Market reactions to the servitization of product offerings - An event study on the software as a service model

Servitization is transforming traditional manufacturing and product-oriented firms across industries in many ways. One of these transformations concerns the business models of firms that transform from selling products to provisioning products as a service with product-service systems (PSS). I analyze this form of servitization in the software industry, where the software as a service business model is becoming the standard for most start-ups as well as some big enterprises like Adobe and Autodesk. Event study methodology is applied to 359 software vendors’ announcements of new software as a service offerings between 2001 and 2015, analyzing how installed base, parallel business models and partnerships with external service providers influence the reaction in the stock price of the software vendors. I find that “as-a- service” business models are not perceived as a substitute but rather as a complement for perpetual product sales and that collaboration with specialized service providers for the delivery of the new offering is rewarded by the stock market. I explain the findings with organizational inertia within the software vendors’ organization as well as that of their customers. The findings are used to discuss how companies can manage the inertia by developing new product lines for the PSS model, offering perpetual product sales in parallel and cooperating with third party service providers for the service delivery. Servitization is transforming traditional manufacturing and product-oriented firms across industries in many ways. One of these transformations concerns the business models of firms that transform from selling products to provisioning products as a service with product-service systems (PSS). I analyze this form of servitization in the software industry, where the software as a service business model is becoming the standard for most start-ups as well as some big enterprises like Adobe and Autodesk. Event study methodology is applied to 359 software vendors’ announcements of new software as a service offerings between 2001 and 2015, analyzing how installed base, parallel business models and partnerships with external service providers influence the reaction in the stock price of the software vendors. I find that “as-a- service” business models are not perceived as a substitute but rather as a complement for perpetual product sales and that collaboration with specialized service providers for the delivery of the new offering is rewarded by the stock market. I explain the findings with organizational inertia within the software vendors’ organization as well as that of their customers. The findings are used to discuss how companies can manage the inertia by developing new product lines for the PSS model, offering perpetual product sales in parallel and cooperating with third party service providers for the service delivery.  Keywords: SaaS, Software-as-a-Service, Servitization, Business model transformation, Stock market

Understanding the customer benefits of customisation: Case surfboard

Customisation is one strategy to involve customers in the design process. However, qualitative empirical studies on customisation in different product contexts are scarce. This paper investigates the benefits customers perceive in craft customisation where they are actively involved in the customisation with the designer. The case of this study is a high involvement custom product, a surfboard. Findings derived from qualitative interviews with surfers (N=22) reveal the perceived benefits in the three distinct phases of customisation: pre-customisation, during which the decision to customise is made; customisation process, during which the product is customised; and product usage. The source of the found benefits are the product, process or customisation itself and they can be classified to functional, emotional, experiential, symbolic, aesthetic, personal, social, epistemic, creative, and hedonic. The benefits vary in occurrence during the different customisation phases. Based on the findings, we present a model for the benefits in the three phases of customisation. The model can be used when implementing craft customisation as a design strategy.Keywords: customisation, benefits of customisation, phases of customisation, high-involvement product, surfboard

Hyvä maatalouskone on käytettävä ja turvallinen

Jokainen viljelijä tietää, että peltotöiden tekeminen vaatii keskittymistä ja hallittua useiden samanaikaisten toimintojen suorittamista. Hyvä suoriutuminen edellyttää, että koneita on vaivaton hallita ja käyttää. Työn tekeminen on nykyiselläänkin vaativaa, joten suunnittelijoiden on oltava tarkkana, jotta koneisiin kehitettävän uuden teknologian käytöstä selvittäisiin ilman uusia ongelmia ja lisäkuormitusta.vo

