Towards a Strategic Sales Channel Partnership: A Case Study from the IT Services Industry

Strategic partnerships have become a key to competitive advantage and success in a dynamic, global business environment. Partnering provides a strategic response to complex offerings that need multiple sources of technology and knowledge, allowing companies to offer a wider range of services and solutions to meet their customers’ needs. Companies that collaborate with strategic partners in sales channels may significantly grow their business and improve their prospects of winning major contracts. As a consequence, companies are increasingly transforming their go-to-market strategies and sales channel structures to align with the need to create added value to customers together with a business partner. The research objective of this case study is to review and assess the success of an established sales channel partnership in IT services industry and to find ways how to develop it towards a strategic collaboration. The research consists of two main parts. The first part reviews the literature, concluding with the identification of the critical success factors for partnering. The second part sets out for the case findings, focusing on how the success of the established sales channel partnership is perceived by key executives within the partner organizations, and further what actions are required to make the sales channel partnership and joint go-to-market more strategic.

Assessing the Environmental Value of Water Treatment Solutions in the Mining Industry

Environmental accountability has become a major source of competitive advantage for industrial companies, because customers consider it as relevant buying criterion. However, in order to leverage their environmental responsibility, industrial suppliers have to be able to demonstrate the environmental value of their products and services, which is also the aim of Kemira, a global water chemistry company considered in this study. The aim of this thesis is to develop a tool which Kemira can use to assess the environmental value of their solutions for the customer companies in mining industry. This study answers to questions on what kinds of methods to assess environmental impacts exist, and what kind of tool could be used to assess the environmental value of Kemira’s water treatment solutions. The environmental impacts of mining activities vary greatly between different mines. Generally the major impacts include the water related issues and wastes. Energy consumption is also a significant environmental aspect. Water related issues include water consumption and impacts in water quality. There are several methods to assess environmental impacts, for example life cycle assessment, eco-efficiency tools, footprint calculations and process simulation. In addition the corresponding financial value may be estimated utilizing monetary assessment methods. Some of the industrial companies considered in the analysis of industry best practices use environmental and sustainability assessments. Based on the theoretical research and conducted interviews, an Excel based tool utilizing reference data on previous customer cases and customer specific test results was considered to be most suitable to assess the environmental value of Kemira’s solutions. The tool can be used to demonstrate the functionality of Kemira’s solutions in customers’ processes, their impacts in other process parameters and their environmental and financial aspects. In the future, the tool may be applied to fit also Kemira’s other segments, not only mining industry.

Application of social media and ICT-tools in new and small business ventures.

The current research emphasizes on various questions raised and deliberated upon by different entrepreneurs. It provides a valuable contribution to comprehend the importance of social media and ICT-applications. Furthermore, it demonstrates how to support and implement the management consulting and business coaching start-ups with the help of social media and ICT-tools. The thesis presents a literary review from different information systems science, SME and e-business journals, web articles, as well as, survey analysis reports on social media applications. The methodology incorporated into a qualitative research method in which social anthropological approaches were used to oversee the case study activities in order to collect data. The collaborative social research approach was used to shelter the action research method. The research discovered that new business start-ups, as well as small businesses do not use social media and ICT-tools, unlike most of the large corporations use. At present, the current open-source ICT-technologies and social media applications are equally available for new and small businesses as they are available for larger companies. Successful implementation of social media and ICT-applications can easily enhance start-up performance and overcome business hassles. The thesis sheds some light on effective and innovative implementation of social media and ICT-applications for new business risk takers and small business birds. Key words

