2. Input-to-Process
Case: Forestcluster Ltd
Radical Market Innovations
Starting point
The Finnish forest cluster is going through a breach, after which its traditional success factors may not be enough for it to survive in a global competitive environment. Thus the cluster needs new growth opportunities outside its current core business. The way to explore new business ideas and business models is to question the industry definition and redefine the markets. Renewal through products and business models requires alteration of both mental models and strategies. Additionally, maintaining the cluster’s competitive advantage calls for open innovation among the companies in the industry. To promote this renewal Forestcluster Ltd initiated an innovation program called “Radical Market Innovations” (RAMI), which is part of the more extensive research program “Forward Customer Solutions” (FoCus), aiming to provide better insight on customer needs and consumer practices.
Objective of the co-operation
The objective of the eighteen month long RAMI-project was to identify new growth opportunities for the forest cluster outside the current core business – in more concrete terms the aim was to produce at least a hundred new business ideas and 4-6 concrete development projects. The academic part of RAMI consisted of seven individual research projects, of which Vectia was responsible in terms of ensuring that the results meet the requirements set by Forestcluster Ltd. Soon after the research projects were finalised the practical innovation work was initiated. For this Vectia organised and facilitated so called InnoLabs; four 2-day intensive workshops designed to generate radical innovations. The objective of the InnoLabs was to identify and generate radical innovations for forest cluster renewal based on the research projects’ results, case studies and other background material. Additionally Vectia was accountable for crystallising the results of the InnoLabs into tangible business ideas.
Results and business impact
The InnoLabs generated over 2 300 individual ideas, of which 148 more detailed descriptions of selected ideas and initiatives were produced. Afterwards the results from all four InnoLabs were combined with the objective to identify special and common innovation ideas and interesting business opportunities. Based on idea prioritisation a short list of ideas were created and ideas on the short list were then further refined. As a result a description of identified possibilities and recommendations for the next steps were produced. Altogether RAMI resulted in three program level ideas, i.e. combinations of ideas with a wider scope to be driven forward by Forestcluster Ltd and nine individual business level ideas to be driven forward by an individual company or a consortium of companies. The other 2 000 ideas are in free use of forest cluster companies as well.
Forestcluster Ltd is one of Finland’s six Strategic Centres for science, technology and innovation, with strategic goal to develop industry expertise by facilitating and providing opportunities for networking among companies and research organizations and channeling financing to goal-oriented research.
Vectia Case: Cramo
Aiming to be the “best in town”
Starting point
In the aftermath of the worldwide economic crisis, Cramo wanted to be ready for the new lift-off. Because of new growth drivers such as increased interest in equipment rental, decreasing need for manual labour and a growing demand for creating new housing and schools, Cramo identified the need for a new strategy with customer management as its main theme
Objective of cooperation
Vectia was chosen as partner for the strategic process due to its extensive expertise in strategy facilitation. Cramo was able to identify and decide upon vision, mission and strategy through an iterative process of identification and definition of competitive arenas. Cramo also identified joint Must-win battles and key projects on how to win these battles. Managers from all of Cramo group’s markets took part in the three-day strategy workshop moderated by Vectia.
Results and business impact
By committing to common strategic battles, Cramo aimed at unifying the business model and creating one Cramo, regardless of the market. Cramo also aims to be its customer’s first choice both globally and locally. The personal involvement of Cramo Group’s managers in creating the strategy has greatly facilitated implementation. Also metrics are now in place and the execution of the battles and results are monitored.
Based on case article in Vectia Explore magazine Autumn 2010.
Cramo specialises in equipment rental services for construction.
Vectia Case: Uponor
Refocusing existing business
Starting point
Uponor has business in more than hundred countries. It has grown to be a major provider and its systems are practically ubiquitous. Deeper insight was needed in order to understand who the customers really are and how they are served in the most profitable way. Uponor saw a great deal of potential in project sales to large customers. However, Uponor did not have a systematic procedure to deal directly with such customers.
Objective of cooperation
Vectia was engaged to enable Uponor to better respond to the need of different customer groups. A uniform way of operating in all markets is required to fully exploit the business potential of major project customers. A market segmentation based on data from five markets was carried out. Two different segments were found trough the market segmentation: the traditional installer customers served through wholesales partners and larger project customers. In contrast to the installer segment, the project segment required long-term partnerships, a different pricing logic and, as sales cycles are long, also patience from management.
