2001 EDITORIAL

CONTENTS The Finnish Way to Knowledge Society Observations and Remarks The Role of Network Operators will Remain Editorial Important Markku Markkula, Chairman of Board, TIEKE 3 Seppo Toivonen, Managing Director of the Finnet Association 30 ICT Cluster is a National Stronghold Sinikka Mönkäre, Minister of Trade and Industry 4 ICT Industry in Finland Needs an Interest Organisation Reijo Svento, Managing Director of FiCom 32 Multilingual IT – Gibberish Jyrki Lehtola, a Finnish scribe 5 SPECIAL APPLICATIONS Fitting Together the Clothing and ICT Industries: The National Strategy of the Winner Country Would you like to haveby Markku a Markkuladirect access to the Johannes Koroma, Managing Director, A Great Challenge Chairman of Board EU´s laboratory for wireless data communica- The Confederation of Finnish Industry and Employers TT 6 Pentti Hurmerinta, CEO, Reima-Tutta Oy 34 TIEKE Finnish Information Technology Development Center tions? Would you likeMember to lower of Parliament, your Committee R&D for thebudget Future, Finland The Trend in Documentation is Towards Outsourcing ELECTRONICS Sami Kangasharju, Managing Director, Mendez Oy 35 and increase your profits? The Tekes technol- The Mobile Information Society Builds Upon IP Protocol ogy nprogrammes a world of intensifying competition,introduce by theyou President to ofthe Finland, latest Ms.Tarja models that have proved useful in our Nokia 8 A Bouncy Lady to Break European Weather Monopolies technologiesit is a vital condition and for offerprivate com a- chanceHalonen, into her takerecent New advan Year speech.- work. Last August, a team consisting of Pirkko Saarikivi, Managing Director, Foreca Ltd 36 panies as well as the public sector The President also discussed the Finns’ representatives of the Committee for the Bluetooth Enabled Devices are an Emerging Trend tageI of R&D co-operation with Finnish compa- to be prepared for the future. This has skills to exploit their expertise, a fact Future and of Finnish business made an Rolf Svanbäck, Vice President, Telecom R&D, LOCAL ORGANIZATIONS niesbeen and duly noted universities. in Finland. Expressed in that has in many fields made the nation excursion to the US with one of the Oy L M Ericsson Ab 10 Culminatum Ltd Oy, Helsinki Region Centre of Expertise 38 modern eWorld terminology, the crucial an inspiring example, and stressed the targets being the work of the Council notions that are rapidly penetrating the importance that the political and social on Competitiveness. Of special interest to The Growth of the Electronics and Electrical Industry Tampere Technology Centre Ltd 40 Continues Finnish society are networking and the stability of Finland has had on the the team was the “Innovation Index”, an Markku Alhonen, Deputy Director, Jyväskylä Science Park Ltd 41 seamless and transparent integration of country’s competitiveness. The ability to international analysis led by professors Federation of Finnish Electrical and Electronics Industry 12 Technopolis Plc, Oulu Region Centre of work processes into value chains. work together has made us a competitive Michael Porter (Harvard) and Scott Stern Expertise 42 What is my perspective on this nation and helped both private people and (MIT). The analysis offered us much food SOFTWARE INDUSTRY publication? Why am I writing this companies to cope and succeed. for thought but in quite a surprising way. The Importance of Embedded Software is Growing SUPPORTING ORGANIZATIONS introduction? We are all continuously Determination and skills to build the Much of our visit was spent answering Juhani Strömberg, Senior Vice President, Development, building up our knowledge and future to answer people’s needs and the question on how Finland has managed Sitra, Finnish National Fund for Research and TietoEnator Corporation 14 competencies either consciously or wishes are needed at every level. It is to improve its innovativeness even to the Development 44 unconsciously. Work concerning the future the Parliament’s responsibility to observe point that, according to the forecast, it The Role of Integrator and Consultant will be Finnish Business Solutions Worldwide Finpro 46 must be made more personal, passive the changes taking place in today’s world, will reach the number two position in Pronounced in the Future observation no longer suffices. I am to analyze them and take a stand 2005 in the global ranking, thus clearly Matti Mäkelin, Senior Vice President, Novo Group Plc 16 SOCIETY, GOVERNMENT AND R&D determined to develop my own Knowledge on the issues required of the Finnish beating the US. The Importance of High Availability and Information Society Brings a New Work Ethic Management tool kit, a collection of society and its different communities Several other recently published Network Security will Increase in the Future Pekka Himanen, Ph.D., Philosopher 48 continuously developing methods and and individuals in the future. This work international benchmarks also indicate Jukka Tapaninen, Vice President, Marketing, models, the core of which consists of is carried out on the parliamentary similar results. Finnish businesses, Government Aims at Expanding Electronic Services Stonesoft Corporation 18 my mission as a Member of Parliament: level by the Committee for the Future organizations and institutions active in Olavi Köngäs, Chief Information Officer, Ministry of Finance 50 “Make Finland a forerunner of the (www.parliament.fi/FutureCommittee), a the ICT field are also eager to create new A Supplier of Mobile Infrastructure Software must be Flexible and Fast A Unique Phenomenon: The Committee for the Future of information society development with permanent organ consisting of seventeen solutions for global networking. Extensive Members of Parliament. Petteri Koponen, CEO, First Hop Oy 20 the Finnish Parliament special emphasis on humanity and international cooperation requires that all Paula Tiihonen, Committee Counsel 52 innovations”. To succeed, we need to identify parties have the required insight into We Look for Future Successes in Finland Social innovations are beginning to the megatrends of the society, the both their own and other participants’ Vesa Sadeharju, Investment Director, 3i Finland Oy 22 Technology Programmes – Gateway to Finland’s World Class play a more fundamental role in our different phenomena affecting them, and background and know-how. ICT Technology national innovation culture. Advanced the attitudes of the various groups of I believe that this publication will The Growth of the Software Industry is Still Strong Tekes, the National Technology Agency of Finland 54 technological know-how and research society, including those that are not provide useful material and information Liisa Nakari, Executive Director, activities that create new opportunities considered desirable for well-being. The for each reader’s personal needs and IT Services Association TIPAL 24 The Next Generation Networks The Technical Research Centre of Finland (VTT) 56 are vital to success, but alone they work of the Committee for the Future purposes. To quote one of the thoughts of are not enough. The development of the is based on all-permeating success the Committee for the Future, I wish to TELECOMMUNICATIONS information society has provided us with factors defined by the Committee a few emphasize that “For a prosperous future Finns are Ready to Take the Next Step: FINNISH IT SUPPLIER INDEX 58 new possibilities to increase profitability years ago. These factors include wisely of our nation, we must be able to both The Mobile Internet in the form of Knowledge Management influencing globalization, exploiting identify everyday problems and create Olli-Pekka Heinonen, Minister of Transport and FINLAND IN FIGURES 59 and its main elements, the will and information and technology to the full, future visions. We need comprehensive Communications 26 skills for mutual learning and shared the human aspect of innovation and information but far-sighted thinking and Silicon Hill: A Platform for the Communications accomplishment. governance of matters and life. belief in our instincts are equally Technologies of Tomorrow The importance of national This ICT-Finland Review sheds light important”. ■ Elisa Communication Corporation 28 cooperation and working together towards on the background of Finnish know-how a common goal were also emphasized and discusses policies and operative Telia Wants Strong Position in Scandinavian Markets Tero Laaksonen, Managing Director of Telia Finland Oy 29 3 OBSERVATIONS AND REMARKS

Minister of Trade and Industry, Sinikka Mönkäre: War of words in Finland ICT Cluster is a national Multilingual IT-Gibberish By Jyrki Lehtola Publisher stronghold TIEKE The Finnish Information Technology Development Center Editor-in-chief Design and Layout Ossi Partanen J-FormT:mi/Juha Räty Adress Photos Would you like to have a direct access to the Salomonkatu 17 A Ossi Partanen FIN-00100 Helsinki, Finland Juha Sorri EU´s laboratory for wireless data communica- Timo Raunio Internet tions? Would you like to lower your R&D budget http://www.tieke.fi/ Printed by and increase your profits? The Tekes technol- Koteva Oy Email Turku, Finland 2001 ogy programmes introduce you to the latest [email protected]

technologies and offer a chance to take advan- Editorial board tage of R&D co-operation with Finnish compa- Aatto J. Repo Liisa Nakari Executive Director Executive Manager nies and universities. TIEKE Information Technology TIPAL IT Services Development Centre Association Leo Laaksonen Paula Tiihonen Deputy Manager Committee Councel Federation of Finnish Electrical The Committee for the and Electronics Industry SET Future of the Finnish nowledge is somewhat elusive and as research and development funding has been Parliament Pia Mörk it is partly silent, it does not transfer a central policy aim in Finland. The role of Communicator Special thanks to: easily between people or within organi- innovative policies is underlined and the need Tekes, The National Technology Mendez Finland for K Agency zations. Skills, like playing the violin, cannot to set national priorities is recognized in the ccording to Bertolt Brecht´s well-known papers. When the word ”revolution” comes up the borders of language are the borders of the translations and language be completely explained in words. A famous allocation of resources. The ICT cluster is expression, Finland is a bilingual country in the main story of a newspaper in connection world, the borders in today’s Finland are drawn validation. paradox is that a buyer cannot know the value seen as one of our national strongholds. A in which the people keep silent in two with things like ”wap”, ”IT”, ”portal”, ”business by one’s line of business. If things happen to of knowledge until it has been revealed, after As a consequence of all that has happened languages. It is a high time to update Brecht cluster” and ”net penetration”, it makes one be so bad that you earn your livelihood in the TIEKE Information Technology which it does not make sense to pay for it. during the last decade, the dialogue between now. The new definition goes: wonder what in fact has really happened in the IT business, language has already unpleasantly In a knowledge-based economy, firms are the public sector and industry has become Today, Finland is a country in which one world, and whether this revolution is something slipped out of your hands and the world along Development Center in Brief dependent on the knowledge resources of other very close and active. This active and strong half of the population speaks multilingual IT- to worry about. It would be nice to know, but with it, so that an IT-person had better keep TIEKE plays a key role in connecting various players in firms and organizations. They seek access to cooperation is considered to be a key element gibberish to the other half that has no other secondary school English is not sufficient even quiet in family gatherings. the development of the Finnish information society. From this knowledge by inter-firm contracts or of our innovative environment. choice than to keep silent in the two official to understand the Finnish text, and ”penetra- With the above, I naturally mean that in the year 2001 onwards, the focus is on interoperability, networking. Micro-level networks are In the long run, even more important languages, because they do not understand tion”, too, brings something else to mind! this officially bilingual country there is a grow- networking, and services to citizens. interconnected and overlapping. In general than being a leading producer of ICT is to anything about what the other half is talking There is only one problem at the bottom of ing group of people that have their own lan- • In ICT standardisation, an emerging trend is towards terms these clusters aim at generating growth, be an efficient user of these technologies. about. this all, and that problem is explicitly a linguis- guage combining English and Finnish. That lan- more business-initiated activities. Still, in the formal improving competitiveness and productivity, Government strategy states that by the year Figuratively, the situation could be tic one. guage is full of untranslated IT terminology that standardisation at national, European and international increasing employment and generating new 2004, Finland will be among the top countries expressed as follows: When one-half of the When e-people cannot be bothered to is as easily comprehensible to outsiders as the levels, TIEKE’s role is delegated by the Finnish Standards innovations. in the world as a knowledge-based interactive Finns argue about the pros and cons of the Win- translate the concepts into Finnish, they will not footnotes of Heidegger´s philosophy. Association (SFS). Information and communications technolo- society. The success will be based on equal dows operating system, the other half wonder bother to question their meaning either. This This language is so infatuated by itself • In Electronic Data Interchange (EDI) between organ- gies are central forces of change today. ICT opportunities for citizens to study and develop what is the matter with those fools; why don’t is where they are running after meaningless that its loan words are spread even outside isations, small and medium-sized companies are becom- forms an industrial cluster where knowledge their own skills that the information society they simply seal up their windows? language, like a man in a hardware store trying the IT-world, so that mutual misunderstanding ing a key, and there are many ongoing projects to plays the leading role. Information and skills requires. The operating method of network- As a consequence of the prosperous devel- to buy himself a cluster, because by turning should most certainly increase. When you hear develop made-to-measure solutions for them. have become one of our most important based education and research, which is of opment of Nokia, Finns have been divided into one, you can open the stock exchange doors. a Finn at a cheese board describe a new Gouda • In electronic commerce TIEKE is currently playing a resources. This is visible in the strong increase high quality and ethically and economically people and e-people. People understand less Because people in IT-Finland do not ques- cheese to his mate by saying that it is ”an key role when tailoring international trade procedures in investments in research and development. As sustainable, will be established. and less about what is going on in the world. tion the language, they do not question the absolute killer application cheese”, it is good and recommendations to the Finnish environment. a result of technological convergence, Finland’s The Finnish ICT cluster has been evolving The development is simply so fast and so US- underlying phenomena either. Why must every reason to say that there are some Finns that • To increase Finland’s competitive edge, TIEKE has been R&D intensity has reached a level that is among since 1877 when the first telephone line was centric, that the Finnish language has become single company be on the Internet? Simply have severed very, very far from their agricul- an active player in networking Finnish ICT companies the highest in the world. The share of high-tech connected. During the course of development, filled with neologisms that people do not under- because every company must be on the Inter- tural background. ■ and will continue to do so. As a support function to products in total exports is also among the high- certain government actions have served as stand. An IT-language speaking e-person has net. If you took a picture of today’s Finland, it IT Cluster Finland, continuous efforts are being made to est of the industrialized countries and our high- crucial catalysts in the development of the no time to translate the concepts into Finnish, would portray a 50-year-old local shopkeeper Jyrki Lehtola is a well-known Finnish develop related information services. tech surplus is the highest. industry. The cluster as we see it today is because around the corner there are a swarm who, by his beer glass, wonders what his scribe, whose interest concentrates, on • Computer Driving Licence (CDL), an original TIEKE Industrial, technological and educational an energetic, internationally active, attractive of new concepts awaiting that no one will have e-strategy is, instead of asking himself what on the information society with its new phe- innovation is growing into an entire product family, policies have played an important role in this and vigorous system boosting knowledge, the time to translate either. earth does he do with an e-strategy of his own. nomena, among others. and is a viable increment to citizens’ information soci- development. The systematic increase of public innovation and external trade. ■ People are in trouble when they read the If it really is, as it has been said, that ety skills. 4 5 OBSERVATIONS AND REMARKS

