1. Jari Kuusisto1
Fortune
Capturing User Value
in Every Part of Forest life-cycle
Tekesin strategiset tutkimusavaukset 2012
Jari Kuusisto • University of Vaasa
Sami Berghäll • University of Helsinki
Marja Toivonen • VTT
Anne Toppinen • University of Helsinki
2. 2 Jari Kuusisto
Introduction
• Finnish economy relies on three main sectors
• Electronics and software
• Metals and metal products
• Forest industry
• Forest industry is increasingly investing overseas
• Traditional Forest related jobs and value added is shrinking in Finland
• There is a need to renew this industry
• Renewal efforts have not made break through so far
• New strategic R&D organisation is in place See:
• http://www.forestcluster.fi/
• -> finds difficult to work ‘out of the box’
• See also other links:
• http://www.forestindustries.fi/Pages/default.aspx
• http://www.forest.fi/smyforest/foresteng.nsf
3. 3 Jari Kuusisto
Fortune project
• Pre-project looking into the renewal of forest sector from
• User perspective
• Intangible value creation point of view
• Opposite to dominant logic: mass production of paper, pulp, timber
• Pre-project seeks to prepare a proposal for main project
• Aiming at 5-10 mill. Euros strategic project looking at interesting new
opening discovered during the pre-project
• Pre-project partners
• Helsinki University – Forestry & marketing – forest owners perspective
• VTT – ethnographic methods
• University of Vaasa – user perspective & intangible value creation
• Main project consortia to be decided
• International network is important
• Also business consortia / linkages are important
4. 4 Jari Kuusisto
FORTUNE abstract
• User value perspective to Forest during its life-cycle
• Creating and capturing intangible value
• Identification of existing and potential new types of values
• Value can be captured from tangible / intangible forest products
• Value can be economic, aesthetic, sustainability related, psychological,
societal etc.....
• Users can be businesses, communities and individuals
• Value capture during the entire life-cycle of forest
• Forestry as sustainable environment
• Carbon capture, erosion barrier, element of living environment, ecological
pockets for wild nature etc.
• Forestry as a source of biomass and jobs
• Pulp, paper, viscose, building material, renewable energy
• Forestry and forest related jobs
• Forest as a friend, source of inspiration and design artefacts etc.
• Forest relates Spiritual values and life-style issues
5. 5 Jari Kuusisto
Fortune is
• New perspective and ambitious openings to Forest related research
• Forests represent sustainable national asset for Finland
• At present Forest related research and economic activities are suffering from the
industrial era legacies
• Focus on mass produced products: timber, pulp, paper…
• Dominance of raw material extraction and economic exploitations
• Research tends to support established industries and forestry actors
• Producer perspective dominates R&D&I activities
• The novelty aspects Fortune project include
• Dominance of user perspectives contrasts the conventional wisdom
• Multi-disciplinary research consortia
• Draws resources and knowledge from key national research performers
• University of Helsinki, University of Vaasa, Lappeenranta University of Technology
• VTT
6. 6 Jari Kuusisto
Fortune project - expected impacts
• New knowledge and perspectives making an impact
• The maintenance of supremacy in Forest related science and innovation
capability
• Fortune project supports this long-standing feature of the Finnish policy stance
• To achieve this radical change and new perspectives are needed
• Fortune project impacts are expected
• Through renewal ideas for existing industries and services
• By stimulating new business models and enterprise creation
• By introducing societal aspects of innovation as a source of vitality and empowerment in
Finland
• Connects research and its agenda closely with businesses, policy-makers, citizens and
communities
• By addressing challenges that originate from geostrategic changes affecting traditional mass
production focused forest industry
• Hollowing out of the forest industry in Finland
• Potentially catastrophic degradation in ecological systems and natural resource
availability
8. 8 Jari Kuusisto
In the past...