Sustainable multi-tier supply chain management - case from Finnish food industry

This master’s thesis investigates sustainable supply chain management with a multi-tier focus. Sustainable supply chain management (SSCM) covers three aspects of responsibility in a company and its operations, being environmental, social and economic responsibility. Recently, SSCM has been a popular research topic, although the focus has largely been on the first tier of suppliers, being the direct suppliers of the buyer company. Sustainability demands towards companies are growing which drives companies to manage the sustainability of their supply chain also further upstream than only their first suppliers. Therefore, this research has a multi-tier focus on sustainable supply chain management. The framework that is extended in this research is based on two studies, one is categorising the approaches companies take in implementing sustainability into their supply chain, and the other is analysing the different structures of supply chains. This research is a qualitative case study with case companies from the Finnish food industry. The multi-tier perspective is also visible in the choosing of the case companies as they are one retailer and two of its suppliers, being from two different tiers within the same supply chain. The primary data forms of 10 semi-structured interviews performed in the case companies for the purposes of this study during the year 2016. The secondary data is mainly publicly available archival material. The findings of this research link the sustainability implementation approaches used to the type of supply chain structures. The mandated approach for supplier management appears more common than the collaborative, supporting the suggestion of previous research. Also it seems to be most commonly implemented through giving the own first tier suppliers a mediating role. The major contribution to research is made by extending the theoretical framework used and suggesting an additional third approach for sustainability implementation. Furthermore, the findings underline strategic prioritization, as in supply chain, when moving towards further than first tier suppliers, the amount of suppliers quickly grows large. In addition, this master’s thesis contributes to research by providing a profound case study example on this still quite little researched topic. In the near future, companies are expected to increasingly manage the sustainability in their multi-tier supply chain, in which, the findings of this research give welcomed advice and examples for business leaders

Ilmastonmuutokseen sopeutuminen Suomen talvimatkailussa

Ilmastonmuutos, joka aiheuttaa globaalin ilmaston lämpenemisen, on matkailualalla haaste erityisesti talvimatkailuyrityksille, sillä talvet lyhentyvät ja muuttuvat yhä lämpimämmiksi. Opinnäytetyön tavoitteena oli kartoittaa, miten Suomen talvimatkailualueet ja -yritykset ovat varautuneet ilmastonmuutoksen vaikutuksiin, sekä selvittää, millaisia sopeutumisstrategioita varautumiseksi muuttuvaan ilmastoon on kehitetty. Tutkimus toteutettiin laadullisen tutkimusmenetelmän keinoin haastattelemalla talvimatkailualueiden ja -yritysten johtajia sekä yhtä asiantuntijaa. Erilaisia talvimatkailualueita, hiihtokeskuksia ja talvisesongin yrityksiä on eri puolilla Suomea, mutta kuitenkin merkittävä osa niistä sijaitsee napapiirin pohjoispuolella. Haastatteluvastaukset tulivat Lapista, Koillismaalta, Kainuusta ja Keski-Suomesta. Tutkimustulokset osoittivat, että erilaisia sopeutumisstrategioita on jo luotu ja niitä kehitetään jatkuvasti. Ilmastonmuutokseen suhtautuminen oli kuitenkin ristiriitaista, ja sen vaikutuksia talvimatkailulle ei haastatteluissa suoraan myönnetty. Kuitenkin erilaisia ilmiön lieventämisen keinoja, kuten uusiutuvan energian käyttöä ja muita kestävän kehityksen toimenpiteitä, oli joillakin alueilla suunniteltu ja toteutettu. On mahdollista, että laajamuotoinen yhteistyö matkailuyritysten, -alueiden ja esimerkiksi yhdistysten välillä auttaisi yrityksiä varautumaan ilmastonmuutoksen aiheuttamiin haasteisiin. Tutkimuksen tuloksista voi olla hyötyä talvimatkailuyritysten liiketoiminnan ja kestävän kehityksen toimenpiteiden kehittämisessä. Tuloksista voidaan hyötyä myös talvimatkailualaa koskevassa poliittisessa päätöksenteossa.Climate change and global warming challenge winter tourism operators, as winters get shorter and warmer. This thesis is based on other publications about climate change and the effects and plausible scenarios of climate change. The research is focused on how different winter tourism operators are prepared on the effects of climate change and investigates their adaptation strategies established. The research started with interviewing Finnish winter tourism organization leaders, regional operators and one consultant. Winter tourism areas are located all around Finland, mostly north of the Arctic Circle. The answers for the interview came from four different winter tourism areas. The research data proved that there are already many different adaptation strategies established and being developed. The approach to climate change by the operators was contradictory; even though there were adaptation strategies established, climate change did not play a part in any of the organization strategies. Nevertheless, there were some mitigation strategies that were already considered amongst the organizations, such as using renewable energy and proceeding with other sustainable development actions. It could be that larger cooperation amongst businesses, organizations and associations would help winter tourism operators to be prepared to the challenges of the changing climate. The research outcome could help winter tourism organizations in improving their business and creating sustainable tourism. The results could also help with the political decision-making regarding winter tourism industry

Ammatillisen koulutuksen vastuuohjaajien käsityksiä uraohjauksesta osana opetustyötään