The National Strategy of the Winner Country Determined investment in increasing ICT expertise Would you like to have a direct access to the EU´s laboratory for wireless data communica- The success of Finland in the ICT tions? Would you like to lower your R&D budget sector, as well as its global striking and increase your profits? The Tekes technol- force during the transition of the ogy programmes introduce you to the latest world economy, is based on pur- technologies and offer a chance to take advan- poseful investment in information tage of R&D co-operation with Finnish compa- and expertise intensive activities in nies and universities. trade and in the whole society.

Johannes Koroma Managing Director In Finland, research investments have been increased in both the business and in the The Confederation of Finnish Industry and public sector during the last decade. The picture is from Nokia’s Research Center. Employers, TT

he focus of economic growth has moved the production of material, is also applied in telephone, the first application for founding a for skilled people. The challenges and the ness of the education can be maintained at the to information technology and electronics will towards information technology related developing expertise. Through the networks, private telephone company in the capital city outstanding expertise awake global interest. current level, in 2005 there will be nearly 7,000 grow. Our next challenge is to improve the qual- T products and services. The market is new information and ideas spread fast to all of Finland was filed. After that a great number For example, one fifth of the personnel of the new graduates with a university level informa- ity of education at all stages. global and the countries specialized in these fields and the whole society. of local telephone companies emerged. Some Nokia research center in Finland come from tion technology degrees. areas have developed favorably. For example, in Information technology (electronics and hundred years later the telecommunications abroad. In addition, IBM, HP and Lotus have Also the structure of vocational education the USA people have rapidly utilized the newest electrical industry) has been a pioneer in the sector was released for competition, which decided to concentrate the development of has been changed so that it corresponds to We keep on working – one step technological developments in order to satisfy new business culture. Companies seek flexibility happened in Finland earlier than in most other wireless Internet services in Finland. the development of the industry. Cooperation ahead of the competing countries the requirements of the national economy, but and speed, which are required in the rapidly countries. This partly explains the strong ICT between the different stages of education With the objective of growth clearly in their in many European countries the focus is still on developing markets, via a flat and distributed expertise of Finns today. and industry has increased significantly. The minds, Finns are working harder than ever in slow growing, average level technology fields. business organization and co-operative network. The means of education emphasis in the higher grades of comprehen- order to maintain and develop their competitive In Finland, the electronics and electrical The ability to utilize information and Finland is determinedly developed as a country sive schools and upper secondary schools can ability. The whole educational system is devel- industries have become central and are the expertise form the basis of the new economy The challenge is to have of high expertise. According to the national be directed towards mathematics and science oped as described above and public investments fastest growing sectors. Together with the and social development. Innovation and eco- sufficient mental resources plan, the focus is on higher education. Up to 65 and even electronics or information technology. are directed to research and development. traditional forest and metal industries, they nomic activity advance development. Innova- The greatest challenge for Finland is to have suf- to70% of each generation is offered a chance Projects have been carried out in order to There is still a lot to do in commercializing constitute the basis for the competitive ability tive and growing information-based companies ficient mental resources. The lack of resources to study in a university or a polytechnic. attract girls in the technical and especially the entrepreneurship, taxation, and research as of Finnish industry. have been in great need of financing, but the is becoming critical in a small country that As a cooperative project between the Min- ITC fields. In order to increase the number of well as in developing the operation of the labor circumstances of risk financing are up-to-date aims at being an advanced information society. istry of Education and industry, an extra educa- foreign students, the number of programs in market. The companies still have a lot to do in Finland today. Companies and investors Approximately 6,000 new employees with a tion program in information technology was English and diversified degree programs should in forming global networks. The rapid transfer Finnish companies appreciate circumstances that favor innovation university degree are needed in Finland yearly. It launched in 1998. According to this program be increased. of public services on the Net will further the have formed networks and offer possibilities to form networks with is estimated that by 2002, as many as 1.5 mil- the number of students has been increased Our educational system, especially the development of the operating circumstances of The companies strengthen their competi- other organizations. Capital finds its way to lion professionals will be needed in Europe. The by over 2,000. Financing has been reserved polytechnics, has been able to answer the business life. tive position by concentrating on their main information and expertise. problem is not only a European one because the for approximately 11,000 people to diversify growing demands of the ITC field with flexibil- Finland is no more far away and secluded, activities and forming networks of co-operative Finns will send a billion text messages with competition is already global. The same experts their degree studies by taking various extra ity. The financing system should, however, be but a central global agent. ■ partners. This happens vertically towards cus- their mobile phones this year. It is a unique are required in information technology and in all programs. Finland is the first European country further developed in order to guarantee that the tomers and parts producers, and horizontally achievement for a nation of 5 million people. other fields as well as in the public sector. that has made such a clear strategic choice for educational system will be able to more effec- Johannes Koroma among competitors and companies in other The incredible interest of Finns in electronic Finland has an excellent starting point developing information technology. The industry tively support the developmental requirements fields. This model of operation, which has been communications in not a new phenomenon. for succeeding in the global competition has supported this project by financing tens of of the growing fields. It can be clearly seen applied in operations related to marketing and Two years after Mr. Bell had invented the millions worth of hardware. If the effective- that the need for expertise in all fields related 6 7 ELECTRONICS

Nokia’s Strategy towards the Mobile Information Society: “Global IP Mobility” Would you like to have a direct access to the Nokia is a global company whose key growth areas are wireless and EU´s laboratory for wireless data communica- wireline telecommunications. A pioneer in mobile telephony, Nokia is tions? Would you like to lower your R&D budget the world’s leading mobile phone supplier and a top supplier of mobile, and increase your profits? The Tekes technol- fixed and IP networks, related services as well as multimedia terminals. ogy programmes introduce you to the latest For many companies, it is a challenge to simplify these technologies of technologies and offer a chance to take advan- the future and still offer feature-rich products. At Nokia, we accept it as tage of R&D co-operation with Finnish compa- our everyday goal. After all, at Nokia, “Connecting People” is not just nies and universities. our slogan, it’s our business.

Nokia, the world’s leading mobile phone supplier, has one of their production plants in Salo, Finland.

okia’s strategy takes two parallel, Information and communications technolo- ent and more flexible; and to establish new Similar to the Internet dynamic, a whole Because of this development, the wireless ing greater choice, flexibility and access to complementary paths toward the gies are shaping the twenty-first century and trusted relationships and further enhance some new generation of users has emerged in which terminal will be the main application founda- information. It will also offer opportunities N Mobile Information Society. We call will have a revolutionary impact on the way old ones. The services and products we use can mobility is an expectation. As a leader in mobil- tion and media of tomorrow. This means that to enhance education, improve productivity this strategy ‘Global IP Mobility’. The first path people live, learn and work. These technolo- be made more personal, more comfortable and ity, we at Nokia have seen at first hand the the future will not be PC-centric but mobile and economic growth through job and wealth started from wide area voice communications, gies are a vital engine of growth for the world more closely tailored to our precise needs. result of these market dynamics; for example, phone-centric. creation. Mobile users will benefit directly like GSM, and is now evolving from narrow economy, as they will enable enterprising the huge surge in the adoption of wireless Nokia was one of the first companies to by being able to access the information they band data services towards wideband packet individuals, firms and communities in all parts of portable devices. In Finland, and in some other start talking about the mobile Internet. The con- need when and where they need it, thereby data services. the globe to address economic and social chal- Increasing pace of acceptance European countries, the penetration rate has tinued pace in the convergence of the informa- improving quality-of-life. Corporations will Great technological advances will continue lenges with greater efficiency and imagination. The pace at which new technologies are gain- now exceeded 70%. In fact, already around one- tion technology and datacom industries, includ- benefit through huge advances in productiv- on this path, but we believe that the Mobile We are using the twin drivers of the Internet ing widespread acceptance is increasing, and quarter of Finnish households have one or more ing content providers, with telecommunications ity. Operators will benefit from new business Information Society can not be realized by evo- and mobility to break through many of the limits the Internet is no exception. The Internet has mobile phones and no traditional landline phone. further supports our vision of the future. How- opportunities and content providers will benefit lution on this path alone. that have so far been constraints. We are break- become an important part of our everyday Wireless and mobile data services have ever, despite the rapid technological evolution, from having new customers. But the biggest The second path starts from a fixed IP ing through the limits of time and space and lives, at work as well as at home. Already,the brought the Internet into everyone’s pocket. it will be end-user needs that ultimately domi- opportunities for industry, business, govern- network, and is now evolving towards packet changing to a place where people can connect Internet is the place where most information Through this change, the whole concept nate the development of services and applica- ments and individuals are still ahead. ■ voice, IP security, VPNs, and broadband wire- with each other no matter where they may be. is stored – a sort of virtual information megas- of service provision through the Internet tions in the Mobile Information Society. less “hotspot” access. IP has emerged as the Where distance becomes increasingly irrelevant. tore. In a remarkably short space of time, we will need to be reformulated similarly as Technology will become the facilitator to Nokia ubiquitous protocol to carry all types of informa- Where we can gain access to the facilities and have all developed the expectation of being telecommunications already has changed from allow access to services and applications with tion and will play a critical role in enabling the services we need whenever we need them able to access information immediately from voice traffic going wireless. interaction through simple and user-friendly future of mobile communications. IP mobility is and not just when they happen to be available. a wide variety of online sources. We have this interfaces. Simple interaction also incorporates essentially global and it can be applied to all Where our activities no longer limit us to a par- expectation, and so do our children. a necessity for seamless solutions, which kinds of media, services and content. It is global ticular place. Where the links that bind our vari- There is another technology growing in par- Putting the Internet in everyone’s means interoperability between different net- because it will be everywhere. ous communities are strengthened. Where new allel to the Internet – and by even bigger num- pocket works and a range of various user appliances. links create new communities. And where nature bers; and that is mobile telephony. Mobile phones connect people in virtual pres- is served by enterprise, not destroyed by it. Mobile phones have shrunk space and ence with technology which is built on human Shared opportunities This is what we mean by the Mobile Infor- time. As recently as 1991 less than 10 million needs and which function seamlessly and effec- Great opportunities ahead There is no doubt that we live in a time that is mation Society. It is a concept which is evolving people in the world had a mobile phone – today tively. The possibility of content consumption In a knowledge-centric society, a growing characterized by change, confusion, and uncer- and is gaining in significance all the time. The almost 10% of the world’s population has one. regardless of place and time brings mobility and element of all personal communication will Additional information: tainty. But it is also a time of great opportunity, Mobile Information Society will provide us with And when we look to the future, it is esti- virtual presence to data communications. be wireless-based. This will help in offer- www.nokia.com shared opportunity for all of us: our families, the opportunities to really improve our lives; to mated that at the end of 2002 there will be more our companies, our economies and society. make many aspects of our lives more conveni- than one billion mobile phone users in the world. 8 9 ELECTRONICS

Ericsson is a leading communications supplier, combining innovation in mobility and Internet in creating the new era of mobile Internet. Pictured is Ericsson’s small and light Evolution indoor GSM pico base station for wireless communication.

towards Would you like to have a direct access to the EU´s laboratory for wireless data communica- tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- ogy programmes introduce you to the latest Mobile technologies and offer a chance to take advan- tage of R&D co-operation with Finnish compa- nies and universities.

Rolf Svanbäck says that Mobile Applications Initiative (MAI) is one way Internet to support service development for Mobile Internet.

