Network effects: Scale development and implications for new product performance

More and more innovations currently being commercialized exhibit network effects, in other words, the value of using the product increases as more and more people use the same or compatible products. Although this phenomenon has been the subject of much theoretical debate in economics, marketing researchers have been slow to respond to the growing importance of network effects in new product success. Despite an increase in interest in recent years, there is no comprehensive view on the phenomenon and, therefore, there is currently incomplete understanding of the dimensions it incorporates. Furthermore, there is wide dispersion in operationalization, in other words, the measurement of network effects, and currently available approaches have various shortcomings that limit their applicability, especially in marketing research. Consequently, little is known today about how these products fare on the marketplace and how they should be introduced in order to maximize their chances of success. Hence, the motivation for this study was driven by the need to increase our knowledge and understanding of the nature of network effects as a phenomenon, and of their role in the commercial success of new products. This thesis consists of two parts. The first part comprises a theoretical overview of the relevant literature, and presents the conclusions of the entire study. The second part comprises five complementary, empirical research publications. Quantitative research methods and two sets of quantitative data are utilized. The results of the study suggest that there is a need to update both the conceptualization and the operationalization of the phenomenon of network effects. Furthermore, there is a need for an augmented view on customers’ perceived value in the context of network effects, given that the nature of value composition has major implications for the viability of such products in the marketplace. The role of network effects in new product performance is not as straightforward as suggested in the existing theoretical literature. The overwhelming result of this study is that network effects do not directly influence product success, but rather enhance or suppress the influence of product introduction strategies. The major contribution of this study is in conceptualizing the phenomenon of network effects more comprehensively than has been attempted thus far. The study gives an augmented view of the nature of customer value in network markets, which helps in explaining why some products thrive on these markets whereas others never catch on. Second, the study discusses shortcomings in prior literature in the way it has operationalized network effects, suggesting that these limitations can be overcome in the research design. Third, the study provides some much-needed empirical evidence on how network effects, product introduction strategies, and new product performance are associated. In general terms, this thesis adds to our knowledge of how firms can successfully leverage network effects in product commercialization in order to improve market performance.

Design Aspects of Megawatt-Range Direct-Driven Permanent MagnetWind Generators

Direct-driven permanent magnet synchronous generator is one of the most promising topologies for megawatt-range wind power applications. The rotational speed of the direct-driven generator is very low compared with the traditional electrical machines. The low rotational speed requires high torque to produce megawatt-range power. The special features of the direct-driven generators caused by the low speed and high torque are discussed in this doctoral thesis. Low speed and high torque set high demands on the torque quality. The cogging torque and the load torque ripple must be as low as possible to prevent mechanical failures. In this doctoral thesis, various methods to improve the torque quality are compared with each other. The rotor surface shaping, magnet skew, magnet shaping, and the asymmetrical placement of magnets and stator slots are studied not only by means of torque quality, but also the effects on the electromagnetic performance and manufacturability of the machine are discussed. The heat transfer of the direct-driven generator must be designed to handle the copper losses of the stator winding carrying high current density and to keep the temperature of the magnets low enough. The cooling system of the direct-driven generator applying the doubly radial air cooling with numerous radial cooling ducts was modeled with a lumped-parameter-based thermal network. The performance of the cooling system was discussed during the steady and transient states. The effect of the number and width of radial cooling ducts was explored. The large number of radial cooling ducts drastically increases the impact of the stack end area effects, because the stator stack consists of numerous substacks. The effects of the radial cooling ducts on the effective axial length of the machine were studied by analyzing the crosssection of the machine in the axial direction. The method to compensate the magnet end area leakage was considered. The effect of the cooling ducts and the stack end area effects on the no-load voltages and inductances of the machine were explored by using numerical analysis tools based on the three-dimensional finite element method. The electrical efficiency of the permanent magnet machine with different control methods was estimated analytically over the whole speed and torque range. The electrical efficiencies achieved with the most common control methods were compared with each other. The stator voltage increase caused by the armature reaction was analyzed. The effect of inductance saturation as a function of load current was implemented to the analytical efficiency calculation.

