COBTEC, Research Programme
Petri Kalliokoski, Anna Aminoff, Tiina Valjakka, Tiina Apilo, Jukka
Hemilä, Iiro Salkari, Toni Jarimo, Mikko Uoti
Executive Summary
• Research Programme Collaborative Business Networks and
Technology Platforms is activated to research and clarify future industrial management methodologies and concepts
• Research programme is research orientated - connection to real life is assured through practical industrial cases
• Schedule: 3/2003 - 10/2007
• Main results:
— New theoretical contribution for industrial management challenges in complex network environment
— Several doctoral theses that are based on common challenges and partly same cases --> makes possible to cover wide research area (estimates 5 to 6 theses)
— Scientific articles and publications
• Research programme is carried out in VTT Industrial Systems with academic co-operation with leading industrial management
professors
Industrial Management Research at VTT
• Industrial Management research and development in VTT is focused on networked business
• Main research themes are:
—Strategic management
—Innovation and knowledge management
—Product and service concept management
—Technology management
—Business models and process development
—Mathematics in industrial management
• Research and development approach mostly based on
action reseach and case studies
Domestic Reference Projects
• Polku-verkosto (2000-2003)
• 3G (2000-2002)
• INTO (2000- )
• Koneali (2000-)
• VERKOSTOREITTAUS (2001-2002)
• TTEVALU (2001)
• InElog (2001-2002)
• VeNet (2001-)
• PARTNET (2001 -)
• Prima (2001
• TULET (2002 -)
• Alilogi (2002 -)
• Opitaan! (2002 -)
• NiceNet (2002 -)
• Liike (2002 -)
• Purso Tools (1995-1997)
• Puustelli-verkko (1995-1998)
• Lokotrack-verkko (1997-1998)
• Soluverkko (1997-1998)
• JT-verkko (1998-1999)
• Verkko-E (1998-1999)
• RAVI (2000-2001)
• Haka-rengas (1997-1999)
• JT-kyky (1999-2000)
• TEKNOPOLI (1999-2001)
• NORDIC (1998-2001)
• Verkko E/II-vaihe (2000-2001)
• VAVE -verkko (1998-2001)
• Kehitys Kasvuun (1999-2001)
• Peliteoria (2003)
International Reference Projects
• ADMAN;Advanced Manufacturing in Process Industry (2001-2004)
• Globeman21; Global Manufacturing in the 21 century
—Test Case (1993-1995)
—Full scale (1996-1999)
• Gnosis; Knowledge Systematisation - configuration systems for design and manufacturing
—Test Case (1993-1994)
—Gnosis-Virtual Factory (1998-2001)
• GLOBEMEN; Global Engineering and Manufacturing in Enterprise Networks (2000-2002)
• EXPIDE; Extended Products in Dynamic Enterprises (2000-2003)
• VOSTER; Virtual Organisations Cluster (2001-2004)
• VOmap; Virtual Organisations Road Map (2002-2003)
• MACRO; Mobility Assistance for Customers Relations Based Organisations (2002-2004)
• ECOLEAD; Virtual Organizations, Integrated EU Project (2004-2007)
Research Problem
How to Manage Dynamic and Technology Intensive Enterprise
Networks in Complex Business
Environment?
COBTEC, Research Areas
Research Programme Management Model
Management Group (Financiers -Industry - Academic Specialists - VTT)
Management Group (Financiers -Industry - Academic Specialists - VTT)
Theme Specific Project Groups (Researchers, Industrial
Cases) Research Group (VTT Industrial Systems) Industrial
Reference Group
Academic Contributors (Finnish, International)
Researchers
Researcher Degree PhD Studies Other ongoing studies Petri Kalliokoski M.Sc.(Tech.) Started autumn 2001, Helsinki
University of Technology
Anna Aminoff M.Sc.(Tech.) Started autumn 2000, Helsinki University of Technology
Iiro Salkari M.Sc.(Tech.) Started autumn 2003, Helsinki University of Technology
M.Sc.(Econ) student in Helsinki School of
Economics (since autumn 2003)
Tiina Valjakka M.Sc.(Tech.)
Started autumn 2002, Lappeenranta University of Technology
Tiina Apilo M.Sc.(Tech.)
Started spring 2003, Lappeenranta University of Technology
Jukka Hemilä B.Sc. M.Sc (Tech.)
