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Finnish digital learning business cluster 2005


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Compilation of Finnish companies serving the competence development technologies, solutions and services markets.

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Finnish digital learning business cluster 2005

  1. 1. Learning Business Cluster in Finland, 2005 This is a compilation of Finnish companies serving the Competence Development Technologies, Solutions and Services Market. The publication contains also selected articles from webservice.�� ���������������������������������������������������� ����������������������������������������������� �������������������������������������������������� ����������������������������� ����������������������������� ����������������������������������� ������������������������������� ���������������������������� �������������������������� ������������������������������������������������� ������������������������������ ���������������������� �Autumn ������������ �������������������������������������������i, Timo Bergman ������������3�����
  2. 2. 1 �������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������������� �������������������������������������������������������������������������������������������������� ������������ ����������������������������� ����������������������������������� ������������������������������� ���������������������������� �������������������������� ������������������������������������������������ ��������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������� ��������������������������������������������������������� ������������������������������������������������������������������������������������ �������������������������������������������������������������������������������������������� �������������������������������������������������� ���������������������������������������������������������������������������������������������� �������������������������������������������������������������� ������������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������� ��������������������������������������������������������������������������������������������� ������������������������������������������������������������������ ������������������������������������������������������������������������������� ����� ��������Chosen articles (vendor and support service cases 2004-2005) from Finnish Learning Business Cluster �����B��Companies by service categories ���T C: Companies by countries and areas of operation PART D: Companies in an alphabetical order �������������������� ����������������������������������������������������������������������������������� Radiokatu 5 D�������24���������� ������������������ �������������������� � ��������������� ����������������� � � ������������������ ���������������������������������� ���������������������������������� ������������������������� � ����������������������� ������������������������������������� Autumn��������������
  3. 3. 3 Learning Business PART A: CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 29.9.2005 Business Ecosystem Perspective on Internationalisation – Small- and Micro-size Vendors in Finnish Digital Learning Business Cluster Dr. Esa Matikainen1 , Fennia Consulting Ltd Oy Executive Producer Kari Mikkelä 2 ,The Centre of Expertise for Digital Media, Content Production and Learning Services in Finland Digital learning business, eLearning, is in Finland, a fragmented industry cluster where internationalisation is critical for companies due to the small size of domestic markets. This article is a summarization of a study conducted in spring 2005. It describes the overall business ecosystem and stakeholder map of the emerging cluster of Finnish digital learning business, and uses them to examine companies’ internationalisation paths and enhancement of the internationalisation process. The company management needs to identify the whole stakeholder environment and to define the optimal relationship with each stakeholder. Variant internationalisation paths and strategies put emphasis on different stakeholders. The company can speed up access to customers in the target market by building strong cooperation links with the relevant stakeholders. Also recommendations for industrial development and public actions are recommended so that the field could develop into a successful cluster of its own. Background Digital learning business, eLearning, is an extremely fragmented industry cluster characterized by a large number of micro companies and diverse customer segments. The field in Finland consists of up to 150 to 200 companies generating revenue of less than 100MEUR, and a few larger players who involve in digital learning business as non- core operations. Fragmentation characterizes the field also on the EU level (Massy 2005). According to a survey on Finnish learning business industry (Pekka Lith, 2005,, Finnish companies which serve the target market had a total turnover of 139 MEUR in 2003 (Table 1). Company size, employees Number of companies Number of employees Turnover (MEUR) 50 - 7 1040 59,4 20 - 49 14 344 32,1 10 - 19 17 226 19,8 5 – 9 28 186 13,3 Under 5 98 143 14,3 Total 164 1939 139,0 Table 1: Finnish Learning Business Clusters companies 2003. Some of the companies are lifestyle businesses, but others share the will to grow and internationalise the business. Due to the small size of the domestic markets, the success of internationalisation is critical for both the growth of the companies and for the field that is aiming at developing into a successful cluster of its own. 1 Esa Matikainen has a doctoral degree from Helsinki School of Economics and Business Administration. He has over ten years of experience in consulting assignments including strategic measurement, stakeholder management and growth strategies of technology companies. Matikainen acts as a partner and board member of selected growth companies such as an eLearning company Apprix that focuses on edugaming, and a management consultancy Fennia Consulting that specializes in e.g. board and management development. During 1994-2001 Matikainen acted e.g. as a partner and Chairman of the Board at Nedecon, an Internet company listed in the NM list of Helsinki Exchanges in 1999. 2 Kari Mikkelä, M.Sc. (Tech), post-graduate studies at Helsinki University of Technology, acts as the Executive Producer of the Centre of Expertise for Digital Media, Content Production and Learning Services in Finland. He is responsible for business growth and internationalization support for the Finnish digital learning services industry. He is engaged in several national and international initiatives related to the business development of ICT-enabled services. From the late 1980’s Kari Mikkelä has been the responsible partner in many telematic R&D programmes of the European Commission and Finnish authorities. He is an active board member of several Finnish associations such as the Finnish eLearning Association, ISOC Finland and Finnish Association of Distance Education (FADE).
  4. 4. 4 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER The strengths of the companies typically include product, technology and related competencies. Also Finland’s strengths in the ICT sector and in international competitiveness studies can be considered as strengths with regard internationalisation (see e.g. Tieke 2005). The commonly mentioned weaknesses include the lack of financial resources, business competencies and awareness of the target markets as well as low recognition of the companies (see e.g. Finpro 2005). In addition to traditional means of internationalisation like exports, establishment of sales and production units and product licensing, new forms of internationalisation are emerging, such as project cooperation, internationalisation through customers, as well as customer acquisition and learning through alliances and networks (see also Finnvera 2001). Theoretical approach The key concepts of the business ecosystem perspective have been borrowed from biology, where a multitude of different species lives in a balanced, symbiotic interaction. According to this view the success of a company depends on the overall development of the entire ecosystem. Iansiti and Levian (2004) note in their Harvard Business Review article “Strategy as Ecology” that “Stand-alone strategies don’t work when your company’s success depends on the collective health of the organizations that influence the creation and delivery of your product. Knowing what to do requires understanding of the ecosystem and your organization’s role in that.” The basis of the ecosystems perspective is the relationships and networks of relationships between the stakeholder organizations. Inter-organisational relationships have intensively been examined since the 1980’s (e.g. Jarillo 1988, Oliver 1990). The relationships between the company and its stakeholders can be examined as a continuum from short-term competitive relationships to long-term relationships emphasizing cooperation and mutual benefits (e.g. Morgan & Hunt 1994, Duncan & Moriarty 1998). The relationships between the company and its stakeholders have also been examined from the perspective of economic theories such as transaction cost theory, agency theory, game theory and contract law. According to these, the key issue is to define an efficient governance mechanism for each relationship depending on the characteristics of that particular relationship (Matikainen 1998). The network approach is a similar perspective, and has been increasingly studied since the 1990’s (e.g. Håkansson & Snehota 1995, Möller & Wilson 1995). The network approach has also been adapted in several studies in the ICT sector (McGee & Bonnici 2002 among others), and several public actors such as Tekes and Culminatum see themselves as orchestrators in the network formed by the players in the Finnish innovation environment. From the company management perspective it is important to perceive that the definition and management of inter- organizational relationships has become a strategic decision variable in its own right (e.g. Heide 1994). This kind of stakeholder management seeks for an optimal, “efficient” relationship with each stakeholder and fit between the different actors in the network of stakeholder relationships (e.g. Kankkunen et al. 1995). The company management needs to determine those stakeholders in the operating environment with whom it primarily wants to operate, and what kind of relationship it wants to have with each stakeholder at a given time. The selection is affected by the current and desired nature of the company, and the business context including the level of turbulence and the complexity of its relationships with others in the ecosystem (Iansiti & Levian 2004). Objectives This working paper aims to set the scene for understanding the overall business ecosystem and stakeholder map of the emerging cluster of the Finnish digital learning businesses, and uses this to examine companies’ internationalisation paths and enhancement of the internationalisation process. The viewpoint is management’s operating in the micro and small-size vendor companies. Obtaining access to customers in the target markets is a costly and time-consuming process. Taking into account the characteristics of the field, this study aims to answer the question: “What can nevertheless be done to enhance the successful internationalisation of small companies by using the stakeholder approach as a tool?” The objective is to improve the holistic view of the field and provide some concrete thoughts for company management with regard business development and internationalisation planning. Also recommendations for industrial development (see also Koskinen et al. 2004 and Centre of Expertise for Software Product Business 2005) and public actions (see also Markkula 2004) are provided. The research was conducted in spring 2005 as a case study, where preliminary conclusions drafted based on literature and researchers’ pre-understanding were modified, deepened and sharpened through six case studies and 17 expert interviews. This article provides a summary of the key findings. For the whole article including e.g. the case descriptions, theoretical background and references, please contact the authors or
