Sustainable Development – the Key to Competitiveness CSR as an added value to Alstom’s corporate performance

Corporate social responsibility or CSR is today a widely recognized concept which is receiving in- creasing popularity extremely rapidly, especially in the business world. The pressure on companies to carry out their business practices in ethical manners, which promote the wellbeing of the environment and society, is coming from all directions and all stakeholders. Alstom, a French multinational conglomerate operating in the rail transport and energy industry, is no exception to this norm. This company, which will be used as the case example in this thesis, is being brought to bay in terms of engaging in CSR practices and practicing business with high ethics. It is surely not a negatively conceived phenomenon that CSR is being put on a pedestal – quite the opposite. Instead of corporations practicing CSR only to meet their stakeholder requirements through practicing window dressing, many corporations actually strive to benefit from the practice of corporate social business. In addition to bringing benefit to externals a corporation such as Alstom itself can benefit from being involved in CSR. The purpose of this thesis is to evaluate the current strategic values and the future perspectives of CSR at Alstom and moreover the added value which the practice of CSR could bring Alstom as a business. A set of perspectives from a futures studies viewpoint is looked at, with critical examination of the company’s current corporate practices as well as the CSR related studies and theories written for corporations. Through this, some solutions and practices will be suggested to Alstom in order for it to fully utilize the potential of corporate social business and the value it can bring in the most probable futures that the company is expected to face. By utilizing the Soft Systems Methodology (SSM), a method mainly used in organizations to solve problematic issues in management and policy contexts, a process is developed to see what improvements could be of help in improving Alstom and its way towards involving CSR in its business practices even more than it currently does. Alstom is already deeply involved in the practicing of CSR and its vision has a strong emphasis on this popular concept of today. In order to stay in the game and to use CSR as a competitive advantage to the company, Alstom ought to embed corporate social practices even deeper in its organizational culture by using them as a tool to reduce risk and costs, increasing employee commitment and customer loyalty and to attract socially responsible investors, just to name a few. CSR as a concept is seen to have great potential in the future, an opportunity Alstom will not miss.

Development of modular roll service concepts

The goal of this study was to find and develop new or improved service concepts for rolls in a paper machine and secondary targets were to find out what the KPIs and values of the concepts are. Two methodologies were utilized in researching this problem; firstly sales personnel were interviewed about customer values and KPIs and a questionnaire about service modules were sent out to four BSI (basic sales item) responsible persons. Throughout the research process differences in geographic regions were identified and several customer KPIs and values were discovered. The interviews showed that the main concern for customers is the cost of operations. The goal is to produce the same or in some cases more tons with smaller operating costs. The questionnaire standardized the data about service modules and made it possible to link these values, KPIs and concerns of customers to Valmet’s service offering. Eventually these service modules were used to create a service concepts that offer flexibility, cost savings, safety and peace of mind for the customers. With this new conceptual approach Valmet can more flexibly answer to customer quotations and modify the offering to better generate customer value and customer satisfaction. In addition a new BSI was defined and proposed for pilot projects.

Threat modeling a factory environment using Microsoft Security Development Lifecycle methodology

The number of security violations is increasing and a security breach could have irreversible impacts to business. There are several ways to improve organization security, but some of them may be difficult to comprehend. This thesis demystifies threat modeling as part of secure system development. Threat modeling enables developers to reveal previously undetected security issues from computer systems. It offers a structured approach for organizations to find and address threats against vulnerabilities. When implemented correctly threat modeling will reduce the amount of defects and malicious attempts against the target environment. In this thesis Microsoft Security Development Lifecycle (SDL) is introduced as an effective methodology for reducing defects in the target system. SDL is traditionally meant to be used in software development, principles can be however partially adapted to IT-infrastructure development. Microsoft threat modeling methodology is an important part of SDL and it is utilized in this thesis to find threats from the Acme Corporation’s factory environment. Acme Corporation is used as a pseudonym for a company providing high-technology consumer electronics. Target for threat modeling is the IT-infrastructure of factory’s manufacturing execution system. Microsoft threat modeling methodology utilizes STRIDE –mnemonic and data flow diagrams to find threats. Threat modeling in this thesis returned results that were important for the organization. Acme Corporation now has more comprehensive understanding concerning IT-infrastructure of the manufacturing execution system. On top of vulnerability related results threat modeling provided coherent views of the target system. Subject matter experts from different areas can now agree upon functions and dependencies of the target system. Threat modeling was recognized as a useful activity for improving security.

