“Innovations in learning and learning technology in the Nordic Region” LOD (Learning-on-Demand SRIC-BI) meeting 8.6.2005 TEKES, Helsinki

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
develop-
ment
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
sup-
port
.
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