Design of Pulsed Electroacoustic Measurement System for Space Charge Characterisation

Pulsed electroacoustic (PEA) method is a commonly used non-destructive technique for investigating space charges. It has been developed since early 1980s. These days there is continuing interest for better understanding of the influence of space charge on the reliability of solid electrical insulation under high electric field. The PEA method is widely used for space charge profiling for its robust and relatively inexpensive features. The PEA technique relies on a voltage impulse used to temporarily disturb the space charge equilibrium in a dielectric. The acoustic wave is generated by charge movement in the sample and detected by means of a piezoelectric film. The spatial distribution of the space charge is contained within the detected signal. The principle of such a system is already well established, and several kinds of setups have been constructed for different measurement needs. This thesis presents the design of a PEA measurement system as a systems engineering project. The operating principle and some recent developments are summarised. The steps of electrical and mechanical design of the instrument are discussed. A common procedure for measuring space charges is explained and applied to verify the functionality of the system. The measurement system is provided as an additional basic research tool for the Corporate Research Centre of ABB (China) Ltd. It can be used to characterise flat samples with thickness of 0.2–0.5 mm under DC stress. The spatial resolution of the measurement is 20 μm.

Integration in project business : mechanisms for integrating customers and the project network during the life-cycle of industrial projects

This thesis focuses on integration in project business, i.e. how projectbased companies organize their product and process structures when they deliver industrial solutions to their customers. The customers that invest in these solutions run their businesses in different geographical, political and economical environments, which should be acknowledged by the supplier when providing solutions comprising of larger and more complex scopes than previously supplied to these customers. This means that the suppliers are increasing their supply range by taking over some of the activities in the value chain that have traditionally been handled by the customer. In order to be able to provide the functioning solutions, including more engineering hours, technical equipment and a wider project network, a change is needed in the mindset in order to be able to carry out and take the required responsibility that these new approaches bring. For the supplier it is important to be able to integrate technical products, systems and services, but the supplier also needs to have the capabilities to integrate the cross-functional organizations and departments in the project network, the knowledge and information between and within these organizations and departments, along with inputs from the customer into the product and process structures during the lifecycle of the project under development. Hence, the main objective of this thesis is to explore the challenges of integration that industrial projects meet, and based on that, to suggest a concept of how to manage integration in project business by making use of integration mechanisms. Integration is considered the essential process for accomplishing an industrial project, whereas the accomplishment of the industrial project is considered to be the result of the integration. The thesis consists of an extended summary and four papers, that are based on three studies in which integration mechanisms for value creation in industrial project networks and the management of integration in project business have been explored. The research is based on an inductive approach where in particular the design, commissioning and operations functions of industrial projects have been studied, addressing entire project life-cycles. The studies have been conducted in the shipbuilding and power generation industries where the scopes of supply consist of stand-alone equipment, equipment and engineering, and turnkey solutions. These industrial solutions include demanding efforts in engineering and organization. Addressing the calls for more studies on the evolving value chains of integrated solutions, mechanisms for inter- and intra-organizational integration and subsequent value creation in project networks have been explored. The research results in thirteen integration mechanisms and a typology for integration is proposed. Managing integration consists of integrating the project network (the supplier and the sub-suppliers) and the customer (the customer’s business purpose, operations environment and the end-user) into the project by making use of integration mechanisms. The findings bring new insight into research on industrial project business by proposing integration of technology and engineering related elements with elements related to customer oriented business performance in contemporary project environments. Thirteen mechanisms for combining products and the processes needed to deliver projects are described and categorized according to the impact that they have on the management of knowledge and information. These mechanisms directly relate to the performance of the supplier, and consequently to the functioning of the solution that the project provides. This thesis offers ways to promote integration of knowledge and information during the lifecycle of industrial projects, enhancing the development towards innovative solutions in project business.