  5. 5. 5 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER The Finnish eLearning Ecosystem The Finnish eLearning ecosystem is founded on four business clusters ostensibly developing separately. i) The ICT cluster (15 Billion Euro) develops enabling technologies, ii) the content production cluster (5 Billion Euro) commodificates knowledge and expertise and iii) the KIBS (Knowledge Intensive Business Services) cluster (9 Billion Euro without SW business which is included in the ICT cluster) develops new service and delivery solutions. In Finland all these clusters are growing faster than the GNP trend. The fourth ”cluster” contains the customer organizations. One of their role is to act as buyers: consuming services provided by other clusters (i, ii, iii) developing knowledge, competences and the productivity of knowledge work; another one of their roles is to produce these solutions also internally. Several surveys estimate that approximately a half of the added value of the field is created expressly within the customer organizations. The customer cluster is therefore a significant creator of value within the eLearning field, even though it is difficult to measure its exact volume by using existing economic measures. The eLearning ”field” has grown interwoven into the clusters mentioned above. It is the glue tying the value of the various clusters into solutions meeting the needs of the customers. The vendors operating within the eLearning field can either be focused solely on eLearning, or they offer eLearning as an alternative service or product within their product portfolio, or then they are companies which deliver other solutions which have externality value when used for competence development purposes by the customers. The companies working within the eLearning field possess different competences separating them from other actors. From a more granular view the Finnish eLearning ecosystem consists of a large number of different actors, which have been classified as illustrated in the following Figure 1. The actors have been divided into 12 categories, which are customers, training organizations, public organizations, authorities, financers, owners, personnel, content partners/competitors, technology partners/competitors, support services, media, and traditional distributors. In addition, the ecosystem has been divided into five levels (circles) according to the degree of involvement in the day- to-day operations of the companies in the field. The division is described in the following. The board or management of the internationalising company being the key decision maker when it comes to strategy and internationalisation within the limits of shareholders’ vision and risk- taking capability, it has been placed in the core of the map. 1st level: A partnering level actively involving in a company’s operations, mainly its own personnel, active owners, (hopefully) customers’ internal teams and strategic partners. Main challenge on this level: creating sustainable customer-vendor mini-clusters. 2nd level: The traditional industry level, including among others a customer’s personnel participating in decision making, other eLearning companies, and public organisations with continuous involvement in the field such as Culminatum and Association of Finnish eLearning Center. Main challenge on this level: developing industry-specific core competences. 3rd level: A cluster level including actors with strong relationships with each other. The cluster includes several industries such as publishers and IT system integrators, KIBS companies as well as direct support services, TE-Centres and media services companies. Main challenge on this level: positioning the industry among other clusters and developing viable business models. 4th level: Finnish ecosystem level, which forms the general operating environment, the reality without which the system is not functional. The ecosystem level includes, among others, the general financers and authorities who have no active role in the field or direct impact on the companies, but which are there when needed. The actors in the ecosystem often have a strong indirect impact on the companies. Main challenge on this level: embedding the eLearning ecosystem into the national innovation environment. 5th level: International level, which often operates as a link to the similar ecosystems on the foreign target markets. Main challenge on this level: using existing domestic strengths when leveraging growth internationally. Strategic choice as to whether intensive growth is to rely on content, technology, service or customer-intimacy.
  6. 6. 6 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER OWNERS PERSON- NEL CUSTO- MERS AUTHORITIES TECHNOLOGY PARTNERS/COMPETITORS PUBLIC ORGANISATIONS SUPPORT SERVICES FINANCERS TRAINING ORGANISATIONS CONTENT PARTNERS/ COMPETITORS MEDIA Customer’s contact persons Participants/IT personnelBoard/mgmt of the intl company Internet ecommerce sties IT system integrators Suppliers of programming services Research institutes Professional organizations and unions Suppliers of news services Software suppliers Part-timers and freelancers Continuous work as subcontracting Own employees Other ministries Culminatum Ltd. Tax authorities Ministry of Trade and Industry Participating venture capitalists Partners/o wners Potential new shareholding partners Decision makers/ Purchasers Book stores TEKES Passive owners Occational work as subcontracting Work for hire companies Potential employees Media companies Citizens TE-Centres Finnvera Universities Polytechnics and vocational institutions Intl media Industry’s media Courts of law Law firms Management consulting PR, communications and advertising Business angels Current financiers Chambers of Commerce Company-specific content partners Media services companies Import companies in specific industries Internet companies Stock exhanges Banks/financial institutions End users Parent and/or subsidiaries EU structural funds Industry associations Recruiting services Alumni Schools Other personnel in customer organizations National media Other SME eLearning companies Head hunters Finpro Intl venture capitalists Other intl financial markets Itnl locations of customer organizations Intl parents of customer organizations Related industries and networks of customer organizations Foreign research institutes and organizations Foreign universities Multinational content producers Related intl organizations and networks Foreign locations and networks of support services organizations IT equipment and software stores Company’s personnel abroad EU and Nordic financial institutes Incubators Foundations Sitra Finnish Industry Investment Association of Finnish eLearning center Potential managers Multinational technology companies Publishers eLearning units of large companies EU projects and networks Private training organizations. Teleoperators Potential board members Organizers of export rings TRADI- TIONAL DISTRI- BUTORS Figure 1: The Finnish eLearning ecosystem. The Ecosystem as a forum of cooperation Prahalad and Ramaswamy (2004) presented a model according to which the role of the markets changes from a forum of exchange to a link in a creative process (value network) and a customer forum. The new role of the markets emphasizes the interworking and closer contact between the service provider and the customer. Prahalad and Ramaswamy suggest that the common value creation process developing between the customer and the service provider is changing the markets into a forum of cooperation for the customer, service provider, customer organization and corporate networks. The customer-driven approach requires closer cooperation with the customer networks, allowing intensified dialogue and integration of customer organisations into industrial value networks. Necessitating interaction is the only way to enhance mutual understanding of the benefits of digital learning solutions between the provider and the customer. The Centre for Digital Media, Contents Production and Learning Services aims at supporting interaction between the customer and the provider, and at forming customer communities sharing best practices. As a facilitator it provides fora and channels for support services and monitors the industry in cooperation with R&D organisations and other players within the Finnish innovation environment. Conclusions for Company Management Different paths and strategies of internationalisation make different stakeholders critical. The management has to identify the whole stakeholder environment and to define an optimal relationship with each separate type of actors. The paths of the internationalisation vary considerably according to the market area in the case companies. This is a manifestation of the fact that the best ways for the internationalisation are still being searched for. The company can accelerate access to the customers of the target market by creating strong enough cooperation links through the stakeholders which already have credibility on the market. The weakest link determines.
  7. 7. 7 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER It is beneficial to collect a sufficiently strong and wide support network of different actors who know the aims of the company and from whom the company acquires help at the separate stages of the internationalisation process. The strategy serves also as a tool for committing stakeholders and it may form into a public tool instead of remaining confidential information. The companies should begin the exploration and the building of relations as early as possible. The task of the company board is, besides asking the critical questions, to bring a constructive view, contacts and practical advice to the internationalisation process. This requires supplementing and changing of the composition of the board in many companies. A broad perspective is required also from the management of the company. When identifying competence demands for the management and staff, managerial abilities and sales and customer know- how are emphasised to an increasing extent. The possibilities of the internationalisation along with the customers have not been sufficiently utilised at present. In the product business there are more possible ways to internationalise. The operations models and needs of distribution channels and sales partners should be taken into consideration already at the product development stage, if one desires to have the product or the service sold through a channel or partner. Conclusions for Industry Development Lack of focus hinders cooperation between companies in the field where the companies' day-to-day operations are quite overlapping. The focus will sharpen automatically if the company succeeds in internationalisation and achieves growth and downsizing of non-core activities this way. It is a chicken and egg question. It is central to expand the company size for the removal of resource bottlenecks. One must find the spurs in international success possibilities. As a precondition for corporate restructuring the companies must be able to create value which is independent of the shareholding so that it will not disappear with the trade. In the joint cooperation projects (for example export rings or” innovation projects” such as mobile games in Latin America) it is possible to distribute costs and to get a bigger attention value on the target market. In the digital learning markets there is room for support services enhancing the linking of demand and supply. The challenge is to increase understanding between the customer and the service provider so that the solutions meet the demands of the customer (Harju, Minna et al., 2004). The development of the industry is likely to follow the change model (see HBR 2004) in which the fragmented or emerging industry is followed by expansive convergence and “shake-out” stage, in which the best ways for the internationalisation are found. The companies whose strategies and business models bring success on the international market are distinguished from small local actors. The different phases of development are illustrated in Figure 2.