Tutkimuksessa kartoitetaan Koulutuskeskus Salpauksessa toimivien vastuuohjaajien käsityksiä ja kokemuksia uraohjauksesta osana omaa työtään. Tutkimusaihe kytkeytyy toisen asteen ammatillisen koulutuksen reformiin, joka muuttaa merkittävästi ammatillista koulutusta Suomessa. Aihe kiinnittyy myös Päijät-Hämeen alueella toisen asteen oppilaitoksissa vuosina 2018-2020 toteutettavaan KETTU – Ketterä uraohjaus osaksi ammatillista koulutusta -hankkeeseen. Tutkimuksessa tarkastellaan reformin mukanaan tuomia muutoksia vastuuohjaajien työnkuvaan uraohjauksen näkökulmasta. Tavoitteena on selvittää millaisia merkityksiä haastateltavat liittävät uraohjaukseen ja miten uraohjausta toteutetaan käytännössä. Toisena tavoitteena on kartoittaa, millaisia suhtautumistapoja vastuuohjaajilla on uraohjaukseen osana omaa tehtäväkenttäänsä. Tarkoituksena on muodostaa mahdollisimman laaja kuva vastuuohjaajien erilaisista käsityksistä sekä nykytilanteessa vallitsevasta asenneilmapiiristä uraohjaukseen liittyen. Teoreettisessa viitekehyksessä kuvataan ammatillista toisen asteen koulutusta tutkimuskohteena sekä ammatillisen koulutuksen ajankohtaisia koulutuspoliittisia linjauksia. Koska tutkimuksen aiheena on uraohjaus ammatillisen koulutuksen kontekstissa, määritellään myös ohjauksen ja uraohjauksen käsitteitä sekä kuvataan ohjaajan roolia konstruktivistisissa ohjausteorioissa. Pedagogisen työelämähorisontin mallin ja uran rakentamisteorian kautta jäsennetään ohjauksen roolia nykyaikaisessa uranvalintaprosessissa. Kvalitatiivisen tutkimuksen aineisto kerättiin haastattelemalla seitsemää vastuuohjaajaa. Aineistonkeruumenetelmänä käytettiin kasvokkain tapahtuvaa yksilöhaastattelua ja litteroitu aineisto analysoitiin aineistolähtöisesti fenomenografisen analyysin keinoin. Analyysin perusteella aineistosta nousi seitsemän erilaista käsitysryhmää, jotka kuvaavat vastuuohjaajien käsityksiä uraohjauksesta. Päätuloksen muodostavat kolme kuvauskategoriaa, jotka ilmentävät vastuuohjaajien erilaisia suhtautumistapoja uraohjaukseen. Tutkimustulokset osoittavat, että uraohjauskäsityksissä on vaihtelua esimerkiksi uraohjauksen määrittelyyn, oman ohjausosaamisen arvioimiseen ja toimijoiden välisiin vastuihin ja rooleihin liittyen. Vastuuohjaajien suhtautumistavat jakautuivat tässä tutkimuksessa positiivisesti, odottavasti ja kriittisesti suhtautuviin. Positiivisesti suhtautuvat vastuuohjaajat käsittävät uraohjauksen laajasti ja pitivät sitä kiinteänä ja merkittävänä osana omaa työnkuvaansa, kun taas kriittisen suhtautumistavan ominaispiirteenä oli uraohjauksen näkeminen melko suppeana osana omaa työtä. Odottavaa suhtautumistapaa edustaville vastuuohjaajille ominaista oli uraohjauksen näkeminen nykyisessä muutostilanteessa vielä hieman epämääräisenä osana omaa työtä ja myös oma osaaminen koettiin jossain määrin puutteellisena. Tutkimustulosten valossa olisi tärkeää panostaa siihen, että opetushenkilöstöllä on riittävästi osaamista, voimavaroja ja resursseja, jotta he voivat ohjata opiskelijoita kohti tulevaisuuden työelämää. Ohjausosaamisen kehittäminen onkin tämän tutkimuksen tulosten näkökulmasta perusteltua ja tarpeellista. Tärkeää olisi myös kytkeä uraohjausajattelu nykyistä selkeämmin osaksi vastuuohjaajien ammatillista identiteettiä. Tämän tutkimuksen keskeiset tulokset voivatkin edesauttaa uraohjauksen integroimista tiiviimmin osaksi ammatillista koulutusta