Ericsson is a leading ricsson provides total solutions covering ”From a purely technological point of view, MAI is a support organization to foster the ship area for those who would like detailed tunities for Master’s theses, for example, in communications everything from systems and applications we will need new handsets because of the development of mobile applications. An on-line information and services. Services such as test- connection with graduation requirements. ■ for mobile phones and other communica- WCDMA technology introduced as part of presence of MAI offers a variety of services and ing, training, consulting and selling applications supplier, combining E tions tools. With more than 100,000 employees UMTS. Also, when it is possible to access all membership in MAI is free. are offered for use in the membership area.” Ossi Partanen innovation in mobility in 140 countries, Ericsson simplifies communi- the IP based services in the network, including ”MAI serves as a catalyst to the sale of and the Internet to cations for customers all over the world. pure voice services, more advanced devices and GPRS and 3G infrastructure by ensuring that terminals will be introduced. Bluetooth enabled mobile Internet applications and services are Ericsson’s research create a new era of in Finland has a major role mobile Internet. Ericsson is a leading communications supplier. devices are another emerging trend.” available and optimized for use in these net- How does Ericsson sees development in this works. The services of MAI are testing, training, R&D in Finland plays a major role on the area, Rolf Svanbäck, Vice President, Telecom consulting, networking opportunities and go-to- global Ericsson R&D map. It is heavily involved R&D? MAI to support market strategies for developers. Ericsson has in developing network solutions for 3G and service development an MAI test environment in Finland also,” says beyond. To develop WCDMA, Media Gateway “The first step in the evolution towards Mobile Success in mobile Internet depends on the Rolf Svanbäck. and Core Network products for global UMTS Internet is a basic packet switched technology availability of robust, efficient and useful appli- and IP network needs are also among its core that is now coming to the market via GPRS. cations. How is Ericsson going to support this activities. Very soon after, UMTS will be introduced development, Rolf Svanbäck? EDZ in on-line resource “Ericsson’s R&D in Finland provides out- adding considerable capacity to mobile net- The other supporting channel for developers standing global opportunities for shaping the works. After this we are looking at all IP core “Ericsson is committed to making the mobile is the Ericsson Developers Zone (EDZ). It is an future of the mobile Internet. We also contrib- networks, an evolution already being developed Internet marketplace a successful reality with on-line resource containing useful information ute with IP security and charging solutions and with the third generation partnership program, a variety of organizations designed to support about mobile Internet and Ericsson technolo- we provide supply and support for global Erics- 3GPP. When this happens, we will be able to and encourage the development of all facets of gies therein. son customer needs,” tells Svanbäck. access the Net and all kinds of other services in the industry.For this reason, Ericsson provides Svanbäck explains that EDZ is divided into Svanbäck also says that Ericsson has a very a truly mobile fashion.“ several channels through which developers, two sections: fruitful cooperation with the academic world operators and others can focus their efforts. “An open area for anyone who is interested in Finland, both when it comes to research ori- Additional information: The development of terminals is also fast today. One of these is the Mobile Applications Initia- in mobile Internet technologies and a member- ented activities as well as for providing oppor- www.ericsson.com What does Ericsson see trends in this area? tive (MAI).” 10 11 ELECTRONICS

The Finnish electronics and electrical industry: Exports of Finnish Industry 1960-2000

16 % 19 % 26 % 18 % 16 % Other industry

14 % 24 % Metal industry 1 % 23 % 31 % 25 % 2 % THE GROWTH CONTINUES Electronics and 4 % 42 % 12 % 32 % electrical industry 40 % Would you like to have a direct access to the 30 % 31 % Pulp and paper EU´s laboratory for wireless data communica- 22 % 27 % The 1990s were a period of rapid progress in the Finnish elec- 16 % tions? Would you like to lower your R&D budget 15 % 8 % 6 % Wood products tronics and electrotechnical industry. Output and exports 1960 1970 1980 1990 2000 and increase your profits? The Tekes technol- grew briskly and the industry consolidated its position in an Source: Board of Customs and SET ogy programmes introduce you to the latest increasingly global market. This provided an excellent step- The electronics and electrical industry technologies and offer a chance to take advan- ping stone for positive development in the future as well. has become the largest single branch of tage of R&D co-operation with Finnish compa- exporting industry in Finland. The exports nies and universities. of this area climbed to 32 % of total exports of the Finnish industry in 2000.

he history of the Finnish electronics and Perhaps one may suggest that the local This development will continue in the The forecast has two scenarios. The electrotechnical industry reaches back benefits of a small country were turned into future and create further demand for electronic scenario of faster growth means that produc- T more than one hundred years. In this global success factors in Finland. and electrotechnical products and applications tion would be worth FIM 230 billion by 2005. sense, the Finns and their industry have been Some people will even count sheer luck in many new areas as well. In 1999 it was FIM 104 billion. This means an Federation of Finnish Electrical and Electronics Production in Finland 1984-2005 early at the market, adopting and applying the among the factors behind the Finnish success annual growth rate of approximately 13% from Industry, SET, is the main branch organisation Electronics and Electrical Industry new electricity-based technologies since the story. Surely we have had our share of luck, 2000 to 2005. The growth was 12% annually of ICT industry in Finland representing the very beginning. This is one of the factors behind but the main role was – surely – played by Know-how appreciated from from 1986 to 1996 and 21% from 1996 to most advanced high technology companies. Million FIM the Finnish success. professionalism and skill. In the turbulence of global acquisitions and 1999. It’s member companies manufacture more than Production 1984-99 Growth +13% per year The progress made during the last decade mergers, Finnish engineers can look into the Even the scenario of slower growth would 80 % of the electronics and electrotechnical Growth +8% per year was, however, unparalleled. The output of the future with confidence. Know-how will remain end up with production of FIM 185 billion by products made in Finland. Forecast electronics and electrotechnical industry grew …and above all overseas the cornerstone of success and, in the field of 2005. This would mean an annual growth of SET brings the views of the sector to the fivefold in the 1990s. Especially high growth In the field of electronics and electrotechnics, electronics and electrotechnics, Finnish know- approximately 8% from 2000 to 2005. attention of the government authorities and rates were achieved in telecommunications Finland has long been an open battleground for how is top class. With this comes the expansion of Finnish other interest groups. The economic outlook equipment production in which the output at competition, sometimes even a test laboratory. In Finland, we continue to invest heavily production companies abroad. Local presence is and employment trends play a role in the allo- the end of the decade was 14 times higher than The experience thus gained stood Finns in good in education and training in the skills required crucial in order to maintain close relationships cation of resources for training and education at its beginning. stead in the 1980s and 1990s as markets were in the electronics and electrotechnics sector. with customers and partners in different parts as well as research and development. deregulated. There has been a significant increase in intakes, of the world. ■ SET is also a major cooperation forum. Its Source: VTT Key trends were the increased application and the conversional education of experts from numerous committees and branch groups pro- The real growth of the Finnish electronics Growth factors at home… of electronics in almost any product on one neighbouring fields into electronics and electro- Markku Alhonen vide a solid basis of expertise in issues specific and electrical industry has averaged 25% Many factors lie behind this success. Char- hand, and in manufacturing technology and pro- technics professions is progressing well. Pro- Deputy Director to the sector. The Federation is also represented per year during 1993-99. The production acteristically, the Finnish lack of prejudice in cess automation on the other. fessional upgrading programs raise students Federation of Finnish Electrical and Elec- in international - especially European - coop- of the electronics and electrical industry applying new technologies as mentioned above Cars are a good example of the first from technician to the Bachelor level and then tronics Industry, SET. eration bodies and their working groups. has increased fivefold, in other words the and in systematic investment in research and trend. It is mostly electronics that contribute further to Master and Doctoral levels in engi- SET is also a member of EICTA which is relative increase has been the highest of product development are important background to increased safety and driving comfort. Just neering. the European Information and Communications all branches of industry in the 1990s. The factors. think of air bag restraint systems and anti-lock The expanding industry and the services Technology Industry Association - bringing gross value of the production in 2000 was The Finnish electronics and electrical brakes. We may well ask at what point we sector supporting it offer good business oppor- together 22 national ICT associations from 16 as high as FIM 120 billion and of exports industry has a share of two-thirds of the total should call a car, or a cruise vessel, an elec- tunities. The global investments by Finnish com- European countries and 31 large ICT corpora- about FIM 100 billion. industrial R&D expenditures in 1999. For the tronic product. Electronics and electrotechnics panies are counterbalanced by the growing tions with major operations in Europe. high tech industry, it is natural and also vital to already account for a quarter of the value of interest in Finnish know-how in global enter- SET is also a member of ORGALIME, Liai- invest in knowledge intensive resources. both. prises. son Group of the European Mechanical, Electri- Certainly no harm has been caused by the Even manufacturing technology relies cal, Electronic and Metalworking Industries. fact that in a small country everybody knows increasingly on electronics and electrotechnics. The Federation is furthermore a member in everybody else – both clients and manufactur- In addition to electronics assembly, fields close Production will double numerous other international bodies. ers. Technical solutions have been developed to the Finns are, naturally, process control and According to new forecast the production of in a spirit of consensus, although in a highly automation for paper machines and various electronics and electrical industry in Finland Additional information: competitive market. kinds of measuring systems. will double by 2005. www.electroind.fi 12 13 SOFTWARE INDUSTRY

New services of TietoEnator: Embedded Software Product Development for Ericsson, Nokia and other telecom vendors

With a staff of 10,000 ietoEnator provides consulting, systems make the network a legally competent trading and an annual turn- development and integration, operation and business media.” over of 1.2 billion T and support, product development ser- vices for customers as well as software ser- What do you at TietoEnator think about the euros, TietoEnator is vices. The Group has an in-depth knowledge future of ASP business? a leading supplier of of its customers’ businesses in areas such as high value-added IT telecommunications, banking and finance, the ”We find ASP business, i.e. software rental services in Europe. public sector and the forest industry. and use over the network a very important near future trend. It will change the earnings logic of The strategy of TietoEnator has been to provide the software service sector. Service will change services for the banking sector, the forest from the sale of licenses to software rental. In industry, the public sector and the telecom- this connection, for example, a new business munications sector. Is TietoEnator planning to oriented service portal will be built. This so keep the same policy or are there new policies called “apptoyou.com“ will, in the first stage, to be expected, Juhani Strömberg, SeniorVice offer comprehensive software and integration President of Development of TietoEnator? services for business and personnel manage- ment to our approximately 100,000 Scandina- TietoEnator flies the colors of both Finland and Sweden after the merge of Tieto and the Swedish IT ”We are going to keep to our basic, long-time vian customers. The portal will also integrate company Enator in 1999. Customers include such as Ericsson and the City of Stockholm. policy. Naturally some focusing and deepening other know how and information services. will take place. The embedded software is an The ASP environment calls for the strictest example of this. In this area we cooperate a lot security, scalability, and usability standards from erate and join networks as a part of realizing its How do you keep the employees´ skills up-to- with Ericsson, for example. This cooperation the provider. This forces us to focus strongly on strategy. If the customer’s situation demands it, date? dates back to the cooperation between Swed- new operating environment services.” we will cooperate even with our competitors.” ish Enator before we merged and Ericsson. “The TE Academy is a new investment where After the merger we have started cooperation How do you find the current competitive situ- What means does TietoEnator use to increase we intend to speed up the development and with Nokia, too. The number of people working ation? Do the small media houses presenta the productivity of its software services? distribution of skills, experience and knowledge Additional information: with embedded software is now nearly 500 threat to the traditional IT business? through eLearning. The most important way of www.tietoenator.com and it is growing fast.” “I entered the business in the mid 70´s when I acquiring and keeping up skills still takes place ”The competition is stepping up and becoming participated in comprehensive software devel- in customer contacts. Demanding customers What are your views on the near future devel- international. After the hottest “eHype“ stage opment operations. We used assemblers and are the best teachers.” opment trends in information technology? passed, the competitive situation with the new were craftsmen. Now, in the new millennium, media providers has become more realistic.” our tool is Java and the challenges are surpris- What are the near future plans of TietoEnator ”The development of mobile phone networks ingly similar to a quarter of a century ago: concerning international activities? and broadband wireless local networks will How would you describe TietoEnator´s net- productivity, reliability, efficiency, performance be central trends. The IP protocol of the Inter- working policy? etc. What makes the situation more challenging “Our objective is to strengthen our position in net will become an all prevailing paradigm. is that the systems and services built today are the chosen areas in Sweden and elsewhere Through this ’embedded internet’ development ”In the world of digitalization even the largest significantly more critical than in the 70´s. As a in Northern Europe in building the Information almost everything from an electronic pace- enterprises cannot do everything alone. One starting point for the challenges related to the Society.” ■ maker to exhaust gas content sensors of motor must specialize. Creating value for customers productivity of software services, we at TietoE- Juhani Strömberg believes that ASP will cars will be connected to a network. Digital demands the ability to combine many different nator have persistency, workmanship, realism Ossi Partanen change the earning logic of the software television will inevitably enter our living rooms. kinds of things. Everything is connected. On this and hard work. Hype waves come and go and service sector. A powerful encryption technology, PKI, will basis, TietoEnator has chosen to actively coop- there are no magic tricks. 14 15 SOFTWARE INDUSTRY

The Novo Group: The roles of integrator and consultant to be emphasized in the future Would you like to have a direct access to the EU´s laboratory for wireless data communica- tions? Would you like to lower your R&D budget Matti Mäkelin and increase yourreports profits?that Novo The Tekes technol- ogy programmesimplemented introduce an you to the latest technologies andInternet-based offer a chance to take advan- tracking system for tage of R&D co-operationtransportation with Finnish compa- nies and universities.activities in China in December 2000.