  8. 8. 8 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER • A large no. of small companies (150-200) • Traditional “big players” implement related solutions Fragmentation/ Emergence Shake-out/ Convergence Maturity/ Coexistence Decline/ Dominance Financial perspective Customer perspective Operations and processes Organisation, learning and development Emerging Industry Established Industry ? • Small companies growing to a few million euros • Core business profitable but growth ties up resources • Succeeding compa- nies grow and some qualify for IPOs • Coexistence with large consulting, content and IT companies • Field’s total revenue in Finland a few billion euros • Sub markets, niches, formed with blurred boundaries • Search of reference customers • Customers mainly “early adopters” • Intl. customers increasingly important • Consciousness about the benefits increases • Large global customers • Almost all companies have planned solutions in the field • “e”-solutions impro- ving performance embedded in day-to- day operations orchestrators in key roles within organisations • SME’s business and operational models emerging • Large companies’ operating models based on their core business • Viable business models stand out, growth management critical • eL. increasingly important among large players • Consolidation becomes significant • Continuous improvement of processes and value chains • Reorganisation and consolidation • Management of intl operations common- place • Competent, innovative and entrepreneurial persons • Versatile employment relations • Sales and business skills needed • No. of personnel grows from a few to some tens in small companies • Management competence, middle management is built • Utilisation of competences • Organisational challenges due to increased company size • Strategic renewal to sustain competitiveness Figure 2: Industrial development model in the eLearning field in Finland. Finding innovative financing models such as mezzanine financing and different combinations of traditional financing forms, for example to finance joint productions, might also be of help to the development of the field. Also the spreading of business cases to increase wider consciousness is one concrete measure to promote the field. The clear showing of advantages provides the necessary conditions to carry out projects from which both the suppliers and the client organizations benefit. From the point of view of the development of the cluster it is important that the amount of people contributing to the field and the know-how bound to the field increases even though many companies are undergoing changes (mergers, restructurings, liquidations etc.) impacting their present form of activity. A Silicon Valley type of approach to succeed through failures, “try - fail - try again and succeed” is useful to the development of the field and entrepreneurship. One risk is also that the companies that are fit for success end up in foreign possession with too low a price from the point of view of the field as a whole. The approach of big players such as consultant houses, publishers or IT system integrators towards eLearning should be more closely examined also at the industry level. These parties build large-scale systems as projects for knowledge management, operations control and performance support. The difference compared to the supply of products and services of traditional eLearning companies diminishes over time. Conclusions for Public Actions to promote the field The public sector has to plan the public actions to promote a field so that they are compatible with the phase of development of the field (see Fig 2). At this development stage of the field the present support and service forms enable development of different business models and experimentation, meaning among other things small input into the numerous different targets. The product development is as a rule quite well supported in Finland and there is a good existing support infrastructure. Instead the bottleneck, especially at the first stage of the development of the industry, is how to start growing sales into a commercially viable business. The Finnish public administration could serve as the pointer of direction to other EU countries in developing the market with public purchasing. Instead of pure price, the benefit of the solution for the customer, the (international) competitive strength built through the solution to the delivering company, and the promotion of cooperation between the actors of the field through the delivery should be emphasised as buying criteria. At the second phase of development the focus moves to the collaborative mini-cluster and customer network projects which can be, among other things, projects built around a certain subject matter, market area or business model. The
  9. 9. 9 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER successful carrying out of spearhead projects requires slightly more extensive input compared to the divergent experimentation of the first development stage. In addition to domestic networking, the public parties could serve more effectively as link builders in the business ecosystems of the target markets. At later phases of the development the requirements continue to change and the renewal demands of the field tighten. It is essential from the point of view of the development of the whole field to enhance the forming sub- markets (for example edugaming or mobile learning). The utilisation of the possibilities which are created in the breakage sections between the sub-markets has to be facilitated also by public actions. The embedding of the ecosystem to the national innovation environment should be considered carefully. EU (25) area’s world market share is estimated to be 30% (Massy 2005) whereas the US market share exceeds even 50%. One question to be solved is which one is the primary point of view: the competitive ability of the EU’s eLearning cluster and raising of its world market share to the level of the US, or the success of Finland's eLearning cluster in the competition with similar clusters of for example other EU countries. LITERATURE Culminatum 2005, Innovation Strategy, Helsinki Metropolitan Area, Helsinki Region Centre of Expertise Cusumano Michael 2004, The Business of Software – What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad, Free Press, New York Deloitte 2004, Leading the Field, Technology Fast 500 EMEA Ranking & CEO Survey 2004, Deloitte Touche Tohmatsu, Lontoo Duncan T. & Moriarty S.E. 1998, A Communication-based Marketing Model for Managing Relationships, Journal of Marketing, vol. 62, April, s. 1-13 Finnvera 2004, Hyvä hallitus – menestyvä yritys, Hallitustyöskentelyn työkirja Finnvera 2001, Kansainvälistyvä yritys 1: Kansainvälistymisen aloittaminen, työkirja, 2. painos Finnvera 2001, Kansainvälistyvä yritys 2: Kansainvälistymisen toimintamuodot, työkirja, 2. painos Finpro 2005, Kansainvälisen liiketoimintaosaamisen koulutus, Seminaariesitys, Muusa2 Ganesan S. 1994. Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, vol. 58, April. p. 1-19. Hallituksen politiikkaohjelmat 2005, Rahoitusselvitys, Selvitys julkisten rahoittajien tarjoamista tietoyhteiskuntahankkeiden rahoitusvaihtoehdoista, Tietoyhteiskunta Harju Minna, 2004, (work group: Kari Mikkelä, Kaisa Sibelius, Timo Ovaskainen, Venla Junttila and Milla Lewadowski). Aquisition and use of digital learning products and related services, Summary of survey. Publication 1/2004, The Centre of Expertise for Digital Media, Content Production and Learning Services. Heide J.B. 1994. Interorganisational governance in marketing channels. Journal of Marketing, vol 58, January. p. 71- 85. Husted B.W. 1994. Transaction costs, norms, and social networks. Business & Society, vol. 33, no 1, April, p. 30-57. Håkansson H. & Snehota I. (eds.) 1995. Developing business relationships in business networks. London, Routledge. Iansiti M. & Levien R. 2004, Strategy as Ecology, Harvard Business Review, 82(3), s. 68-78 Jacobsen Kenneth, Paulin William L., Vurpillat Voctor V., Nukari Jussi, Peltola Eero & Saukkonen Juhani 2001, Launching Your Software Business in America, A Handbook for Finnish Entrepreneurs, TEKES Jarillo J.C. 1988. On strategic networks. Strategic Managemnet Journal, vol. 9. p. 31-41. Joint Venture 2005, Index of Silicon Valley 2005, Joint Venture: Silicon Valley Network, San Jose, California Jokinen Jani-Pekka, Hietala Juhana, Mäkelä Markus, Huurinainen Petru, Maula Markku, Kontio Jyrki & Autio Erkko 2004, Finnish Software Product Business: Results from the National Software Industry Survey, Helsinki University of Technology, Software Business and Engineering Institute, Software Business Laboratory, Institute of Strategy and International Business. Kankkunen Kari, Kähäri Perttu, Matikainen Esa 1995, Strategiana yhteensopivuus, Sedecon Consulting Koskinen Tapio, Stergioulas Lampros & Denoual Yann 2004, Time2Learn, European Roadmap for Professional eTraining, TIME2LEARN Network Lith Pekka, 2005, Toimialatutkimus oppimispalvelujen osaamisalalla, The Centre of Expertise for Digital Media, Content Production and Learning Services in Finland
