Industrial solution business – transition from product to solution offering

The business logic in the manufacturing industry has changed in the 21st century. In the current industrial market, manufacturers are driven to provide more comprehensive offerings that go beyond the traditional product-orientation by providing capacity and availability for their customers. From incidental merchandise, services have become the core of manufacturers’ offerings with long-lasting service agreements over the life-cycles of their products. This change is driven both by the need of providers to grow and gain competitive advantage and by increased customer demand caused by customers’ outsourcing trends. The three key drivers for manufacturers’ service strategies are outsourcing trends, saturation of the installed base, and commoditization in product markets. Thus, manufacturers focus on providing industrial solutions which are delivered through relational processes with customers by using solution-driven business models. In the management of marketing activities, this can be regarded as closer customer relationships, service-dominant business logic, and collaboration in solving customers’ problems. However, there are few studies on comprehensive conceptualizations of a solution offering that include different elements and their roles, especially in the context of capital goods industry. Also the transition process needs further studies in a real life context. This study explores the transition process of an industrial company from product to solution business and, as an aid to managing the solution business, explicates the structure and management of an industrial solution offering. There are two themes, the industrial transition process and industrial solution offering. Regarding the industrial transition process, the aim is to understand the supplier view on the process and its execution and to determine the challenges related to the transition process. The industrial solution offering is discussed by its elements and characteristics, as well as management. Furthermore, a special type of build-own-operate-transfer business model is presented and its suitability in the industrial context analyzed. The study includes findings achieved by qualitative methods and from four case companies. Based on the results, it is tentatively suggested that in the industrial solution business, the transition from product to solution business is not a linear project but an evolving process that varies according to customer needs, which suggests that companies need to possess an ability to develop new business models for different customer needs. The industrial solution offering is dynamic as it evolves in collaboration according to the prevailing and latent customer needs, which suggest restructuring of the organization from a product-centric to a customer-centric one. Furthermore, based on the findings, the concept of industrial solutions is defined as an ongoing relational process to satisfy a customer’s particular business or operational requirements, and the concept of industrial solution offering as an entity comprising the customized goods, services, collaboration, and finance needed to fulfill the industrial solution. Finally, the study offers several managerial implications for industrial managers involved in the transition and management of the solution business and its offering.

Toimintolaskennan hyödyntäminen kalustealan yrityksessä

Tämän tutkimuksen tavoitteena oli laatia kohdeyrityksen käyttöön toimintolaskentamalli, joka käsittää yrityksen kahden tehtaan kaikki tuotantolinjat. Toimintolaskennan ohella tarkasteltiin myös kapeikkoajattelun tuomia näkökulmia yrityksen toiminnan kannattavuuden analysointiin. Tutkimuksen kohdeyritys toimii kiintokalustealalla ja sijoittuu kooltaan PK-luokkaan. Diplomityö koostuu kahdesta osasta; kirjallisuuden pohjalta laaditusta teoriatutkimuksesta sekä teorian pohjalta konstruktiivisesti muodostetusta empiirisestä osuudesta, jossa rakennetaan toimintolaskentamalli kohdeyrityksen käyttöön. Tutkimuksen teoriaosa käsittelee erityisesti toimintolaskennan rakennetta sekä laskentamallin luomista. Lisäksi teoriaosassa käsitellään myös kapeikkoajattelun mukaiset laskentamallit yrityksen toiminnan kannattavuuteen. Empiirisessä osassa laaditaan teoriaan perustuva toimintolaskentamalli yrityksen tuotantolinjoista. Tutkimuksen tuloksena laadittu yrityksen tietojärjestelmistä saatuihin tietoihin pohjautuva laskentamalli käsittää tuotantotoiminnan resurssit, resurssiajurit, toiminnot, toimintoajurit sekä laskentamallin laskentakohteet. Laskentamalli huomioi myös kapeikkoajattelun näkökulmat kapeikon hyödyntämisen maksimoinnista. Yritys voi käyttää laadittua laskentamallia toiminnan analysointiin kannattavuutta tuote-, tuoteryhmä-, toiminto-, tuotantolinja-, asiakas-, ja asiakasryhmätasoilla. Tulosten pohjalta voidaan päätellä toimintolaskennan ja kapeikkolaskennan tuovan käyttökelpoisia tuloksia, joita voidaan käyttää toiminnan tehostamisessa ja tuotehinnoittelussa päätöksenteon tukena.