Innovation, competition and financial vulnerability in economic development

The financial sector has been viewed traditionally as either providing the "oil" for the "wheels of commerce" or as a parasite on the real sector of the economy where real productivity gains provide for increasing real wages and per capita incomes. The present paper takes a different route and attempts to an analysis of financial institutions on a par with the production sector of the economy. It also develops a link which amalgamates "the knowledge-based" perspective on firms' operations with Schumpeterian financial leverage to exploit productivity enhancing innovations, and Minsky's tendency towards financial fragility. The analysis also leads to some policy recommendations concerning financial regulation, risk management and financial institution's building.

Helsinki hub – new traffic flows and business networks

This thesis is the Logistics Development Forum's assignment and the work dealing with the development of the Port of Helsinki as part of Helsinki hub. The Forum aims to develop logistics efficiency through public-private co-operation and development of the port is clearly dependent on both factors. Freight volumes in the Port of Helsinki are the biggest single factor in hub and, therefore, the role of the port of the entire hub development is strong. The aim is to look at how the port will develop as a result of changes in the foreign trade of Finland and the Northern European logistics trends in 25 years time period. Work includes the current state analysis and scenario work. The analyses are intended to find out, which trends are the most important in the port volume development. The change and effect of trends is examined through scenarios based on current state. Based on the work, the structure of Finnish export industry and international demand are in the key role in the port volume development. There is significant difference between demands of Finnish exporting products in different export markets and the development between the markets has different impacts on the port volumes by mass and cargo type. On the other hand, the Finnish economy is stuck in a prolonged recession and competition between ports has become a significant factor in the individual port's volume development. Ecological valuesand regulations have changed the competitive landscape and maritime transport emissions reductions has become an important competitive factor for short routes in the Baltic Sea, such as in the link between Helsinki and Tallinn.

Key factors in U.S. Government support of business internationalization in Finland Case: U.S. Embassy in Helsinki

This study discusses the importance of government intervention for companies and the expansion of national innovation systems. The purpose of the study is to examine the impact which the U.S. Embassy in Helsinki can have on Finnish businesses through their business support programs and events. The embassy has shifted focus in recent years with the creation of an innovation center and increased business services. The study has sub-objectives to discover the critical factors for producing impact, host and home based factor interaction, and effects produced by these initiatives. The theoretical background of the study consists of literature relating to the concepts of national innovation systems and government intervention. The empirical research conduct for this study is based on interviews with experts from the environment surrounding the U.S. Embassy in Helsinki, Finland and participation in embassy events. The data was collected between March 2014 and September 2015. Seven interviews were conducted; five with representatives of the U.S. Embassy and two with related organizations. Thematic analysis was used to categorize and interpret interview and observation data. The use of an impact radar was implemented as a basis for analysis. This study finds that the internationalization of national innovation systems provides interesting opportunities and challenges for national governments. The opportunity to provide services to foreign companies by an embassy in a stable environment opens the possibility to create positive notice and relations with the host country. The increased connections and inputs to the national innovation system of the home country have the potential to increase knowledge absorption and create positive growth. The most effective way for governments to encourage businesses is to create incentives and reduce barriers. The services are best aimed at small to medium sized companies in the early stages of development. The findings of this report suggest that the most critical factors for producing impact on companies are the ability to disseminate information effectively, the ability to create a positive image of the country, the ability to foster effective networks between the two countries, and the ability to facilitate the internationalization of companies. In the best cases, the embassy is able to create incentives to internationalize to the United States and reduce barriers which are encountered by companies. Future research is necessary to fully understand the impact of business services provided by an embassy can have on the political and economic relations of countries, and on particular industry sectors. The institutional setting provided by the embassy’s focus on business relations provides a rich environment for further study in a number of areas.

