Jukka Hallikas

Risk analysis and assessment in network environments: A dyadic case study

Abstract The aim of this paper is to describe a conceptual framework for risk analysis of production networks from the points of view of both a buying company and a supplier. The primary objective is to illustrate how a company can analyze and assess the risks associated with networking. Two approaches: internal audit, and computer aided cause and effect analysis, are demonstrated as instruments for the analysis of risk. This study uses case study methodology and qualitative information. Two companies, operating as final assemblers in the electronics and metal industry sectors, and nine of their suppliers have been interviewed.

The new meaning of customer value: a systemic perspective

Purpose – Today, as services and products are becoming increasingly intertwined and the competition increasingly global, delivering customer value is not as simple as it used to be. In this article, we suggest that in contemporary business environment customer value is often systemic by nature. This means that managers need to assess their firms offering through systems‐thinking perspective in order to find out what are the most effective ways to create value for the customer.Design/methodology/approach – Evidence of systemic customer value is provided in the form of illustrative examples from Apples and Googles offerings. Furthermore, we utilize a quality function deployment (QFD) tool to provide an example of modeling of the systemic value attributes.Findings – This paper illustrates how such systemic customer value in the firms offering can be modeled. This enables the tracking down of the functions that produce the most value in terms of meeting various customer needs. A firm that understands the ...

MANAGING CUSTOMER-DRIVEN BUSINESS MODEL INNOVATION

The Information and Communications Technology (ICT) industry is now reaching saturation point in terms of growth, and constantly increasing demand for services can no longer be taken for granted. Customers have lot of options, and firms have to compete for business ever more intensely. In order to provide evidence of best practices in such environments, this paper reports a case study on customer-driven business model innovation. The resulting four-phase process framework is based on findings from a Pan-Nordic ICT service providers recently implemented R&D project. On the theoretical level, the framework builds on the value-network and resource-based approaches, whereas in practice it may be useful to firms intending to innovate and redesign their business model in an attempt to provide superior customer value.

Digital Supply Chain Transformation toward Blockchain Integration

Digital supply chain integration is becoming increasingly dynamic. Access to customer demand needs to be shared effectively, and product and service deliveries must be tracked to provide visibility in the supply chain. Business process integration is based on standards and reference architectures, which should offer end-to-end integration of product data. Companies operating in supply chains establish process and data integration through the specialized intermediate companies, whose role is to establish interoperability by mapping and integrating companyspecific data for various organizations and systems. This has typically caused high integration costs, and diffusion is slow. This paper investigates the requirements and functionalities of supply chain integration. Cloud integration can be expected to offer a cost-effective business model for interoperable digital supply chains. We explain how supply chain integration through the blockchain technology can achieve disruptive transformation in digital supply chains and networks.

The Effect of Strategic Alliances Between Key Competitors on Firm Performance

Cooperation between competing firms (or coopetition) has been under increasing research interest during the last decade. It is generally proposed that coopetition can be a beneficial strategy that can enable gaining a competitive advantage. Current contributions linking coopetition with actual firm performance, however, are few. In order to address this issue, we conduct an empirical study in the global information and communication technology sector to examine the effect of strategic alliances between key competitors on the performance of a single firm. Our results indicate that a high relative number of strategic alliances among a group of firm’s key competitors contributes negatively to firm performance. This implies that firms should be aware of the risks that are included in cooperating with too many of their most direct competitors.

Mapping business: value stream-based analysis of business models and resources in Information and Communications Technology service business

This article applies an approach which originates from the input-output and value network perspectives for mapping the value streams among actors. The analysis is also conducted for modifying and developing a schematic framework for mapping value streams in the Information and Communications Technology sector. Case business models have been analysed by using the value streams among actors as a primary data source. In addition, the enablers of separate streams and assets have been identified in order to address the differences and similarities of the resource base in different business models.

Network position of a firm and the tendency to collaborate with competitors - a structural embeddedness perspective

Collaboration between competing firms (coopetition) is increasingly important for firms operating in knowledge-intensive business sectors. There are, however, firm-specific differences in the tendency to form such relationships. In order to address the issue, this study explores why certain firms in the global ICT sector are better able and more likely to collaborate with their competitors than others. We approach the issue from the structural embeddedness perspective, examining firm centrality in its competitive and alliance networks. The findings indicate that firms with a central position in competitor networks are relatively more likely to engage in coopetition than those not so centrally placed. On the other hand, the findings show that firms holding a central position in their alliance networks collaborate relatively more with complementary partners than with their competitors.

Decision making in inter-organisational relationships: implications from systems thinking

The purpose of this paper is to explore and increase the understanding of the dynamics of decision making in inter-organisational networks. There is relatively little research that employs holistic and systemic approaches for enhancing the understanding of the topic. The systemic nature of network-related decisions is illustrated by empirical case examples. We study and illustrate what systems thinking pragmatically means in the context of networks and how it affects the inter-organisational networks and the network-related decision making in the context of business environment, risks, and learning. We also discuss the related academic and managerial implications to decision making in networks.

Analyzing systemic customer value in scalable business services

This paper examines complex service offerings and the creation of systemic customer value in such settings. We explore the extent to which customers value systemic offerings as opposed to more separated offerings. We conducted a questionnaire survey within the customer base of two Finnish service companies. We utilized t-tests to find out how systemic offerings and separated offerings differed in terms of perceived customer value along different dimensions. The findings support the claim that systemic offerings are valued more than offerings that are more separated in nature. The results of the study carry practical implications for firms offering complex and integrated service solutions. In addition, analyses of the service-value elements included in the offering and of the related customer value will enable firms to optimize their service provisioning so as to give higher customer value and subsequently enhance their competitive advantage.

Financial Decision Risks in Supplier Networks

Decision-making in industrial networks is a topical issue among researchers and practitioners. It brings up viable possibilities from close interaction with other companies to new uncertainties and risks. Original equipment manufacturer (OEM) firms are building more efficient ways of producing end products and their suppliers face new challenges and pressure to evolve their business practices. For this study, empirical evidence was based on two networks in the electronics and metal manufacturing industries. Data were gathered during in-depth interviews with company representatives. Decision making and financial risks became more challenging and risky because the OEMs were required to have a significant role as development initiators and information sources when making decisions. Suppliers should have a realistic view of their position and role when assessing the reliability of information and risk management methods in the network. Power structure between companies is critical in decision-making situations.