Started December 2002, Helsinki University of Technology
Toni Jarimo M.Sc.(Tech.) Due to start autumn 2003, Helsinki University of Technology
Academic Advisors
Advisor Degree Main Competence Areas
Raimo Hyötyläinen PhD Networks, Research Methodologies
Rauno Heinonen PhD Technology Management
Tapio Koivisto PhD Innovation and Knowledge
Management
Urho Pulkkinen Professor Industrial Mathematics
Karlos Artto Professor International Project-oriented Business
Kari O. Koskinen Professor Information and Computer Systems in Automation
Kari Tanskanen Professor Logistics
Tuomo Kässi Professor Engineering and Technology Management
Ahti Salo Professor Applied Mathematics
Academic Results
• Theoretical contribution
— Several doctoral thesis (4 to 5)
— Other academic thesis
— Scientific articles
— Conference papers
• International research co-operation
— Researcher exchange
— Co-operative research projects
— International research workshops
• Domestic research co-operation
— Co-operation with other research institutes and universities
— Collaborative seminars and workshops
— New research topics and projects
Utility for Case Companies
• Through enhanced understanding of future business management practices companies are better prepared for market competition and change
• Participation to seminars: up-to-date research challenges and results
• Companies can benchmark their business practices
with other participants
Preliminary Plan for COBTEC seminars
1
stPhase:
• 1. Kick-off seminar 2/2004: Industrial Service Business
• 2. Seminar 6/2004: Creating New Businesses
• 3. Seminar 11/2004: Organisational Change Management
• 4. Seminar 4/2005: Demand Supply Networks
• 5. Seminar 9/2005: The ending seminar for the 1st phase
2
ndPhase:
• 6. Seminar 12/2005: Information and Communications Technology
• 7. Seminar 5/2006: Mathematical Modelling in Industrial Management
• 8. Seminar 11/2006: Discussion over the Doctoral Theses
• 9. Seminar 5/2007: Discussion over the Doctoral Theses
• 10. Seminar 11/2007: The ending seminar for the COBTEC-project
Further Information
Mr. Petri Kalliokoski
VTT Industrial Systems, Industrial Management P.O.Box 1301, FIN-02044 VTT, Finland
Street address: Tekniikantie 12, Espoo
Tel. +358 9 456 4767, Mobile +358 40 526 7122 Fax +358 9 456 7046, [email protected]
www.vtt.fi/cobtec
Additional Slides
- VTT in Brief -
- Research Areas -
VTT in Brief 2001
Technical Research Centre of Finland
3012
VTT Information Service VTT Corporate Management and Services
VTT Electronics
VTT Information Technology VTT Industrial Systems VTT Processes
VTT Biotechnology
VTT Building and Transport
Units: Staff:
214 M€
Turnover:
• Basic govern. funding to research on VTT’s own initiative 34 M€
• Jointly funded projects 92 M€
• Commercial activities 88 M€
Oulu 323
Outokumpu 37 Jyväskylä 128
Tampere 332
Lappeenranta 12
Espoo 2 159
Others 21
Total 3 012
Staff breakdown by location:
VTT and VTT Industrial Systems
Fields of expertise, customer groups and expertise portals
VTT Pulp & Paper VTT Pulp & Paper
VTT Materials VTT Materials
Ministry of the Environment
VTT Environment VTT Environment Mobile Machines
Finnish Maritime Administration
Defence Forces VTT Transport
VTT Transport
VTT Nuclear VTT Nuclear
VTT Renewables VTT Renewables Electronics
Industry
Radiation and Nuclear Safety Authority
Basic Metal Industries
Vapo
Pharmaceutical Industry
Chemical Industry
VTT INDUSTRIAL SYSTEMS
• products, production, systems, ICT life- cycle management Networking
Dependability Logistics
Automation Products Production Safety
Energy Industry Automation Industry
Machine Industry
Wood-processing Industry
VTT ICT VTT ICT
Industrial Management Research at VTT (1/2)
Available Team power
VTT Industrial Systems VTT Industrial Systems
Intelligent products and
services Reliability
and risk management Product
performance
Production systems
Automation systems (Espoo)
Process simulation
(Espoo) Industrial
management (Espoo)
Production development
(Tampere)
= Units with special emphasis on industrial management, around 50 researchers
Materials and structural
integrity
Research fields
Production engineering
Production technology (Espoo)
Research groups
Business models & Tech.
management
Research teams
Enterprise networks
Distributed manufacturing
Human factors
Research Summary (1/6)
1. Business Opportunity Identification and Creation of New Businesses
• Research Problems and questions
—What are the factors that support and enable generating new business in company networks
—What kind of co-operation modes and processes are used in examining and generating new business opportunities?
