Customer reference marketing in a business to business context

This study focuses on the phenomenon of customer reference marketing in a business tobusiness (B to B) context. Although customer references are generally considered an important marketing and sales tool, the academic literature has paid surprisingly little attention to the phenomenon. The study suggests that customer references could be viewed as important marketing assets for industrial suppliers, and the ability to build, manage and leverage customer reference portfolios systematically constitutes a relevant marketing capability. The role of customer references is examined in the context of the industrial suppliers' shift towards a solution and project orientation and in the light of the on going changes in the project business. Suppliers in several industry sectors are undergoing a change from traditional equipment manufacturing towards project and solution oriented business. It is argued in this thesis that the high complexity, the project oriented nature and the intangible service elements that characterise many contemporary B to B offerings further increase the role of customer references. The study proposes three mechanisms of customer reference marketing: status transfer, validation through testimonials and the demonstration of experience and prior performance. The study was conducted in the context of Finnish B to B process technology and information technology companies. The empirical data comprises 38 interviews with managers of four case companies, 165 customer reference descriptions gathered from six case companies' Web sites, as well as company internal material. The findings from the case studies show that customer references have various external and internal functions that contribute to the growth and performance of B to B firms. Externally, customer references bring status transfer effects from reputable customers, concretise and demonstrate complex solutions, and provide indirect evidence of experience, previous performance, technological functionality and delivered customer value. They can also be leveraged internally to facilitate organisational learning and training, advance offering development, and motivate personnel. Major reference projects create new business opportunities and can be used as a vehicle for strategic change. The findings of the study shed light on the on going changing orientations in the project business environment, increase understanding of the variety of ways in which customer references can be deployed as marketing assets, and provide a framework of the relevant tasks and activities related to building, managing and leveraging a firm's customer reference portfolio. The findings contribute to the industrial marketing research, to the literature on marketing assets and capabilities and to the literature on projects and solutions. The proposed functions and mechanisms of customer reference marketing bring a more thorough and structured understanding about the essence and characteristics of the phenomenon and give a wide ranging view of the role of customer references as marketing assets for B to B firms. The study suggests several managerial implications for industrial suppliers in order to systematise customer reference marketing efforts.

Digital social media: An interactive technology incorporated as a competitive advantage for business

In a more transparent and dynamic world, in which consumers trust other consumers more for advice and recommendations on products and services, the continuity of organizations appears to be associated with socialization, the sharing of interests and the interaction with the audience. This is associated with the incorporation of digital technologies to business, specifically the use of social media. Consequently, it is timely and interesting to explore the phenomenon of virtual socialization, although it is a littlestudied field and what is needed is an innovative and theoretical approach based upon theories of marketing and communication. Expertise in these areas is present in all organizations and their performance is important for appropriate development of them. This work is a qualitative analysis about the behavior, reactions and attitudes of individuals to organizations, in order to understand the social factors that contribute to sustainable competitive advantages of organizations which can support strategic and future actions. We conclude that relevant factors associated with the tacit knowledge of the organization, specifically to learning and social interaction of the organization and their knowledge of virtual communities. The higher the coexistence of factors, the more difficult is the replication and greater will be the hypothesis of sustainable competitive advantage.

Business intelligence –järjestelmä integraation tukena kansainvälisessä yrityksessä