Kestävä liiketoiminta kansainvälisessä sopimusvalmistuksessa: Case Nike

Tässä kandidaatintyössä esitellään kestävään kehitykseen, yritysten sosiaaliseen vastuuseen sekä sopimusvalmistukseen liittyvää teoriaa ja sovelletaan sitä tämän jälkeen case -yritys Niken toiminnan tutkimiseen ja arviointiin. Työn tavoitteena on muodostaa selkeä kuva Niken toiminnasta yritysvastuullisuuden sekä kestävän kehityksen hyväksi ja esitellä aihealueeseen liittyvä teoria sekä käsitteet. Työn avulla pyritään tekemään myös jonkinasteisia yleistyksiä suuryritysten vaikutuksista kohdealueisiin sopimusvalmistuksen yhteydessä. Työ on toteutettu osittain kirjallisuuskatsauksena ja osittain tapaustutkimuksena hyödyntäen pääasiallisesti elektronista tiedonhakua. Tutkimuksen tuloksena voidaan todeta, että Niken tämänhetkinen tilanne yritysvastuullisuuden saralla on erinomainen ja se on kestävän kehityksen alalla edelläkävijä. Nike on säilyttänyt toiminnassaan ja koko tuotantoketjussaan kestävät periaatteet sopimusvalmistuksen tuomista laajoista verkostoista ja sidosryhmäsuhteista huolimatta. Yritysten sosiaalinen vastuu sekä sopimusvalmistus ovat tuoneet Niken brändille laajamittaista arvostusta ja tätä kautta välillisesti taloudellista menestystä. Uhratuista resursseista huolimatta Nike pärjää tällä hetkellä taloudellisesti paremmin, kuin ennen vastuullisuuden sekä kestävien toimintamallien laajempaa implementaatiota. Myös tulevaisuus näyttää Niken kohdalla valoisalta.

Toimituskyvyn kehittäminen prosessin materiaalipuutteita hallitsemalla

Toimituskyky on yrityksen suorituskykyä kuvaava tekijä, jolla on merkittävä vaikutus asiakastyytyväisyyteen, erityisesti valmistusteollisuudessa. Toimituskyky muodostuu materiaalin saatavuudesta ja logistisen järjestelmän toimitusvarmuudesta, joten hyvä toimituskyky edellyttää materiaalipuutteiden hallintaa. Tämän diplomityön tavoitteena on esittää, miten toimituskykyä voidaan kehittää tilaus-toimitusprosessin materiaalipuutteita hallitsemalla. Tutkimus toteutettiin konstruktiivisella tutkimusotteella case-tutkimuksena havainnoimalla toimintaa case-yrityksessä sekä analysoimalla case-yrityksen kirjallista materiaalia ja arkistoja. Yrityksessä havaittuja materiaalipuutteisiin liittyviä ongelmia tarkasteltiin tilaus-toimitusprosessin näkökulmasta prosessijohtamisen ja systemaattisen ongelmanratkaisun teorioiden avulla. Tutkimuksen tuloksena laadittiin kolme käytännönläheistä ratkaisuehdotusta havaittuihin ongelmiin; (1) materiaalipuutteiden syy-seuraussuhteita kuvaavat ongelma-syy-seurausketjut, (2) materiaalipuutteiden ongelmanratkaisumalli systemaattisen ongelmanratkaisun tueksi sekä (3) visuaalinen tilaus-toimitusprosessimalli, joka painottaa osaprosessien yhteyttä koko prosessin toimituskykyyn ja toimitusvarmuuteen. Tulosten mukaan materiaalipuutteet tulisi käsittää prosessin laatuvirheinä, jotka antavat arvokasta tietoa siitä, että prosessissa on laatuongelmia. Tulosten perusteella yrityksen toimituskykyä voidaan kehittää havainnoimalla tilaus-toimitusprosessin laatuvirheitä, selvittämällä laatuvirheiden syy-seuraussuhteet systemaattisesti ongelmanratkaisumallia hyödyntäen sekä toimimalla prosessiajattelun mukaisesti tilaus-toimitusprosessin toimituskyvyn jatkuvaa parantamista tavoitellen. Tutkimusongelman tarkastelutapaa ja työn tuloksia voidaan soveltaa samankaltaisiin tapauksiin, joissa tilaus-toimitusprosessin laatuvirheet, esimerkiksi materiaalipuutteet, paljastavat kehittämistä vaativia epäkohtia prosessin toimintatavoissa. Tilaus-toimitusprosessin toimituskykyä voidaan kehittää vain, jos panostetaan ajan hallintaan ja kykyyn toimia asiakaslupausten ja sopimusten mukaisesti.