Developing asset management in district heating and cooling business in a large energy company

The purpose of this Master´s Thesis is to develop asset management and its practices in case company. District heating and cooling systems operated by case company around Finland, Sweden, Poland and the Baltics form an enormous-sized asset base where some parts are starting to reach their end of life-cycles. Large-sized asset renewal actions are under discussion and maintenance spending is increasing. Financially justified decisions in changing business environment are needed. Asset management is one of the most important concepts for production organization which operates with capital-intensive production assets. Organizations profitability is highly dependent on assets´ performance. Such assets, like district heating and cooling systems, should be utilized as efficiently as possible within their life-cycles but also maintained and renewed optimally. In this qualitative thesis, empirical interview study was conducted to describe the current situation on how the assets are managed in the case company and to examine the readiness to implement a new, risk-based solution. Asset management revealed to be a very well-known concept. From proposed risk-based asset management point of view, several key observations were made. It was seen as a suitable solution, but further development will be needed. Based on the need and findings, several key processes and frameworks were created and also tested with a case study. Assets` condition monitoring should be improved, which would have a positive impact on event probability assessment. Risk acceptance is also a thing to be discussed further. When the evaluation becomes fluent in single investment cases, portfolio-level expansion should be considered and started. As a result, thesis proposes a solution how risk-based asset management could be performed practically in a capital-intensive case company in order to optimize the maintenance spending in a long run. Created practical framework is made universal: similar principles can be applied into multiple cases in case company but also in other energy companies. Risk-based asset management`s benefits could be utilized best in portfolio-level optimization where the capital would be invested to the most important objects from total risk point of view. Eventually, such approach would allow case company to optimize capital spending in a situation where funds are not adequate to cover all the mandatory needs and prioritization between the investment alternatives will truly be needed.

Business Intelligence Competency Centerin perustaminen: Case LähiTapiola

Tässä diplomityössä selvitetään case-tutkimuksena parhaita käytäntöjä Business Intelligence Competency Centerin (BICC) eli liiketoimintatiedonhallinnan osaamiskeskuksen perustamiseen. Työ tehdään LähiTapiolalle, jossa on haasteita BI-alueen hallinnoinnissa kehittämisen hajaantuessa eri yksiköihin ja yhtiöihin. Myös järjestelmäympäristö on moninainen. BICC:llä tavoitellaan parempaa näkyvyyttä liiketoiminnan tarpeisiin ja toisaalta halutaan tehostaa tiedon hyödyntämistä johtamisessa sekä operatiivisen tason työskentelyssä. Tavoitteena on lisäksi saada kustannuksia pienemmäksi yhtenäistämällä järjestelmäympäristöjä ja BI-työkaluja kuten myös toimintamalleja. Työssä tehdään kirjallisuuskatsaus ja haastatellaan asiantuntijoita kolmessa yrityksessä. Tutkimuksen perusteella voidaan todeta, että liiketoiminnan BI-tarpeita kannattaa mahdollistaa eri tasoilla perusraportoinnista Ad-hoc –raportointiin ja edistyneeseen analytiikkaan huomioimalla nämä toimintamalleissa ja järjestelmäarkkitehtuurissa. BICC:n perustamisessa liiketoimintatarpeisiin vastaaminen on etusijalla.

Developing cost of poor quality calculations with emphasis on business impact

The main aim of this research was to develop cost of poor quality calculation model which will better reflect business impacts of lost productivity caused by IT incidents for the case company. This objective was pursued by reviewing literature and conducting a study in a Finnish multinational manufacturing company. Broad analysis of the scientific literature allowed to identify main theories and models of Cost of Poor Quality and provided better base for development of measurements of business impacts of lost productivity. Empirical data was gathered with semi-structured interviews and internet based survey. In total, twelve interviews with experts and 39 survey results from business stakeholders were gathered. Main results of empirical study helped to develop the measurement model of cost of poor quality and it was tied to incident priority matrix. Nevertheless, the model was created based on available data. Main conclusions of the thesis were that cost of poor quality measurements could be even further improved if additional data points could be used. New model takes into consideration different cost regions and utilizes on this notion.

