1. Strategy & Market design
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: SLS
Guiding vision with history
Starting point
As the four units of SLS had previously been moved under the same roof, SLS realised it needed a shared vision for the future. Hence, SLS wanted to develop its operations and long-term strategy in which history plays a great part. Although the organisation has changed during the years, it was important that the original mission of SLS was included in the strategy process.
Objective of cooperation
With the help of Vectia’s must-win battle method, SLS was able to choose four focal must-win battles will result in concrete actions that drive the operations of the society. The result of the strategy process was a five-year strategy plan with set targets to help SLS to be recognised on a national and international level.
Results and business impacts
Through the new strategy SLS has identified concrete actions that will drive future operations. It was important to involve everyone in the project, because it also created a sense of togetherness and now everyone knows what the organisation is doing and why. SLS also acknowledges that strategy work will never be over; there will always be a need for systematic and evaluated development.
Based on case article in Vectia Explore magazine Spring 2010.
The Society of Swedish Literature in Finland is a non-profit organisation that strives to preserve the Swedish cultural heritage in Finland
Vectia Case: Tamro
Finding growth in a regulated environment
Starting point
Due to the tight competition for exclusive distribution rights and the pharmaceutics business being regulated strictly by society, growth within the core business is challenging to achieve. Growth opportunities and commonly shared direction of business is sought by gearing strategy process, in which Vectia was a familiar partner to continue the co-operation with.
Objective of cooperation
Tools such as Competitive Arenas and Must-Win battles were utilized in order to find new growth initiatives. Updating and validating the Competitive Arena analysis made during previous strategy rounds gave guidelines and aid to decide on which ones are worth to develop further. Furthermore core business strengths were identified and utilized to provide better services to existing customers.
Results and business impacts
Turning the focus from producing distribution services to observing and fulfilling customer needs was a significant change according to Tamro Group’s Managing Director Juha Koponen, and led to planning and implementation of a customer-based organization. Change of the focus has been well received by the whole organization: “We all have a clear direction and a strong will. We have, in fact, even surpassed our targets. All this leads to a positive escalation and multiples the organization drive”, says Juha Koponen.
Based on case article in Vectia Explore magazine Autumn 2009.
Tamro is leading pharmaceutical wholesaler in Northern Europe.
Vectia Case: Sinebrychoff
Securing the flow of drinks and cash
Starting point
People’s wildly different personal tastes impose challenges on beverage houses to come up with new, original tastes and concepts for ciders, beers and long drinks as well as energy, wellness and soft drinks. There are changes that Sinebrychoff has to react to: the beverage can levy ended, recycling was extended to plastic bottles, the alcohol tax was raised, consumer segments have become even more fragmented and customers such as retailers and restaurants are more demanding.
Objective of cooperation
Vectia was engaged to help Sinebrychoff to prepare for changing times by identifying change forces and uncertainties and to create possible scenarios and their implications. The project included assessing and analyzing Competitive Arenas, finding relevant Must-Win Battles, as well as creating a strategy and business model, including support for strategy execution.
Results and business impacts
Sinebrychoff’s CEO Pekka Tiainen rejoices: “The strategy process resulted directly in a list of to dos, a schedule for execution by responsible persons. We now have a credible three-year business plan!” The strategy process at Sinebrychoff engaged the whole personnel. “We now get spontaneous opinions and initiatives. We already have concrete and realistic cost-saving initiatives from our personnel. Understanding, engagement and cooperation between functions is better,” says mr. Tiainen.
Based on case article in Vectia Explore magazine Autumn 2009
Sinebrychoff is the oldest industrial brewery in the Nordic countries.
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: 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: GS-Hydro
Growth in the pipeline
Starting point
GS-Hydro wanted to renew its strategy business and to do its utmost to implement it to everyone in the global sites.
Objective of cooperation
GS-Hydro engaged Vectia to bring a neutral, professional view, and to create discipline to the whole strategy process. According to the President and CEO Thomas Rönnholm, the heart of the whole strategy process is Vectia’s must-win battles framework. Vectia’s knowledge and insight of GS-Hydro’s business core was vital for the process.
Results and business impacts
GS-Hydro’s business has grown phenomenally by approximately 40% per annum, with a double-digit EBIT level. From the strategy process GS-Hydro learned to dedicate even more time for implementation, to do things even simpler and to communicate even better. CEO Thomas Rönnholm has already set his heart on implementing GS-Hydro’s next strategy – the one that will take them to the 2010s.
Based on case article in Vectia Explore magazine Spring 2009.
GS-Hydro is a global provider of high pressure piping solutions.
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: Fujitsu
Strategic framework for focused innovation
Starting point
In many companies, big IT budgets have lead to a broad array of partly incompatible IT solutions. “Half is enough” was the motto for Fujitsu, who wanted to be able to produce better results for its customers with innovative and focused solutions. To be able to grow with this vision in a market characterised by rapid change, Fujitsu recognised the need to classify and prioritise initiatives and focus on key strategic issues.
Objective of the co-operation
Fujitsu decided to exploit Vectia’s Must-Win Battles process in its strategy work. Vectia facilitated the annual management meeting and provided Fujitsu with the needed framework, tools and analysis. Four Must-Win Battle initiatives were identified, and sufficient human resources were allocated to the initiatives. A project manager and owner was appointed from the management team for each initiative.
Results and business impacts
With help of the Must-Win Battle process, Fujitsu was able to recognise the initiatives that are aligned with the corporate strategy and worth pursuing. The Must-Win Battles process helped Fujitsu to question and to simplify, and made allocation of resources more efficient. The Must-Win Battles process has given Fujitsu the prerequisites for developing novel and unique products and solution for its customers. By concentrating on initiatives with a strategic fit, Fujitsu can enhance its competitive ability using the same resources.
Based on case article in Vectia Explore magazine Spring 2008.
Fujitsu is a leading provider of customer-focused IT and communication solutions.