  10. 10. 10 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER Markkula Markku 2004, eLearning in Finland, Enhancing Knowledge-based Society Development, Report of the One- Man-Committee appointed by the Ministry of Education Massy Jane 2005, Study of the E-Learning Suppliers’ ”Market” in Europe, Danish Technological Institute, Alphametrics Ltd, Heriot-Watt University Matikainen E. 1998. Efficient governance of interorganisational business relationships. A-141, Helsinki School of Economics and Business Administration, Helsinki. McGahan Anita M. 2004, How Industries Change, Harvard Business Review, October, s. 86-99 McGee J. & Sammut Bonnici T.A. 2002, Network Industries in the New Economy, European Business Journal, 14(3), s. 116 Mikkelä, Kari, E-oppimisen tilanne Suomessa keväällä 2002 - toimenpide-ehdotuksia e-oppimisentoimialan kehittämiseksi, Helsinki 2002. Moore James F. 1996, The Death of Competition, Leadership and Strategy in the Age of Business Ecosystems, HarperCollins Publishers Morgan R.M. & Hunt S.D. 1994. The commitment-trust theory of relationship marketing. Journal of Marketing, vol. 58, July. p. 20-38. Möller K. & Wilson D.T. (eds.) 1995. Business marketing: an interaction and network perspective. Kluwer Academic Publishers, Massachusetts. Ohjelmistoliiketoiminnan osaamiskeskus 2005, Ohjelmistotuotannon visio 2015, Tutkimusraportti Oliver C. 1990. Determinants of interorganisational relationships: Integration and future directions. Academy of Management Review, vol. 15, no. 2. p. 241-265. Prahalad, C.K. & Ramaswamy, V. 2004. The Future of Competition. Co-Creating Unique Value with Customers Sawhney & Parikh 2001, Where Value Lives in a Networked World, Harvard Business Review, January, s. 79-90 Tieke 2005, ICT Cluster Finland Review 2005, TIEKE Finnish Information Society Development Centre Äijö Toivo, Kuivalainen Olli, Saarenketo Sami, Lindqvist Jani & Hanninen Hanna 2005, Internationalisation Handbook for Software Business, Lappeenranta University of Technology
  11. 11. 11 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 28.1.2004 Sanako Corporation is a virtual language lab pioneer Language Labs produced by Sanako were already world leaders long before the idea of the mobile phone had been invented. In the case of one Finnish company the expression ’The Nokia of its field’ is more appropriate than ever. Language Labs produced by Sanako were already world leaders long before the idea of the mobile phone had been invented. Analogue tape recording technology has changed into software based PC language labs, but still the company has kept its place as a technological leader in its field. Every week millions of students sit in 16 000 language labs in over 100 countries provided by Sanako. A company based in Turku holds approximately 30 per cent of the world market! With around 11 million Euro turnover Sanako seeks fast growth on the e-learning markets. With Sanako’s new live e- learning products one may create a totally virtual class room. The teacher and the students are able to discuss together, share information and do teamwork – although they are thousands of kilometers away from each other. ‘One of the fastest growing areas in e-learning is the corporate training for staff’, says Marketing Manager Ms. Merja Jukola. Cost of production, sales and training is expensive for global companies. By new technological means we want to reduce travel costs and working time lost during travel. Sanako’s experience on language labs has been worth its weight in gold in new markets. With minor changes the software developed for language teaching can be used in many other ways as well. -‘Sanako Forum’ – this product could be used in any virtual training and virtual meetings. For example, every spring we could organise virtual product training for our distributors’, Jukola assures. ‘We presently invite 80 distributor companies around the world to Finland once a year.’ Corporate training is a big business Corporate culture is changing in other companies apart from Sanako as well, because the savings when distance learning or so-called ‘distant presence’ is used are obvious. -‘Corporate e-learning markets are still at an early stage of development’, Jukola states. Significant growth is anticipated. According to studies the market will grow size four times in the next five years. In the year 2006, companies are supposed to spend 23 billion dollars on e-learning and e-collaboration products. Many other companies are ready to claim their share of this market. In the corporate sector the competitors are much bigger than the likes of Microsoft and the other major American software producers. -‘Our product is for live training, where you have a teacher with you’, Jukola says. The philosophy differs very much from the common view that virtual training is about downloading course material from the web and returning the completed exercises by e-mail. -‘The interaction between the teacher and the student is present all the time in our products, just like in normal class room situation’. A Finnish engineer is always needed Sanako is far from being a stereotypical Finnish e-learning company, which typically is a metropolitan area company with few employees and has been operating for years mostly in the Finnish markets. Sanako has managed to avoid the pitfall of many Finnish companies by operating globally throughout its 42 year history. But how have they emerged as a winner though digital transition, from a manufacturer of tape recorders to a software company. With a PC based system, graphical interface guided language lab, hard disk storage and operating totally on the web – a complete virtual language lab – Sanako is truly a global pioneer in its field. –’It’s all thanks to Finnish engineers and the ability to listen to customers’, Jukola explains. -’It’s about building competence. We recruit people who know how to make software solutions’, claims Jukola. A modest claim but the really good companies always make it look easy! Author: Petja Partanen
  12. 12. 12 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 15.3.2004 Mediamaisteri Ltd gains foothold into global markets The THR880 training CD-ROM currently offers instruction in the use of the phone in ten languages. Domestic markets can quickly become too small for an even slightly more exotic digital learning product. Mediamaisteri solved the internationalisation problem of small businesses by partnering with Nokia. Mediamaisteri’s interactive training packages for Nokia’s TETRA walkie-talkies help public authorities learn how to use the devices. With the CD-ROM, the use of the handset can be simulated in any situation, before the handsets are put into real action. – There’s no time for police to study handset use in the field, at that point they have other things to be thinking about, says production manager Mr. Timo Heikkilä. In Finland alone there are over 30 000 potential customers, the users of the Finnish VIRVE Public Authority Network. Globally there are hundreds of thousands of users of TETRA networks. Nokia is the world’s leading TETRA network and handset supplier. The first packaged product The training CD-ROMs for the Nokia THR880 and TMR880 radios are Mediamaisteri’s first packaged product. The company used to offer only training and consulting services. However, the new product is not exactly a bulk item. The package is tailored for each customer because the handsets’ functionality varies from customer to customer. – Along with the tailoring, we also customise the layout and colours, and add the customer’s logo to the package. This makes it more comfortable for the users, Mr. Heikkilä says. The business model was structured so that Mediamaisteri sells the product directly to the retailers of the phones. Timo Heikkilä is currently making rounds and negotiating contracts with Nokia’s resellers around the world. The licensing is based on the number of users. – At first we thought about including the software along with each phone. But because the software needs to be tailored, we gave up on that idea. The police sparked the product development The development of Mediamaisteri’s product was started in cooperation with a customer. – The customer asked us, when working on another project, if it would be possible to build a digital version of the training program they were using. The first version was tailored for the National Police School of Finland. Because TETRA phones are used by almost all public authority organisations, from the military to the social services, we decided to continue commercialising the software. – The product provided Nokia’s radios with clear added value. The interactive training package has proved to be a cost- efficient way of teaching people how to use the handset. The organising of international distribution is a true challenge for a company with only twenty workers. – Without partners it would be difficult or even impossible with a product like this, Mr. Heikkilä says. Mediamaisteri’s product is already available in a few countries. There is a lot of potential, as public authority networks around the world use Nokia’s THR880 and TMR880 radios in their everyday work. Cooperation has also been valuable in commercialising and packaging the software. – For example, the sound feedback from the phones in the training program is now authentic, the same as in the actual phones. Heikkilä admits that product training is an appealing business. – Basically the walkie-talkie could be exchanged for any other device. This project has helped us in the development of other products. Author: Petja Partanen
  13. 13. 