Revitalising Finnish Competitiveness
Arto Ranta-Eskola Ranta-Eskola Consulting
Ilkka Sorsa Ruukki Construction
Cornerstones of industrial competitiveness
R&D&I- collaboration platforms- public private partnerships- new business models- advanced materials- internet of things- public innovation support- etc.
Systematic development- continuous improvement- Lean- Tacuchi- Kaizen- Six Sigma- LCA- etc.
Infrastructure- political stability- education system- standard of living - availability of funding - labour costs - energy price- transportation network- etc
Operational efficiency- automation- robotics- production ecosystems- digitalization- 3D printing- quality systems- ERP- logistics- integration of design & mfg- etc.
Foundation- country size- location- climate- population - natural resources- etc.
Globalization Climate change
International conflicts
Environment
Finnish view of Finland´s location
Global view of Finland´s location
China.
Finland.
- political stability- education system- standard of living- availability of funding - labour costs - energy price- transportation network- etc
Infrastructure
The Government ”competitiveness leap” program is necessary to revitalise Finnish economy. However, cutting public R&D&I funding has to be made carefully, as it may destroy the positive results achieved.Reduced funding must be focused to boost innovation.
- automation- robotics- production ecosystems- digitalization- 3D printing- quality systems- ERP- logistics- integration of design & mfg- etc.
Operational efficiency
date/month/year www.ruukki.com | Firstname Lastname | INTERNAL11
Integration of design and manufacturing
Integration of design and manufacturing
- continuous improvement- Lean- Tacuchi- Kaizen- Six Sigma- LCA- etc.
Systematic development
Click to edit Master subtitle style
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Continuous improvement (CI) is the solution to Finnish competitiveness problem
Suomalainen työmies ja -nainen kykenevät ja haluavat antaa yrityksensä kehittämiseen huomattavasti enemmän kuin tänä päivänä näyttää olevan mahdollista.
Siihen kannustaa huoli omasta työpaikasta ja lasten tulevaisuudesta
Matti Alahuhta, Talouselämä 28.11.2014
Roles change in CI management
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Traditional management CI management
Top managementStrategic steering =>
competitiveness => jobs
Top management Creates environment and atmosphere
for renewal => continuous improvement=> superior competitive advantage =>
the employee value grows
EmployeeAssumes responsibility
of company success and own learning
EmployeeIs a loyal executor of the
company stategy
1. Selection of object
2. Analysis of current state
3. Brainstorming for targets
4. Targets, impacts
5. Execution
6. Implementation and follow-up
CILean is the systematic execution model of CI
Germany
Impact of CI to performance
CI not in useCI used partially
CI used widely
Producivity (value added / person), k€
Repair and rejections, x 0,1%
Average reset time, min
- collaboration platforms- public private partnerships- new business models- advanced materials- internet of things- public innovation support- etc.
R&D&I
New Companies
HAMK, Tavastia
Vocational Institute Tavastia
Hämeenlinna city and Linna
Business Development
HAMK Seinäjoki Region TUT
Ruukki
Steel Construction Excellence Center
New Companies
TEKES
EAKRESR
RFCSEU
RYM FIMECCTUT
RDI Projects
OVERHEADFearFaith
GOAL 5-10 YEARS10 % OF RESOURCES
STRATEGIC OPTIONSAssessmentSelection
GOAL 4-5 YEARS30 % OF RESOURCES ROI
ProfitGOAL 1-3 YEARS60 % OF RESOURCES
Is it possible?
Is it attractive?
is it practical?Is it desirable?
How do we do it?
MARKETS
Resource allocationIDEA
TEC
HN
OLO
GIC
AL
UN
CER
TAIN
TY
RESOURCE ALLOCATION
Source: William H. Matthews
Tekes projects
Market orientation
Research Applied research Operative NPD
CuriosityresearchR
isk
SHOK or CSTI
Academy of Finlandprogrammes
Tekes programmes
Tekes projects
Market orientation
Research Applied research Operative NPD
CuriosityresearchR
isk
SHOK or CSTI
Academy of Finlandprogrammes
Tekes programmes
Questions after termination of SHOK fundingHow to secure:- industry involvement in selection of research topics- effective transfer of research results into innovations
The share of public funding out of the total R&D investments of companies is in Finland among the smallest in OECD countries
”All the Apple’s technologies were developed with public funding. Without private money, none of them would be in use.”
Marina MazzucatoRoyal Society of Arts Journal, 2015(RSA members e.g. Adam Smith & Karl Marx)Mazzucato, M. and Parris, S. (2014), “Heterogeneity, R&D and growth: a quantile regression approach,” Small Business Economics Journal, 43(1)Mazzucato, M. (2013) “Debunking the market mechanism: a response to John Kay”, Political Quarterly, 84 (4): 444–447Mazzucato, M. and Shipman, A. (2014), “Accounting for productive investment and value creation,” Industrial and Corporate Change, 23(1): 1-27Lazonick, W., Mazzucato, M., and Tulum, O. (2013) “Apple's Changing Business Model: What Should the World's Richest Company Do with All Those Profits?” Accounting Forum. 37: 249-267Mazzucato, M. (2013), “Finance, innovation and growth: finance for creative destruction vs. destructive creation,” in special issue of Industrial and Corporate Change, M. Mazzucato (ed.), 22(4): 869-901
Summary The Government ”competitiveness leap” program is necessary to revitalise Finnish economy. However, the reduced research funding must be used to effectively boost innovation. New types of collaboration ecosystems are needed to utilize the potential of digitalization and integration of design and manufacturing. Continuous improvement offers the fastest effective means to increase productivity. A national development program is required to fully utilize this potential.Industry - univeristy collaboration must be deepened. The model lost due to termination of SHOK funding has to be replaced in order to bridge the gap between research and commercialization.
Acknowledgement
The authors wish to thankThe Federation of Finnish Technology Industries
andFIMECC Ltd.
for providing material to this presentation
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