Novo is specialised in logistic systems for passanger carrier sector. The Finnish airline company Finnair is one of the customers of Novo.

Novo is one of ations of a big systems supplier such as The “Big systems suppliers are in a relatively The main points of interest for Novo include Novo Group? good position. Compared to the PC-based Inter- passenger traffic, transportation and the tele- Finland’s largest “Novo is also beginning to favor third-party net, the mobile Internet is closer to their core communications cluster. What plans does Novo service companies in products and services, that is, we work more competence as it puts emphasis on big, reliable have for niche markets, Matti Mäkelin? the information and more as an integrator and consultant. systems. Graphic design is also less important,“ “Our niche solutions include mobile sales technology sector. Modern component-based philosophy enables says Mäkelin. systems and GIS applications. Mobile sales on Novo’s core expertise us to combine our own and other suppliers’ Novo does not, however, plan to rely airplanes, for example, are an area in which components, which is an activity that requires solely on the mobile channel. Mäkelin instead Novo is a global market leader. Another exam- includes anticipating extensive knowledge and experience of both emphasizes the multi-channel concept. ple of niche solutions is the first Internet-based Jokerit, a Finnish national hockey league team, aims at being number one, both as a opportunities inherent new and traditional systems.“ “More important than mobility is the notion tracking system for transportation activities utililizer of IT services and as hockey team. Fans of the team now enjoy the services of the in the new economy, Novo also expresses a strong belief of multiple channels. That is, hybrid systems launched in China in December.“ Jokerit Gold portal, which sends team information to users’ mobile phones, for example, finding appropriate in convergence. According to Mäkelin, the comprised of different types of terminals and Novo is also investing in certification ser- about save percentages of goal tender Pasi Nurminen. solutions for its following growth period will be pushed by network connections – most importantly atoms vices. Novo enters these markets through its wireless networks that combine data and voice. and bits, location and network.“ says Mäkelin. subsidiary, Novotrust. “Novotrust is the first cer- customers through In fact, Novo has been experimenting with Software leasing services via networks, tification authority in Finland and one of the first consultation, and a VOIP (Voice over Internet Protocol) pilot ASP services, have also generated great companies to receive an information security Ice hockey team, Jokerit, serves its fans: producing application since autumn 2000. interest within the Novo Group. certificate,“ says Mäkelin with satisfaction. ■ multifaceted IT “I myself use an IP telephone solution, a “ASP is not a new concept for Novo. solutions for its software component developed by Novo on a For us, it actually means returning to our Ossi Partanen Hockey results daily basis,“ says Mäkelin, who follows with roots. A big part of our services have been customers to ensure great interest the development of business offered as ASP services long before the term their success in the models related to wireless Internet. was coined. We believe the biggest growth sent to mobile phones new economy. “Future business models will be a mixture areas for ASP will include business-to-business The Novo Group is forming, with hockey team Hietanen explains that the system can of the Internet and telecommunications with systems, e-Commerce and mobile systems,“ Jokerit, the so-called Jokerit Gold service. The be copied for use by other teams. The system the focus gradually shifting over to the says Mäkelin. first phase of the project consisted of imple- platform consists of Novo’s m-Portal product, Internet,“ Mäkelin predicts. menting a mobile service. which enables the implementation and copying “Users can obtain a variety of information of any mobile portal. long with convergence, networking has Interesting niche markets on Jokerit, such as results, player data and “In practice, the Jokerit Gold service runs become a significant trend in the infor- Challenge posed Novo’s internationalization strategy builds on statistics through their mobile phone. In the on the Novo M-Center, which provides a plat- A mation industry. by Mobile Internet two main points. On the one hand, the company future, the system will also include entertain- form for customers’ mobile services. Our cus- Companies are focusing on core operations Even big systems suppliers find the mobile will pursue international operations as a compre- ment, contests and other interactive services,“ tomers benefit from Novo’s profound integra- and outsourcing activities that fall outside their Internet a challenge. The Novo Group, however, hensive service provider with its existing custom- says systems expert Harri Hietanen of Novo. tion know-how when adding mobile options to core competence. Senior Vice President Matti firmly believes in its capability to respond to ers. On the other hand, the company will proceed Additional information: existing systems,“ Hietanen says while explain- Mäkelin, how is this trend reflected in the oper- this challenge. in a few carefully selected niche markets. www.novogroup.com ing the details of the Jokerit Gold service. ■ 16 17 SOFTWARE INDUSTRY

Stonesoft Corporation tonesoft Plc, founded in 1990, special- Training programs izes in network data security and high as a means of recruiting S network usability. At the end of 2000, the company employed more than 550 people. Stonesoft has also had to figure out how to find The importance of high Their products have been in great demand in qualified personnel and keep them in the house. the past years. It has met this challenge with training programs. “Our sales growth has been more than “We have already carried out three Net- one hundred percent annually in the past three work Security University programs, which have availability and network years“, says Jukka Tapaninen, Vice President of produced qualified people for our service. In the Stonesoft. program, participants are given hands-on train- WouldTapaninen you believes like there to will behave a continued a directing on issues access relating to data tosecurity the and high security will increase EU´sdemand laboratory for data security products. for He wirelessthinks usability“, data says communicaTurunen. - that companies see data security as a business A part of Stonesoft’s product development tions? Would you like to lower your R&D budget Stonesoft is the leading choice of essential and will continue to invest in it. is done in Sophia Antipolis in Southern France. and increase your profits? The Tekes technol- innovative industries in the fields of According to Tapaninen, no recruiting problems ogy programmes introducehave you arisen there.to the latest in the Future High Availability, Network Security Technology is not the main point technologies and offer a chanceTurunen to remarks take also that advan a good company- and mission critical eBusiness tageMoney of invested R&D in the co-operation data security business withimage is anFinnish important factor compa when recruiting.- solutions.Stonesoft is the leading also interests other suppliers. Competition is People like to work for a good and successful Jukka Tapaninen says that even data security products have to be flexible, user- niesbecoming and stronger. universities. This does not, however, company. In addition, Tapaninen does not want choice of innovative industries friendly and safe. in the fields of High Availability, concern Tapaninen very much as the company to underrate the importance of the Internet as a has pioneer experience in the area. means of recruiting. The company has its own Network Security and mission “It is not technology that is central here. Internet recruiting base at www.stonejobs.com. critical eBusiness solutions. The most important thing is to make products flexible, user-friendly and safe so that the end user finds it comfortable and safe to use the Good prospects products. We seek to measure up to this chal- Stonesoft also sees the mobile Internet as lenge as best as we can.“ a future challenge. Tapaninen believes that Stonesoft has grown internationally very mobile net will create possibilities for com- fast. Only one percent of the sales of their pletely new types of services – provided that main product, Stonebeat, is from Scandinavia. prices remain reasonable. The major market areas are in Europe, the “I believe that most of us will be somehow United States and Asia. The remote location connected with the net in the future. The ser- of Finland has not stopped Stonesoft from vices will be customized according to where spreading globally. you are and what kind of connection you have; “All our products can be downloaded over only the peripheral used will vary. the Internet. We also offer our clients a free Also future growth in bandwidth will create 30-day trial through evaluation licenses. Also, new services on the Internet, believes Tapa- the actual license is delivered over the Inter- ninen. The importance of graphics, images and net,“ says Tapaninen. sound will increase. When all this is combined with more paid services, Stonesoft sees the future as positive. Creditability through “As paid services become more general, listing on the stock exchange also demands for usability, service level and Stonesoft was listed at Helsinki Exchange at continuous availability will increase. These the end of 1999. How did this affect your com- things are what we know best“, says Tapaninen pany, Jukka Tapaninen? with faith in the future for his business. ■ “The effects have been very positive. Our Last year Stonesoft introduced the concept possibilities have increased through the listing. Ossi Partanen of Highly Available Enterprise. This refers to We have been able to widen our operations and adequately securing and protecting the usabil- skills through acquisitions, for example. The ity and security of business-critical information listing also brought a lot of publicity and, first of systems. Stonesoft’s StoneBeat product family all, creditability.” ensures the availability of various information The reaction from analysts towards a listed system components. company has been a positive one for Tapaninen. Stonesoft is a globally acting Analysts have given direct feedback on com- Additional information: software house. The relative sales pany strategy and its implementation. growth in the past years has been www.stonesoft.com strongest in Asia. 18 19 SOFTWARE INDUSTRY

The growth of the software industry is still

TIPAL is the leading trade association for computing services and software ven- dors in Finland. The organization was established in 1974, and is composed of IT Services Association TIPAL member companies employing 15,000 IT TIPAL acts as a networking organization professionals. A board of directors from between the decision makers of the industry Wouldlarge, you middle-size like to have and a smalldirect companies access to the and influential groups, interacting with other EU´sguides laboratory the association’s for wireless activities. data communica TIPAL - parties relevant to the IT industry. is a member of the World Information TIPAL collects information regarding the IT tions? Would you like to lower your R&D budget industry. This information emphasizes: andTechnology increase your and Services profits? Alliance The Tekes (WITSA) technol - and the European IT Services Association • Positive effects of the IT industry on ogy programmes introduce you to the latest economic growth, competitiveness and technologies(EISA). It is and dedicated offer a tochance advocating to take poli advan- - employment tagecies of thatR&D advance co-operation the industry’s with Finnish growth compa - • The industry’s demanding role as a fast niesand and development. universities. growing and knowledge intensive sector of commerce

TIPAL conducts two studies per year among its member companies: a salary survey and a review of members’ economic development. TIPAL takes part in forecasting the IT industry and presents information to the public. The association also distributes research data provided by WITSA and EITO to members. TIPAL promotes internationalization and participates in the cross-cultural activities of • Will information be sent to the ear Learning the way WITSA and EISA. The organization advances around finance markets (mobile phones) or to the palm in the The future? Nordic cooperation by providing members a vast committee Finance markets have also experienced rapid • Where will services and products be international network of contacts through sister of executives development in the past years and entrepre- exported: the U.S.A, Japan, China, organizations, and relays offers of cooperation. of TIPAL neurs have learned how to use and benefit from Brazil...? Members’ total domestic turnover is 2.5 them. The availability of financing opportunities • Which standards will prevail? How will billion Euro, representing almost 80% of the IT hile infor- projects sup- combined with knowledge sharing has been legislation develop? industry. mation tech- ported by national a significant success factor. Entrepreneurs • How will prices develop in telecommu- Please visit www.tipal.fi to find a cover- nology as a technology programs and professionals have adopted visionary nications? ing list of IT vendors. There you can get infor- W • How will content provision develop? whole continued its rapid and incubators. Knowl- approaches to business expansion and have mation of TIPAL members and search com- • In which direction(s) will entertainment growth in the late 1990s, the soft- edge centers have become taken the risks required to succeed in the field. services develop? panies by applications, services and market ware industry emerged as the fastest important nodes for successful In addition to providing money, venture capital- • How can processors be made more pro- focus. The biggest members of TIPAL mesured growing IT field and now, in terms of turn- networking. ists have also provided human capital: their ductive? by their turnover are TietoEnator Corporation, over and personnel, covers two-thirds of all Finns benefit from their traditions and experience in business, internationalization and • Where can companies find the needed Novo Group Plc, ICL Invia Oyj, IBM Oy and IT services. Surveys indicate that the software extensive knowledge in technology, their marketing. Without both forms of financing, the professionals? WM-data Finland. industry has been growing at an annual rate reputation as fast adopters, and willingness phenomenal growth and success would hardly • How can intellectual property rights be of 40–50 percent and growth is predicted to establishing distribution channels and building to try out new things. On the other hand, have materialized. Real success has naturally secured? ■ Additional information: continue to be strong, albeit slightly slowing sales networks. the famous Finnish “sisu”, the perseverance encouraged investors and further raised their www.tipal.fi down in the coming years. Top growth areas include mobile IT applica- to carry out and complete what has been interest in the field. Most IT companies employ less than 20 tions and software as well as Internet services. started, has also come in handy. Other key people and are often built around the person- factors include an internationally oriented, nel’s own product innovations and development flexible generation of young entrepreneurs Challenging issues projects. For such companies to achieve healthy Active support key to success who have recognized and seized busi- At the beginning of the new decade, software growth patterns, they often require outside In recent years, demanding support activities ness opportunities. Their creativity, strong suppliers once more face challenging questions, expertise concerning contract and legal mat- have been the target of many investments. networks and utilization of new financing which they must answer correctly in order to sur- ters, commercialization of products, and inter- Research and development projects have instruments have also helped promote Finnish vive the increasingly intense competition. Ques- Liisa Nakari national product launches. Support and guid- resulted in success stories and have provided digital know-how around the world. tions waiting for answers include the following: Executive Director ance are also needed for marketing products, inspiring examples for new entrepreneurs and IT Services Association TIPAL 24 25 TELECOMMUNICATIONS

Silicon Hill: Telia wants a strong position a platform for the in Scandinavia communication

technologies of Would you like to have a direct access to the EU´s laboratory for wireless data communica- tomorrow tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- ogy programmes introduce you to the latest Tero Laaksonen, Managing Director of Telia technologies and offer a chancesays that to the takeobjective advan of Telia is to- create tage of R&D co-operation withpartnerships Finnish based compa on mutual -interest. itäjänmäki in Helsinki, Finland combines and individual households, giving home users niesTelephone and universities.and data traffic in national and a high concentration of hi-tech compa- better connectivity and access to a wide range international networks is monitored 24 hours a P nies with a growing residential area, of services (e.g. interactive entertainment, day at Elisa Communications´ operating center. he Swedish teleoperator, Telia, began Mr. Laaksonen presents Telia´s planned which makes it extremely a well-suited location centralized control of heating, ventilation, lights its operations in Finland in 1997 when it new mobile portal “Speedy Tomato“ as an for testing next generation network technolo- and home appliances, security etc.). T bought Telivo Oy from the Finnish energy example of new forms of services. gies. The density of IT companies in the area company, Imatran Voima Oy. Telivo Oy was ”Our objective is to make Speedy Tomato has earned it its nickname, Silicon Hill. Elisa Elisa Communications: granted a license for teleoperations in 1994. one of Europe´s leading mobile portals,” says Intelligent buildings Research Center, also situated in the area, Group of the This gave the Swedish giant a ready-made Mr. Laaksonen. adopted the nickname for a project in which a with public access W-LAN main trunk and organization. Telivo also had The strategy of Telia is to remain a market high bandwidth campus network, with speeds Wireless high bandwidth networks are also an Online Society a license for mobile phone operations, which leader by versatile co-operative connections up to giga- or even terabits per second, was elemental part of the Silicon Hill project. Wire- Elisa Communications transmits experiences was transferred to Telia. in Scandinavia and in the Baltic countries. built for testing purposes. less Local Area Network (W-LAN) is not just for irrespective of time and place. It is a leading What was it in Finland that interested We are especially interested in forming a Wireless local area networks (W-LAN) are corporate use, it can also be used to provide communications service provider in Finland. Telia, Mr. Tero Laaksonen, Managing Director of co-operative network with information system not yet in public use in Europe. There are some public access with data rates exceeding 10 The group offers wireless voice, data and Inter- Telia Finland Oy? and media companies. developments in the US, but these are not on a Mbps. As a pilot installation, an Adult Training net services. Network communication compe- ”A strategic objective of Telia was, and still ”We would prefer to create associations global scale. Finland it the only country in the Center located in Pitäjänmäki was equipped tence and Internet services range from e-mail is, to obtain a strong position in all Scandina- based on mutual interests than obtain a world where GSM mobile phone and W-LAN with Public Access Zone (PAZ) technology, as to e-commerce. In Finland, Elisa Communica- vian markets. Telia´s experience in Finland has network of co-operation through ownership,” networks are operating together. part of Silicon Hill project. The wireless network tions operates on a local and nationwide basis. corresponded to our expectations. Tight com- explains Mr. Laaksonen, the Finnish-born was installed in the conference facilities, so It is the market leader in providing connections petition has kept the company alert and our Managing Director of Telia Finland. ■ visitors can access it using their own laptops. for high-speed data transmission. service development intense.“ Co-operation with Helsinki Similar setups are going to be installed in vari- In its international activities the group ”If the basics are not in order, there is no Ossi Partanen University of Technology ous other places, e.g. cafés, airports, hotels etc. focuses on Germany and the Baltics. In the coming to the Finnish market,” added Mr. Laak- The original focus of the Silicon Hill project was One of the key issues in telecommunica- areas of selected top know-how the group’s sonen, who came to Telia Finland from Nokia. to use the network for testing latest network tions is data security and integrity. The Silicon business is global. Telia has a fixed main trunk in Finland and technologies and integrated services between Hill network has also been used as a test bed Elisa Communication’s R&D activities are a GSM 1800 network in the biggest cities and companies, but it has expanded to include the for security solutions. Public Key Infrastructure focused on the task of staying ahead of the population centers. Telia offers mobile phone academic world as well. In 1999, part of the (PKI) was used to create a secure environment competition. The target is to create a unique services and fixed network telephone services Silicon Hill network was connected to another to protect even the most confidential data. The R&D environment, where the latest state-of- to its customers, as well as data and Internet Telia AB is a leading Scandinavian Internet and high bandwidth test network located on the results of this work have been utilized in the the-art mobile and fixed line network technolo- connections for its business customers. Telia communications company. The turnover of the nearby campus of the Helsinki University of Finnish Electronic Identity Card (FINEID), which gies can be tested and evaluated. The Elisa has also participated in producing content group was approximately 52 billion Swedish Technology. Connecting the two networks is an electronic ID card for verifying identity Research Centerre Silicon Hill area in Helsinki through Eniro, which became a separate crowns in 1999, and the number of employees enables cooperation between Elisa Research in electronic transactions. FINEID cards are pro- is an excellent environment to test public concern some time ago. When it comes to exceeds 30,000. Telia AB aims at strengthen- Center and the research units of the University. vided for Finnish citizens by the Population Reg- access wireless technologies on the way to producing content for networks, Telia has ing its position as a leading teleoperator in In early 2000, the project was further ister Centre and the certificate directory ser- information society. adopted a waiting attitude. Scandinavia and in the Baltic countries. The expanded to include development of new vices are supplied by Elisa Communications. ■ ”We are following the convergence of company has a special focus on mobile com- broadband services for residential users in the Additional information: mobile and Internet networks and the develop- munications and the Internet. area. High bandwidth data communication Elisa Communications www.elisa.fi ment of their value chains. We try to find and services can be provided to apartment buildings offer our customers exactly the kind of services Additional information: they need,” says Mr. Laaksonen. www.telia.fi 28 29 TELECOMMUNICATIONS

The Finnet Association: The Role on Network Operators will Remain Would you like to have a direct access to the EU´s laboratory for wireless data communica- Important tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- The Finnet Association is a ogy programmes introduce you to the latest cooperation forum and a technologies and offer a chance to take advan- lobbying organization for tage of R&D co-operation with Finnish compa- Finnish local telephone nies and universities. companies and communities and their jointly owned “In the rapid convergence taking place today it is sometimes People at the Finnet Association believe that network operators will retain their roles as associated companies. difficult to recognize your competitors”, gives a laugh Mr. constructors and maintainers of production machinery in the future. A radom satellite cover Seppo Toivonen, Managing Director of the Finnet Association.

ormerly, changes in legislation were ciation. How has this affected the operation of ”DNA Finland is a service operator that More individual Toivonen admits humbly that on an inter- clearly reflected in the competitive situa- the Finnet Association? works in direct contact with customers and is telecommunications national scope that even together, the member F tion of the telecommunications business. ”The separation of Elisa Communications responsible for developing and marketing the services in the future companies of the Finnet Association is a Although legislation continues to change today, Corporation does not affect our basic role in nation-wide products of the group,” explains Mr. relatively small group in order, for example, to Today, the Finnet Association has 49 companies as is it still the most important factor affecting any way. The Finnet Group remains a lobbying Toivonen concerning the operation of the new According to Mr. Toivonen, the general trend compete in UMTS license auctions with stakes members. In addition, a number of other national the competitive situation, Mr. Seppo Toivonen, organization and a centralized expert resource member companies of the Finnet Association. is towards a more individualized approach, of tens or hundreds of billions marks. That is companies, as well as companies relating to a Managing Director of the Finnet Association? for local co-operating telephone companies,” Mr. Toivonen believes that the activities of moving away from serving massive markets. why the member companies have been looking particular trade, take part in its operations. ”Changes in technology have more and says Mr. Toivonen. the network operators will remain one of the This trend reflects naturally on telecommuni- for objects in which they could, with reasonable The predecessor of the Finnet Association, the more clearly become the turning points that The Finnet Group has founded a number of most regulated areas of tele-operations in the cations services. Future telecommunications investments, create profitable activities and Association of Telephone Companies in Finland, have enabled rapid changes in the competi- new associated member companies. European Union. services will be individual, where the custom- utilize the companies expertise of competing in was founded in 1921, so that in 2001 the Associa- tive positions in the business. For example, it ”Finnish 2G and Finnish 3G Ltd. are network ”The regulatory efforts have been taken ers can easily define the content of the services an environment with several operators. tion will celebrate its 80th year of operation. is very likely that a clear reorganization of the operators. 2G was founded to build the third into account in developing new business activ- themselves. The introduction of individual wireless communications market is going to nationwide GSM network in Finland. Thus, 2G ity models for member companies. This is why services creates completely new demands on Network operators role will be Additional information: take place in connection with the introduction has created the basis for developing the next the network operations of 2G and 3G have been the integration of telecommunications networks www.finnet.fi/english of UMTS networks.” generation mobile services and has enabled separated from service operations DNA Finland and customer service systems. significant in the future too According to Mr. Toivonen, the competitive a significant increase in value for its owners for example.” ”It may be that in the future the whole Mr. Toivonen believes that the role of network situation can no longer be considered from business activities.” According to Mr. Toivonen, the member concept of telecommunications service will blur operators will remain important. ”The network the point of view of just telecommunications ”Finnish 2G will build a broadband backbone companies have a strong focus on introducing and people will simply talk about media serv- operators will, however, remain the construc- because internal competition in the converging network for its owner companies. In addition to new technology and look for unconventional ices, in which the inherent value of the instru- tors and maintainers of production machinery. field is becoming more important. the needs of mobile networks, the requirements applications for ”old” technology. The objective ment has disappeared,” predicts Mr. Toivonen. One must also realize that the development and ”You cannot be certain anymore, who your of cable television operations to link local data is to create new real convergence services that The telecommunications field is also rapidly distribution of services will always be con- main competitor is.” networks and other corresponding projects are are between fixed and wireless networks, and becoming international. Mr. Toivonen said that nected with network operations. The network taken into consideration when designing the between media and communication. the Finnet Association reacts to this by export- will still be a significant and essential part of broadband backbone network. Finnish 3G Ltd. ”In developing these services we strongly ing information, not by exporting money. the value chain of the whole operation.” ■ Changes in the structure will utilize the broadband backbone network emphasize individuality, scalability and adapt- ”We are developing the consulting firm of the Association and complement it with the structures required ability.” Omnitele Ltd to head up the export of Ossi Partanen At the beginning of 2001, the structure of the for the new UMTS network. 2G and 3G serve information. The objective is to more clearly Finnet Association changed when Elisa Com- various service operators, and DNA Finland develop it into an internationally significant munications Corporation and its associated is responsible for the service development of wireless network consulting firm.“ telephone companies separated from the Asso- Finnet Association member companies. 30 31 SPECIAL APPLICATIONS

Snow boarders and downhill skiers form the first test group of smart clothing. Sami Kangasharju, Managing Director of Mendez Finland: The trend in software documentation is towards outsourcing

Would you like to have a direct access to the EU´s laboratory for wireless data communica- tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- ogy programmes introduce you to the latest Reima-Tutta technologies and offer a chance to take advan- tage of R&D co-operation with FinnishMr. Kangasharju compa also points- out that nies and universities. effective documentation is designed for international distribution right focuses on smart clothing from the beginning. mart clothing started to interest Reima- the testing stage. The tests will be carried out has developing smart clothing technology oo often dismissed as a troublesome companies previously produced documenta- Tutta Oy in the autumn 1998. Mr. in February and March 2001. The project name brought to Reima-Tutta? extra task, documentation is often a tion themselves, but they are now focusing on S Pentti Hurmerinta, Managing Director of of the application is Reima Smart Shout. It was “It has naturally required a lot of study to T hastily written byproduct of the produc- becoming global and want to concentrate valu- Reima-Tutta Oy, said that they got the idea of originally developed as a general communica- adjust the production processes of the clothing tion process. Still today, product developers able internal resources on their core business. producing smart clothing from research projects tion device for a group of users. industry and the ICT industry together, and so has or experts write documents, documents that For small, growing companies, service pro- Mendez Finland is the leading documentation that were begun abroad. Inspired by them, he ”It can be especially well adapted for snow marketing the products. We know very well the are too complicated for their audience because viders help define a company’s complete docu- service provider for the IT sector in Finland, got in touch with the Tampere University of boarding and downhill skiing because Reima stages involved in retailing traditional clothing, experts have a hard time putting themselves in mentation needs, including the documentation and it has more than 15 years of experience in Technology and an agreement was made on has developed an outfit that is easy to put on but launching technical products is new to us.” ■ the users’ shoes. Some companies have tried to itself and its connections to production and serving its customers. In addition to technical starting a smart clothing project together. and suitable for snow boarding and downhill solve the problem by hiring documentation per- other services. In addition, the documentation documentation, the main services of the com- ”The result of the project was a survival skiing,” says Mr. Hurmerinta. He added that Ossi Partanen sonnel, while others have decided to purchase service provider’s professional and efficient pany include multilingual software localiza- outfit for a worker in the arctic, called the Cybe- there are only few corresponding commercial documentation as a service from service provid- project management, quality assurance system tion and translation services. Mendez offers a ria outfit,” says Mr. Hurmerinta. applications in the world. ers. Which direction is software documentation and cost management make it easy for purchas- one-stop service model, where customers can The research project brought good contacts Mr. Hurmerinta says, ”that new applica- moving, Sami Kangasharju, Managing Director ers to monitor documentation costs. obtain all their documentation and localization to Reima-Tutta and thus a research center for tions of the group communication device are of Mendez Finland? As for the large companies, they may have services from one place. Service packages wearable technology, Clothing+, was founded. coming to the market; among others a smart “The trend in documentation is towards product-specific documentation units, but they are tailored for each customer’s unique needs. Today, Clothing+ develops smart clothing garment for hunters is under development. The outsourcing, as has already occurred with soft- also may lack coordination. “Having documen- Mendez Finland employs 150 people, and its concepts for Reima. first smart clothing products of Reima-Tutta will ware localization and translation. Outsourcing tation processes and products that vary from net sales for 1999 were over 16 million euros. What is smart clothing and how does it be rolled out to market in August 2001.” Reima-Tutta Oy is one of Scandinavia’s big- eases the human resource pressures stemming unit to unit, they use outside experts to help work, Mr. Hurmerinta? gest producers of clothing. The company from big variations in the volume of work plan and develop consistent documentation; Additional information: ”Smart clothing is a garment in which specializes in high-class functional outdoor caused, for example, by product development determining later what should be done inter- www.mendez.fi ”smart” features have been added by electron- A Success in Fairs leisurewear and sportswear. The most well cycles.” Mr. Kangasharju also points out that by nally and what should be purchased,” thinks ics, information technology or biotechnology, The Reima Smart Shout group communication known brands are Reima, Tutta, Lassie, Yoko purchasing documentation as a service, compa- Mr. Kangasharju. for example. It makes its owner’s life easier, device was selected as a general winner in and Happy Cap with the newest acquisition nies can transfer various personnel costs, such Mr. Kangasharju also points out that increases his/her abilities or is a considerably the BrandNew product competition organized of Chevalier produced hunting clothes. The as recruitment, training, salaries, and the costs international distribution should be considered better garment than traditional ones. The gar- in connection with the ISPO Fair to be held turnover in 1999 was approximately 221 mil- of a varying work load, to the service provider. when planning documentation. IT firms aiming ment becomes a user interface for the smart in Munich in February 2001. ISPO is the most lion FIM. Since the 1960´s Reima has devel- In addition, the special expertise of sub- at the international market should pay atten- features or a platform for interfaces, and it is important procurement event of the sports oped numerous textile technology applica- contractors can clarify documentation require- tion to the quality of the original documenta- also possible that the smart features affect the equipment and clothing business. tions of its own together with material pro- ments, including content, look and feel, user tion and the consistency of their terminology. garment itself,” clarifies Mr. Hurmerinta. “The developer, Clothing+ Research Center, ducers. Now the company has a strong focus group, and language version considerations. “When documents and other materials are will certainly be inspired with this,” rejoices Mr. on integrating textile and clothing technology translated, good source versions save time, Hurmerinta, who naturally grants a part of the with information technology to develop so- effort, and money. If original versions use Downhill skiers and snow honor to their co operating partners, Nokia and called smart clothing. The differing needs of small and inconsistent terminology or vague language, boarders as test groups the Tampere University of Technology. large companies problems multiply with the different language The first test groups for smart clothing consist Reima-Tutta Oy has been a producer of Two types of businesses use documentation versions,” warns Mr. Kangasharju. ■ of snow boarders and downhill skiers. Accord- traditional clothing and specializing in outdoor Additional information: services: small, rapidly growing firms and large ing to Mr. Hurmerinta the application is now in leisure and sportswear. ”What new challenges www.reima.fi companies. According to Mr. Kangasharju, small Ossi Partanen 34 35 SPECIAL APPLICATIONS

Forerunner in commercial weather services in the Nordic countries A bouncy lady to break European monopolies

Would you like to have a direct access to the EU´s laboratory for wireless data communica- tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- ogy programmes introduce you to the latest technologies and offer a chance to take advan- tage of R&D co-operation with Finnish compa- nies and universities.

Dr. Pirkko Saarikivi, Managing The Netherlands is the first and only country in Europe to have released the government ownership of Weather forecasts are always needed, especially to forecast the sunny days of summer. Director of Foreca Ltd meteorological raw data. In the picture: the Central Railway Station of Amsterdam.

t surprises me how very emotionally “I gather it is our national character that is President and CEO of Vaisala Oy. His company lag behind the US and Japan more than ever The business scenario for her company is Foreca Ltd currently employs more than 30 people react to the notion of weather mirrored in avoiding taking risks. Sometimes it has a world-wide reputation as a pioneer in before“, she argues. very promising although the lack of high-level professionals, both in meteorology and infor- “Iwhen it comes to the major issue of may be fear of failure, and surprisingly, it may sensor technology in the development, manufac- “Due to this state of affairs, and lack ICT skills may hit, too, and turn into a bottle- mation and communications technology. The ownership of raw meteorological data“, says be fear of success, too. Oddly enough, being a ture and marketing of electronic measurement of commercial weather service offerings in neck. “Until today, we haven’t had any need to Foreca know-how is backed with extensive Dr. Pirkko Saarikivi. She is a genuine forerunner winner and being proud of it is not necessarily systems for meteorology, traffic safety, industry Europe, there is a black hole of revenue of advertise job openings because our web site experience of various weather service prod- in commercial weather services in the Nordic part of the Finnish mentality. But I feel very posi- and research. “All through the years he has been up to 300 million euros every year. And this and our brand name have done it so far. But the ucts, multimedia programming and network countries and a wild duck when aiming to break tive about the future. Basically, Finns are indus- acting as our business angel and encouraging assessment of prospective revenue does not yet demand for brilliant programmers is huge, and applications. the European monopoly in her field. trious and willing to work hard, and our leader- us with his brave ideas, most of which have, include job opportunities, income taxes or other we could hire them all if we only knew where The Foreca services are based on highly In 1997, Pirkko Saarikivi founded and is ship in technology gives ample scope for new sooner or later, materialized. And quite recently positive side-effects it might generate“, she they exist“, she laughs. automated production. High quality is ensured the major shareholder and Managing Director innovations and their viable implementation.“ we signed an agreement with a venture capital adds. In order to promote the liberalization of “For the years ahead, it is our main goal to by meteorologists who always verify the auto- of the first Finnish privately owned enterprise company, CapMan, which will invest heavily in the environmental data in Europe, Pirkko Saa- be an attractive employer and develop a global matically produced forecasts. to provide operative weather services, Oy our emerging globalisation efforts. And now that rikivi and her colleagues throughout the con- leadership of weather services in the competi- The forecasting models are the most accu- Weather Service Finland Ltd. The company has Business angels are needed mobile services will enter the scene with accel- tinent have established a web site at http:// tive market. We are committed to fight against rate European models (HIRLAM and ECMWF) recently renamed Foreca Ltd to better suit the When initiating her business, Pirkko Saarikivi erating speed, we badly need venture capital for www.aedue.org to increase awareness of and the government-subsidized weather services in available. The models and the raw meteoro- needs of its global expansion. Before assuming was lucky enough to have talented colleagues product development, too.“ to change attitudes towards these topics. The Europe. For four years now, we have exercised logical data are acquired from the Swedish the role of an entrepreneur in an utterly male around her, and she hired two programming site is run by the Association of Environmental our catalyzing powers in paving the way for Meteorological Institute, SMHI. ICT business, she had been working for several experts who also became stakeholders. She Data Users in Europe. privatization of the entire industry, and we will The Foreca product line covers GSM and years in traditional academic circles and in a gives special credit to Tekes, the National Tech- Content creation is the key continue to do so.“ Internet services, services for TV stations and public agency and holds a Ph.D. in meteorology nology Agency of Finland, for financial support “Our company is very much at the core of Foreca’s offices are based in downtown newspapers, and services for energy sector. As from the University of Helsinki. in the initial stages. content creation in the European ICT business. Social skills always matter Helsinki in an early 20th century industrial prem- of today, among the largest customers are the “The vision of the forthcoming enterprise “The whole thing started very fast, almost Ours is to purchase bits of data, cultivate that Having brought up three children while simul- ises, currently a nice location for many new Finnish Road Authority and MTV, the Finnish emerged very early in my mind, in the days too fast, mainly due to revolutionary develop- data and send those valued-added bits back taneously building her career, Pirkko Saarikivi enterprises of the digital era. The Foreca confer- commercial TV station. when I was working in the academic community ments in technology and emerging liberalisation to our clients. But the fact remains that the is sure to have a lot of social intelligence. Now ence room may carry a clue to the enduring Exploiting WAP protocol, Foreca cooper- and as a civil servant with the Finnish State trends in Europe“, she now recalls. European monopolies continue to be a major in her forties, she is still going strong. “As a success of the company; as the story goes it ates with major international ICT players to Meteorological Institute and also in EU-funded “We did an enormous amount of program- hindrance for free competition in the weather female business executive I haven’t been faced was within these walls that the key decisions develop innovative mobile phone weather projects“, she admits. “I very much felt like ming by ourselves. But happily enough, we had forecasting business. Until today, the Neth- with gender barriers. In a company such as about Nokia Corporation’s glorious future were services. The company is also a partner in an leading a challenging life my own way.“ no need to make any effort in marketing because erlands is the first and only country to have ours, I find it important to have a balanced mix made sometime in the early 1980’s. ■ EU-funded project to converge weather infor- A recent survey among OECD countries there seemed to be a niche in the market and released the government ownership of meteo- of elder and younger professionals, as well as mation and catastrophe models. clearly indicates that the proportion of young a growing demand for innovative, efficient and rological raw data. This happened fifteen years a balance of genders. And what is very vital is Marja-Leena Vepsäläinen academics to establish their own businesses is easy-running weather forecasting systems both ago, and the chasm between the Netherlands employees’ healthy private life outside working Additional information: very low in Finland. When asked, she starts for domestic and foreign markets.“ and other European countries still prevails. hours.“ During a recent visit to Silicon Valley in www.foreca.com pondering and says that there are many reasons From the very beginning, Pirkko Saarikivi While liberalization elsewhere is not likely the US, she was shocked to see the pressure on behind that phenomenon. received advice from Yrjö Toivola, the former to take place in the near future, Europe will the hard-working people in IT companies. 36 37 LOCAL ORGANIZATIONS

Culminatum builds Center of Expertise Programme a network of experts

Finnish high technology know-how has gained a lot of international attention in the past few years. However, this expertise does not come out of nowhere, quite the contrary. WouldManaging you Director like Kari Ruohoto have(on the left) a direct access“This tois the the vortex we try to reinforce”, says Kari Ruoho, CEO of EU´sand Projectlaboratory Manager Irmeli for Lamberg wireless laying the data communicaHelsinki region Center- of Expertise, Culminatum. In the background lies long-term invest- foundation stone of Innopoli II. ment in knowledge-based businesses. tions? Would you like to lower your R&D budget Regional Centers of Expertise have made and increase your profits? The Tekes technol- an important contribution to the appear- ogy programmeshe Center of Expertise programsintroduce Cooperation you to across the borders latest technologiesin the Helsinki and region aimoffer to form a chance to take advan- ance of Finnish new technology. The knowledge centers for various busi- The areas of expertise for the Center of Exper- basic idea behind these centers is to tage“T of R&D co-operation with Finnish compa- ness areas in the technology centers and sci- tise programs have been selected so that they create successful businesses from niesence and parks of universities.the area,” says Kari Ruoho, CEO will support existing businesses and university the knowledge found at local uni- of Culminatum. The Center of Expertise program education. Besides software products, new The Helsinki region Centre of Expertise pro- versities. for software product businesses, for example, media and culture industries also have their gram, carried out by Culminatum Oy, enhances operates at the Innopoli technology center in own programs. cooperation between companies, universities the middle of Scandinavia’s largest technology “We wanted to include future businesses and research centers. It is aimed at employing cluster in Otaniemi, Espoo. The biggest technical that could also create cooperation,” Kari Ruoho the best know-how in the region for the devel- university in Finland, as well as several growing emphasizes. opment of companies operating in selected companies in the branch, can be found nearby. Irmeli Lamberg also flags for cooperation knowledge areas. “Finnish software companies are in for a big between different business areas. Another aim is to support the regional adventure: conquering of the world. We seek to “The best ideas are created when people business structure by creating new high-tech give them something for the journey,” describes from various backgrounds come together. We companies and jobs. The Center of Expertise Irmeli Lamberg, Project Manager of a software try to find as much cooperation as possible program supports the positioning of the Hel- product business at the Center of Expertise. with, for example, the new media and culture sinki region in international competition and Software products are an example of a industries. We have given seminars and inter- reinforces its status as the promoter of eco- growing Finnish industry, also selected as one nationalization training together. A lot still nomic growth for the whole country. of the focus points of Culminatum, refining remains to be done.” The following fields of expertise and oper- knowledge into profitable business. Irmeli Lam- The wide-ranging effects of Center of Exper- ators are a part of the Helsinki region Center of berg, who is in charge of the program, tise programs, beneficial co-operation between Expertise program: describes the Center of Expertise program as a businesses in the area as well as the creation of • Active materials and microsystems, builder of networks. new business areas, require a lot of persistence. Otaniemi Technology Park “There are already lots of activities for soft- “Take Innopoli Phase II, which specializes in ware people to network in Finland: various semi- software products, for example. The true effects • Gene technology and molecular biology, Helsinki Science Park, Viikki nars, First Tuesday and Mobile Monday events. of such a knowledge center will still be seen Ohjelmistoyrittäjät ry (Association of Software after several decades,” Irmeli Lamberg stresses. • Culture industry, Kaapelitehdas Businesses) brings together entrepreneurs in the The program, focusing on enhancing busi- • Software product business, Innopoli SW business. The swbusiness.fi Internet portal ness preconditions and increased cooperation, Technology Center was built by us to function as a news source for received an important distinction in November • New Media, University of Art and Design the businesses. We seek to enhance this kind of 2000 with the EU Award of Excellence for Inno- networking by all means possible.” vative Regions. According to the award, the Irmeli Lamberg compares the Center of Helsinki region, Otaniemi in particular, have Additional information: Expertise with a successful software company. effectively created new, innovative technology www.culminatum.fi “The secret of success in a business is businesses. Innovation and the creation of a the social capital gained. The same applies to strong network are also cornerstones of the Centers of Expertise. Our most important asset operation of centers of expertise. is to have good working relationships with busi- “A Center of Expertise is basically a nesses and people of this industry.” forum for anyone to come and carry out their Innopoli Technology Center, great ideas,” Kari Ruoho says. ■ focusing on software programs and wireless technologies, is an important pillar for the operation of the software product business 38 at the Center of Expertise. 39 LOCAL ORGANIZATIONS

Concentration of JYVÄSKYLÄ REGION – A FAST GROWING ICT know-how ICT INDUSTRY ZONE in the Tampere Would you like to have a direct access to the EU´s laboratory for wireless data communica- region tions? Would you like to lower your R&D budget A subject of study at the University of Tampere is how computers could and increase your profits?The The Jyväskylä Tekes Science Parktechnol is one of- the best technology company incubators among the be programmed to respond to the ogy programmes introduceFinnish you Technology to the Centers. latest Some 120 companies have already been incubated. Jyväskylä is located in Central Finland, in the middle of the beautiful lake district. feelings of the user. technologies and offer a chance to take advan- Arkkitehtitoimisto Sipinen Oy tage of R&D co-operation with Finnish compa-

he Tampere region boasts versatile initiated in the Tampere region. The operational and, in fact, receives half of its funding from niesas users and of public universities. online services. The main uring the past decade, Information and digital media, the Internet, mobility, content, expert skills in Information and Commu- model that Tampere has adopted for its centre resources outside the state budget. Lately actors in the programme are the City of Tam- Communication Technology (ICT) has and their combination. T nication Technology (ICT) with wireless of expertise programme supports co-operation co-operation between the Tampere University pere, Tampere University, Tampere University of D become one of the cornerstones of indus- Nokia initiated operations in Jyväskylä a data communications, digital signal processing, between participants and has been nominated of Technology and the University of Tampere Technology, VTT Technical Research Centre of try in the Jyväskylä region. ICT businesses in couple of years ago and the number of employ- semiconductor technology and optoelectronics best in Finland.“ has been on the increase as has co-operation Finland, Tampere Technology Centre Ltd., com- Central Finland currently employ over 4,000 pro- ees has since risen to nearly 500. Nokia’s units having achieved a particularly advanced level. According to Wikström, centre of expertise between polytechnic schools and other educa- panies and funding sources. ■ fessionals with the number of new openings in Jyväskylä include Nokia Mobile Phones (NMP) Several Tampere-based units in this field have operations have resulted in a variety of co- tional institutions in the region. increasing at an annual rate of 20-25% over and Nokia Networks. The NMP Special Products been selected as centers of excellence by the operative forums to promote innovation and to Of central importance to enterprises in the Ossi Partanen the past five years. Strong growth is predicted unit operating in Jyväskylä focuses on TETRA ter- Academy of Finland. make use of tacit knowledge. Expert teams, region is the excellent IT education that Tampere to continue in the near future and the number minals while Nokia Networks develops software Which units, in particular, would you like institutions, seminars and development projects offers, says Wikström. The IT education provided of employees in the region’s ICT industry is for PMR networks, mobile Internet applications to mention when talking about Tampere, Ms. in various fields support regional networking. by the region’s universities is top-level in Finland, expected to more than double in the next ten and IP mobility networks. Katri Wikström, Project Director of Tampere As examples of new players, Wikström men- faring well in international competition, as well. years reaching 10,000 by 2010. ICT professionals Most ICT companies in Central Finland Region Centre of Expertise in information and tioned the Digital Media Institute, which oper- “Measured by the number of undergraduate will also be employed in other fields and indus- operate in global markets. Some of the biggest Communication Technology? ates in conjunction with the Tampere University and postgraduate degrees, Tampere closely fol- tries effectively transforming the region into an players include Nokia’s units mentioned above, “The signal processing team is internation- of Technology and employs over 400 researchers. lows Helsinki as the biggest IT center in Finland.“ Information Society. the Yomi Group, Sonera, Sanmina, Enermet and ally well-known thanks to its research in the The Data Network Institute, Optoelectronics The fast growth of vacancies in the ICT TietoEnator. Small and medium-sized growth fields of non-linear signal and image process- Research Institute, and the interdisciplinary Vir- industry is largely a result of increased educa- companies have been involved in a national ing. The research team working on semiconduc- tual Reality Center are also good representatives Tampere aiming at the top tional opportunities provided both by the Uni- Global Software Program targeting the U.S. tor technology and surface sciences as well of the skills and know-how in Tampere. According to Wikström, the Tampere aims at versity of Jyväskylä and Jyväskylä Polytechnic. markets. The program provides software com- as the Digital Media Institute have already building a reputation as one of the world’s most The number of students admitted to educational panies with the opportunity to implement their received merit as top research units.“ innovative regions and to become one of the institutions is now three to four times that of internationalization strategy through ”hands The important world’s top knowledge parks in the field. the mid-1990s. With some 700 new ICT majors on” training. Companies from the Jyväskylä role of Nokia in Tampere The newest developing programme in admitted in autumn 2000, the total number of region have participated very actively on the The city of Tampere Wikström also emphasizes the significant part the Tampere Region is the eTampere - a pro- Tampere Technology Centre Hermia houses students in the field will rise to over 3,500 by Global Software Program; their share is one as promoter of development played by telecommunications in Tampere. In gramme to make Tampere a key city within the 150 companies and 2,300 people. The main 2003. The correct timing of educational invest- third of the total 45 companies in the three Katri Wikström emphasizes the role of the city fact, Tampere was the site of the first NMT, global Information Society by strengthening fields of expertise are information, automation, ments, that is, coincidence with fast growth peri- programs implemented so far. of Tampere in promoting development: GSM and Internet calls. Nokia’s role in the the knowledge base of research and training, health care and environmental technology. The ods of enterprises, has enabled quick develop- Jyväskylä is also the site of one of the best “The city of Tampere supports development skills and knowledge development in Tampere generating new business related to the Infor- Technology Centre accommodates businesses ment of ICT business activities in Central Finland. technology company incubators among the Finn- in the IT industry with the trade and industrial has been considerable. mation Society and creating new public online at different stages of their life cycles, rang- Thanks to additional investments in education ish Technology Centers. Incubation activities in policies it adopts. The city invests in knowl- “Most of Nokia’s successful innovations services available to all citizens. The cost of the ing from technology start-ups to large global and training, the availability of ICT professionals edge-intensive businesses and actively partic- in telecommunications have been developed in eTampere programme with its subprogrammes companies. Nokia, for example, employs over in Jyväskylä will be good in the years to come. ipates in generating and strengthening ICT Tampere including the Communicator, Data Card, is estimated to total 130 million euros for five 1,000 people at Hermia. The Centre has been ICT companies in Central Finland focus on JYVÄSKYLÄ research, development, and business activities. Data Suite and Card Phone. The Nokia Mobile years. The objectives include, among others, growing extremely fast throughout the 1990s software, data communications, digital media, TAMPERE It has been a pioneer in the field of information Phones research unit located in Technology to generate 20 new, globally competitive and is expected to continue to grow in the utilization of network technologies, and indus- technology in various ways. The city empha- Center Hermia is one of the world’s biggest.“ eEconomy companies, to promote growth in the future, as well. trial automation. The teaching and research sizes the importance of centres of expertise and Co-operation between businesses and number of employees working in the ICT cluster practiced at the University of Jyväskylä and technology centres to the competitive advan- universities has a long tradition in Tampere. to a 2.5-fold figure and in the media services to Jyväskylä Polytechnic provide ample support tage of the region and is an active backer and The Tampere University of Technology has a 1.8-fold, and to provide all citizens with access Additional information: for the region’s current ICT business as well financier of the centre of expertise programme reputation for being the industry’s university to the network and to strengthen their expertise www.hermia.fi as expertise for future needs in fields such as 40 41 LOCAL ORGANIZATIONS

Jyväskylä, managed by the Jyväskylä Science The success story of Oulu: Park, have a ten year history during which some 120 companies have been incubated. Three fourths of the companies work in the ICT industry and by 2010 an estimated 300 tech companies From tar producer with a total turnover of several billion Finnish marks have undergone the incubation process. In addition to injecting more versatility into the region’s industry, the incubation activities have to a high tech center also helped several startup companies grow into considerable medium-sized enterprises. Most technology companies are located by the lake, in the center of Jyväskylä. The Would you like to have a direct access to the Jyväskylä Science Park area, also near the lake EU´s laboratory for wireless data communica- and adjacent to the University and Polytechnic, is well on its way to housing a considerable tions? Would you like to lower your R&D budget part of the region’s high-tech businesses. and increase your profits? The Tekes technol- The district currently employs some 1,400 ogy programmes introduce you to the latest people in 80 companies with a target of 3,000 technologies and offer a chance to take advan- employees in 2003. Adding to this figure other tage of R&D co-operation with Finnish compa- people involved in the ICT industry, including ICT teachers, researchers and majors, the total nies and universities. number of ICT persons that are working in the vicinity of the Jyväskylä Science Park will rise from 4,000 to 7,000 in three years. The Jyväskylä region located in Central Finland, some 250 kilometers from Helsinki, pro- vides its 130,000 inhabitants job opportunities throughout the area. The city itself is situated in the middle of the Finnish lake district and offers its inhabitants short commutes to work, Technopolis in Oulu is one of the first technology centers Oulu is situated a little below the Arctic Circle in Northern Finland. To the north of Oulu, summer cabins by the lake, nearby golf courses in the world quoted on the stock exchange. in Lapland, traditional reindeer farming is still one source of livelihood. as well as cross-country and downhill skiing in wintry surroundings. Jyväskylä is often called the “Athens of Finland” thanks to its ample and ulu, with its 120,000 inhabitants, is unemployment rate in Oulu is still rather high, region in Finland after the capital city of Hel- action between science and business seems versatile cultural and sports offerings, as well situated a little below the Arctic Circle 13 %, compared to the Finnish average so not sinki. By the year 2006, the number of jobs in natural, and an overall cooperativeness, instead as its long traditions in education. Many Finns O in Northern Finland. In the 17th century everybody has benefited from the emergence of the region is expected to increase to 22,000. of competitiveness, seems to prevail in the Additional information: find Jyväskylä an attractive area: surveys reveal its main livelihood was salmon fishing and by new jobs in high tech fields. To an outsider the business life of Oulu city. Financing is also easier to obtain in such www.technopolis.fi it has long been among the top two Finnish World War II the town had become a producer The technology center for the telecom- seems relaxed; transactions are discussed in an atmosphere, and some pioneering entrepre- cities concerning relocation wishes. of tar and timber. The town of Oulu was then munications, electronics, software production, the sauna and in their spare time people fish, neurs from earlier times have now acquired the ICT companies basing in Finland will find only a village by the Gulf of Bothnia. Today, medical technology, and biotechnology fields ski or play golf. Still, serious business is done in role of business angels for the region. Jyväskylä to be a region that focuses on inter- Oulu must be the most northern high tech suc- was founded in Oulu with partly public and the city; over a dozen fully booked daily flights Local key people admit honestly that national activities and the future, and is fast cess story in the world. partly private financing. The Technopolis has to Helsinki are proof of that, as are the new Oulu would not be what it is today without becoming more versatile in structure. Among A generation ago, Finns discovered that gathered together approximately 200 compa- high tech company buildings that are being the presence of Nokia. A large part of both other things, Jyväskylä offers ICT companies it would be sensible to direct the migration nies and 4,500 entrepreneurs and employers. built near the airport. They say that the secret small and medium sized industry in the city the best educated thirty-year-olds in Finland and of working people from the north towards the In addition, the nearby University of Oulu and of success is a unique and long-standing coop- is dependent on Nokia. The city leaders have company-specific support, ranging from estab- centers on the coast and to Southern Finland. VTT employ a number of high tech research- eration between the university, VTT, the city of long desired to get another mobile phone lishment surveys to assistance in flexibly estab- Oulu was selected as one of these coastal cent- ers. The keyword of Oulu is “wireless tech- Oulu and the companies. Together, they have giant, Ericsson, to Oulu. It seems that this lishing and quickly growing an enterprise. ■ ers and one of the biggest Scandinavian uni- nology”. Technopolis Plc is one of the oldest succeeded in growing high tech clusters in the wish has come true as Ericsson opened a unit versities, the University of Oulu, was founded. in Europe and probably the first technology Oulu region. The electronics and software clus- in Technopolis this autumn. The Oulu unit will Jussi Nukari There are 13,000 students and six faculties, center quoted on the stock exchange. The ters work efficiently, and another new cluster is begin to design mobile phones as the first Director, Information Technology with the technical faculty as the biggest. In the biggest customer of the Technopolis is Nokia, expected in the field of biotechnology. Because Finnish unit of Ericsson. ■ OULU Jyväskylä Science Park Ldt 1970´s, the Technical Research Cent of Finland, which is understandable from the Finnish of the small size of the city, the community is VTT, was also founded in Oulu. High technol- point of view. Today, Oulu is one of the lead- still rather small so people know each other Dr. Martti Launonen, Director, ogy became the key to success for Oulu. At the ing European IT centers with an estimated and trust their partners. The business managers Technopolis Plc same time in the 80´s and 90´s, as traditional total of high tech jobs in the region of approxi- say that Oulu is a safe testing ground for the Oulu Region Centre of Expertise heavy industry decreased its number of work- mately 11,000. Measured by the number of new innovative products that are being devel- ers, investment in high tech sectors began. The high tech jobs, Oulu is the most significant IT oped by the companies in the region. The inter- Additional information: www.jsp.fi 42 43 SUPPORTING ORGANIZATIONS

Finnish flags are very well set forward in the market square of Helsinki in summer. In order for small companies to be equally well exposed in international markets, Sitra suggests that companies could get Operating on International the services they need by cross holding a service company. Scope requires Cooperation

innish software production is state-of-the- needed for finishing the product and rolling it providing the services can be started by the can be naturally merged to a whole company. art, at the same level as our internation- out to the market. This is an ideal stage for a companies that need its services. It is, however, The result is significantly more attractive to F ally recognized high tech expertise. Enter- capital investor to join in and help to develop more probable that a capital investing organiza- investors when it is listed on an international ing the international market has become con- the company. A bigger challenge is to find the tion, e.g. Sitra, will found the umbrella for the technology stock exchange. A merger, too, is siderably easier for Finnish software companies needed expertise. cluster and look for the companies that fulfill a challenging process – each company in the during the last few years in the wake of the Software production companies find, how- the above mentioned criteria. This model also cluster may feel it has been more successful well-known technology related Finnish phenom- ever, considerable risks in such a procedure. enables founding new companies that fill a cer- than another and that its merger value should ena such as Nokia and Linus Torvalds. Today, The commercialization of a software product tain gap in the cluster and connecting them to be bigger than others. In practice, it has been many doors open considerably easier than demands skill and experience. It is also obvious the cluster, i.e. proactive operations. The same noticed that when the choice is either to sell before. It has even been noticed that foreign from the start that the domestic market will not umbrella can well cover 4–6 carefully selected a part of the cluster to an outsider or to companies and capital investors actively look be large enough – so it is necessary to enter the and naturally opportune companies. The struc- list the whole cluster on the stock exchange for Finnish enterprises that could be successful international market. It is critical to get special ture would be realized according to traditional for a considerably better evaluation, it is not in the international market. expertise in the company from the very begin- cluster models – by cross holding of the service impossible to define the merger relations – the This, however, does not guarantee entry ning. When test marketing has not yet been providing company and the companies needing equation produces only winners. ■ into new markets for companies that could be done and the product is not quite finished the its services. eligible for international business. Many good threshold of taking the risk is high. There is The belief that software companies can Director Janne Ahlström business ideas or products remain small, even a high risk of failure if the investor does not achieve big profits fast, which was clearly Information Technology if they manage to boost sales a little in the have the possibility of providing special exper- noticeable in spring 2000, is no longer a hin- Sitra - Finnish National Fund for R&D domestic market, the companies lack the skills tise from among its own personnel or from the drance to founding a cluster. The time is riper needed to commercialize and market their prod- outside to the new company. now for a more systematic and long-range rais- ucts and in creating effective sales channels; in Investments made in the initial stage are ing of a company´s value. short, they lack the money and expertise. often rather small, the risk is great and profit Money can be saved by joining forces to expectations are moderate. Also, there are a build a sales and marketing organization, and lot of companies that want financing. Often, in with the single payments connected to getting Financing an Individual Software such cases, the investors do not have enough established in a new market, building channels Company is Risk-bearing resources to organize such active management, and with continuous payments connected to There are several sources of financing avail- and because of the great risk or high price organizing management services, product main- able. From the point of view of the development it is not possible to hire outside consultants tenance, and product support. It is easier for a of a company the best way to start, after the or professional managers. Thus, many Finnish big concern to recruit and gain the commitment Sitra, the Finnish National Fund for Research primary boosting by organizations like Tekes companies with great marketing potential that of skilled personnel and a high level network and Development, is an independent public or the Foundation for Finnish Inventions, is are eligible for the international market are left of co-operating partners than for an individual foundation under the supervision of the Finnish by capital based risk financing. This way the without the critical financing. beginning software workshop. There are more Parliament. The Fund aims to promote Finland’s company can benefit from the added value skills to equalize the risk. Even commitment economic prosperity by encouraging research, services offered by the financing company, or comes naturally in such a situation; a slice of a backing innovative projects, organizing train- through a co-operating network of companies. Solution – an Umbrella whole guarantees true entrepreneurship. ing programs and providing venture capital. A capital investor will want to guarantee profit Organization Despite the cluster model, the financing The Fund was set up in conjunction with the from the investment by active participation in A natural solution could be an umbrella organi- structure and ownership base can be very dif- Bank of Finland in 1967 in honor of the 50th the development of the company. Capital inves- zation of companies with good mutual syner- ferent from each other. It is significant, how- anniversary of Finnish independence. The Fund tors are transferring the focus of their operation gies that offer the required services. Synergy ever, that all companies have a healthy financial was transferred to the Finnish Parliament in more and more in the initial stages of a new is required for end-users, marketing, as well base from which international operations can 1991. Sitra´s activities are financed from the company’s development. When a company has as the sales and delivery channels. Companies be organized. Thus, the cluster umbrella or its yield of the endowment and project finance. just been founded, the product is beginning offering each other such synergies would get interest groups must have the possibility to par- to take shape, a few recruitments have been the above-mentioned critical services at a ticipate in owning the companies. made, markets have been analyzed and the considerably lower cost and risk by obtaining The cross holding model also brings new Additional information: business plan is becoming concrete. Money is them together. A cluster is born. The company dimensions to selling the concern. The cluster www.sitra.fi/english 44 45 SUPPORTING ORGANISATIONS

Mr. Pekka Finnish companies are better in the Lappalainen and Mr. electronics and software industries than Esa Tanskanen of in content. Perhaps the cartoon couple Finpro pave the way Exports and imports 1984-2005 Viivi and Wagner, very much loved by for international Electronics and electrical industry Finns, will be the next Finnish export hit business for the on the Internet. small and medium- FIM million sized ICT firms. 200 000 Exports 1984-99 180 000 160 000 Exports, fast development 140 000 Exports, slow development 120 000 Imports 1984-99 100 000 80 000 Imports, fast development Would you like to have60 a 000 direct Imports,access slow development to the EU´s laboratory for wireless40 000 data communica- Forecast tions? Would you like to 20lower 000 your R&D budget 0 and1984 86increase88 90 92 94 96your98 2000 02profits?04 06 The Tekes technol- ogySource: Electronicsprogrammes and Electrical Business in Finland. Forecast introduce 2000-2005. VTT. you to the latest technologies and offer a chance to take advan- tage of R&D co-operation with Finnish compa- Finnish companies bel ievenies and universities. in their products he Finnish companies we work with percentage of the companies stand out as you can not do everything yourself. Finpro “By the year 2000, Finnish companies Consumer behavior is changing have a clear understanding of what successes,“ estimates Mr. Lappalainen. helps to combine Finnish technology and local have experienced a strong integration so that “Ttheir product or service is. This business skills,“ describes Mr. Tanskanen. it is difficult to make out where a company “The amount of money consumers spend on understanding is not based on only the booms The new economy small and medium-sized begins and ends. Even 10 to 15 years ago communications has grown considerably. The going on in the world but also the product Big companies companies have completely new ways of companies in Finland, like companies in many advantages are so obvious. For example, even itself, which the company believes will succeed have drawn small ones along working; they can operate in the international countries, had a very specialized operative two years ago it would have been difficult to in the market despite the booms,” says Mr. In the 1980´s, electronics was hardly talked market without heavy structures. Mr. structure. Telecommunications companies imagine the possibility of comparing prices Finpro provides services, support and Pekka Lappalainen, Senior Vice President of about in Finland. Now, at the beginning of Lappalainen talks about management by e-mail concentrated on telecommunications globally, but when we recently were buying information to help Finnish companies enter Consulting at Finpro. 2000, one third of the total exports consist of principle, which is applied in order to business, information technology companies a snowboard for our son, we checked what a the international market as swiftly, safely and Mr. Esa Tanskanen, Senior Consultant electronics and high tech products related to construct a completely new kind of business on information technology; the post and corresponding product would cost on the west efficiently as possible. Finpro promotes Finnish at Finpro, thinks that the strengths of communications and information technology. process and to make global businesses work message transfer were organized in their own coast of the US,“ says Mr. Lappalainen with a business solutions worldwide. Finnish ICT companies are their high level of In the 80´s nobody could even imagine that a together despite differences in time or location. businesses as well as media in its own sector. smile. Finpro has an office in Helsinki and over education, tradition in information technology top world-class company like Nokia could ever According to Mr. Lappalainen, such a transition Now the roles have become obscured and In Finland, net trade between companies 50 Finland Trade Centers in more than 40 and straightforward persistence. emerge in Finland or even in Northern Europe. is now taking place; companies are creating each sector uses the means of the information became common in the 90´s and at the moment countries. Finpro offers individual services, “The technical level of the companies is “In practice this has been realized in very interesting new methods of operation. society, fixed or mobile digital net“. online buying is growing by 5 to 10% a such as providing marketing information and a reality. Naturally, excesses happen in trends, the 90´s as continuous growth. At first, the “Even a small company can operate on a “Mobile services have grown especially year among consumers. Also, both mobile and organizing participation in fairs, as well as but the technology and business idea in many big companies began to grow and as a large scale when it makes use of information rapidly. The number of the users of mobile online service providers are growing in both long-term consulting services that require Finnish companies are extremely professional consequence a very great number of small and systems and finds partners from different parts terminals, for example mobile phones, among the private and communal and national sectors. an in-depth understanding of a company´s and competitive,“ emphasizes Mr. Tanskanen. medium-sized companies have emerged,“ says of the world for its business network – Finns has exceeded 70%. This group can be Paying bills on the net is already common development. According to Mr. Lappalainen and Mr. Mr. Lappalainen. partners, that are also close to the customers,“ reached at anytime, anywhere in Finland, practice in companies as well as households. Finpro´s operations are partly financed by Tanskanen, Finnish companies should improve “This is exactly what we can see at Finpro. says Mr. Lappalainen. