STROI -VERKKO Johtoryhmä 4: HAMK C-building Markku Riihimäki, Anna-Leena Perälä, Eero Nippala, Tuula Grönfors ja Kalle Kähkönen

2 P1: Selection of Business sector

3 Selection of the network business sector in total model Operational environment analysis PESTE Five Forces Nine Forces Warning analysis Driving forces analysis Competitor analysis War gaming Shadowing Competitor cash flow analysis Present state analysis of company and network Scenarios SWOT Benchmarking Business model analysis 4P 7P Supply chain manag. analysis Technology Market analysis Country risk analysis Winn/loss analysis Demographic analysis Forecasts Potential business areas New business areas Technology Strategies Demand, needs Volume Impacts Barometers Which are the most relevant basic data for the network in construction and service business? VTT Forecasting Model in Russia

4 Forecast on different levels in construction markets OVERALL CONSTRUCTION EURO- CONSTRUCT BALTIA FORECAST OVERALL CONSTRUCTION MACRO ECONOMIC FIGURES - TOTAL CONSTRUCT FORECAST NEW BUILDING CONSTRUCTION BUILDING TYPE- SPECIFIC FORECAST NEW BUILDING CONSTRUCTION BUILDING TYPE- SPECIFIC FORECAST CONSTRUCTION PRODUCTS PRODUCT- SPECIFIC FORECAST CONSTRUCTION PRODUCTS PRODUCT SPECIFIC FORECAST COMPANY SPECIFIC FORECASTS BRANCH OF CONST- RUCTION FORECAST END PRODUCT TYPE SPECIFIC FORECAST

5 VTT Forecasting Model in Russia Global Industry and branches Country SIMULATION MODEL FOR CONSTRUCTION DIFFERENT LEVEL OF RESULTS - DEMAND OF CONSTRUCTION - DEMAND OF BRANCH OF CONSTRUCTION - DEMAND OF END PRODUCT - MARKET OF MATERIALS/STRUCTURES - MARKET OF CONSTRUCTION PRODUCTS - MARKET OF COMPANY MACRO- ECONOMIC CONSTRUCTION CONTENT CONSTRUCTION MARKETS Economy Demography information Customer needs and confidence Political measures Environmental issues Construction development (demand, permits, big projects) Building stock Money market, interest level Construction development (Technique, content, end- user needs, products, process)

6

7

8

9

10 Exchange rate of RUR against USD 1 USD =

11

12

13

14 Impacts Completed construction (m 3 ) Facade (m 2 ) Typical house facade m 2 / building m 3 Material A: Completed and demand of facade (m 2 ) Forecast of demand - facade (m 2 ) Material factory: Change of facade material production according demand Market share of facade materials -% Demography information and economy forecast Operative decision of company director to change of production © Eero Nippala Construction markets, history Construction forecast Construction content Construction forecast Markets and forecast of specific product Example of simulation or mathematic model Strategy and operative decision making in company or in network

15 Facades in new building - St. Petersburg

16 P2: Network vision

17 "Network" as a managerial concept The general importance of the concept "network" have continuously increased. It is our vision the concept "network" and variety of applications originating from it shall play a significant role as tools for wide variety of managerial decision making. Particularly, in Russia network of requests, promises and commitments can well meet the needs of companies operating. Network of promises is an essential element of existence for each enterprise, (Sull & Spinosa 2007)

18 "Networks" for modeling and communicating business conditions Organisational networks 1.Network of actors, partners or alliance 2.Organisational network of the company 3.Network of the resource pool Product or activity oriented networks 4.Product and product data as network 5.Network of production activities and actions ( s, transactions etc.) State of affairs networks 6.Social networks (informal relations) 7.Demand Chain/Network Management (customer orientation, Tretyak 2008) 8.Network of commitments 9.Networks of requests and promises

19 Stroi-Network deliverables Joint working paper (VTT working paper series) MODELS FOR UNDERSTANDING BUSINESS NETWORKS - PUTTING DEVELOPMENTS IN RUSSIA INTO PERSPECTIVE Review of possible network modelling approaches Snapshots of case-situations in Russia Conference paper (CIB W , Croatia) Article in professional trade magazine (in Finnish, possibly at the Rakennuslehti special issue)

20 Building material products  Wooden products in network Service business  life cycle services and maintenance  services during building Building  Residential buildings (urban building)  Commercial and industry building STROI-network Business Sector viewpoints

21 P2: Network vision Task Networks: Vision process to networks Define potential partners and companies in certain business Difficulties to find network from stroi companies Vision process workshops Preparing a co-operational model Results from questionnaire Workshops, e.g. 3/2009, 6/2009 Vision Model, 8-10/2009 Network modeling approaches Develop the Network Vision Model as visioning tool to the strategic business networks