Finnish “eLearning” Ecosystem and Internationalization - National Focus: Social Innovations

1. Finnish “eLearning” Ecosystem and Internationalization - National Focus: Social Innovations “Innovations in learning and learning technology in the Nordic Region” LOD meeting 8.6.2005 TEKES, Helsinki Kari Mikkelä Executive Producer The Centre of Expertise for Digital Media, Content and Learning Services Finland www.learningbusiness.fi

2. Knowledge and Learning Intensive Work as main Indicator Of Success Group work Individual work Knowledge systems Learning systems On-the-job information and decision support services Training and competence development support services Enhancement of team working, learning and knowledge creation Company information and other shared knowledge resources Communication (IP) & SW Systems Learning- on-demand Collaborative Working, Learning and Innovation, Informal learning Electronic performance support Knowledge management Connected Competence ITK: 7% ITK: 60% ITK: 14% ITK : 19% CONTEXT

3. What should be the new roles of public, private and educational sectors in the future? Where to invest educational and R&D funds? Which customers have the brightest future ? Orchestration Support for the Ecosystem E-learning vendors -Producers -Services -Contents -Technologies User groups -Public bodies -Companies -Educational institutions - Innovating individuals Knowledge Creation and Sharing -Private research -Public research centres -Universities -Innovating individuals Finnish Digibusiness.fi & National Confe- rence © Kari Mikkelä, DLS CoE, 17.9.2003 v. 2.7 Enablervs.Regulator National public organisations: Policies, interventions and financing International communities -Selling -Partnering -R&D financing (Nordic&EU) -Knowledge sharing Research& Development Multi- disciplinary research & development Business Support Service Clusters Buying vs. Support K now ledgevs.Solutions Export vs. Import Pilot business cases Customer organisations Supply vs. Dem and Theory vs. practice Globalvs.Local Services vs.Content Finland as an Innovator vs. Exploiter MNCs followed by 2. Wave Customers R&D Forum & Network Industry Group & Development Prgm. Byers guide & training TEKES TULI, VC R&D & Industry Round Tables, with FVU support unit LoD, Eureka, IST NoE Surveys, Business Intelligence Unions, Policy making Gov. Prog., Ministries VVM Promotion, clustering

4. FRAMEWORK LearningContents LearningCommunities Personal Services Digital Products ICT KISA Learning and knowledge materials Value-added services for business development MEANINGFUL SUBSTANCE CONTEXTUAL FIT OF SOLUTION One-to-oneOne-to-many Standard Unique Technology Human Resources Processes © Kari Mikkelä, DLS CoE, 6.1.2005 v. 2.13 “Digitally enhanced services supporting learning and business development” Business processes and systems Social cognition and networks Learning and other business competences Knowledge creation and fertilisation processes Customer organisations Knowledge & Expertise SCALING AND AUTOMATION Operational models and business concepts for services Infra- structure support . Ser- vice tools Enabling technologies and infrastructures for learning and knowledge working COGNITIVE AND EMOTIONAL FLEXIBILITY Human support for learning process or knowledge acquire Learning and working applications and systems Linear content Open-ended Content Cyclical Content Resources Systems Processes Actors Industria- lization Mass-Customization Tailoring

5. VALUE ADDED? Kaplan & Norton: Strategy Maps

6. Financial Perspective –Cost Structure: Kone Oy, Global Virtual Meeting Service, Centra –Asset Utilization: Finnair, Flight Simulator Training Service –Revenue growth: CISCO, Support for Sales People, Mainly own technology –Customer Value: Nokia TETRA User Training, Mediamaisteri

7. Customer Perspective – Cost: Digital Manuals/Internet Support of ICT companies, PolarElectro etc. – Quality: Teleware, Blended ICT Courses – Prices 20% Up! – Availability: Defence Forces Training Portal, Large Vendor Consortia – Selection: Sampo’s Bank and Insurance Services Support, Discentum – Functionality: Aventis, Insuline Pen Edugaming, Apprix – Service: Virtual Tax Institute, Finnish Taxation Offices, HCI Productions – Partnering: Hautra - Induser – Humap Value Chain Support – Brand: Investor Relationships Service for MNCs, GoodMood