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.

Social networks and networking facilitating internationalization: Experiences of two Finnish fashion companies

Background: Fashion is a dynamic and creative industry where larger retailers are enjoying international success. Small businesses however are struggling in the face of international expansion, as they lack the necessary resources and managerial know-how. The Finnish fashion industry has neither been able to develop the industry environment to support small and micro firms nor has Finland relevant finance or public domains, such as, seen in other Nordic countries. Networking has been recognized to facilitate organizational growth and international expansion in industries such as manufacturing and high technology. It has enabled smaller companies to gain resources, knowledge and experiences otherwise unattainable. Objective: The purpose of this study was to explore how networking has been utilized in the Finnish fashion industry. Particularly social relationships and networks are examined, as they emphasize the importance of individuals. Exploration on the past actions should also provide insight how networks and networking could be utilized and developed in the future. Main findings: It was discovered that the Finnish fashion industry (social) network is rather dense. This was mainly due to the small size of the Finnish market. In the early years of the establishment of the company, close contacts seemed to be utilized. As a company expands and extends its business, the relationships tended to move towards more utilitarian in nature. However, in some cases, the long term relationships had also affectionate features, such as trust and commitment. International networking was found to have positive impact on business opportunities. Participation to events, such as trade shows, was perceived as one of the best ways to meet new international contacts and to develop ones network. Active networking in the Finnish market, however, created both domestic and international opportunities. Furthermore, cooperation and open communication were discovered to facilitate innovation and projects. The public sector seemed to lack the interest in supporting the fashion industry according to the interviewees. The major issues for the fashion industry still concerned, among others, funding, administrative guidance and public support for developing the industry as a whole.

EN 1090-laatuvaatimusten kartoitus ja hallinta hitsauksen laatujärjestelmän avulla

Diplomityössä tarkastellaan standardin EN 1090 vaikutuksia Bilfinger Industrial Services Finland Oy:n toimintaympäristössä ja kuinka niitä voidaan hallita hitsauksen laatujärjestelmän avulla. Työssä on myös käsitelty yrityksen pääasiallisen tuotannon eli metallisten teollisuusputkistojen valmistusta sekä laadunhallintaa yleisellä tasolla ja erityisesti hitsauksessa. Rakennustuoteasetuksen mukaisen yhdenmukaistetun standardin EN 1090-1:n siirtymäaika päättyy 1.7.2014 ja se asettaa uudenlaisia vaatimuksia teräsrakentamiseen. Rakennustuotteiden CE-merkintä ja sertifioidun laadunhallinnan järjestäminen vaikuttaa hyvin laajasti suomalaiseen metalliteollisuuteen. Työssä selvitettiin yrityksen nykyiset menettelyt ja kuinka niitä tulisi kehittää uusien vaatimusten mukaiseksi. Tietoa hankittiin keskustelemalla yrityksen henkilöstön kanssa ja tutustumalla sen toimintaperiaatteisiin. Selvitystyötä helpotti jo valmiiksi suhteellisen korkea hitsaustoiminnan laatutaso, joka johtuu vaativien asiakkaiden velvoittamasta laatutyöstä. Työn tuloksena yrityksellä on selkeä kuva miten toimintaa tulee kehittää EN 1090 vaatimusten täyttämiseksi. ISO 3834-2:n soveltaminen paineenalaisten putkistojen valmistuksessa tulee ulottaa myös teräsrakenteiden valmistukseen. Myös vaatimusten mukaisen dokumentaation luomista ja hallintaa tulee kehittää, jotta siitä ei tule liian raskasta henkilöstölle.