13 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 30.8.2004 Everscreen Ltd aiming to be a major player in the training market Learning and competence development challenges are increasing rapidly in Finnish companies and public organisations. Management is changing, strategies are being revamped and products brought more quickly on to the market. This demands more nimble organisations than before, whose members possess the required knowledge and expertise, claims Everscreen Oy’s managing director, Mr. Lassi Tolonen. Faith in digitally-supported learning already existed four years ago, when digital media production company Everscreen’s strategy was renewed. They gave up CD-ROM consumer products to concentrate on company training services. SanomaWSOY as the majority shareholder Everscreen’s change in direction also interested publishing giant SanomaWSOY, which became its majority owner in 2000. A alliance of old and new media is an important benefit in the e-learning market. - Our strength is in solutions that can be made into products. We are cost-effective and high quality compared with firms that make tailored solutions for e-learning. We do classroom-based training as well but unlike traditional training companies, we do not have the burden of a hundred regular trainers whose timetables must be filled. Mr. Tolonen has faith in producing products as much as possible, and the combining of web-based and classroom-based teaching. - We make use of the efficiency and better learning results brought by digital tools. Ready products are easier to sell, because the customers can see what the end result will be like. But in any case we always tailor solutions to meet the needs of the customer. Everscreen’s best-selling products are the sales training package EWE-Challenge, management training tool EWE- Manager, and Leadership Challenge which has just come on to the market and is an interactive simulator for training managers, and EWE-Company for the efficient implementation of strategy. - More and more customer projects are made up of multiform training, combining web-based and classroom-based teaching. For example, Members of Parliament are learning to use Microsoft Office using Everscreen multiform courses. The importance of measuring The gauging of results is also part of Everscreen’s operating model. - We measure students’ satisfaction levels, learning results and, of course, most important of all, what economic benefit the customer has gained from the training, says Mr. Tolonen. But what does digitally-aided learning do better than traditional class teaching? According to Tolonen, many training projects could not be done by traditional methods. - In one case we trained 600 customer service personnel. The level of results and cost-effectiveness was fantastic compared with local training. The readiness of companies to take web-based training varies a lot, according to Tolonen. - Some are taking their first steps, to other companies making use of digital tools in training and development activities is part of their business culture. Once there, there is no way back to the old training ways. - In five years’ time, web-based learning will be a normal part of a company’s activities, without any exotic aura, Mr Tolonen predicts. In the coming years, Everscreen intends to remain at the crest of the development wave. - An important part of our business is combining digital tools with traditional company training models. Now we are the market leader in e-learning, but we will be a significant player in the whole field of training, even compared with traditional training companies, promises Mr. Tolonen. Author: Petja Partanen
  14. 14. 14 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 17.1.2005 GoodMood Ltd: With Webcasting Software out into the Wide World GoodMood’s award-winning flagship product WIP combines a video conferencing and teamwork application and webcasting software in one interface. The moving picture is an expressive medium, but it is still rarely utilised in company communication. The world is bulging with webcasting software but only a few companies have the production skills - not to mention the technology - required for making a TV program. “We strongly believe that companies want to buy webcasting as a service,” says Mr.Olli Ilmolahti, CEO of GoodMood. In the competed market, the trump card of the software house and production company specialising in network-based communication solutions is strong production know-how. With its international network of partners, GoodMood is able to offer its customers webcasting transmissions all over the world. “In addition to the software, GoodMood can provide a cameraman anywhere in the world, for example, and take care of distributing a web transmission to a network,” tells Ilmolahti. “The largest webcasting transmission produced by GoodMood had five speakers from different countries, was transmitted to 54 countries, and had 8,000 simultaneous viewers,” Mr. Olli Ilmolahti says. The road to become a software house started already in 1996, when GoodMood started as a TV production company. According to Ilmolahti, the company already at that time had a clear vision that in the future, live pictures would be distributed also in other distribution networks. As at that time there was no adequate software for distributing live pictures in a network environment, they had to create one by themselves. WIP Software Awarded a Price GoodMood’s main product WIP is being marketed as “the world’s most advanced network communication application utilising streaming video”. The marketing slogan does have believability, as WIP received the prestigious IVCA Innovation Award 2004. The software was awarded for its innovative technology combining a video conferencing and teamwork application and webcasting software in one interface. “It was a magnificent reward that provided the Finnish company with enormous visibility especially in the British market,” enthuses Mr. Ilmolahti, who accepted the award in London. GoodMood’s solution is used most in investor communication. For example, the Kauppalehti LIVE service that distributes financial information of listed companies on the Internet runs on the WIP software platform, and the network connections are managed by Song Networks, a partner of GoodMood. There are several more exotic applications, from training the global service network of automotive manufacturers to international press conferences. GoodMood has gotten a good start in creating an international network. The company employing almost 60 persons has offices in Helsinki and Turku, and sales offices in London and Freiburg. The company’s Webcasting Service Partner (WSP) network produces webcasting events for its customers all over the world as a turnkey service. “Finding the right partners has been the most difficult part,” Mr. Ilmolahti comments on the pain spots of internationalisation. GoodMood’s turnover target for this year is a good five million euros. Despite the difficult times, the growth rate in the recent years has been 20 - 30 per cent per year. “We are expecting vigorous growth in 2005 - 2008. The market is starting to open, and we have made a name for ourselves with our product,” Mr. Ilmolahti states. Additional strength for internationalisation was sought after with the 2002 round of investments, during which 3i became a capital investor. However, building an international network of partners and swift growth require strength, so we are considering a new round of investments. Where will you be five years from now? “We intend to be the market leader of webcasting in Europe and one of the most important players in the world,” Mr. Ilmolahti replies. Author: Petja Partanen
  15. 15. 15 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 17.3.2005 Ellibs Ltd Transfers Libraries to the Net It is easy to browse library databases in the Internet, but books do not yet travel via the information networks. Therefore, I was astounded when the database of a local library offered the book I was looking for, Branding @ the Digital Age, for download in PDF format. A couple of clicks later I had downloaded the book to my own workstation as a 24-hour loan. eBook distiribution channel If Mr. Kristian Laiho, managing director of the Finnish company Ellibs, could decide, all non-fiction would be borrowed as eBooks. Ellibs has already delivered an eBook loan system to 250 libraries. For publishers, Ellibs acts as the eBook distribution channel. In addition to libraries, also companies and private persons purchase eBooks. "People buy books from us as before. The publisher owns the copyrights and decides the prices of its products, whereas we are strictly a distribution channel," says Mr. Kristian Laiho. Libraries can choose their own eBook selection from a supply of approximately 10,000 titles. There are almost 100 publishers in Ellibs' lists. According to Laiho, it is difficult to provide accurate numbers, as it appears that right now publishers have really become interested in the eBook distribution channel: thousands of titles by various publishers are waiting to be input into the Ellibs systems. Laiho is on his way to the London Book Fair to launch the system in the British market. The last time there was interest in eBooks was a couple of years ago, when manufacturers competed to launch eBook readers to the market. However, as there were no books, now also the devices have disappeared from shop shelves. "Who wants to purchase a separate terminal only for reading books? The current mobile devices and portable computers can be used for a number of other things than just for reading books. On the other hand, they are not leather-bound," remarks Kristian Laiho. eBooks become electronic Ellibs entered the business from the correct end by providing an easy distribution channel for eBooks. Especially non- fiction publishers believe in the idea. Neither is Laiho keen on fiction. "We sell knowledge, this is an eBook distribution channel," he states. According to Laiho, borrowing and buying electronic non-fiction in the Net is natural; after all, searching for information is one of the most important applications of the Internet. But when will library operations be completely transferred to the Net? Mr. Laiho is not willing to make a guess. However, he suggests that we consider the information network revolution that took place in the Finnish banking world. Nowadays, one rarely meets a bank clerk. "Books will not disappear anywhere. eBooks have their own function, and traditional books have another function. Laiho believes that the eBook provides quick fragments of information for an actual need. With a traditional book, on the other hand, you spend time on the sitting-room sofa. "In the future, it will be carefully considered which books to publish in printed form and which ones only in electronic form," believes Kristian Laiho. Publishers have their own distribution channels for their eBooks but Mr. Kristian Laiho has faith in his product. One competitive edge of Ellibs is that it is independent of publishers. Moreover, the technical solution provides a possibility to download an entire book to a separate terminal for reading during a journey, for example. As a company, Ellibs is on the threshold of a breakthrough. Speed to internationalisation was sought last year when a capital investor joined the company. "Now, our speed is good, the technology functions, and we concentrate on business. We are already selling books to libraries all over the world. The near future looks quite exiting," says Mr. Laiho. Author: Petja Partanen ELLIBS LTD
