STROI-Network

Presentation contents

• STROI-network, (=build network)• Background of the research• Phases of the network lifecycle and potential CASE-companies • Phases of the research and perspectives• Research approach• Perspectives, targets, results and researches of the research

– P 1: Selection of the network business sector– P 2: Definition of the network vision – P 3: Competence of human resource– P 4: Internal development and culture– P 5: Customer perspective and marketing– P 6: Measuring the network performance

• Summary of the research planning

STROI-networkObjective is to develop management and leadership models for Finnish – Russian business networks operating in Russia.

Project is sponsored by TEKES (Finnish Funding Agengy for Technology and Innovation) and companies mentioned below.

Finnish research institutions are TTY (Tampere University of Technology), VTT (Technical Research Centre of Finland) and HAMK University of Applied Sciences. Russian research institutions are The State University Higher School of Economics and St. Petersburg State University.

Common co-operation companiesHAMK:

Contact person Company Web-page

Mika Räty Konecranes Heavy Lifting Oy (www.konecranes.com)

Matti Mikkola KPM-engineering Oy (www.kpmeng.fi)

Pertti Tammivuori Lassila&Tikanoja Oyj (www.lassila-tikanoja.fi)

Hannu Markkanen GTT Oy (www.cloudberry.fi)

Markku Lundström Forssan metallityöt Oy (www.forssanmetallityot.fi)

Jouni Haajanen Kehittämiskeskus Oy Häme (www.kehittamiskeskus.fi)

TUT

Olli Niemi NCC Oy (www.ncc.fi)

Timo Laapio/Matti Niiranen Peab Seicon Oy (www.peab.com)

Jukka Pekkanen/Jani Kemppainen Rakennusteollisuus RT (www.rakennusteollisuus.fi)

VTT

Matti Mikkola/Janne Manninen Stora Enso Timber (www.storaenso.com)

Peter Nordgren Finndomo Oy (www.finndomo.fi)

Heikki Suhonen CRAMO Oyj (www.cramo.com)

Esa Kosonen/Marko Kallunki Metsäliitto Osuuskunta, Finnforest (www.finnforest.com)

Background of the research

Creating a strategic network is prerequisite for the successful business

Strategic management and business networking is relative new in Russia

Profiling Business Networks Oriented to Russia is the first phase of this research project, during which three level management patterns and evaluation tools have been developed (report and profiling tools available from HAMK) Risk Analysis for Business Operations in Russia Quick Test of Business Networks Skill Profiling Tool for Companies Operating in Business Networks

Phases of the network lifecycle and potential CASE-companies

(€)

Cash Flow

Time

IntroductionNcc, KPM-engineering, …

GrowthLassila&Tikan-oja, CRAMO, KoneCranes, …

Maturity…

Developed concept

Decline

Phases of the research and perspectives

Setting Development

targets

Present situation (3.../08) P1

P2

P3

P4

P5

P6

Stage 3: Result

Developing Strategic Agility

Stage 1:Setting dev. targets

Developm. activities

Networked Company

Networked Company

Local Network Centre

Networked Company

Networked Company

Networked Company

Networked Company (Hub)

Stage 2: Perspectives of the operating research (P 1-6) in networked companies: P 1: Selection of the network business sector (VTT) P 2: Definition of the network vision (VTT) P 3: Competence of human resource (HAMK) P 4: Internal development of the network and culture (HAMK) P 5: Customer perspective and marketing (HAMK) P 6: Measuring the network performance (TTY)

Research approach

Perspectives(P1 - P6)