Subjectivity in the valuation : Case study on the Finnish biotechnology industry

The thesis combines valuation and behavioral economics literature, which is not common among the Finnish management accounting research. Furthermore, the valuation is studied in biotechnology context and those type of studies are rather rare as well. The thesis studies the valuation in the Finnish biotechnology industry. The concepts of behavioral finance are employed in the empirical part of the study to explore decision-makers’ behavior in valuation processes. The main interest of this study is to explore how subjectivity of a decision-maker affects the valuation in the biotechnology industry. The valuation is studied from two perspectives. First, what is the best valuation model for biotechnology companies suggested by the valuation literature? Second, how the valuation in biotechnology industry is done in practice and how the decision-makers subjectivity affects the valuation? The literature review aims at seeking the best valuation model. The real options were found to be the most suitable valuation model for biotechnology companies, especially in the early stages of product development. The real option’s ability to take the value of the inherent options into account results in theoretically most correct valuations. The only disadvantage is the model’s complexity when compared to other models, such as discounted cash flow models. The empirical part of the study consists of a case study, which examines the valuation practices of the Finnish biotechnology companies. When it comes to the valuation models used in practice, it was found that the companies were using rather simple valuation models, which was due to two reasons. First, the interviewees did not believe in the valuation models and second, they were familiar neither with the most sophisticated models nor with all the theoretical aspects of the models they were using. The material for the study was collected with theme interviews. Four CEO’s of highly successful Finnish biotechnology companies. Strong signs of the decision-makers’ subjectivity in valuation were observed. Most obvious were the signs of framing. Furthermore, herding, excessive optimism, and overconfidence were present. All the behavioral concepts observed most likely have a severe effect on the valuation. As a result, the valuation can easily become overly optimistic, which leads to overvalued investments and to continuation of already unprofitable projects. Framing had the strongest evidence. If the product being valued is framed successfully, the risk of overvaluation is high, thus a strong belief can justify almost any value.

Strategic outsourcing of R&D: The location-specific advantages of India to the pharmaceutical industry

Companies are increasingly under pressure to be more efficient both in terms of costs and overall performance and thus, they seek new ways to develop their products and innovate. For pharmaceutical industry it can take several decades to launch a new drug to the markets. Since pharmaceutical industry is one of the most research-intensive industries, is outsourcing one way to enhance the R&D processes of such companies. It is said that outsourcing to offshore locations is vastly more challenging and complicated than any other exporting activity or inter-company relationship that has evoked a lot of discussion. By outsourcing strategically, companies must also thoroughly focus on transaction costs and core competences. Today, the suppliers are looked for beyond national boundaries and furthermore, the location of the outsourcing activity must also be thoroughly considered. Consequently, the purpose of this study is to analyze what is known of strategic outsourcing of pharmaceutical R&D to India. In order to meet the purpose of the study, this study tries to answer three sub-questions set to it: first, what is strategic outsourcing, second, why pharmaceutical companies utilize strategic outsourcing of R&D and last, why pharmaceutical companies select India as the location for outsourcing their R&D. The study is a qualitative study. The purpose of the study was approached by a literature review with systematic elements and sub-questions were analyzed through different relevant theories, such as theory of transaction costs, core competences and location advantages. Applicable academic journal articles were comprehensively included in the study. The data was collected from electronic journal article databases using key words and almost only peer-reviewed, as new as possible articles were included. Also both the reference list of the included articles and article recommendations from professionals generated more articles for inclusion. The data was analyzed through thematization that resulted in themes that illuminate the purpose of the study and sub-questions. As an outcome of the analysis, each of the theory chapters in the study represents one sub-question. The literature used in this study revealed that strategic outsourcing of R&D is increasingly used in pharmaceutical industry and the major motives to practice it has to do with lowering costs, accessing skilled labor, resources and knowledge and enhancing their quality while speeding up the introduction of new drugs. Mainly for the above-mentioned motives India is frequently chosen as the target location for pharma outsourcers. Still, the literature is somewhat incomplete in this complex phenomenon and more research is needed.

Translational research : pharmaceutical industry view

Translationaalinen lääketutkimus ja -kehitys.

Observations of Industry Momentum Effect in European Equity Indices

This thesis examines the existence and nature of momentum effect in European equity indices. A set of predefined indicators is used to compose momentum portfolios and different holding periods are used to test the strategies over variable time periods as well as under different economical conditions. The data consists of daily closing prices of STOXX Europe 600 index and its 18 super sector indices. Over the study period we follow the performances of a long position in the Winner portfolio, a position in the market neutral zero-cost portfolio and also a position in the risk-controlled zero-cost portfolio. The investment ratio of the risk-controlled zero-cost portfolio is negatively correlated with the realized market volatility. The results show that momentum effect is present in European industries and is most prominent in the short-term. Indicators that are based on short-term performance tend predict the over- and underperformers for the 1-month holding period more reliably than any other indicator/holding period combination. The examination of the strategies under different economical conditions shows that the market neutral approach can create significant returns in times of recession but in times of economic boom the long position in Winner portfolio outperforms the market neutral portfolio by an extensive margin.