Aging based maintenance and reinvestment scheduling of electric distribution

The maintenance of electric distribution network is a topical question for distribution system operators because of increasing significance of failure costs. In this dissertation the maintenance practices of the distribution system operators are analyzed and a theory for scheduling maintenance activities and reinvestment of distribution components is created. The scheduling is based on the deterioration of components and the increasing failure rates due to aging. The dynamic programming algorithm is used as a solving method to maintenance problem which is caused by the increasing failure rates of the network. The other impacts of network maintenance like environmental and regulation reasons are not included to the scope of this thesis. Further the tree trimming of the corridors and the major disturbance of the network are not included to the problem optimized in this thesis. For optimizing, four dynamic programming models are presented and the models are tested. Programming is made in VBA-language to the computer. For testing two different kinds of test networks are used. Because electric distribution system operators want to operate with bigger component groups, optimal timing for component groups is also analyzed. A maintenance software package is created to apply the presented theories in practice. An overview of the program is presented.

Exploration and Design of Power-Efficient Networked Many-Core Systems

Multiprocessing is a promising solution to meet the requirements of near future applications. To get full benefit from parallel processing, a manycore system needs efficient, on-chip communication architecture. Networkon- Chip (NoC) is a general purpose communication concept that offers highthroughput, reduced power consumption, and keeps complexity in check by a regular composition of basic building blocks. This thesis presents power efficient communication approaches for networked many-core systems. We address a range of issues being important for designing power-efficient manycore systems at two different levels: the network-level and the router-level. From the network-level point of view, exploiting state-of-the-art concepts such as Globally Asynchronous Locally Synchronous (GALS), Voltage/ Frequency Island (VFI), and 3D Networks-on-Chip approaches may be a solution to the excessive power consumption demanded by today’s and future many-core systems. To this end, a low-cost 3D NoC architecture, based on high-speed GALS-based vertical channels, is proposed to mitigate high peak temperatures, power densities, and area footprints of vertical interconnects in 3D ICs. To further exploit the beneficial feature of a negligible inter-layer distance of 3D ICs, we propose a novel hybridization scheme for inter-layer communication. In addition, an efficient adaptive routing algorithm is presented which enables congestion-aware and reliable communication for the hybridized NoC architecture. An integrated monitoring and management platform on top of this architecture is also developed in order to implement more scalable power optimization techniques. From the router-level perspective, four design styles for implementing power-efficient reconfigurable interfaces in VFI-based NoC systems are proposed. To enhance the utilization of virtual channel buffers and to manage their power consumption, a partial virtual channel sharing method for NoC routers is devised and implemented. Extensive experiments with synthetic and real benchmarks show significant power savings and mitigated hotspots with similar performance compared to latest NoC architectures. The thesis concludes that careful codesigned elements from different network levels enable considerable power savings for many-core systems.

Design of salient pole PM synchronous machines for a vehicle traction application – Analysis and

This doctoral thesis presents a study on the development of a liquid-cooled frame salient pole permanent-magnet-exited traction machine for a four-wheel-driven electric car. The emphasis of the thesis is put on a radial flux machine design in order to achieve a light-weight machine structure for traction applications. The design features combine electromagnetic and thermal design methods, because traction machine operation does not have a strict operating point. Arbitrary load cycles and the flexible supply require special attention in the design process. It is shown that accurate modelling of the machine magnetic state is essential for high-performance operation. The saturation effect related to the cross-saturation has to be taken carefully into account in order to achieve the desired operation. Two prototype machines have been designed and built for testing: one totally enclosed machine with a special magnet module pole arrangement and another through-ventilated machine with a more traditional embedded magnet structure. Both structures are built with magnetically salient structures in order to increase the torque production capability with the reluctance torque component. Both machine structures show potential for traction usage. However, the traditional embedded magnet design turns out to be mechanically the more secure one of these two machine options.

Pipework data in design system integration

This thesis work describes the creation of a pipework data structure for design system integration. Work is completed in pulp and paper plant delivery company with global engineering network operations in mind. User case of process design to 3D pipework design is introduced with influence of subcontracting engineering offices. Company data element list is gathered by using key person interviews and results are processed into a pipework data element list. Inter-company co-operation is completed in standardization association and common standard for pipework data elements is found. As result inter-company created pipework data element list is introduced. Further list usage, development and relations to design software vendors are evaluated.