Mitigating uncertainty in logistics outsourcing with ERP systems

Outsourcing is a common strategy for companies looking for cost savings and improvements in performance. This has been especially prevalent in logistics, where warehousing and transporting are typical targets for outsourcing. However, while the benefits from logistics outsourcing are clear on paper, there are several cases companies fail to reach these benefits. The most commonly cited reasons for this are poor information flow between the company and the third party logistics partner, and a lack of integration between the two partners. Uncertainty stems from lack of information, and it can cripple the whole outsourcing operation. This is where enterprise resource planning (ERP) systems step in, as they can have a significant role in improving the flow of information, and integration, which consequently mitigates uncertainty. The purpose of the study is to examine if ERP systems have an effect on a company's decision to outsource logistics operations. Along the rapid advancements in technology during the past decades, ERP systems have also evolved. Therefore, empirical research on the subject needs constant revision as it can quickly become outdated due to ERP systems having more advanced capabilities every year. The research was conducted using a qualitative single-case study of a Finnish manufacturing firm that had outsourced warehousing and transportation operations in the Swedish market. The empirical data was gathered with use of semi-structured interviews with three employees from the case company that were closely related to the outsourcing operation. The theoretical framework that was used to analyze the empirical data was based on Transaction Cost Economics theory. The results of the study were align with the theoretical framework, in that the ERP system of the case company was seen as an enabler for their logistics outsourcing operation. However, the full theoretical benefits from ERP systems concerning extended enterprise functionality and flexibility were not attained due to the case company having an older version of their ERP system. This emphasizes the importance of having up-to-date technology if you want to overcome the shortcomings of ERP systems in outsourcing situations.

Characterization Of Process Efficiency Improvement In Laser Additive Manufacturing

Laser additive manufacturing (LAM), known also as 3D printing, has gained a lot of interest in past recent years within various industries, such as medical and aerospace industries. LAM enables fabrication of complex 3D geometries by melting metal powder layer by layer with laser beam. Research in laser additive manufacturing has been focused in development of new materials and new applications in past 10 years. Since this technology is on cutting edge, efficiency of manufacturing process is in center role of research of this industry. Aim of this thesis is to characterize methods for process efficiency improvements in laser additive manufacturing. The aim is also to clarify the effect of process parameters to the stability of the process and in microstructure of manufactured pieces. Experimental tests of this thesis were made with various process parameters and their effect on build pieces has been studied, when additive manufacturing was performed with a modified research machine representing EOSINT M-series and with EOS EOSINT M280. Material used was stainless steel 17-4 PH. Also, some of the methods for process efficiency improvements were tested. Literature review of this thesis presents basics of laser additive manufacturing, methods for improve the process efficiency and laser beam – material- interaction. It was observed that there are only few public studies about process efficiency of laser additive manufacturing of stainless steel. According to literature, it is possible to improve process efficiency with higher power lasers and thicker layer thicknesses. The process efficiency improvement is possible if the effect of process parameter changes in manufactured pieces is known. According to experiments carried out in this thesis, it was concluded that process parameters have major role in single track formation in laser additive manufacturing. Rough estimation equations were created to describe the effect of input parameters to output parameters. The experimental results showed that the WDA (width-depth-area of cross-sections of single track) is correlating exponentially with energy density input. The energy density input is combination of the input parameters of laser power, laser beam spot diameter and scan speed. The use of skin-core technique enables improvement of process efficiency as the core of the part is manufactured with higher laser power and thicker layer thickness and the skin with lower laser power and thinner layer thickness in order to maintain high resolution. In this technique the interface between skin and core must have overlapping in order to achieve full dense parts. It was also noticed in this thesis that keyhole can be formed in LAM process. It was noticed that the threshold intensity value of 106 W/cm2 was exceeded during the tests. This means that in these tests the keyhole formation was possible.

Improving internal performance of a company - Introducing employee empowerment via job redesign in Finnish small and medium sized enterprises

This bachelor's thesis is about to find out to what extent Finnish managers and small and medium sized organizations are willing and able to put employee empowerment into practice and what experiences they have got from employee empowerment as an approach towards job redesign. Some of the top enterprises in the world are known for their empowered employees as a single most important factor for their success and this thesis focuses on introducing the subject to Finnish managers and organizations to find out what benefits, barriers and other thoughts they have about the whole idea of empowered employees in Finnish organization culture. Most notable findings in this thesis are that Finnish managers do think that their organization's employees are capable to work efficiently if their job is extended and the organizations would perform better when right person's job is enriched and he/she is given more power to solve problems.