Business intelligencellä tarkoitetaan liiketoimintatiedon hallintaan liittyviä prosesseja ja tekniikoita. Se pitää sisällään tiedon keräämiseen, tallentamiseen, analysointiin ja jakamiseen käytettyt tuotteet, tekniikat ja prosessit, joiden tavoitteena on auttaa yrityksen työntekijöitä liiketoimintaan liittyvässä päätöksenteossa. Tutkimuksen tavoitteena on tutkia uuden yritysryhmän laajuisen BI-tietojärjestelmän suunnitteluun ja käyttöönotoon liittyviä seikkoja ja luoda valmiudet BI-tietojärjestelmän kehitys- ja käyttöönottoprojektin kohdeyrityksessä, jonka toimiala on kansainvälinen terveydenhoitoalan tukkuliiketoiminta. Uuden BI-järjestelmän halutaan tukeva yritysryhmän yritysten välistä integraatiota ja tehostavan tiedonhakuun ja analysointiin liittyviä prosesseja. Tutkimus toteutettiin konstruktiivisena tutkimuksena, joka kattaa kohdeyrityksen IT-arkkitehtuurin, tietosisällön, prosessit ja organisaation raportoinnin kannalta. Lisäksi työssä suoritettiin ohjelmistovertailu kahden markkinoilla toimivan merkittävän ohjelmistotalon BI-tuotteiden välillä. Työssä havaittiin, että BI-projekti on laaja-alainen ja suuri hanke, joka ulottuu läpi koko organisaation. BI-ohjelmiston tehokas hyödyntäminen asettaa vaatimuksia erityisesti taustajärjestelmien tiedon huolelliseen mallintamiseen liittyen. Työssä saatiin pilotoinnin kautta käytännön kokemuksia uudesta järjestelmästä ja sen tarjoamista mahdollisuuksista kohdeyrityksessä.

Technological and business challenges of smart grids

Growing recognition of the electricity grid modernization to enable new electricity generation and consumption schemes has found articulation in the vision of the Smart Grid platform. The essence of this vision is an autonomous network with two-way electricity power flows and extensive real-time information between the generation nodes, various electricity-dependent appliances and all points in-between. Three major components of the Smart Grids are distributed intelligence, communication technologies, and automated control systems. The aim of this thesis is to recognize the challenges that Smart Grids are facing, while extinguishing the main driving factors for their introduction. The scope of the thesis also covers possible place of electricity Aggregator Company in the current and future electricity markets. Basic functions of an aggregator and possible revenue sources along with demand response feasibility calculations are reviewed within this thesis.

Coopetitive advantage – How firms create and appropriate value by collaborating with their competitors

Collaboration between competing firms (coopetition) has emerged as an important issue forn business practice in many industries. Extant literature has examined coopetition on many levels of analysis, but lacks clarity in distinguishing it explicitly from cooperation between noncompeting organizations. Because of this, the performance implications of coopetition from the perspective of an individual firm are still ambiguous – some research suggests positive results whereas other studies suggest detrimental outcomes. The aim in this dissertation is to narrow these gaps by exploring how firms create and appropriate value through collaboration with their competitors. The dissertation is divided into two parts. The first part comprises an overview of the relevant literature, as well as the conclusions of the whole study, and the second part includes six research publications. Both qualitative and quantitative methodologies are utilized. The results suggest that coopetition embodies the distinctive logic of value creation and appropriation from the perspective of an individual firm, and thus differs in terms of performance implications from cooperation between non-competitors. The distinction comes from the fact that competitors have somewhat similar understanding, capabilities and interest related to certain markets, which is potentially both challenging and beneficial in terms of the individual firm’s competitiveness. It appears from the findings that there are distinctive firm-external and firm-specific factors affecting the success of a coopetition strategy. This study makes three main contributions. First, on the conceptual level it shows the distinction between coopetition and cooperation between non-rivals as a collaborative inter-organizational relationship. Secondly, it sets out a framework and propositions that enhance understanding of how value is created and appropriated in coopetition from the perspective of an individual firm. Thirdly, it offers empirical evidence of how coopetition affects firms’ innovation and market performance, and identifies the focal internal and external factors involved. In general terms, the thesis adds to our knowledge of how a firm can successfully utilize a coopetition strategy in its pursuit of improved performance.

Engineering of Business Critical Web Applications

Research focus of this thesis is to explore options for building systems for business critical web applications. Business criticality here includes requirements for data protection and system availability. The focus is on open source software. Goals are to identify robust technologies and engineering practices to implement such systems. Research methods include experiments made with sample systems built around chosen software packages that represent certain technologies. The main research focused on finding a good method for database data replication, a key functionality for high-availability, database-driven web applications. Research included also finding engineering best practices from books written by administrators of high traffic web applications. Experiment with database replication showed, that block level synchronous replication offered by DRBD replication software offered considerably more robust data protection and high-availability functionality compared to leading open source database product MySQL, and its built-in asynchronous replication. For master-master database setups, block level replication is more recommended way to build high-availability into the system. Based on thesis research, building high-availability web applications is possible using a combination of open source software and engineering best practices for data protection, availability planning and scaling.

