Towards Outcome Economy – transforming Finnish industry

If our industry is not effective then the whole of Finland suffers! Industry is still our main source of growth and prosperity and forms the backbone of the Finnish economy. Our export industry also needs to be strong. We can’t just keep passing the same cash back and forth among ourselves.

So where will future growth come from?

Manufacturing still matters in Finland but we have to make things smart and they have to be outcome smart. In the future, product margins will come less from the sale of products and services as such and more from how customers can use those products and services to advance their businesses. Future products will be more like digital platforms that bundle data from the point of view of customer preferred outcomes. This industry shift towards customer outcomes has given rise to the term Outcome Economy.

To compete in this new economy, products, and the machines that make them, need to get smarter. The key to getting smarter will be cooperation and sharing.

Testing without too much investing

New platforms are needed to help small and medium-sized businesses even market entrants find new possibilities to grow – testing and piloting rapidly and without too much up-front investment. Can shared infrastructure be an example of an industrial sharing economy? Also even larger established companies need to start teaming up across the sectors into these new networked ecosystems that use big data and analytics to test new ways of doing things and to share value.

These new networks can be made up of customers, partners, suppliers, service providers, start-ups and even competitors. In this case, competitors working together in the spirit of “co-opetition” in the race to higher value creation. The challenge to success is that all the partners in the ecosystem need to be able to bring their own unique value-add while still staying aligned with the team and its shared outcomes.

Help desk for hard industries

Just as we as consumers might join a personal networks on social media to share or learn more from crowd knowledge, companies can also jump into partnership networks or sharing platforms at industry level.

At VTT, together with Tampere University, we’ve developed one such platform called SMACC (Smart Machines and Manufacturing Competence Centre) which is an open ecosystem designed to help companies discover new collaboration models as well as drive innovation and competitive advantage.

Finland well-positioned for leadership

Of course this kind of cooperation is not a new idea for Finland. The very successful Nokia inspired ICT cluster has already helped blur the once strict line between traditional industries and digital start ups. Both see the most potential in sharing their respective knowledge if they want to stay in the game. Finland has top-of-the-class vertical capabilities in many sectors combined with a strong exportable ICT sector. Put that together with Finland’s extensive knowledge networks and cutting edge research and we are positioned not just to transform our own economy but to disrupt and transform the world.

Call to action!

Outcome Economy is the main theme of the upcoming Manufacturing Performance Days event in Tampere May 29 to 31, which VTT is part of. The big question we’ll be asking there is: How can the Outcome Economy accelerate the transformation of the Finnish manufacturing sector, especially for our small and medium-sized businesses? If you’re in business ask yourself, where is your customer value coming from? How do you think outcome economy will change your game? Are you ready to change?

Erja Turunen VTT

Erja Turunen
Executive Vice President, Smart industry and energy systems

Visit us in MPD to discuss more – read more and register here!

VTT will hold a seminar Creating the Future Success with TUT
on Tue 30.5. at 9 to 12 am.

Prof. Erja Turunen is giving her key note “Customers of the future” on Wed 31.5. at 10 am. Welcome to hear how to WoW your customers!

Manufacturing Performance Days 2017

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