Transfer pricing documentation differences in Finland and China - Case company study

This Master’s Thesis deals with the topic of transfer pricing documentation in Finland and China. The goal of the research is to find what kind of differences exist in a single case company’s transfer pricing documentation when following Chinese or Finnish transfer pricing regulations. The study is carried out as a case study research. The theoretical framework consists of information from different transfer pricing topics and transfer pricing documentation regulations in China and Finland. The main research material was the case company’s transfer pricing documents with the support of open discus-sion with one of the case company’s employees. The study compared the 2009 and 2010 documents. The 2009 document was done based on the Finnish method while the 2010 document was based on the Chinese documentation principles. The conclusion made is that the content of the documents was heavily similar, while the main differences come in the way the content is presented and the level of detail used in the documents.

Russian SME technology transfer to Finland – Entrepreneurial challenges and motivation

The purpose of this thesis is to study the international technology transfer of transition economy SME entrepreneurs to the developed countries. The research aims to characterize the phenomenon by studying Russian SME technology transfer to Finland with the research methods from case studies. In addition to characterizing the phenomenon, the research finds out factors that motivate Russian entrepreneurs to conduct international technology transfer and what are the challenges the Russian entrepreneurs face when they enter the Finnish business environment. The qualitative data was collected from six semi-structured interviews with the entrepreneurs and several secondary data sources, considering four different technology transfer cases. The data and the analysis showed that the case companies in Finland are mostly linked to manufacturing of physical products. The entrepreneurs are motivated to come to Finland mainly by the opportunities and support the Finnish business and innovation environment provides to the entrepreneurs and by the personal gain that they get by establishing the company in Finland. Major challenges in the process include time constraints and capital requirements, difficulties on achieving sales on the Finnish market and finding skilled personnel to support the Russian management and owners.

Search advertising for small Finnish tourism company in Russian Internet – Experimental study: Google AdWords versus Yandex.Direct

Yandex is the dominant search engine in Russia, followed by the world leader Google. This study focuses on the performance differences between the two in search advertising in the context of tourism, by running two identical campaigns and measuring the KPI’s, such as CPA (cost-per-action), on both campaigns. Search engine advertising is a new and fast changing form of advertising, which should be studied frequently in order to keep up with the changes. Research was done as an experimental study in cooperation with a Finnish tourism company and the data is gathered from the clickstream and not from questionnaires, which is recommended method by the literature. The results of the study suggests that Yandex.Direct performed better in the selected niche and that the individual campaign planning for Yandex.Direct and Google AdWords is an important part of the optimization of search advertising in Russia.

Teollisen tuotannon ja palvelun ulkoistaminen Intiaan

Diplomityössä on tarkoituksena kartoittaa asioita, joita pitää ottaa huomioon pk-yrityksen tuotannon ulkoistamisessa Intiaan sekä laskemaan kuinka paljon halvemmaksi kiertovoitelukeskusten valmistaminen Intiassa tulee verrattuna Suomeen. Teoriaosuudessa on tarkasteltu Intian erilaista kulttuuria sekä kartoitettu asioita, jotka vaikuttavat länsimaalaisen yrityksen toimintaan Intiassa sekä mahdollisuuksia eri teollisuuden aloille. Empiriaosuudessa on keskitytty eri vaihtoehdoin kiertovoitelukeskuksen valmistuskustannuksiin ja niiden vertailuun Intian ja Suomen välillä. Tuloksena on voitu todeta, että valmistus Intiassa tulee selvästi halvemmaksi kuin Suomessa. Ensi askelten ottaminen luultavasti tulee olemaan vaikeaa lähinnä asiakkaiden löytämisessä ja verkostojen rakentamisessa. Riskejä oman tuotantolaitoksen perustamisessa Intiaan on, mutta myös mahdollisuudet ja potentiaali menestykselliseen liiketoimintaan ovat suuret. Ulkoistaminen on vain tehtävä maltillisesti ja järkevästi ja tehtyihin päätöksiin täytyy sitoutua.