Understanding the customer benefits of customisation: Case surfboard

Customisation is one strategy to involve customers in the design process. However, qualitative empirical studies on customisation in different product contexts are scarce. This paper investigates the benefits customers perceive in craft customisation where they are actively involved in the customisation with the designer. The case of this study is a high involvement custom product, a surfboard. Findings derived from qualitative interviews with surfers (N=22) reveal the perceived benefits in the three distinct phases of customisation: pre-customisation, during which the decision to customise is made; customisation process, during which the product is customised; and product usage. The source of the found benefits are the product, process or customisation itself and they can be classified to functional, emotional, experiential, symbolic, aesthetic, personal, social, epistemic, creative, and hedonic. The benefits vary in occurrence during the different customisation phases. Based on the findings, we present a model for the benefits in the three phases of customisation. The model can be used when implementing craft customisation as a design strategy.Keywords: customisation, benefits of customisation, phases of customisation, high-involvement product, surfboard

Salivary antibodies induced by the seven-valent PncOMPC conjugate vaccine in the Finnish Otitis Media Vaccine Trial

BACKGROUND: Mucosal antibodies have been suggested to have a role in defence against pneumococcal infections. We investigated here the ability of a seven-valent pneumococcal conjugate vaccine, PncOMPC, to induce mucosal immune response. METHODS: Healthy Finnish children (n = 111), a subcohort of the Finnish Otitis Media Vaccine Trial, were recruited and 56 of them were immunised with the PncOMPC at the age of 2, 4, and 6 months. At 12 months of age, 49 of them received the PncOMPC and 7 were vaccinated with the pneumococcal polysaccharide vaccine (PncPS) as a booster. The control group of 55 children received a hepatitis B vaccine at the same ages. Salivary anti-Pnc IgG, IgA, IgA1, and IgA2 antibodies to serotypes 6B, 14, 19F, and 23F were measured in both groups at the age of 7 and 13 months. RESULTS: Salivary anti-Pnc IgG and IgA were detected more often in the PncOMPC than in the control group. However, the difference between groups was significant only for 19F and 23F IgA concentrations at the age of 7 months. At the age of 13 months, antibody concentrations did not differ between PncOMPC and control groups. The rises in IgA concentrations between 7 and 13 months of age were mainly of subclass IgA1. Further, there is a clear trend that PncPS booster induces higher salivary anti-Pnc PS antibody concentrations than the PncOMPC. CONCLUSION: We found that PncOMPC can induce a mucosal IgA response. However, the actual impact of mucosal antibodies in protection against pneumococcal infections is not clear

Usability as a challenge in agricultural engineering

One of the primary goals of research activities has always been to apply the newest potential results into practise. This is the case especially in engineering research. Recently, as productivity has gained importance as a quality measure for research, rapid application of the results has become even more important. Consequently, applicability has been lifted as a major criterion in the application for public funding thus promoting product development as an integrated part of research projects. No product (or research result) does have any impact if it is not taken into practical use. The end customers of research are supposed to take the developed products into active practical use. Without that phase all our efforts are put in vain. Usability is an important part of user acceptance. According to Nielsen (1993) system acceptability includes a social and a practical part. To be practically acceptable the product should be e.g. economical, compatible, reliable and useful. To be useful the product should be functionally suitable for the user’s tasks and usable. Usability includes easy learn ability, efficiency in use, remember ability, lack of errors in operation and subjective pleasure. In agricultural research there are distinct problems in usability when considering the phase oftaking the results into practical use. Of course, there are challenges also in the initial phase of research such as choosing research topics and later in the initial phase of product development. Usability, however, by far dictates user experience and thus decides if the product is taken into wide use or not. Consequently, MTT Agricultural Engineering Research has set usability and acceptability research as an important research topic. Usability in agricultural engineering is a complex issue since the context of use is variable. Mobile work is typical to agricultural producers.In this study, an example of usability evaluation is presented. Mobile work in the context of electronic control of precision combined drilling is evaluated. The research themes were:1. How great a challenge is usability in Precision Agriculture (PA)?- is it the cause for poor market penetration?2. Which usability evaluation methods are applicable to PA?- are there special issues in PA, or agricultural engineering generally, which limit the feasibilityof some methods?3. Which kind of usability problems can be detected with one selected method (heuristicevaluation)?- a demonstration of usability evaluation: the Human-Machine Interface (HMI) of a precisioncombined drillAccording to literature usability issues have not been a central issue in electronics development in agriculture. Poor experiences of unacceptable operation could be one reason for the customers not relying on new electronic control systems such as those of PA. There are multiple potential usability evaluation methods for agricultural engineering. The results from the case study performed show that heuristic evaluation is a suitable method for detecting design deficiencies in electronic control of mobile PA. To get a wider picture, further studies with other methods and applications should be done