencing knowledge retention processes in cases of experts’ departure.

The key practices of customer portfolio management (CPM) process in the medical and healthcare B2B industry

The goal of this study is to deepen the understanding of the customer portfolio management process. There are many models for the process, and they are not necessarily exclusive of each other. Consequently, the inclusion of many models might even prove out to be beneficial. Other theoretical framework include the current economical situation and its propose on customer portfolio management. With an understanding of the theoretical models as a background, the empirical part of this study compares Finnish multinational medical and healthcare technology companies’ customer portfolio management practices. The empirical research was carried out with theme interviews held with 11 sales and marketing managers or directors from four different companies. The goal was to discover the most essential practices of the process steps in the companies. The result of this study is that there is a lack of systematic customer portfolio management, but most companies are aiming to improve this in the near future. The most essential practices are analysis of sales, communication level, learning, and commitment to strategy of the focal company. Special characteristics of this industry include large business networks that include customers, professional end-users, institutions, universities, researchers, and key opinion leaders. The management and analysis of this comprehensive network has been seen to be extremely important for this industry.

Improving the Supply Chain Performance Management System in a Finnish paper mill

This Master’s Thesis studies performance management system and its benefits, risks and costs. Objective of the thesis is to describe and evaluate currently used supply chain performance management system (SCPMS) in a Finnish paper mill and its interfaces with its business unit’s SCPMS. As a result, the host company has improvement road map for improving its SCPMS. Used SCPMS in the host company and its interfaces to business unit’s SCPMS are described based on interviews held in the host company and the business unit. Evaluation of the host company’s SCPMS is based on literature study. For improvement road map, three areas in need of improvements are chosen. The study shows the need of high level top management commitment in successful performance management system implementation and usage, especially when the system is deployed to lower levels in the organization.

Profitability planning of the ski resort project

Objective of this master’s thesis is to create an investment calculation model, which makes it possible to determine if the ski resort business can be profitable. The ultimate goal is to create a description with the help of theoretical knowledge, interviews and investment calculation model, how the operation of ski resort is possible to be profitable and what are the critical success factors for achieving this goal. Thesis is carried out as qualitative research, which is supported by the necessary constructive information utilizing calculations. The client company has provided valuable insights and material for this thesis. Theoretical report examines the steps of developing a business plan, investment components and methods as well as sensitivity analysis. The theoretical part is based on the articles, textbooks, interviews and researches. The empirical part of the thesis is assembled by benchmarking other same size Finnish ski resorts, conducting interviews and using investment calculation model. The empirical part provides comprehensive information about ski resort industry, the future of the project, the business plan and the profitability calculations. As the result of this thesis the investment calculation model, which makes it possible to simulate different scenarios for ski resort project, was formed. The model was used to create a picture in which kind of scenario the ski resort business would be profitable and what are the critical success factors in achieving this aim.

Risk Assessment of a Supplier in the Pharmaceutical Industry

The topic of this Master’s Thesis is risk assessment in the supply chain, and the work was done for a company operating in the pharmaceutical industry. The unique features of the industry bring additional challenges to risk management, due to high regulatory, docu-mentation and traceability requirements. The objective of the thesis was to generate a template for assessing the risks in the supply chain of current and potential suppliers of the case company. Risks pertaining to the case setting were sought mainly from in-house expertise of this specific product and supply chain as well as academic research papers and theory on risk management. A questionnaire was set up to assess the found risks on impact, occurrence and possibility of detection. Through this classification of the severity of the risks, the supplier assessment template was formed. A questionnaire template, comprised of the top 10 risks affecting the flow of information and materials in this setting, was formulated to serve as a generic tool for assessing risks in the supply chain of a pharmaceutical company. The template was tested on another supplier for usability and accuracy of found risks, and it demonstrated functioning in a differing supply chain and product setting.

Viral marketing in a Finnish medium sized gaming company: discovering, analyzing and building an improved management process for viral marketing campaigns, case: Nitrogames

The goal of this thesis is to build a viral marketing management framework for a Finnish medium sized gaming company. This is achieved by first finding and building a theoretical five step management process framework based on literature, analyzing current model and giving recommendations for the case company to develop its own management process. In addition, viral marketing research is still in early stage resulting this study to propose its own take on the definition in the theory part. Empirical part is based on qualitative interviews, campaign material and secondary sources and is aimed to find out and analyze the case company’s current viral marketing state and to give recommendations to it. The final outcome of the study is a general, theoretical management framework for viral marketing campaigns and specified recommendations for the case company.