8. Internal Perspective – Operation mngt processes Decision Support for Top Executives, Sitra Economical Politics Game, R5Vision – Customer mngt processes: Saimatec Paper Machine Training, DataFisher – Innovation processes : Weak Signals Future Research Processes , Fountain Park – Social processes : Customer networking within Ministry of Social Affairs, Webfellows

9. Learning and Growth – Human Capital • Skills: Sales Simulator, EverScreen • Knowledge: HYKS, Radiation Certificate for Doctors, Prewise • Attitudes: Occupational Health, 3T Ratkaisut – Information Capital • Systems: Digital Loaning System for Libraries, Ellibs • Knowledge repositories: Accenture Knowledge Mngt • Networks: State University of California, Networked Language Labs, SANAKO – Organisational Capital • Culture: Organization Culture at Andritz, Talent Vision • Leadership: Change Mngt, Humap • Alignement: Operational process interfaces, Vistalize • Teamwork: Collaborative research based learning on the net, FLE3, UIAH

10. © Kari Mikkelä 2000 and ECOLE, HUT, 1997 Sosio-cultural compatibility (after 2000) • human/system -interface • learning situation/solution • balance of knowledge sharing • compatibility of new roles • learning/work/leisure time • acceptance of new learning and operational culture =change Cultural frame ? Structural compatibility (before 2000) •learning event, content, technology, services • interfaces, standards • agreements, IPR • organisatinal strategies •alliances, networks, win-win Technological frame ? SOCIAL INNOVATIONS!

11. eServices Ecosystem Development Model Forest Cluster HUT, DIP Industrial Services Cluster HyvinkääPublic Organisations Cluster VM, TITU Automation Cluster Hermia, KoneEducational Services Cluster Espoo,WSOY? Ecosystem and Export International Business Concept & networks Capabilities Building Usage signals Customer EPSS Metal Products Cluster Synocus,? Well-being Services Cluster Culmius KIBS Cluster East Europe MNC Cluster GENRE Fennia Con. LTT Synocus FountainPark? TITU LOD Tre OTAe K2 Eureka EPPS CeLC eLIG SVY eOPPi JY Kou eLC e.oppi.net LB.fi R&D forum AMI PerSE VENDORS FORUM R&D Network SUPPORT SERVICES network PEOPLE MINI- CLUSTERS CUSTOMER ORGANI- SATIONS OTAe TKK Learningbusiness.fi (intra, extra, internet) LTT Service Cluster Helsinki Region Performance Improvement (Development) Forum (LEARN, DIP) Service Concept HCI USER COMMU- NITIES CORE PARTNERS Internet Service © Kari Mikkelä, DLS CoE, 6.10.2004 v 1.3

12. CICERO, University of Helsinki: Multi-disciplinary learning research (pedagogies, social, technology, business, psychology, brains, etc.) RESEARCH

13. Case CICERO: THE Finnish learning research network RESEARCH

14. SYNOCUS: Capability Assessment in the “elearning” Customer Organizations

15. SCOPE Orchestrator Management Business unit Support unit Toimittaja Toimittaja Vendor Business unitBusiness unit Cooperation Cooperation Cooperation Support unit Support unit Cooperation The aim is to analyze the interaction and cooperation between the orchestrator and the different interest groups. The results provide insight for capability building in the context of digital learning management.