Analysis of value drivers behind CRM adoption projects in financial services industry

This research is focused on deriving framework for the value thought for from the Customer Relationship Management system adopted by an enterprise operating in the financial services industry. It will analyze existing academic work to derive a conceptual value model, while applying secondary industry specific case studies provided by the CRM vendors to check the validity and commonality of these drivers. Furthermore this work locates the variances and correlation between value thought for from CRM system, scope of enterprise operations and size of the enterprise.

Developing customer need based services in personal security service industry

The purpose of this thesis is to examine how services can be developed and how the voice of the customer can be incorporated to the strategic planning of services. Furthermore, the objective is to investigate the methods of customer need analysis and service bundling. The data is collected from secondary and primary sources by reviewing the existing academic literature and by conducting in-depth interviews and surveys. The main findings of this research indicate that the service development in personal security service industry should be conducted through a formalized process and the process should begin with setting the strategic objectives. Moreover, the voice of the customer should be incorporated into all stages of the development process, especially into the front-end of the process. Furthermore, the information on customer needs should be gathered in a manner tailored for the purposes of service development.

The Finnish it industries in transition. Defining and Measuring the Finnish Software Product and IT Services Industries by Applying Theoretical Frameworks

The starting point of this study is that the prevailing way to consider the Finnish IT industries and industry information often results in a limited and even skewed picture of the sector. The purpose of the study is to contribute and increase knowledge and understanding of the status, structure and evolution of the Finnish IT industries as well as the Finnish IT vendor field and competition. The focus is on software product and IT services industries which form a crucial part of all ICT industries. This study examines the Finnish IT sector from production (supply) as well as market (demand) perspective. The study is based on empirical information from multiple sources. Three research questions were formulated for the study. The first concerns the status of the Finnish IT industries considered by applying theoretical frameworks. The second research question targets at the basis for the future evolution of the Finnish IT industries and, finally, the third at the ability of the available definitions and indicators to describe the Finnish IT industries and IT markets. Major structural changes like technological changes and related innovations, globalization and new business models are drivers of the evolution of the IT industries. The findings of this study emphasize the significant role of IT services in the Finnish IT sector and in connection to that the ability to combine IT service skills, competences and practices with high level software skills also in the future. According to the study the Finnish IT enterprises and their customers have become increasingly dependent on global ecosystems and platforms, applications and IT services provided by global vendors. As a result, more IT decisions are made outside Finland. In addition, IT companies are facing new competition from other than IT industries bringing into market new substitutes. To respond to the new competition, IT firms seek growth by expanding beyond their traditional markets.. The changing global division of labor accentuates the need for accurate information of the IT sector but, at the same time, also makes it increasingly challenging to acquire the information needed. One of the main contributions of this study is to provide frameworks for describing the Finnish IT sector and its evolution. These frameworks help combine empirical information from various sources and make it easier to concretize the structures, volumes, relationships and interaction of both, the production and market side of the Finnish IT industry. Some frameworks provide tools to analyze the vendor field, competition and the basis for the future evolution of the IT industries. The observations of the study support the argument that static industry definitions and related classifications do not serve the information needs in dynamic industries, such as the IT industries. One of the main messages of this study is to emphasize the importance of understanding the definitions and starting points of different information sources. Simultaneously, in the structure and evolution of Finnish IT industries the number of employees has become a more valid and reliable measure than the revenue based indicators.