Results and business impacts
The market segmentation made Uponor realize that they needed two parallel business models and two sets of sales competencies to handle two completely different market segments. The two models were defined in detailed from customer, offering, operations and management perspectives. Uponor’s Vice President Ilari Aho states: “The project with Vectia ran smoothly. It helped to refocus and structure our thinking, and to find a common approach.”
Based on case article in Vectia Explore magazine Autumn 2009
Uponor is a leading international provider of plumbing and indoor climate systems.
Vectia Case: Componenta
Clear strategy, strong company
Starting point
Componenta, a foundry established in 1918 in Finland expanded through several international acquisitions in the 1990’s and 2000’s. The challenge of post-merger integration was to execute an aligned, clear strategy with focus on the customer instead of on production.
Objective of cooperation
To help ensure Componenta’s continuous growth by turning its strategy into actions, Vectia helped Componenta find four relevant must-win battles. Vectia’s experience and expertise from other businesses helped Componenta find and prioritise the strategy key points.
Results and business impacts
With the help of the must-win battles, Componenta is able to relate its objectives more easily down the organisation. In addition to identifying the four must-win battles, the framework helped Componenta find the right balance between long term and short term objectives. The identified battles are well under way. Of the four must-win battles, three can be measured, while one is down to subjective judgement.
Based on case article in Vectia Explore magazine Spring 2009
Componenta is a metal sector group focusing on ready-to-install cast and machined components.
Vectia Case: BE Group
Ride the positive wave
Starting point
With economic trends supporting the business, the European steel and metal merchant BE Group decided that the time was ripe for substantial growth. Instead of just selling more, BE Group focuses on selling that is complimented with service elements.
Objective of cooperation
Vectia helped speed up the transformation of a company focused on sales to a company with a strong service offering. Vectia identified three key development areas: segmentation, sales tools and sales capabilities. Novel approaches and solutions were created for all key development areas. Sales capabilities in the organisation are enhanced in two stages. First, managers from the BE Group are trained to be trainers. These managers are then well prepared to train their respective organisations in different markets.
Results and business impacts
President and CEO of BE Group, Håkan Jeppsson has a positive feeling at the launching phase of the implementation: “With the help of the methodology created by Vectia, we expect quite dramatic changes in our business during the next few years.”
Based on case article in Vectia Explore magazine Spring 2009.
BE Group is a European steel and metal merchant.
Vectia Case: UPM
Adding a business dimension to a technology roadmap
Starting point
Though UPM’s traditional business is still thriving, threats are looming on the horizon and new initiatives are needed to develop and diversify beyond the core business. UPM recognises itself as being good at pursuing ideas and initiatives based on technology. However, trying to comprehend the advantages from the end-user perspective and at the same time analysing and realising the business potential recalled a need for an outside support.
Objective of cooperation
Vectia explored and analysed the business potential of two technology initiatives, one concerning smart labels for packed food and the other sensor laminates to be used in floors. The analysis for the two initiatives touched on subjects such as customers, competitors, organisation and financing, resulting in business plans for both. The process included, e.g., interviews with customers and end-users to distinguish possible, competitive business advantages.
Results and business impacts
UPM’s Vice President Vesa Sorri appraises the results of the projects: “Vectia has extensive and analytic experience from different businesses and it is free of internal intrigues. The projects were useful for us not only in a business sense, but also as a learning process.”
Based on case article in Vectia Explore magazine Spring 2009.
UPM is a global wood, pulp and paper giant.
Vectia Case: Basware
Updating a strategy for growth
Starting point
For Basware finding and ensuring continuous growth with an annual increase of 20 to 40% in turnover and 10 to 20% in trading profit is the main challenge for next three years. For continuous, profitable growth the company’s strategy must be frequently updated as the markets, customers and their needs change. Dynamic environment provides multiple options. Also ideas and initiatives for new products and services are constantly fighting for attention. Since the resources are limited, focusing is mandatory.
Objective of cooperation
The three major markets of the company strongly differ from each other by their characteristics. The various possibilities for growth must be analysed. The wide and diverse range of opportunities needs to be narrowed down for further development. Discovering the battles worth winning is essential for focusing efforts to ensure maximum results and to reach the growth target.