Managing Finnish-Russian Business Relationships and Networks During Conflicts

This thesis examines management of business relationships during conflicts. The context of this study is the international political conflict which started in 2013 and is still affecting international trade relations in 2016. More specifically, this study researches the effects of the conflict in Finnish-Russian trade. The research aim is to identify the implications of a political conflict in the Finnish-Russian business relationships and networks. Furthermore, the study will explore how does a company adapt or overcome the challenges and barriers posed by the international business environment. This research combines relevant theories in management of business relationships and networks in order to review the research data through a critical research frame. The theoretical frameworks are different structures of business relationship development processes, various stages of interaction, and characteristics and functions of business relationships. Moreover, this study will examine the effect of interdependency, commitment and trust in trade relations. Also, what are the important exchange processes and how do these processes affect business relationship and overall performance of joint business operations. Qualitative single case study method was used in this research. Case company was a Finnish multinational company. To understand the changes, the data was collected and analysed through process research approach by pattern-matching and drawing temporal bracketing over two different periods of time, first period in years 2011-2013 and second period in years 2014-2016. Empirical data was collected through a semi-structured interview and additional data was collected from internal and external secondary data sources. The findings of the study confirmed the relationship between trade and conflict. However, the effects are not significant for a company in grocery retail industry which has had earlier experience in Russia and has managed its business relationships and operations effectively. Macroeconomic factors affect companies operating in foreign dynamic markets and in order to sustain changes and to adapt, companies should invest in their business relationships. Trust-based relationships and a higher level of commitment allow companies to have more efficient and beneficial outcomes before and during uncertainty. Furthermore, well-maintained and coordinated business relationships provide the ability to adapt and overcome challenges during uncertainty. Such relationships have information, financial and social exchange processes which allow the partnering firms to have successful business relationship management in dynamic market environments.

Opportunity meets uncertainty. Towards sustainable business in the Arctic region

The Arctic region is experiencing a significant change in terms of climate change and a growing economic interest towards its natural resources and emerging business opportunities. The purpose of this study is to explore how can Finnish companies create sustainable business in the Arctic. This is done by examining the arctic business environment, identifying sectors with growth potential, addressing challenges related to operating in the Arctic and suggesting how to ensure sustainability and succeed in the globally competed arctic market. The theoretical framework is based on theories of sustainable development, corporate social responsibility and the role of strategy in creating sustainable business. Empirical data was collected by using qualitative research methods: first, background knowledge was formed based on written documents and, secondly, six expert interviews were conducted in early 2014. The interviewees represented the viewpoints of companies, political decision makers and NGO’s. The analysis of the data was conducted using thematic categorization. The empirical findings of the study suggest that in order to create sustainable business in the Arctic companies should adopt a long-term perspective, embrace a holistic approach to sustainability, understand interdependencies between the dimensions of sustainability and aim at high-level engagement in responsible behavior. To succeed in the arctic market core competencies, customer needs, multivendor cooperation and long-term presence need to be invested in on a company level. In addition, to promote and advance arctic development on a national level support is needed in terms of investments in infrastructure, funding research and design, creating a regulative framework and removing barriers of trade.

Business modeling in turbulent environments

This study presents an agile tool set for the business modeling in companies, entering the turbulent environment. The study’s aim is to explore business modeling techniques and their tooling by utilizing a case study of a Finnish media monitoring company, expanding to the Russian market. This work proposes a tailored “two-approach” of business modeling development that analyzes both the past and future conditions of two key factors of business modeling for companies – internal and external environments. The study explores a case company by investigating the benefits and disadvantages of firm’s present business modeling tools, developing a new tooling and applying it to the case company. Among primary data utilization, such as interviews with media monitoring industry analysts and representatives of the competing companies, and academic experts, study leans up on the comprehensive analysis of Russian media monitoring niche and its players. This study benefits the business modeling research area and combines traditional analysis tools, such as market, PESTLE and competitor analyses, in a systemic manner, with the business modeling techniques. This transformation proceeds through applying of the integrated scenario, heat map and critical design issues’ analyses in the societal, industrial and competitive context of turbulent environments. The practical outcome of this approach is the development of agile business modeling tool set, customizable by company’s requirements.