  16. 16. 16 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 28.4.2005 Promentor Ltd won the Finnish eLearning competition The Promentor® Protocall Engineering Language Course has been chosen as the best e-learning solution of the year in the Finnish eEemeli 2005 competition. The PC is a tireless language teacher The Promentor® Protocall Engineering Language Course has been chosen as the best e-learning solution of the year in the eEemeli 2005 competition. The classroom is not the only place for effective language learning. The interactive study of a foreign language also works with your own PC. Promentor, a pioneer in computer-aided language learning, began to produce e-learning applications on the subject 18 years ago. Now the range includes 19 one-year courses in business language learning. A new product is Protocall, a technology-based language course that won the eEemeli competition. Produced as an EU project in conjunction with Tampere Polytechnic, Protocall is available in three language versions, English, German and Swedish. - Our main competitor is still traditional language training run by a teacher, says Mr. Juha Telkkinen, managing director of Promentor. He estimates that Promentor controls about 8% of the Finnish language training market. - So 92% has yet to be reached. Computer-aided language learning has many advantages over contact-based teaching. The computer is a tireless teacher for slower learners. When a problem is encountered, you can ask the virtual teacher and the talking dictionary. With the help of the software’s language lab, you can record your own speech and compare your pronunciation with that of a native speaker. In the peace of their own surroundings, even the quiet ones in the class will open their mouths. Difficulties in internationalisation Promentor’s business model is based on networking. All products are tailored to publishers, who deliver the course material. The courses are compiled with Promentor tools and published under the Promentor brand name. The publisher and Promentor market the products together and divide the profits. The study material also includes partners’ products, such as dictionaries. Promentor products have succeeded well on the Finnish market. Customers include seven universities, 28 polytechnics, and large companies such as Finnair and Stora Enso. The stumbling block for small companies, internationalisation, is also a problem for Promentor. According to Mr. Telkkinen, promising markets are beckoning in such places as the new EU member states. - To sell software like this, you need to make personal presentations. Resources tend to be insufficient to organise distribution in these places, he says. Help has been received from Finnish partners operating in larger international markets. According to Mr. Telkkinen, co- operation with them has gone well. Computer-aided language learning in companies is gradually starting to spread. - They are already beginning to trust the technology. The difficulty is in the practical implementation of the teaching, he says. It isn’t enough that the software is installed on the company intranet, and employees are informed by email that the course is available. In the organisation, you need people who are interested in the results of the course. - The success or failure of e-learning depends on people, explains Mr. Juha Telkkinen. Author: Petja Partanen
  17. 17. 17 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 7.6.2005 CICERO empowers Finnish learning research The Cicero Initiative co-ordinated by the University of Helsinki is gathering together Finnish researchers of learning in a joint research network. Involved are all fields of science researching into learning, from brain physiology, technology to societal influence of learning. In future, it is planned that the CICERO network, which is operating across university and faculty borders will be a strong initiator of interdisciplinary research projects. Research targets and partners are also being found from the world of business. Learning research is quite a key issue just now, as, in practice, we are transferring from a knowledge-based society to a competence-based society, says Ms. Raija Latva-Karjanmaa of the Department of Education at the University of Helsinki. Ms. Latva-Karjanmaa is one of the researchers in the group preparing the project. Some ideas of the international model for the Cicero Research Network have been obtained from the universities of Oxford and Stanford, where corresponding units of learning research are operating. What is driving the project at the University of Helsinki is the strong aspiration to be a top-level university of learning. - The purpose is to get the country’s best learning experts to network across disciplinary borders. At the University of Helsinki alone, more than 100 researchers of learning are working, says Ms Latva-Karjanmaa. The university’s current Vice-Rector, Ms. Hannele Niemi, has acted as an initiator of the Cicero Initiative. The co- operation between learning researchers has been practiced in the research programme of the Academy of Finland ‘Life as Learning’, for which Ms. Niemi is also acting as scientific director. - The success of this research programme has shown that a large network can achieve more in research than small, scattered units. With one professor and a couple of researchers, it’s difficult to carry out epoch-making research. When the best researchers can work together, it’s easier to obtain funding, says Ms Latva-Karjanmaa, who is the national coordinator of the Life as Learning Project ( A desire to operate as its own unit At a launch-meeting of the Cicero network at the end of April, a long-term development plan for learning research was set out. The team of professors has met in August. According to Ms. Latva-Karjanmaa, activity is supposed to get started with the aid of funding from universities. In future, extra funding will be obtained both from the universities in the network and the world of business. Although the talk is also about the network, the goal is that, within five years, the Cicero network will operate as its own unit. According to Ms. Latva-Karjanmaa, serious-minded research work lacks proper conditions in which to operate. - The strength of Cicero will be in internationalisation and in breaking through scientific barriers. One model is that professors working in a unit will be from different universities, and will receive part of their salary from their activities in the network. Top-quality researcher training and international senior researcher exchange are also being planned. The Helsinki Region Centre of Expertise is also involved in the Cicero network. The Centre of Expertise brings us links to the world of business, explains Ms. Latva-Karjanmaa. The network being set up has also stirred interest from abroad. In October, the Finns are setting off for the Stanford Center for Innovations in Learning (SCIL) to get to know their colleagues there and to prepare for some joint projects. - They are interested in such things as our research results in the field of mobile technology. What is also unique is that researchers from engineers to neurological scientists and artists are involved in Cicero. - This must be one of the most extensive networks for learning research in the world. Author: Petja Partanen CICERO
  18. 18. 18 Learning Business CHOSEN ARTICLES FROM FINNISH LEARNING BUSINESS CLUSTER 29.8.2005 National Lifelong Learning Institute Dipoli trains e-learning managers for companies In the OTAe 2005 training programme organised by the Lifelong Learning Institute Dipoli at the Helsinki University of Technology, virtual presence is an everyday thing. Since the beginning of March, a group of twenty students has been acquiring the readiness to develop the activities of their own organisations. - The goal is to train competent eLearning project managers for companies. At the same time, we will help these companies to carry their own eLearning projects forward, says the Chairman of the Advisory Board for the course, Mr. Juha-Matti Arola. As his main job, he is responsible for KONE Corporation's eLearning activity. Training is done by blended-learning. The training incorporates real contact-based teaching. in six two-day periods, the best experts in the field lecture on e-learning culture, project planning and implementation and content production. What is more important, however, is that the workshop activity and the development projects for the students' own organisations are done mainly in a virtual environment. - For example, teamwork and the introductions by experts are arranged by an internet-based video-conferencing system, says project manager Ms. Riikka Kuusisto. So the idea is to practice actual digitally-aided groupwork, not just to talk about it. One of the students is Mr. Jarkko Hedman. He is doing a Master’s thesis, which is supposed to be used as learning material in the training of the management group for KONE’s new global virtual organisation which comprises 400 employees. This study is part of the GENRE programme activities. The name ’KONE’ comes up repeatedly, when, for example, you talk about advancements in the exploitation of Finnish eLearning tools. Efficiency in company operations is achieved as much in the elevators manufacturer' virtual management meetings as in its training animation which transcends language barriers, Mr. Juha-Matti Arola admits that a more apt term would be eWorking. Electronic tools are used for communicating in everyday working situations, not in the classroom. The same idea is being put into practice in the OTAe programme. Arola says that OTAe is also a good forum for testing new training methods. - This can also be seen as research and development work. If they work in this training programme, they will also work in a company, he states. When the ten study-weeks of management training end in November, the eLearning projects started up in separate organisations will already be moving along at a good pace. Dipoli is already planning new eLearning management training programmes. - The form of the next training programme is still open, but the working model will remain the same, promises Ms. Riikka Kuusisto. Coming programmes will emphasise self-participation and virtual groupwork. – The practices within the training businesses are evolving, new methods and tools are tested continuously. The course participants have received much time in their own organisations. Increasing awareness of field knowledge and the distribution of information are the most important roles of the OTAe programme, says Ms. Kuusisto. The same opinion is expressed by Mr. Jarkko Hedman who is completing his university studies while engaging in the OTAe programme. The soon-to-be Master of Economics is studying the problems of virtual teams. Discussions in the OTAe course have helped him in his research. - There are not yet a great many experts in the field of eLearning. The sharing of experiences and meeting other people are important. The creation of a network is one of the programme’s most important benefits, he says. Author: Panu Sivula