Energy Efficiency Consideration in Electric Vehicle Transmission

This study is a survey of benefits and drawbacks of embedding a variable gearbox instead of a single reduction gear in electric vehicle powertrain from efficiency point of view. Losses due to a pair of spur gears meshing with involute teeth are modeled on the base of Coulomb’s law and fluid mechanics. The model for a variable gearbox is fulfilled and further employed in a complete vehicle simulation. Simulation model run for a single reduction gear then the results are taken as benchmark for other types of commonly used transmissions. Comparing power consumption, which is obtained from simulation model, shows that the extra load imposed by variable transmission components will shade the benefits of efficient operation of electric motor. The other accomplishment of this study is a combination of modified formulas that led to a new methodology for power loss prediction in gear meshing which is compatible with modern design and manufacturing technology.

Virtual technology and haptic interface solutions for design and control of mobile working machines

Commercially available haptic interfaces are usable for many purposes. However, as generic devices they are not the most suitable for the control of heavy duty mobile working machines like mining machines, container handling equipment and excavators. Alternative mechanical constructions for a haptic controller are presented and analysed. A virtual reality environment (VRE) was built to test the proposed haptic controller mechanisms. Verification of an electric motor emulating a hydraulic pump in the electro-hydraulic system of a mobile working machine is carried out. A real-time simulator using multi-body-dynamics based software with hardware-in-loop (HIL) setup was used for the tests. Recommendations for further development of a haptic controller and emulator electric motor are given.

“Valley co-creation” – exploring the emergence of a cultural product in an entrepreneur-driven value network: Case study: Black Weekend festival

The interconnected domains are attracting interest from industries and academia, although this phenomenon, called ‘convergence’ is not new. Organizational research has indeed focused on uncovering co-creation for manufacturing and the industrial organization, with limited implications to entrepreneurship. Although convergence has been characterized as a process connecting seemingly disparate disciplines, it is argued that these studies tend to leave the creative industries unnoticed. With the art market boom and new forms of collaboration riding past the institution-focused arts marketing literature, this thesis takes a leap to uncover the processes of entrepreneurship in the emergence of a cultural product. As a symbolic work of synergism itself, the thesis combines organizational theory with literature in natural sciences and arts. Assuming nonlinearity, a framework is created for analysing aesthetic experience in an empirical event where network actors are connected to multiple contexts. As the focal case in study, the empirical analysis performed for a music festival organized in a skiing resort in the French Alps in March. The researcher attends the festival and models its cocreation process by enquiring from an artist, festival organisers, and a festival visitor. The findings contribute to fields of entrepreneurship, aesthetics and marketing mainly. It is found that the network actors engage in intimate and creative interaction where activity patterns are interrupted and cultural elements combined. This process is considered to both create and destruct value, through identity building, legitimisation, learning, and access to larger audiences, and it is considered particularly useful for domains where resources are too restrained for conventional marketing practices. This thesis uncovered the role of artists and informants and posits that particularly through experience design, this type of skilled individual be regarded more often as a research informant. Future research is encouraged to engage in convergence by experimenting with different fields and research designs, and it is suggested that future studies could arrive at different descriptive results.

Design and implementation of a peer-to-peer client for device management

The aim of this master’s thesis was to specify a system requiring minimal configuration and providing maximal connectivity in the vein of Skype but for device management purposes. As peer-to-peer applications are pervasive and especially as Skype is known to provide this functionality, the research was focused on these technologies. The resulting specification was a hybrid of a tiered hierarchical network structure and a Kademlia based DHT. A prototype was produced as a proof-of-concept for the hierarchical topology, demonstrating that the specification was feasible.

Performance measurement and management in a collaborative network

This study concerns performance measurement and management in a collaborative network. Collaboration between companies has been increased in recent years due to the turbulent operating environment. The literature shows that there is a need for more comprehensive research on performance measurement in networks and the use of measurement information in their management. This study examines the development process and uses of a performance measurement system supporting performance management in a collaborative network. There are two main research questions: how to design a performance measurement system for a collaborative network and how to manage performance in a collaborative network. The work can be characterised as a qualitative single case study. The empirical data was collected in a Finnish collaborative network, which consists of a leading company and a reseller network. The work is based on five research articles applying various research methods. The research questions are examined at the network level and at the single network partner level. The study contributes to the earlier literature by producing new and deeper understanding of network-level performance measurement and management. A three-step process model is presented to support the performance measurement system design process. The process model has been tested in another collaborative network. The study also examines the factors affecting the process of designing the measurement system. The results show that a participatory development style, network culture, and outside facilitators have a positive effect on the design process. The study increases understanding of how to manage performance in a collaborative network and what kind of uses of performance information can be identified in a collaborative network. The results show that the performance measurement system is an applicable tool to manage the performance of a network. The results reveal that trust and openness increased during the utilisation of the performance measurement system, and operations became more transparent. The study also presents a management model that evaluates the maturity of performance management in a collaborative network. The model is a practical tool that helps to analyse the current stage of the performance management of a collaborative network and to develop it further.

Design and testing of an armature-reaction-compensated permanent magnet synchronous generator for island operation

At present, permanent magnet synchronous generators (PMSGs) are of great interest. Since they do not have electrical excitation losses, the highly efficient, lightweight and compact PMSGs equipped with damper windings work perfectly when connected to a network. However, in island operation, the generator (or parallel generators) alone is responsible for the building up of the network and maintaining its voltage and reactive power level. Thus, in island operation, a PMSG faces very tight constraints, which are difficult to meet, because the flux produced by the permanent magnets (PMs) is constant and the voltage of the generator cannot be controlled. Traditional electrically excited synchronous generators (EESGs) can easily meet these constraints, because the field winding current is controllable. The main drawback of the conventional EESG is the relatively high excitation loss. This doctoral thesis presents a study of an alternative solution termed as a hybrid excitation synchronous generator (HESG). HESGs are a special class of electrical machines, where the total rotor current linkage is produced by the simultaneous action of two different excitation sources: the electrical and permanent magnet (PM) excitation. An overview of the existing HESGs is given. Several HESGs are introduced and compared with the conventional EESG from technical and economic points of view. In the study, the armature-reaction-compensated permanent magnet synchronous generator with alternated current linkages (ARC-PMSG with ACL) showed a better performance than the other options. Therefore, this machine type is studied in more detail. An electromagnetic design and a thermal analysis are presented. To verify the operation principle and the electromagnetic design, a down-sized prototype of 69 kVA apparent power was built. The experimental results are demonstrated and compared with the predicted ones. A prerequisite for an ARC-PMSG with ACL is an even number of pole pairs (p = 2, 4, 6, …) in the machine. Naturally, the HESG technology is not limited to even-pole-pair machines. However, the analysis of machines with p = 3, 5, 7, … becomes more complicated, especially if analytical tools are used, and is outside the scope of this thesis. The contribution of this study is to propose a solution where an ARC-PMSG replaces an EESG in electrical power generation while meeting all the requirements set for generators given for instance by ship classification societies, particularly as regards island operation. The maximum power level when applying the technology studied here is mainly limited by the economy of the machine. The larger the machine is, the smaller is the efficiency benefit. However, it seems that machines up to ten megawatts of power could benefit from the technology. However, in low-power applications, for instance in the 500 kW range, the efficiency increase can be significant.

Mapping the Value Network Potential in Cross-sector Collaboration: Case welfare Services for Elderly in Finland

Value network has been studied greatly in the academic research, but a tool for value network mapping is missing. The objective of this study was to design a tool (process) for value network mapping in cross-sector collaboration. Furthermore, the study addressed a future perspective of collaboration, aiming to map the value network potential. During the study was investigated and pondered how to get the full potential of collaboration, by creating new value in collaboration process. These actions are parts of mapping process proposed in the study. The implementation and testing of the mapping process were realized through a case study of cross-sector collaboration in welfare services for elderly in the Eastern Finland. Key representatives in elderly care from public, private and third sectors were interviewed and a workshop with experts from every sector was also conducted in this regard. The value network mapping process designed in this study consists of specific steps that help managers and experts to understand how to get a complex value network map and how to enhance it. Furthermore, it make easier the understanding of how new value can be created in collaboration process. The map can be used in order to motivate participants to be engaged with responsibility in collaboration and to be fully committed in their interactions. It can be also used as a motivator tool for those organizations that intend to engage in collaboration process. Additionally, value network map is a starting point in many value network analyses. Furthermore, the enhanced value network map can be used as a performance measurement tool in cross-sector collaboration.