16. Orhestrator Vendors and In-house resources Addressable resources Total network Value constellation Resource- aggregator The new role of the “eLearning” manager Community nurturer Manageme nt Support units Business units Customer Offering Offering designer Information, (money) In-house organization

17. Core Capabilities Internal External CustomersResources Generative capability • Innovation • Execution Transformative capability • Offering design Resource-integration capability • Internal integration • External integration Customer-interaction capability • Customer intelligence • Customer linking Operational capabilities Managerial capabilities Culturing capability Coordination capability Business modeling capability = Distinctive capabilities

18. FENNIA CONSULTING : Finnish “eLearning” Ecosystem ECOSYSTEM

19. OWNERS PERSON- NEL CUSTO- MERS AUTHORITIES TECHNOLOGY PARTNERS/COMPETITORS PUBLIC ORGANIZATIONS FINANCIERS TRAINING ORGANIZATIONS 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 (Education, Labour etc.) Culminatum Tax authorities Ministry of Trade and Industry Participating venture capitalists Partners/ owners 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 and other financial institutions End usersParent and/or subsidiaries Dige s EU projects EU structural funds (e.g. ESR, EAKR) Technology Industries of Finland 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 SATU Related intl organizations and networks Foreign locations and networks of support services organizations IT equipment and software stores Company’s personnel abroad Nordic financiers (Nopef, NIB, NICe) EU financial institutes (e.g. EIP, EIF) Incubators Foundation for Finnish Inventions Sitra Finnish Industry Investment Association of Finnish eLearning center Potential managers Multinational technology companies Publishers eLearning units of large companies EU networks (EIfEL, ELIG etc.) TIEKE Private training organizations. Teleoperators Potential board members Organizers of export rings SME Foundation TRADI- TIONAL DISTRI- BUTORS ECOSYSTEM

20. ”eLearning Ecosystem” Core: The Board and management of the internationalizing company, which is the key decision maker on strategy and internationalization within the limits set by shareholders’ vision and risk-taking capability. 1. level: The ”Partnering level” actively involving in company’s operations, mainly own personnel, partners, active shareholders and (hopefully) customers’ contact persons. 2. level: The traditional ”Industry level”, including among others direct competitors and customer’s personnel participating in decision making, other eLearning companies, 3. level: ”Cluster level”, including companies and public organizations with continuous involvement in the field such as Nokia, Culminatum, TEKES and Finpro. 4. level: ”Ecosystem level”, Parties who have occasional and situation specific influence or do not have an active role in the industry, but are available when needed and important for the existence of the business environment 5. level: “International actors level”, which may operate as one link to the business ecosystems in the target markets.

21. IC INSIGHT Utilization of Intellectual Capital in “eLearning” context within Organizations

22. Basic Theory of Human Performance x xCompetenc e Motivation Working Environmen t Human Performanc e =

23. Research Setting Goal: • To determine what is the utilization rate of intellectual capital in ”eLearning” professionals’ work Target organizations: • Multinational Companies (300 respondents) • Suppliers (200 respondents) • Public and support organizations (200 respondents) Earlier research findings: • Human Potential Index is able to explain 20-30% of fluctuations in profitability between the business units.

24. A Complex Model “A Complex Model” (Structural Equation Model) gave us - Key Human Potential Indicators - Evidence that these indicators do have some linear relationship with profitability

25. Human Potential Index More information: <http://www.icinsight.com/>

26. Self-organization relies on four basic mechanisms according to Bonabeau, Dorigo and Theraulaz (1999): • Multiple interactions between the actors in the system. Self- organization is not optimal if the actors do not interact with each other. Self-organization is a basic requirement for the next three mechanisms. • Positive feedback. These are rules that govern the creation of a structure by amplifying certain behaviors. • Negative feedback. This feedback counterbalances the positive feedback. • Amplification of random fluctuations. To facilitate the discovery of new solutions (e.g., new working activities), and to prevent convergence of suboptimal solutions (so-called suboptimal convergence) when better ones are available. Some randomness in the behaviors is crucial in a self-organized network. Our role: Facilitating self-organization

27. www.learningbusiness.fi

28. Thanks, if you like to have more information about Finnish digibusiness activities, please contact… Kari Mikkelä Executive Producer Digital Learning Services +358-50-500 4048 kari.mikkela@culminatum.fi Hämeentie 153 A, 7. Floor, FIN-00560 Helsinki