  19. 19. 19 Learning Business PART B: COMPANIES BY SERVICE CATEGORIES The companies within the cluster have used a three-lewel categorization to define their services at the service. The three main levels are: � Content providers � Services � Technologies, Tools, SW and Hardware Properties Each main category is divided into 6-28 sub-categories. The categorization of services at is a combination of various Finnish and international categories. The aim of the categorization is to serve customers seeking suitable service providers and to describe Finnish e-learning service offerings in more detail. Content Providers C1: CBT, CD-ROM, DVD etc. Providers 3T Ratkaisut Oy DinoPro Oy Ab Mikrolinna Oy AAC Global Everscreen Oy NetComp Oy Abut Oy Fakiirimedia Oy Promentor Solutions Oy Anaheim Finland Ltd./Dancing Dot IT-Taito Oy Prosign Oy Avset Oy Kidsfactory RecIT Solutions BTS Finland Kielikone Oy Talvi Productions Oy Ch5 Finland Oy Lahden Teho-Opetus Oy Trodfix Oy Datafisher Magneetto Media Oy Unique United Oy | Ltd. Design Reform Oy Mediamaisteri Ltd. C2: e-Books and Online-knowledge Providers BTS Finland Fakiirimedia Oy Koulutus- ja konsultointipalvelu KK Mediat Ch5 Finland Oy Kielikone Oy Prewise Finland Oy DinoPro Oy Ab C3: Online-course Providers 3T Ratkaisut Oy DinoPro Oy Ab IT-Taito Oy AAC Global Done Information Oy Lahden Teho-Opetus Oy Apprix Oy Eactels Oy Opalsoft Oy Bitville Oy EMS Consultant Pertti Kiira Prewise Finland Oy BTS Finland Everscreen Oy Prosign Oy Citec Information Oy Ab Eyescream Information Oy Ab RecIT Solutions Datafisher Fakiirimedia Oy T:mi Koulutus ja konsultointi Kirsi Ehrnrooth DeCo Media LTD HCI Productions Oy
  20. 20. 20 Learning Business COMPANIES BY SERVICE CATEGORIES Digital Lessons Finland Oy Humap Oy, Humap Ltd Teleware C4: Online-expertise and -consulting Providers 3T Ratkaisut Oy Done Information Oy Magneetto Media Oy A4 Media Oy Eactels Oy Mediamaisteri Ltd. AAC Global Fakiirimedia Oy Opalsoft Oy Adenova Frantic Media Oy Prewise Finland Oy Bitville Oy HCI Productions Oy Prosign Oy Datafisher Humap Oy, Humap Ltd Studiorum verkkopalvelut tmi Dicole Idean Research Oy Teleware Oy Digital Lessons Finland Oy IT-Taito Oy Unique United Oy | Ltd. DinoPro Oy Ab Koulutus- ja konsultointipalvelu KK Mediat C5: Online-qualification Programmes 3T Ratkaisut Oy DinoPro Oy Ab Prewise Finland Oy Apprix Oy Eactels Oy Teleware Oy Bitville Oy Idean Research Oy Datafisher IT-Taito Oy C6: Other Ready-to-use Knowledge or Expertise Providers 3T Ratkaisut Oy Eactels Oy Prosign Oy AAC Global Euneos RecIT Solutions Adenova Global Response Oy Ltd SenseTrix Oy Apprix Oy Innosonic Ltd Translation Services Noodi BTS Finland Koulutus- ja konsultointipalvelu Unique Uni ed Oy | Ltd.t KK Mediat Citec Information Oy Ab Prewise Finland Oy DinoPro Oy Ab
  21. 21. 21 Learning Business COMPANIES BY SERVICE CATEGORIES Services S1: Business Consulting (feasibility studies, implementation, process dev., quality, business measures etc.) Aplinet Oy Dicole Opalsoft Oy Apprix Oy Eactels Oy Prewise Finland Oy BGS Finland Entersol Oy Studiorum verkkopalvelut tmi Bitville Oy Everscreen Oy TalentGate Oy BTS Finland HCI Productions Oy Tietorana Oy Transdemica Oy Ch5 Finland Oy Humap Oy, Humap Ltd Translation Services Noodi Circes Oy Idean Research Oy Unique Uni ed Oy | Ltd.t Citec Information Oy Ab Koulutus- ja konsultointipalvelu KKMediat Web Fellows Oy Coder Oy Magneetto Media Oy Datafisher Mediamaisteri Ltd. Design Reform Oy Microsoft Oy S2: Customised Course or Programme Development Services 3T Ratkaisut Oy Eactels Oy Mediamaisteri Ltd. AAC Global EduWeb Oy Mindcom Oy Abut Oy Entersol Oy Open Forms Oy Apprix Oy Everscreen Oy Prewise Finland Oy Arkkivoltti Design Eyescream Information Oy Ab Rastor Oy BGS Finland Fakiirimedia Oy SenseTrix Oy u Bitville Oy Föritieto Koulut s Oy TalentGate Oy BTS Finland HCI Productions Oy Talvi Productions Oy Citec Information Oy Ab Idean Research Oy Teleware Oy Datafisher IT-Taito Oy Translation Services Noodi Dicole Koulutus- ja konsultointipalvelu KK Mediat DinoPro Oy Ab
  22. 22. 22 Learning Business COMPANIES BY SERVICE CATEGORIES S3: Hosted e-Collaboration Services (e.g. CSCW) Aplinet Oy Eactels Oy Media Control Modelling Oy Ch. JENSEN Oy Everscreen Oy Mindcom Oy Co-learnit Oy Eyescream Information Oy Ab NetComp Oy Dicole HCI Productions Oy SANAKO Oy Discendum Oy Humap Oy, Humap Ltd Studiorum verkkopalvelut tmi S4: Hosted e-HR Management and Development Services (e.g. for entrepreneurs, projects, associations, SMEs) 3T Ratkaisut Oy Entersol Oy NetComp Oy Co-learnit Oy Everscreen Oy RecIT Solutions Dicole HCI Productions Oy Skillnet Oy Eactels Oy Mindcom Oy Teleware Oy S5: Hosted e-Learning Services (e.g. LSP, ASP) 3T Ratkaisut Oy Eactels Oy Open Forms Oy AAC Global Everscreen Oy Prewise Finland Oy Abako Media Oy Eyescream Information Oy Ab RecIT Solutions Adenova HCI Productions Oy SANAKO Oy Aplinet Oy Humap Oy, Humap Ltd Studiorum verkkopalvelut tmi Arkkivoltti Design IT-Taito Oy Viope Solutions Oy BTS Finland Magneetto Media Oy Web Fellows Oy Ch. JENSEN Oy Media Control Mod lling Oy Xenex Telecome Ch5 Finland Oy Mediamaisteri Ltd. Älypää Oy Dicole Mindcom Oy Discendum Oy NetComp Oy S6: Learning Content Packaging and other Digital Media Services 3T Ratkaisut Oy Done Information Oy Magneetto Media Oy Abut Oy Eactels Oy Mediamaisteri Ltd. Apprix Oy Everscreen Oy Prewise Finland Oy Bitville Oy Eyescream Information Oy Ab Promentor Solutions Oy
  23. 23. 23 Learning Business COMPANIES BY SERVICE CATEGORIES Ch. JENSEN Oy Fakiirimedia Oy RecIT Solutions Citec Information Oy Ab Humap Oy, Humap Ltd SenseTrix Oy Datafisher Idean Research Oy Talvi Productions Oy Discendum Oy Innosonic Ltd Transdemica Oy S7: Online Coaching Services 3T Ratkaisut Oy Digital Lessons Finland Oy Humap Oy, Humap Ltd Bitville Oy Eactels Oy IhaNova BTS Finland EduWeb Oy Opalsoft Oy Coachwell Euneos Prewise Finland Oy Datafisher Eyescream Information Oy Ab Teleware Oy S8: Online Learning and Pedagogy Consultants 3T Ratkaisut Oy DinoPro Oy Ab Humap Oy, Humap Ltd Apprix Oy Discendum Oy IhaNova Bitville Oy Eactels Oy Mediamaisteri Ltd. Biz Educlick Euneos Opinpaja Oy BTS Finland Eyescream Information Oy Ab Prewise Finland Oy Ch. JENSEN Oy Fakiirimedia Oy Rastor Oy Citec Information Oy Ab HCI Productions Oy Studiorum verkkopalvelut tmi Datafisher Helsinki University of Technology – Transdemica Oy Simlab Dicole S9: Other Service Providers Abako Media Oy Global Response Oy Ltd Open Forms Oy BGS Finland Idean Research Oy Promentor Solutions Oy DeCo Media LTD Koulutus- ja konsultointipalvelu Taiga Media KKMediat Eactels Oy Transdemica Oy Microsoft Oy Formia Ky Translation Services Noodi NetComp Oy www.noodi.fiwww
  24. 24. 24 Learning Business COMPANIES BY SERVICE CATEGORIES S10: Simulation, Animation, 3D, Gaming etc. Special Expertise 3T Ratkaisut Oy Done Information Oy Mindcom Oy Abut Oy Eactels Oy SenseTrix Oy Apprix Oy Fakiirimedia Oy Talvi Productions Oy Bitville Oy Humap Oy, Humap Ltd Transdemica Oy BTS Finland Ingraph Voodoo Visuals Citec Information Oy Ab Magneetto Media Oy Design Reform Oy Mediamaisteri Ltd. S11: Technology Consulting (programming, systems design, integration etc.) AAC Global Citec Information Oy Ab Koulutus- ja konsultointipalvelu KK Mediat Abako Media Oy Dicole Microsoft Oy Abut Oy Eactels Oy NetComp Oy Bitville Oy EduWeb Oy Opalsoft Oy Ch. JENSEN Oy HCI Productions Oy Prewise Finland Oy Ch5 Finland Oy Innosonic Ltd S12: Translation and Localisation Services AAC Global Eactels Oy Marckwort Oy BGS Finland Euneos Notaatio Oy Translation and Localisation services Bitville Oy Fakiirimedia Oy Prewise Finland Oy Broadcast Text Helsinki Oy Idean Research Oy Transdemica Oy Citec Information Oy Ab Kielikone Oy Translation Services Noodi Done Information Oy Koulutus- ja konsultointipalvelu KK Mediat S13: Usability and Testing Services BGS Finland Eactels Oy Translation Services Noodi Citec Information Oy Ab Idean Research Oy Done Information Oy TalentGate Oy
  25. 25. 25 Learning Business COMPANIES BY SERVICE CATEGORIES Technologies, Tools, SW and Hardware Properties T1: 3D and Virtual Reality Tools and Solutions Abut Oy Magneetto Media Oy SenseTrix Oy Eactels Oy Microsoft Oy Unique United Oy | Ltd. eSpime Ltd. Mindcom Oy T2: Collaboration, Groupware and Knowledge Sharing Tools 3T Ratkaisut Oy Eactels Oy Opalsoft Oy Abako Media Oy Euneos Prewise Finland Oy Adenova Fakiirimedia Oy Renet Oy Aplinet Oy HCI Productions Oy SANAKO Oy BTS Finland Humap Oy, Humap Ltd Tatucom Oy Ch. JENSEN Oy Internetix Web Fellows Oy Co-learnit Oy Microsoft Oy Xenex Telecom Dicole NetOp Finland Oy Ab T3: Course and Learning Content Authoring Tools Aplinet Oy HCI Productions Oy NetComp Oy Apprix Oy Humap Oy, Humap Ltd Opalsoft Oy Arkkivoltti Design Innosonic Ltd Prewise Finland Oy Ch. JENSEN Oy IT-Taito Oy Renet Oy Ch5 Finland Oy Koulutus- ja konsultointipalvelu SANAKO Oy KK Mediat Eactels Oy Studiorum verkkop lvelut tmia Magneetto Media Oy Eyescream Information Oy Ab Microsoft Oy Fakiirimedia Oy T4: Demonstration Software Tools Abut Oy IT-Taito Oy Renet Oy Ch5 Finland Oy Magneetto Media Oy SenseTrix Oy Eactels Oy Microsoft Oy Tatucom Oy Eyescream Information Oy Ab Mindcom Oy Unique United Oy | Ltd.