—What are the changes in the operations model of the network?
• Contribution to the research programme
—Recognizing and defining the mechanisms the multilateral strategic networks generate new business
• Responsible & preliminary name of the study
—Tiina Valjakka: “Generating New Business trough Company
Networks”
Research Summary (1/6)
1. Business Opportunity Identification and Creation of New Businesses
• Concepts / Approaches
— Models of SME networks
— Managing strategic networks
— Development of strategic networks
— Network strategy
• References
— Hyötyläinen, R. 2000. Development Mechanisms of Strategic
Enterprise Networks. Learning and Innovation in Networks. Espoo:
VTT Publications 417.
— Jarillo, J. 1993. Strategic Networks. Creating Borderless Organization. Oxford: Butterworth-Heinemann. Hines
— Child, J. & Faulkner, D. 1998. Strategies of Cooperation. Managing Alliances, Networks, and Joint Ventures. Oxford: Oxford Universitys Press.
— Nooteboom, B. 2000. Learning and Innovation in Organizations and
Economics. Oxford: Oxford University Press.
Research Summary (1/6)
1. Business Opportunity Identification and Creation of New Businesses
PARTNER COMPANIES CONTRACTORS
VIRTUAL ENTERPRISE STRATEGIC
NETWORK CUSTOMER
CORE COMPANY
Research Summary (2/6)
2. Product and Service Platforms Life Cycle Management
• Research problems / questions
—How to define and conceptualize service-oriented business in Finnish enterprises and enterprise networks?
—What are the innovation models and cycles behind the profitable service business models and what co-operation between enterprise network companies enables new and innovative co-operation models?
—What kind of business models and organizational approaches enable profitable business between network companies?
—How should organizations manage their business systems and processes to ensure capability and competence to apply new service business-related technology?
—What kind of development process companies should implement to service business-oriented businesses?
• Contribution to the research programme
—The research contributes new knowledge on how to benefit from the concept of service business management
—It defines service business development framework and model for Finnish industry
• Responsible & preliminary name of the study
—Petri Kalliokoski: Service Business Platforms in Finnish Industrial Companies
Research Summary (2/6)
2. Product and Service Platforms Life Cycle Management
• Concepts / Approaches
— Strategic management of business
— Management of innovation processes and systems
— Management of value networks
— Development of solutions (combined products and services)
— Customer requirements management
— Technology implementation
• References
— Jacgues Horovitch. Seven Secrets of Service Strategy. Prentice Hall / Financial Times. 2000.
— Cagan J., Vogel C. M., Creating Breakthrough Products - Innovation From Product Planning to Program Approval. Prentice Hall / Financial Times. 2001.
— Hyötyläinen, R., Kalliokoski, P. & Suokas, J. New Dimensions of
Networking in Service Business. International Research Journal of
VTT Industrial Systems in 2002.
Research Summary (2/6)
2. Product and Service Platforms Life Cycle Management The Concept of Extended Product
PACKAGE
BRAND PRODUCT
FEATURES
QUALITY PRODUCTION
PROCESS LOGISTIC SERVICES
- mode of delivery - customers stock
management
DFMA, DFT - fast ramp-up
PRODUCT HISTORY - on-line
documents
RESEARCH &
DEVELOPMENT
AFTER-SALES - upkeep
- service parts - updating, etc.
CORE PRODUCT
PRODUCT DEVELOPMENT
Research Summary (3/6)
3. Agile Demand Supply Network Management
• Research problems / questions
—What DSM means to different lines of businesses?
—With what kind operating models regarding to demand supply management can networks become more efficient?
—What kind of supply strategies and models lead to best performance in supply chain?
• Contribution to the research programme
—The research contributes new knowledge on how to benefit from the concept of demand supply management
—It defines, what kind of demand supply models can be used in dynamic business and technology platforms to achieve best performance
• Responsible & preliminary name of the study
—Anna Aminoff :Operation models in context of demand supply management in different environments
Research Summary (3/6)
3. Agile Demand Supply Network Management
• Concepts / Approaches
—CPFR (Collaborative Planning, Forecasting and Replenishment ) and other collaborative methods
—End to end visibility
—Strategic supplier management and partnership
—Lean supply
—Logistics' competitive weapons: responsiveness, agility, leanness, intelligence
• References
—Martin Christopher: 1998. Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service. 2nd ed. England, Prentice Hall. 294 p.