E-Business Intreoperability Frameworks for SMEs

Current e-business standards have been developed and used by large organizations to reduce clerical costs in business transactions by increased automation and higher level of business-to-business integration. Small and medium enterprises (SME's), however, cannot easily adopt these standards due to the SME's lacking the technical expertise and resources for implementing them. Still, large organizations increasingly require their business partners, most of which are SME's, to be able to interoperate by their chosen e-business standards. The research question for the study was, first, which of the existing e-business technologies are most SME-adoptable, and, second, how could those e-business technologies be made easier for SME's to implement. The study was conducted as a literature study that evaluated the available e-business frameworks and SME-oriented e-business architectures based on the implementation complexity and costs incurred for the SME adopter. The study found that only few e-business solutions are SMEadoptable. The technological approaches used in the solutions need to be improved on a number of areas, the most important of which is implementation complexity. The study revealed that this also applies to the special, SME-oriented e-business architectures, which are also still too difficult for SME's to implement. Based on these findings, a high-level e-business interoperability framework concept was proposed as the basis for future research to overcome the found implementation complexities for SME's.

Challenges for Finnish companies in doing business in Russia

The purpose of this study was to define the key challenges for Finnish companies in doing business in Russia. The study consists of a theoretical and an empirical part and is conducted as a quantitative study. The theoretical framework was build around capital structure, cost of capital and emerging market theories. The findings suggest that the firms in the sample seek growth mainly from emerging markets. These research results also indicate that challenges are visible in emerging market environment. Challenges that companies are facing in Russian market are mainly connected with legislation, communication and language problems. In addition, companies’ profitability has changed during the financial crisis, which has been the main reason for the negative changes in companies’ profitability. Even though the financial crisis has had a strong effect on the worldwide economy, the firms in the sample are not postponing their investments to Russia, because of lack of new financing or unfavorable credit terms.

Salesperson's customer orientation in the personal selling process and in the use of personal selling techniques in the business-to-business setting

Selling is much maligned, often under-valued subject whose inadequate showing in business schools is in inverse proportion to the many job opportunities it offers and the importance of salespeople bringing incomes to companies. The purpose of this research is to increase the understanding of customer-oriented selling and examine the influence of customer-oriented philosophy on selling process, the applicability of selling techniques to this philosophy and the importance of them to salespeople. The empirical section of the study is two-fold. Firstly, the data of qualitative part was collected by conducting five thematic interviews among sales consultants and case company representatives. The findings of the study indicate that customer-oriented selling requires the activity of salespeople. In the customer-oriented personal selling process, salespeople invest time in the preplanning, the need analysis and the benefit demonstration stages. However, the findings propose that salespeople today must also have the basic capabilities for executing the traditional sales process, and the balance between traditional and consultative selling process will change as the duration of the relationship between the salesperson and customer increases. The study also proposes that selling techniques still belong to the customer-oriented selling process, although their roles might be modest. This thesis mapped 75 selling techniques and the quantitative part of the study explored what selling techniques are considered to be important by salespeople in direct selling industry when they make sales with new and existing customers. Response rate of the survey was 69.5%.

Developing co-operation of business units – exploring synergies and a joint business model

The purpose of this study was to develop co-operation between business units of the company operating in graphic industry. The development was done by searching synergy opportunities between these business units. The final aim was to form a business model, which is based on co-operation of these business units.The literature review of this thesis examines synergies and especially the process concerning the search and implementation of synergies. Also the concept of business model and its components are examined. The research was done by using qualitative research method. The main data acquiring method to the empirical part was theme interviews. The data was analyzed using thematisation and content analysis.The results of the study include seven identified possible synergies and a business model, which is based on the co-operation of the business units. The synergy opportunities are evaluated and the implementation order of the synergies is suggested. The presented synergies create the base for the proposed business model.