P 1:Business sector

P 2: Vision

P 3: Competence of human resource

P 4: Internal development

P 5: Customer orientation and marketing

P 6: Measuring network performance

Objectives of network

Growth is bigger than average

Vision is based on derivative action

Managing staff and learning

Network growth and strategic development

Developing customer-based network

Continuous develop-ment of network performance

Research questions

1.1, 1.2 2.1, 2.2 3.1, 3.2 4.1, 4.2 5.1, 5.2, 5.3, 5.4

6.1

Results Operating in profitable sector

Making visions based on customers needs

Competitive and developing working conditions

”Agile” and learning network

Functioning CRM system and risk management

System for measuring the performance of the network

Research institutions

VTT VTT HAMKGSOM

HAMKHSE

HAMKHSE

TUTHSE

OBJECTiIVES, RESU

LTS AN

D

RESEARCHERS O

F THE N

ETWO

RKPerspectives of research, objectives, results and research institutions

Management and leadership models of business for Russian oriented networks

P 1: Selection of the network business sectorResearchers: Markku Riihimäki, Anna-Leena Perälä, Tuula Grönfors.

Research questions: 1.1 Preparing a forecast model for a total demand of the markets for different kind products

of building, real estate and environmental sector in Russia, primarily targets for St. Petersburg and Moscow regions.

1.2 Topical knowledge of different perspectives (political atmosphere, supplying the products and competition situation, customer behaviour and decision making, technology development, taking environment into consideration…)

Research objects: Products / networked companies / business lines New regional building

– Small houses (wooden houses)– Residential buildings

As single targets business and industry building Service business (life cycle services and maintenance, services during building)

Outcome: Forecast model for a total demand of the products which are as a target for the research. Working model for defining the product range and reliazation network for companies operating with building, real estate and environmental sectors.

1.

2.

3. Customer profiles – prioritizing, grouping

4.

5. Clearing differentiating visionand crystallizing

6. Switching the vision inpractical operating and its controlling

Clearing the competition benefit similar tothe needs

P 2: Definition of the network vision Researchers: Markku Riihimäki, Anna-Leena Perälä, Tuula Grönfors and Kalle Kähkönen

Research questions: 2.1 Building up a model to produce a vision for a network working in Russia. 2.2 During vision processing, the common carrying idea as well as more detailed strategic part

objectives and guidelines are developed for the operating networked company. Applying Vision building model improved by VTT

Preparing a co-operational model for supporting the vision fulfillment. The model helps to receive the marketing situation information for conclusion base from customers and network.

Which kind of vision working model can be applied in strategic networks operating in Russia and their target visioning?

Outcome: The internal competition strategy developing tool and working model for building up network vision.

Forming the visioning group – parties and targets

Recognizing the point of departures – base for need-based vision

P 3: Competence of human resource

P 4: Internal development of the network and culture

Researchers: Lauri Tenhunen, Seppo Niittymäki, prof. Nikolai Filinov, prof. Alex Settles, prof. Nedejda Bek and Nina VladimirovaResearch questions: 4.1 Strategic Management and Organizational Behavior: Have Russian Firms Adopted the Learning

Organization Model? How in a limited sample of Russian firms the concept of learning organization has been

developed? Which kind of practice of strategic planning and execution is nowadays in Russia? 4.2 Strategic process of business networked companies, strategy planning and

implementation What are the specifics of Russian and Finnish companies `strategic process? Does network configuration influence strategic behaviour of Finnish and Russian companies

and strategic decision-making during Russian market capturing? Does strategic behaviour depend on specifics of particular business segment of Russian building

industry? 4.3 Strategy implementation and BSC (Balanced Scorecard) What are the best ways of strategy implementation? What significant tools of strategic management can be added to BSC? Can the scenario planning be examined as one of the relevant methods of bringing in balance

strategy and operation systems in companies? What are the peculiarities of all of the above in contemporary Russian environment?

P 5: Customer perspective and marketing 1(2)Researchers: prof. Olga Tretyak, Marina Weck, Seppo Niittymäki, Ekaterina Buzulukova, Aleksander Rozhkov and Nikita Popov

Research questions: 5.1 Building Trust in Counterweight to Risks in Inter-Organisational

Relations of Business Networks in Russia What are the risks in the inter-organisational relations of networks

in Russia? What is the relationship between trust and identified risks? What are the preconditions and managers’ actions for trust-building?Outcome: The model that outlines the trust-building process in

counterweight to the risks involved in inter-organisationalrelationships of networks in the Russian business environment.