—Gattorna (ed) 1998 Strategic Supply Chain Alignment: Best practice in supply chain management. Hampshire, Gower Publishing Limited. p. 272-284
—Hines, P., Lamming, R., Jones, D., Cousins, P. & Rich, N. (eds.) (2000) Value Stream Management: Strategy and Excellence in the
Research Summary (3/6)
3. Agile Demand Supply Network Management
Agile demand supply network
Sales forecast
Efficient Replenishment Order forecast
VMI, CMI Reliable operations
SMI
Integrated suppliers
Enabling Technologies
Research Summary (4/6)
4. Strategic ICT Exploitation
• Research problems / questions:
—How to exploit all the capabilities of ICT and use ICT as a strategic part of dynamic enterprises?
—Business opportunities created by ICT and new technologies
—Is IT strategy part of business strategy and is IT strategy supported by business strategy
—How ICT supports the Strategic Management in Multilateral Networks?
—How provide visibility in multilateral networks with ICT?
• Contribution to the research programme
—How business strategy management meets technology management and how to utilise main technologies to managing multilateral networks
—creation of flexible and visibility enterprise networks
• Responsible & preliminary name of the study
—Jukka Hemilä: “Strategic ICT Exploitation in Enterprise Networks”
Research Summary (4/6)
4. Strategic ICT Exploitation
• Concepts / Approaches
—ICT in Supply Chain Management
—Enterprise Nervous Systems in networked organisations
—Strategy planning
• References
—Hyötyläinen, R. (2000), Development Mechanisms of Strategic Enterprise
Networks. Learning and Innovation in Networks. VTT Publications 417. Espoo:
Valtion teknillinen tutkimuskeskus. 142 p. (In Finnish)
—Laudon, Kenneth, C., Laudon, Jane, P. (2000), Management Information Systems – Organization and technology in the networked enterprise. New Jersey: Prentice-Hall. 588 p.
—O'Leary, Daniel E. (2000), Enterprise Resource Planning Systems - Systems, Life Cycle, Electronic Commerce, and Risk. Cambridge: Cambridge University Press, 232 p.
—Ptak, Carol, A., Schragenheim, Eli, (2000), ERP Tools, Techniques and Applications for Integrating the Supply Chain. Boca Raton: CRC Press – St.
Lucie Press. 456 p.
Research Summary (4/6)
4. Strategic ICT Exploitation
VIRTUAL ENTERPRISE Enterprise ICT Strategy
Co-operation Partner
ENTERPRISE NERVOUS SYSTEM ERP SCM CRM PDM
Enterprise Legacy systems
Enterprise Legacy systems
Co-operation Partner
Enterprise Legacy systems
Enterprise Business Strategy
Research Summary (5/6)
5. Development Project Management by Portfolios
• Research problems / questions
—How to manage a project portfolio consisting of business development projects in company networks?
—What kind of network business development project portfolio management practices ensure that participating companies support projects?
—What kind of are the relationships and dynamics between companies’
business development project portfolios and networks’ similar portfolios? =>
Projects have commonly agreed and in-line objectives, no effort for overlapping nor contradicting projects
• Contribution to the research programme
—New knowledge on how to implement network objectives by managing development projects in (networked) industrial business systems.
—New knowledge on dynamics and relations between network’s and networking companies’ development project portfolios.
—It defines, how dynamic business and technology platforms can be managed by utilising project portfolio management (tools) for development projects.
• Responsibles & preliminary name of the studies
—Iiro Salkari: “Implementing strategies through development projects in company networks - portfolio management approach”
—Tiina Apilo: "Development projects in strategy implementation - successful project portfolio management"
Research Summary (5/6)
5. Development Project Management by Portfolios
• Concepts / Approaches
—Portfolio and especially project portfolio management
—Project programmes and project programme management
—Strategic supplier management and partnership
—Business development process and projects
• References
—Artto, K.A.; Martinsuo, M. & Aalto, T. (eds.). Project Portfolio Management.