On Doing Successful ICT Business with Russian Manufacturing Enterprises

This Master’s thesis addresses different approaches using which a foreign IT company could enter Russian manufacturing industry with its enterprise information systems and IT services. In order to define the most suitable market entry approach, several aspects related to Russian manufacturing enterprises are studied. These aspects include challenges of doing ICT business with the previously mentioned enterprises, their perception of ICT role and their ICT preferences, as well as their buying behavior related to acquisition of information systems (IS). The study results show that there are several challenges that can be faced by a foreign IT vendor when starting conducting ICT business with Russian manufacturing enterprises. The results also show that Russian manufacturing industry is still rather immature in sense of business process automation, and its IT buying behavior is rather specific and complicated. The results suggest that an efficient way to approach these enterprises is through a network of trusted partners that consists of reliable Russian IS integrators and business consultants having established connections to Russian manufacturing companies and possessing the needed competence.

Choice of Business Process Modeling Methodology - Case Northern Dimension Research Centre (NORDI) in Lappeenranta University of Technology

The main outcome of the master thesis is innovative solution, which can support a choice of business process modeling methodology. Potential users of this tool are people with background in business process modeling and possibilities to collect required information about organization’s business processes. Master thesis states the importance of business process modeling in implementation of strategic goals of organization. It is made by revealing the place of the concept in Business Process Management (BPM) and its particular case Business Process Reengineering (BPR). In order to support the theoretical outcomes of the thesis a case study of Northern Dimension Research Centre (NORDI) in Lappeenranta University of Technology was conducted. On its example several solutions are shown: how to apply business process modeling methodologies in practice; in which way business process models can be useful for BPM and BPR initiatives; how to apply proposed innovative solution for a choice of business process modeling methodology.

Distribution development in global business environment

The purpose of this master’s thesis was to analyze a case company’s distribution and its elements. With different distribution structure options a customer can be served with different ways. However, cost elements and service elements create different trade-offs. In this work the case company’s distribution’s present state was analyzed and conclusions were made. Based on these conclusions different alternatives for distribution were created. These different alternatives were analyzed through simulations and with more traditional calculations to compose the total operative costs of each alternative. Also other aspects were considered, such as required organizational changes and the possible better customer service. With the suggested 3-stock distribution structure shorter delivery times and possibly more punctual deliveries for products kept in stock could be achieved with the same operative costs as in current direct delivery model. Also, similar benefits could be achieved with other products with the 3-stock model.

Analysis of electricity distribution network operation business models and capitalization of control room functions with DMS

Electricity distribution network operation (NO) models are challenged as they are expected to continue to undergo changes during the coming decades in the fairly developed and regulated Nordic electricity market. Network asset managers are to adapt to competitive technoeconomical business models regarding the operation of increasingly intelligent distribution networks. Factors driving the changes for new business models within network operation include: increased investments in distributed automation (DA), regulative frameworks for annual profit limits and quality through outage cost, increasing end-customer demands, climatic changes and increasing use of data system tools, such as Distribution Management System (DMS). The doctoral thesis addresses the questions a) whether there exist conditions and qualifications for competitive markets within electricity distribution network operation and b) if so, identification of limitations and required business mechanisms. This doctoral thesis aims to provide an analytical business framework, primarily for electric utilities, for evaluation and development purposes of dedicated network operation models to meet future market dynamics within network operation. In the thesis, the generic build-up of a business model has been addressed through the use of the strategicbusiness hierarchy levels of mission, vision and strategy for definition of the strategic direction of the business followed by the planning, management and process execution levels of enterprisestrategy execution. Research questions within electricity distribution network operation are addressed at the specified hierarchy levels. The results of the research represent interdisciplinary findings in the areas of electrical engineering and production economics. The main scientific contributions include further development of the extended transaction cost economics (TCE) for government decisions within electricity networks and validation of the usability of the methodology for the electricity distribution industry. Moreover, DMS benefit evaluations in the thesis based on the outage cost calculations propose theoretical maximum benefits of DMS applications equalling roughly 25% of the annual outage costs and 10% of the respective operative costs in the case electric utility. Hence, the annual measurable theoretical benefits from the use of DMS applications are considerable. The theoretical results in the thesis are generally validated by surveys and questionnaires.