Results and business impacts
The competitive arenas yielded three distinct business models that were deemed crucial to ensure growth and profitability for years to come. These business models focused on market penetration, leveraging the installed base, and global customers. Out of the three business models and their respective growth logics five must-win battles were extracted. They are touching subjects such as the US market, the Nordic market, global customers and reseller channels. To follow up the implementation of the projects, each must-win battle has a dedicated person in the executive team. Shared understanding and vision about the future business as well as a clear direction, means and a common will to reach the growth targets we have created.
Based on case article in Vectia Explore magazine Autumn 2008.
BasWare is the global leader in providing solutions for financial processes.
Vectia Case: Metso Paper
Finding excellence in the service business
Starting point
Successful in engineering and technology but facing challenges in the service business – Metso Paper wanted to refresh and broaden its view on how to operate and develop the service business in the process industry. They also had a desire for finding new ideas. Metso Paper was interested in the logic of combining different services and eager to see how other companies acknowledged the customers’ point of view.
Objective of cooperation
Vectia acted as a process consultant and recruited six companies with similar business logics operating in the process industry for Metso Paper benchmark sessions. The process revealed that Vectia had laid good groundwork and the benchmark sessions were found useful. The process also revealed why and how the service business had been established in the benchmark companies and what kind of best practices and experiences they had that Metso Paper could harness.
Results and business impacts
The results of the benchmark sessions were documented and presented organisation-wide. The central results were incorporated into the global Metso corporation’s strategy and action plan. Other concrete results include the changes made in the Metso Paper service organisation. After the benchmark sessions Metso Paper started to organise its services according to its customers’ point of view and another project concerning the sales force has already begun.
Based on case article in Vectia Explore magazine Autumn 2008.
Metso Paper is a global leader in pulp, paper and power technology.
Vectia Case: IonPhasE
Selling the value of an innovation.
Starting point
IonPhasE IPE is an innovation with vast possibilities and a wide array of application areas. It is a dissipative polymer that controls static energy. Refining the innovation into a profitable, growing business is not easy. IonPhasE’s main challenge was how to capitalise the remarkable discovery, being a small player in a distant country with several possible target segments all over the world.
Objective of cooperation
Vectia was engaged to develop IonPhasE’s solution offering from the customer point of view to be able to express the company’s value to the market. The target was also to find a differentiated market message based on the company’s competitive edge and customer benefits. A sales presentation and value quantification tool were created and a proactive sales process was mapped out to facilitate the company’s value-based sales approach. Vectia was also involved in the development and the rehearsing for investor presentations.
Results and business impacts
Vectia helped IonPhasE to develop value-selling capabilities for capitalizing on the IPE innovation. Now IonPhasE is moving forward with the target of selling the company in three to four years. Rapid growth will be reached by targeting the right customers and growing together with them. Project with Vectia helped IonPhasE people with scientific backgrounds to better understand what it takes to reach the company’s long-term business targets.
Based on case article in Vectia Explore magazine Autumn 2008.
IonPhase is an innovative solution provider for dissipative polymers.
Vectia Case: Dynea
Harnessing price and pricing
Starting point
Dynea is striving to modernise traditional business models, turning the focus from production to customer needs. The company seeks to serve its customers with the promise “Just what you need”. With international growth and increased cultural diversity, a common understanding of business principles and of how to apply them was needed.
Objective of the co-operation
Dynea set out to define the sales process and to create a pricing guideline to be implemented in the whole organisation. With Vectia, Dynea defined the details affecting pricing, and documented them into a guideline for use in all units. The pricing document included guidelines on pricing preparation, setting the price, preparing a value proposition and planning a sales meeting. Customer responsibles received a guiding framework to apply when considering pricing, with the authority to set the final price still remaining.
Results and business impacts
Several representatives from Dyneas sales and management teams from Asia and Europe were involved in creating the guidelines, and were thus committed to the process. This enabled Dynea to implement the framework by itself. Dynea was satisfied with the outcome; a clear document with a clear structure that was easy to adapt to and implement in the organisation. A common understanding of the customer, a common platform and language and a common pricing policy based on creating value for the customer helps Dynea reach the target of increased margins.
Based on case article published in Vectia Explore magazine Spring 2008.
Dynea is a leading provider of adhesion and surfacing systems.