Strategic Management through Projects. Project Management Association Finland PMA. Helsinki (2001)
—Dye L.D., Pennypacker J.S. (eds), Project Portfolio Management – Selecting and prioritizing Projects for Competitive Advantage. pp. xi – xvi. West Chester:
Center for Business Practices. 417 p.
—Ebers, M. (Ed.). The Formation of Inter-Organizational Networks. Oxford University Press, Oxford (1997)
—Hyötyläinen, Raimo. Development of Mechanisms of Strategic Enterprise Networks - Learning and Innovation in Networks. VTT Publications. Espoo (2000)
—Ollus, M; Ranta, J. & Ylä-Anttila, P (Eds.). Yritysverkostot - kilpailua tiedolla, nopeudella ja joustavuudella. Taloustieto Oy. Vantaa (1998)
Research Summary (5/6)
5. Development Project Management by Portfolios
The focus area and idea of this study are depicted in the below figure:
Company C Company B Company A
Unit 3 Unit 4 Unit 2
Unit 1
Strategy
Functions
Unit level dev.
project portfolio
Company level development project
portfolio
Strategy
Company level development project
portfolio Network dev.
project portfolio Network’s
objectives
Development projects
Unit 1
Unit level dev.
project portfolio
Unit level dev.
project portfolio
Unit level dev.
project portfolio
Unit level dev.
project portfolio
Unit level dev.
project portfolio
Research Summary (5.2/6)
5.2 Development Projects in Strategy Implementation
• Research problems / questions
—How company strategy actuates the selecting of development projects?
—How strategy and development projects are linking to each other?
—What is the significance of the portfolio management to stand for development projects in accordance with the strategy?
—Does the development project act as means of the strategy implementation?
• Contribution to the research programme
The research contributes new knowledge on
—how business strategy can implement through R&D and process development projects
—how to manage development projects portfolio
• Responsible & preliminary name of the study
—Tiina Apilo: "Development projects in strategy implementation - successful project portfolio management"
Research Summary (5.2/6)
5.2 Development Projects in Strategy Implementation
• Concepts / Approaches
—Portfolio management
—Innovation management
—Change management
—Business strategy
—Strategy implementation
• References
—Cooper. R.G., Edgett S.G. and Elko J. Kleinschmidt E.J. 1998. Portfolio management for new products.
—Saravirta. A. 2001. Project success through effective decisions : case studies on project goal setting, success evaluation and managerial decision making.
Lappeenrannan teknillinen korkeakoulu.
—Artto, K. A, Martinsuo M., Aalto T. (eds). 2001. Project Portfolio Management – Strategic Management through Projects. Helsinki: Project Management Association Finland.
Research Summary (5.2/6)
5.2 Development Projects in Strategy Implementation
... Project Portfolio
Projects
IT Project Portfolio
Projects
Development Project Portfolio
Projects
R&D Project Portfolio
Projects
STRATEGY
PRODUCTS
PROCESSES
Development
Development
Research Summary (6/6)
6. Network Mathematical Modelling Using Game Theory:
Formal Models for Decision Making in Network Economy
• Concepts / Approaches
—Classification of network control problems
— Distribution of information among partners, risk sharing, uncertainty
management, development portfolio management, selection of partners, etc.
— Bargaining problems
—Identification of suitable game theory models for each class of network control problem
— Decision analysis; scenario analysis, Distributed control, Stackelberg games, incentive strategies
— Equilibrium strategies (Nash), Co-operative games, bargaining games, negotiation problems
Research Summary (6/6)
6. Network Mathematical Modelling Using Game Theory:
Formal Models for Decision Making in Network Economy
• References
—Corbet, C.J., Karmarkar, U.S. Competition and Structure in Serial Supply Chains with Deterministic Demand. Management Science, Vol. 47, No 7, July 2001, pp.966-978.
—Nash, J. F. (1953), Two Person Cooperative Games, Econometrica 21
• Responsible
—Toni Jarimo: ”Decision-Making Models for Enterprise Networks: A Game Theoretic Approach”
Research Summary (6/6)
6. Network Mathematical Modelling Using Game Theory:
Formal Models for Decision Making in Network Economy
Game Theory
•cost, risk and utility sharing
•rules for cooperation
•advantages of networking
•win-win situations
Risk Management
•risk attitudes
Decision Analysis
•strategic decision
making
Optimisation
•players have their own goals
Probability calculus
•uncertainties
•expectation values