• Focus on mass production
• Value chain of pulp, paper and wood products industries
• Draws knowledge from several related fields
• Increasing role of expert services
• Customer and user are introduced in the picture
• More obvious since 2006
• Forests are still seen as a source of biomass
• Extraction of raw material
9. 9 Jari Kuusisto
Forest cluster development t0
• External KISA play a key role in the development of the industry
Source: ETLA, 2004
FOREST INDUSTRY
• Pulp and paper technology
• Wood products industry
• Machines, machinery and processes
INFORMATION
TECHNOLOGY
• Sensors, measuring and control
• Computational intelligence,
simulation and machine vision
• Multimedia and
telecommunication
• Tomography
FORESTRY
ENERGY AND
ENVIRONMENTAL
TECHNOLOGY
• Biofuels, combustion technology
• Ecobalances
• Closed systems
• Energy saving and emissions
CHEMICAL TECHNOLOGY
• Paper bleaching chemicals
• Surface treatment substances
• Pigments
• Adhesives
BIOTECHNOLOGY
• Enzymes
• Rot prevention
• Gene technology
MARKETS
• Quality competitiveness
• Price competitiveness
• Environmental expertise
CONSTRUCTION AND
WOOD TECHNOLOGY
• Modification of wood
• Construction technology and
architechture
• Logistics, assembly
MANUFACTURING
TECHNOLOGY
• Forest machines
• Process and production
machinery
• Material technology
10. 10 Jari Kuusisto
Forest cluster t1 (2006)
• Need for new types of knowledge/KISA
FOREST INDUSTRY
• Pulp and paper technology
• Wood products industry
• Machines, machinery and processes
INFORMATION
TECHNOLOGY
FORESTRY
ENERGY AND
ENVIRONMENTAL
TECHNOLOGY
CHEMICAL
TECHNOLOGY
BIOTECHNOLOGY
MARKETS
• Quality competitiveness
• Price competitiveness
• Environmental expertise
CONSTRUCTION AND
WOOD TECHNOLOGY
MANUFACTURING
TECHNOLOGY
Scientific knowledge, Technology
development
KISA actors: Universities, Research institutes,
KIBS, Suppliers, Internal R&D
Scientific knowledge on;
customers, segments,
demand...
KISA actors: Universities,
Research institutes,
KIBS, clients,
Customer interface
Behavioural science
TAILORED
SOLUTIONS FOR
USERS
• High value added
• High service content
Psychology
Socio-economy
Logistics
Market analysis
11. 11 Jari Kuusisto
Sources of competence
• ‘Those who control customer interface, control the future of the paper
production’
• Invaluable learning & information from the customers
• High Margins at the near consumer end of the value chain
• Totally new markets/products and market dynamics
Business unit
as the source
of knowledge
Corporation as
a portfolio of
competencies
Supplier base
and partners
as a source of
competence
Consumers and
consumer
communities as
a source of
competence
Stage 1:
Pre-1990
Stage 2:
1990 onward
Stage 3:
1995 onward
Stage 4:
2000 onward
Source: Pralahad et al., 2004
12. 12 Jari Kuusisto
Fortune concept I - value chain
• Value chain diversification
Tourism
Construction
Decoration, interior design, cosiness
Textiles & clothing
Hygiene, healthcare
Food and nutrition
Packaging and logistics
Communications
Energu
Forest
IndustryForest User
consumer
Temmes and Välikangas, 2011
13. 13 Jari Kuusisto
Fortune concept II - value chain
Tourism
Construction
Cosiness, tabletop ware
Textiles & clothing
Hygiene and healthcare
Packaging and logistics
Food and drinks
Communications and information
Energy
Forests
Forest industry
User and consumer perspective to all segments of the forest value chain
14. 14 Jari Kuusisto
Strategic initiative – Identifying core hubs
Different
types
of
user
contact/
experience
Different
product
spheres
15. 15 Jari Kuusisto
Results for a multitude of needs
• The results thus have meaning for:
• a) Business management
• b) Personnel management
• c) Technological development projects striving for user co-created
innovations and test-labs.
• d) Researchers tackling forest sector renewal
• e) Government official seeking to find bench-marking information
concerning challenging sectoral development projects.
16. 16 Jari Kuusisto
Examples of new perspectives
• Forest has many faces – forest as a friend
• Forests represent value as such
• Bioeconomy in its various forms
• Quality of life, eco-tourism etc.
• Functional food, medical substances
• Wild berries and mushrooms
• Need for commercialization, e.g super food
• Forest as sources of user value
• Wide range of opportunities need elaboration
• Sustainability
• Carbon capture, renewable energy
17. 17 Jari Kuusisto
International network consortia
• Potential partners
• MIT Sloan School of Management
• Harvard Business School
• Chinese Academy of Science
• University of Sussex