The demand for global student talent: Capitalizing on the value of university-industry collaboration

The university sector in Europe has invested money and effort into the internationalization of higher education. The benefits of internationalizing higher education are fuelled by changing global values, choices and practices. However, arguments that serve the internationalization of higher education tend to stress either local organizational or individual interests; seldom do they emphasize the societal benefits. This dissertation investigates how collaboration between university and industry facilitates a shift in thinking about attracting and retaining global student talent, in terms of co-creating solutions to benefit the development of our knowledge society. The macro-structures of the higher education sector have the tendency to overemphasize quantitative goals to improve performance verifiability. Recruitment of international student talent is thereby turned into a mere supply issue. A mind shift is needed to rethink the efficacy of the higher education sector with regard to retaining foreign student talent as a means of contributing to society’s stock of knowledge and through that to economic growth. This thesis argues that academic as well as industrial understanding of the value of university-industry collaboration might then move beyond the current narrow expectations and perceptions of the university’s contribution to society’s innovation systems. This mind shift is needed to encourage and generate creative opportunities for university-industry partnerships to develop sustainable solutions for successful recruitment of foreign student talent, and thereby to maximize the wealth-creating potential of global student talent recruitment. This thesis demonstrates through the use of interpretive and participatory methods, how it is possible to reveal new and important insights into university-industry partnering for enhancing attraction and retention of global student talent. It accomplishes this by expressly pointing out the central role of human collaborative experiencing and learning. The narratives presented take the reader into a Finnish and Dutch universityindustry partnering environment to reflect on the relationship between the local universities of technology and their operational surroundings, a relationship that is set in a context of local and global entanglements and challenges.

Pirkanmaan ICT-alan ennakointiselvitys

Marketvisio on laatinut Pirkanmaan TE-keskuksen toimeksiannosta Pirkanmaan ICT-alan (informaatio- ja tietoliikenneteknologia) ennakointiselvityksen, jonka keskeisinä tavoitteina on tukea suunnitteilla olevan Pirkanmaan ICT-strategian rakentamista. Tässä ennakointiselvityksessä kuvataan alueellisen ICT-klusterin nykytilaa sekä keskeisiä muutostrendejä vaikutuksineen. Erityinen painoarvo on annettu trendeille, jotka vaikuttavat pirkanmaalaisten ICT-toimittajien suurimpiin asiakasyrityksiin. Erikseen selvityksessä arvioidaan erilaisten julkisten toimijoiden ja niiden rahoittamien verkostojen ja ohjelmien toimivuutta yritysten näkökulmasta. Lopussa luodaan katsaus ICT-alan työvoima- ja osaamistarpeisiin 10-20 vuoden horisontilla. Marketvision esittämät näkemykset perustuvat paitsi kirjallisiin lähteisiin ml. kansainvälisen tutkimusyhtiö Gartnerin tutkimustuloksiin myös syksyllä 2009 tehtyihin henkilökohtaisiin haastatteluihin sekä erikseen toteutettuihin verkkokyselyihin. Nokian toiminta ja vahva läsnäolo Tampereella on vaikuttanut voimakkaasti Pirkanmaan alueen ICT-klusteriin. Tulevaisuudessa telecom-klusterin suhteellinen merkitys alueella kuitenkin todennäköisesti laskee. Toinen suuri alaa koskeva muutos on kansainvälistyminen ja työnjaon globaalit muutokset. Pirkanmaalaisten ICT-yritysten asiakkaat siirtävät ohjelmistoalustoja, ohjelmistoalihankintaa sekä perustuotantoansa halvemman tuotantotason maihin - Suomen ja Pirkanmaan kustannustasolla ei kaikkea työtä enää voida täällä tehdä. Kustannustehokkuus tulee edelleen kasvattamaan rooliaan ja samalla myös osaamisvaatimukset muuttuvat. IT-yritysten roolin muuttuessa on löydettävä uusia toiminta-alueita sekä sopeuduttava uusiin tuotantotapoihin. ICT-yritysten tulevaisuuden toiminnan pääpainoalueina ovat asiakkuuden hoito ja palveluliiketoiminta. Lisäksi verkostoituminen muiden suomalaisten sekä kansainvälisten kumppanien kanssa on yhä tärkeämpää. Ennakointiselvityksessä identifioitiin keskeisiä yhteiskunnallisia ja teknologisia trendejä, jotka tulevat vaikuttamaan Pirkanmaan ICT-klusterin tulevaisuuteen. Vaikutukset toteutuvat lähinnä muutoksina eri asiakasalueiden vaatimuksissa ja tarpeissa sekä toisaalta muuttuneena kilpailutilanteena. Lisäksi ICT-palveluiden tuotantomahdollisuuksissa ja näihin liittyvissä teknologisissa vaihtoehdoissa tullaan kokemaan radikaaleja, nopeasti toteutuvia muutoksia. Eräänä keskeisenä johtopäätöksenä ennakointiselvityksessä on se, että ICT on mukana kaikessa mitä teemme lähitulevaisuudessa, mutta yhä harvemmin se on yksinään merkityksellistä. Tämän vuoksi puhtaasti ICT:n ympärille on Pirkanmaallakin vaarallista perustaa liiketoimintaa ja onnistuneet liikeideat syntyvät usein ICT:n yhdistämisestä muihin aloihin. Perusongelma monilla alkuvaiheen ICT-yrityksillä onkin kontaktien puute ICT-alan ulkopuolelle. Monet yritykset ovat edelleen hyvin teknologiakeskeisiä ja etäällä lopullisten asiakkaiden tarpeista. Teknologiaosaamisen rinnalle olisi ensiarvoisen tärkeää rakentaa vahva ymmärrys asiakkaista ja heitä houkuttelevista tuote- ja palvelukonsepteista. Tulevaisuudessa tuoteja palvelukonseptien ja ideoiden laatu on ainoa kestävä menestystekijä, kun erityisesti massatuotteiden tuottaminen voidaan tehdä halvemman työvoiman maissa. Erilaiset yhteistyömallit, partneroituminen ja kyky toimia ketterästi monimutkaisissa verkostoissa ja modulaaristen tuotteiden kanssa ovat tärkeitä ydinkyvykkyyksiä pirkanmaalaisille ICT-yrityksille, joiden täytyy yhdistää palvelunsa ja tuotteensa muihin komponentteihin osana suurempaa arvoketjua. Pienikin pirkanmaalainen yritys voi toimia tehokkaasti hyvin toimivassa arvoverkossa, mutta yksin on yhä vaikeampaa ja vaikeampaa tuottaa menestyviä tuotteita ja palveluita.