  26. 26. 26 Learning Business COMPANIES BY SERVICE CATEGORIES T5: Discussion Boards/Forums and Blogging Tools Ch5 Finland Oy Internetix Opalsoft Oy Dicole Koulutus- ja konsultointipalvelu SANAKO Oy KKMediat Eactels Oy Unique Uni ed Oy | Ltd.t Microsoft Oy Fakiirimedia Oy Web Fellows Oy Mindcom Oy Humap Oy, Humap Ltd T6: e-Couching and other Learning Support Tools Apprix Oy EduWeb Oy Opalsoft Oy Ch5 Finland Oy Humap Oy, Humap Ltd Prewise Finland Oy Coachwell Microsoft Oy Tatucom Oy Eactels Oy Mindcom Oy T7: Educational Course Management Systems, VLEs or Campus Portals Aplinet Oy EduWeb Oy Opalsoft Oy Ch5 Finland Oy Internetix Prewise Finland Oy Dicole Microsoft Oy SANAKO Oy Discendum Oy Mindcom Oy Eactels Oy NetComp Oy T8: Edugaming Tools 3T Ratkaisut Oy Fakiirimedia Oy SenseTrix Oy Apprix Oy Humap Oy, Humap Ltd Älypää Oy Eactels Oy Innosonic Ltd T9: Edumarketing Tools BTS Finland Eactels Oy Prewise Finland Oy T10: Enabling Equipment and Hardware (e.g. projectors, video conference tools, interactive whiteboards, location based technologies) 3T Ratkaisut Oy Eactels Oy
  27. 27. 27 Learning Business COMPANIES BY SERVICE CATEGORIES T11: Enabling Infrastructure and Architecture Solutions (e.g portals, intranets, middleware (ERP, CRM etc.), intelligent networks, knowledge arhitectures) AAC Global Eactels Oy Opinsys Oy Abako Media Oy Euneos SANAKO Oy Ch. JENSEN Oy Fakiirimedia Oy Studiorum verkkopalvelut tmi Ch5 Finland Oy Microsoft Oy T12: Graphics and Animation Tools Abut Oy Fakiirimedia Oy SenseTrix Oy Ch5 Finland Oy Microsoft Oy Unique United Oy | Ltd. Eactels Oy Mindcom Oy T13: Help-desk and other Online-support Tools Datafisher Mindcom Oy Open Forms Oy Eactels Oy NetOp Finland Oy Ab Prewise Finland Oy Microsoft Oy Opalsoft Oy T14: Human Capital (HR) Performance Tools 3T Ratkaisut Oy HCI Productions Oy Promentor Solutions Oy Co-learnit Oy Microsoft Oy RecIT Solutions Datafisher Opalsoft Oy Skillnet Oy Eactels Oy Prewise Finland Oy T15: Instant Messaging (IM) and Chat Tools Eactels Oy Microsoft Oy Studiorum verkkopalvelut tmi Koulutus- ja konsultointipalvelu Opalsoft Oy KK Mediat T16: Knowledge Creation and Creativity Tools Ch5 Finland Oy Eactels Oy RecIT Solutions Co-learnit Oy HCI Productions Oy Renet Oy Datafisher Humap Oy, Humap Ltd Dicole Prewise Finland Oy
  28. 28. 28 Learning Business COMPANIES BY SERVICE CATEGORIES T17: Learning Content Management Systems (LCMS) 3T Ratkaisut Oy Discendum Oy Microsoft Oy AAC Global Eactels Oy Mindcom Oy Abako Media Oy Entersol Oy MSS Group Adenova Euneos NetComp Oy Aplinet Oy Fakiirimedia Oy Opalsoft Oy Arkkivoltti Design HCI Productions Oy Open Forms Oy Ch5 Finland Oy Koulutus- ja konsultointipalvelu Prewise Finland yO KK Mediat Datafisher SANAKO Oy T18: Learning Management Systems (LMS) 3T Ratkaisut Oy Discendum Oy Mindcom Oy Abako Media Oy Eactels Oy NetComp Oy Adenova Euneos NetOp Finland Oy Ab Aplinet Oy HCI Productions Oy Opalsoft Oy Arkkivoltti Design IT-Taito Oy Open Forms Oy Ch5 Finland Oy Koulutus- ja konsultointipalvelu Prewise Finland yO KK Mediat Datafisher SANAKO Oy Microsoft Oy Dicole Web Fellows Oy T19: Learning Object, Image and Sound Galleries 3T Ratkaisut Oy Datafisher Fakiirimedia Oy Abako Media Oy Done Information Oy Mindcom Oy Adenova Eactels Oy Prewise Finland Oy T20: Mobile Learning Tools and Solutions (for PDAs, Mobile Phones etc.) AAC Global Discendum Oy Prewise Finland Oy Arkkivoltti Design Eactels Oy VIISAS Communications Co-learnit Oy Innosonic Ltd Älypää Oy Datafisher Microsoft Oy
  29. 29. 29 Learning Business COMPANIES BY SERVICE CATEGORIES T21: Other Enabling Technologies for Learning/Working 3T Ratkaisut Oy Eactels Oy Microsoft Oy Apprix Oy Global Response Oy Ltd Prewise Finland Oy Dicole Humap Oy, Humap Ltd SANAKO Oy T22: Other Learning Content Development Tools 3T Ratkaisut Oy Ch. JENSEN Oy Microsoft Oy Abako Media Oy Ch5 Finland Oy NetComp Oy Abut Oy Datafisher Novetos Consulting Oy Adenova Eactels Oy Prewise Finland Oy Arkkivoltti Design Internetix Renet Oy T23: Other Online Learning/Working Tools and Solutions 3T Ratkaisut Oy Eactels Oy Mindcom Oy Arkkivoltti Design Humap Oy, Humap Ltd MSS Group Ch. JENSEN Oy Koulutus- ja konsultointipalvelu Prewise Finland yO KK Mediat Dicole SANAKO Oy Microsoft Oy Discendum Oy Tatucom Oy T24: Presentation and Streaming Media Tools AAC Global Eactels Oy SenseTrix Oy Abut Oy Microsoft Oy Tatucom Oy Ch. JENSEN Oy Mindcom Oy Xenex Telecom Ch5 Finland Oy RecIT Solutions Datafisher Renet Oy T25: Simulation Tools Abut Oy Datafisher SenseTrix Oy BTS Finland Eactels Oy Studio Kalima Oy
  30. 30. 30 Learning Business COMPANIES BY SERVICE CATEGORIES T26: Synchronous e-Learning Tools or Solutions Ch. JENSEN Oy Novetos Consulting Oy Studiorum verkkopalvelut tmi Datafisher Prewise Finland Oy Tatucom Oy Eactels Oy SANAKO Oy T27: Testing, Quizzing and Assessment Tools AAC Global Ch5 Finland Oy IT-Taito Oy Adenova Datafisher Mindcom Oy Aplinet Oy Eactels Oy Open Forms Oy Apprix Oy Fakiirimedia Oy Prewise Finland Oy BTS Finland Humap Oy, Humap Ltd SANAKO Oy Ch. JENSEN Oy Idean Research Oy T28: Video and Audio Tools Ch. JENSEN Oy Microsoft Oy Tatucom Oy Ch5 Finland Oy Renet Oy Fakiirimedia Oy Synestesia Software Music
  31. 31. 31 Learning Business PART C: COUNTRIES AND AREAS OF OPERATION Countries and Areas of Operation The attached categorization of companies on the basis of countries and areas is based on the information given by the companies regarding their international activities (business units abroad, other operations, exports). All in all, more than 60% of the Finnish e-learning companies have indicated at the service to operate internationally. Countries of Operation Australia BTS Finland Koulutus- ja konsultointipalvelu KKMediat Transdemica Oy Austria Promentor Solutions Oy Belgium Broadcast Text Helsinki Oy Koulutus- ja konsultointipalvelu KKMediat Mediamaisteri Ltd. Canada Koulutus- ja konsultointipalvelu KKMediat Studiorum verkkopalvelut tmi China Citec Information Oy Ab Unique United Oy | Ltd. WM-data Czech Republic Broadcast Text Helsinki Oy Denmark Broadcast Text Helsinki Oy Lingsoft Oy Morning Digital Design Oy WM-data Estonia International Management Education (IME) Oy Morning Digital Design Oy WM-data France Promentor Solutions Oy Studiorum verkkopalvelut tmi
  32. 32. 32 Learning Business COUNTRIES AND AREAS OF OPERATION Germany Broadcast Text Helsinki Oy BTS Finland Colorful Oy GoodMood Lingsoft Oy Mainostoimisto Grafex Promentor Solutions Oy Studiorum verkkopalvelut tmi WM-data Greece Mediamaisteri Ltd. Hungary Broadcast Text Helsinki Oy India Citec Information Oy Ab Indonesia eSpime Ltd. Ireland Lingsoft Oy Italy SenseTrix Oy Japan Ilamark Oy / Imnetti Notaatio Oy Translation and Localisation services Lithuania Prewise Finland Oy Netherlands Broadcast Text Helsinki Oy BTS Finland Notaatio Oy Translation and Localisation services WM-data Norway Broadcast Text Helsinki Oy Coachwell Lingsoft Oy WM-data