Erno Salmela

Best collaboration practices in supply chain of technical wholesale items

This study focuses on collaboration in the supply chain of technical wholesale items in the Finnish machinery industry. The research aims to explore the collaborative best practices to improve the future performance of this supply chain. In the current state, all the technical wholesale items are usually managed with the same management model, although there can be remarkable differences in demand behaviour and criticality among the items. Therefore, the item segmentation and management model for different segments are needed in the future. The collaborative effort should be focused on demand management and proactive exception management especially concerning critical items with unstable demand. Furthermore, there is development potential in the order-delivery process applied in the studied supply chain. Currently, a lack of cost knowledge and transparency makes the optimisation of this process difficult.

Differences in motivational mindset affecting collaboration of virtual research organisation

The purpose of the research was to clarify the effect of differences in motivational mindset on collaboration in a virtual research organisation. The research was implemented as an action research of one project case. The main result of the research was that differences in mindsets make research collaboration challenging if the differences are not recognised together in prior. Since it is difficult to change mindsets in a short time, it would rather be beneficial to find suitable persons for roles that feel natural to them. The main limitation of the research was its focus on only one case. However, as a practical advantage we believe that the results can also be utilised by other research organisations and funders by avoiding the pitfalls recognised in the research. The novelty value of the research is created by detailed analysis of the problems created by differences in mindsets in a virtual research organisation.

Formalisation of front end innovation in supply network collaboration

The research examined the formalisation of front end innovation (FEI) activity in the supply networks of the Finnish machinery industry. The goal of the study is to recognise formalisation practices of FEI activity in the studied environment by best practice benchmarking approach. Research data was collected from ten supply chains with the help of theme interviews and workshops. A formalisation framework was utilised to analyse and structure research data. The recognised formalisation practices were either very new or only in the idea/planning stage in the studied supply chains, as a result there was little empirical data available of their practical influences. Although these limitations, the research recognised numerous formalisation practices in different sub-sectors that could support FEI management and collaboration in the future, which can serve as potential future operations models in the studied supply chains.

Rapid Prototypes as Openers of an Innovation Block

Thepurposeofthisresearchwastofindoutwhatvaluerapidprototyping(RP)addstoinnovationand creativeactivity,whatchallengesitentails,andwhatsortofinnovationitisespeciallysuitedfor.The researchwasimplementedasaqualitativecasestudyoftencases.Accordingtothestudy,RPisan importantpartoftheinnovationprocessregardlessofitstinkeringreputation.Itopensupaninnovation block,addscreativity,engagespeople,andhelpstoestimatethepotentialofidea ́soriginalityand effectiveness.RPhasapositiveimpactonpeople’sworkenjoymentduetoitsplayfulandcommunal nature.Andanyonecanparticipate.Therefore, thecreativity isamatterofeverybody.Themain limitationoftheresearchwasexaminingRPasastaticeventinonephaseoftheinnovationprocess. Aspracticalvalue,thisarticleencouragesorganisationstoincreaseRPintheirinnovationactivities. KeywORDS Creativity, Fuzzy Front End Innovation, Innovation Block, Mock-Up Prototype, Prototyping, Rapid Prototyping, Value Innovation

Benefits and challenges of knowledge creation in concurrent virtual professional organisation formation and operation

The study examines how concurrent virtual professional organisation VPO formation and operation affects knowledge creation. Usually virtual organisation formation and operation are discussed as consecutive phases. The phenomenon is studied by a qualitative research approach and a single case study. The studied case is a project preparation PP, the goal of which is to start a public research project. Knowledge creation plays an important role in PP. As a theoretical contribution, the article presents a dynamic model that connects the concurrent VPO formation and operation phases to knowledge creation. As a practical implication, the study suggests that in an uncertain and hectic environment, concurrent VPO formation and operation may be unnecessary. To manage this kind of a situation successfully, dynamic coordination competencies are needed.

Applying Social Media in Collaborative Brainstorming and Creation of Common Understanding Between Independent Organizations

This report is based on an experiment performed within the Johto (Innovative management of the supplier network and ICT systems) and Kiima (New business by strategic SME network) research projects funded by Tekes (the Finnish Funding Agency for Technology and Innovation). The experiment looked into the suitability of social media for content production and brainstorming work between organizations. According to Knight et al. (2008), the groups using web tools have showed an improvement in cohesion, but not as great an improvement as that found in face to face groups. They however suggest that web tools are valuable options to organizations that pursue benefits through virtual groups. The organizations which participated in the experiment were research institutes/ niversities, consultants, service providers, and industrial companies. Almost all of these participants had some kind of linkage to the machinery industry. However, most of the participated organizations did not have any mutual business connections in the real world, but quite many of them knew each other through above-mentioned Tekes projects. In practice, we were dealing with an open innovation environment, which refers to a model of innovation in which firms draw on research and development that lies outside their own boundaries (Chesbrough, 2003). There were very heterogeneous group of organizations and people in this experiment. Grinyer (2000) writes that heterogeneous group (different personality types, backgrounds, training and education) can have positive effect on creativity and innovativeness. Furthermore, informal communication (such as social media mainly is) is considered to be one major factor to stimulate creativity in teams (Sundgren et al., 2005). As such, an aim of our study was to explore social media from the creativity (brainstorming) view of point in the independent company network. The topic in the social media experiment was: “how to manage an idea process” (stages of the process, performance indicators, and incentives). The chosen topic was a new issue for many of the participant organizations, which is why a research oriented (exploratory) approach, seemed to be a good starting point for the experiment. In research network, the primary target of collaboration is the creation of new knowledge, while the research activities are carried out by every partner without a leading company (Magnusson and Nilsson, 2003). The experiment was performed during a two week period in the autumn 2010 and the web-based Yammer service (www.yammer.com) was used as a tool.

New concepts for demand-supply chain synchronisation

This paper examines demand-supply chain synchronisation within demand and supply uncertainty and increased speed requirements. The best-known synchronisation concept, the Value Offering Point – Order Penetration Point, seems to have some limitations in this kind of environment. First, the concept focuses on certain demand information and ignores the utilisation of uncertain demand information and the possibilities and risks related to it. Secondly, the concept does not take into account supply information and its utilisation. Due to these limitations, two new synchronisation concepts were created: the Demand Visibility Point – Demand Penetration Point and the Supply Visibility Point – Supply Information Penetration Point.

Logistics service provider as a business growth raiser of small and medium sized companies

This study focuses on a company network that develops, produces, markets, sells and delivers windmills for consumers. The hub company of the network has concentrated on R&D, marketing, and its subcontractors and logistics service provider performs other functions. The company had outsourced exclusively of its operational and tactical level operations and its ICT systems (e.g. financial administration, logistics operations and item assembly set management systems) and support processes for logistics operators responsibility. This study examined this network business model, focusing on operator supported ICT and functional solutions for total management of supply chain. The service model provided by the logistics operator is considered quite new concept on field of high tech industries in Finland. The research was conducted as a qualitative study of one case. The study revealed new operational, business arrangements and financial aspects, which are administered by the operator that have been traditionally kept inside organization. This new model can give small company a completely new potential to grow rapidly as part of traditional financial limitations do not apply to this case. The case is considered a good example how high tech industry isnt limited only for large size companies and how its possible for small company to grow with the logistics operator and subcontractors. The operator was identified as an enabler of growth and a demand and supply chain synchronizer.