Business leadership in the classroom

This action research assesses a framework that assists business educators in promoting leadership within a classroom. It is designed to better prepare students to assume leadership and fill the "leadership gap" in business. Two classes of 2nd-year community college business students participated in running and managing their own business community as teams of sales professionals by developing and practicing their own individual leadership for 28 weeks during their sales courses. The intent was to assess the development of leadership resulting from the implementation of the "Business Leadership in the Classroom" framework. This framework balances leadership principles to simulate a business environment with the practical elements of a learning community under the facilitation of an experienced business educator. The action research approach was used to assess and adjust approaches to business leadership on a continuous basis throughout the research. Data were collected from 61 students based on journals, surveys, peer group reviews, and my (facilitator) reflective journal.The findings reveal that both individual and collective business leadership views and practical skills developed over time. A business leadership mind-set evolved that ranged from a general awareness of the importance of leadership, to a conscious and deliberate use of individual leadership. Areas important in building a progression of leadership included: leadership teams, membership roles, weekly leadership teams, peer feedback, and activity-based learning. Emerging themes included leadership, leadership style, teamwork, as well as influence and motivation. The research framework was effective in supporting the development of business leadership but required some adjustments. These included increased structure and feedback mechanisms. Interpretation of the findings demonstrates the importance of real-world practical education in the classroom. Results show how focusing on a single mind-set such as business leadership, can result in enormous individual growth and development. When business students are encouraged to act as real businesspeople, managing their own learning, the results are effective in preparing them for the business world. All participants expressed their leadership in different ways based on personality and individual strengths. There was an overwhelming and, in some cases, passionate interest in leadership. The use of action research with a range of data collection methods provides a way to measure and track individual student learning and to generate adjustments to the research framework design and learning approaches. The findings generate implications and recommendations to continue this research further. Key recommendations center around how to ensure leadership development is sustained, including improved approaches to heighten the real-world feel of the classroom. Specifically, the use of leadership goals and action plans for each individual participant and an active use of outside business resource people as contacts for participants is recommended.

Wireless privacy and personalized location-based services: the challenge of translating the legal framework into business practices

L'avancement des communications sans-fil permet l'obtention de nouveaux services bases sur l'habileté des fournisseurs de services sans-fil à déterminer avec précision, et avec l'utilisation de technologies de pistage, la localisation et position géographiquement d'appareils sans-fil Cette habileté permet d'offrir aux utilisateurs de sans-fil de nouveaux services bases sur la localisation et la position géographique de leur appareil. Le développement des services basés sur la localisation des utilisateurs de sans-fil soulevé certains problèmes relatifs à la protection de la vie privée qui doivent être considérés. En effet, l'appareil sans-fil qui suit et enregistre les mouvements de I 'utilisateur permet un système qui enregistre et entrepose tous les mouvements et activités d'un tel utilisateur ou encore qui permet l'envoi de messages non anticipes à ce dernier. Pour ce motif et afin de protéger la vie privée des utilisateurs de sans-fil, une compagnie désirant développer ou déployer une technologie permettant d'offrir ce genre de services personnalisés devra analyser l'encadrement légal touchant la protection des données personnelles--lequel est dans certains cas vague et non approprié à ce nouveau contexte--ainsi que la position de l'industrie dans ce domaine, et ce, afin d'être en mesure de traduire cet encadrement en pratiques commerciales. Cette analyse permettra d'éclairer le fournisseur de ces services sur la façon d'établir son modèle d'affaires et sur le type de technologie à développer afin d'être en mesure de remédier aux nouveaux problèmes touchant la vie privée tout en offrant ces nouveaux services aux utilisateurs de sans-fil.

Research Ethics and Commercial Drug Development: When Integrity Threatens Profitability

Étude de cas / Case study