The marketing communications industry in flux: Large B2C advertisers’ viewpoint

The recent digitization, fragmentation of the media landscape and consumers’ changing media behavior are all changes that have had drastic effects on creating marketing communications. In order to create effective marketing communications large advertisers are now co-operating with a variety of marketing communications companies. The purpose of the study is to understand how advertisers perceive these different companies and more importantly how do advertisers expect their roles to change in the future as the media landscape continues to evolve. Especially the changing roles of advertising agencies and media agencies are examined as they are at the moment the most relevant partners of the advertisers. However, the research is conducted from a network perspective rather than focusing on single actors of the marketing communications industry network. The research was conducted using a qualitative theme interview method. The empirical data was gathered by interviewing representatives from nine of the 50 largest Finnish advertisers measured by media spending. Thus, the research was conducted solely from large B2C advertisers’ perspective while the views of their other relevant actors of the network were left unexplored. The interviewees were chosen with a focus on variety of points of view. The analytical framework that was used to analyze the gathered data was built the IMP group’s industrial network model that consists of actors, their resources and activities. As technology driven media landscape fragmentation and consumers’ changing media behavior continue to increase the complexity of creating marketing communications, advertisers are going to need to rely on a growing number of partnerships as they see that the current actors of the network will not be able to widen their expertise to answer to these new needs. The advertisers expect to form new partnerships with actors that are more specialized and able to react and produce activities more quickly than at the moment. Thus, new smaller and more agile actors with looser structures are going to appear to fill these new needs. Therefore, the need of co-operation between the actors is going to become more important. These changes pose the biggest threat for traditional advertising agencies as they were seen as being most unable to cope with the ongoing change. Media agencies are in a more favorable position for remaining relevant for the advertisers as they will be able to justify their activities and provided value by leveraging their data handling abilities. In general the advertisers expect to be working with a limited number of close actors and in addition having a network of smaller actors, which are used on a more ad hoc basis.