5.2 Supplier relationship management organization: structures and people Supply priorities (strategy/policy). Criteria for supplier selection and evaluation. Supplier relationship management organization: structures and people. The content of relationships: communication with suppliers, collaborative planning process Third party influences on individual relationships with suppliers. The role of government

(industry regulators), competitors, customers, key suppliers. The role of industry and macro environmental factors.

Outcome: Operating model of building confidence for balancing the network risks relationships

P 5: Customer perspective and marketing 2(2)

5.3 Customer perspective in network business Customer Relationship Management (CRM) in B2B (Business to Business) networks: theoretical

presentation Managing of customer relationships in B2B business: practical examples from Russia Building a management model of customer relationships in B2B business in Russia (interconnection of the

strategy, business processes, IT & organizational development) Customer perspective in Russian business culture: inner and outer customer relationship in company

network Success factors & key performance indicators (KPI) of CRM

Outcome: CRM model for building, environmental and real estate sectors 5.4 Relationship building and forming networks in Russian market

What are the steps of creating networks and relationships building ? What are the key characteristics of ideal partner in network? What is the shortest way of developing successful relationships in Russian market? What are risk factors in Russia? What is the role of key people and their links in creating networks and sustainable

relationships?

Outcome: Management model of strategic network for building, environment and real estate sectors

P 6: Measuring the network performance

Researchers: Liisa Oksanen, Seppo Niittymäki, prof. Teuvo Tolonen and Antti Lönnqvist

Result questions:

6.1 Measuring the performance of the network Which kind of measuring tools are suitable for measuring the performance

of the network in Russia? How the benefits of networking can be measured and how the developing

evaluation will be implemented Outcome: Performance measuring model for networked Finnish companies

operating in Russia.

19/04/23Liisa Oksanen16

xxx eFollow-up of the development of the sector expectations and their changes

%-aimFulfillment of the growthQuality measurement tool,

e.g. development of the expectation network

Operating better than average in growing sector

xxx eDevelopment of the parameters for forecasts and of evaluation of the applicability of these parameters.

m2, m3, pcs,...Fulfillment of the expected amountsQuality measurement tool, e.g. co-operation partner

The decisions are based in the forecasted models

xxx €Follow-up of the salary development on the branch, surveying the new potential resources

%, pcs< 5 %

Netto addition of the key persons Permanence of the expertsFulfillment of the risksWork satisfaction…

Permanence of the staff in the network

xxx €xxx €

Educating and rewarding the members of the networkRemoving the risk factorDefining the controlled tasks

%, pcs

<10 %Uncertainty(payments,

times…)

Joined in network ./..departed from network% turnover, pcsFulfillment of the risksQuali tative measurement

tools

Amount and growth of the companies in the networkQuick Response

xxx €Effectiveness of customer relationship marketing Competitor analysisExpansion of marketing sectionControlling the offers , CRM

+10 %

< 10 % of targetsReasons

analyzed %

Comparison prices forcompetitors, €/m2Fulfillment of the risksQuality measurement tool…Contracts/offers

Product positioned in high quality sector,Quick Response

xxx eEffectiveness of budgeting and controlling systems

+25 %+ 20 %

10 % of turnover

change-%

GrowthTurnover from new

productsProfitUncertain claims

TurnoverProfit

BudgetActionObject, e.g..Measuring instrument, e.g.Object, e.g.Strategic development of the network

Perspective:

Business sector selection(KK1=P1=WP4)

Defining vision(KK2=P2=WP5)

Learning and Growht

(KK3=P3=WP6)

Internal develop-ment of the network(KK4=P4=WP7)

Customer(KK5=P5=WP8)

Network Performance

(KK6=P6=WP9)

Profita-bility

Partners, Customer

Trust

Develop-ment

Vision based in forecasts

Growing sector

De

velo

pm

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f th

e s

tra

teg

ic n

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ork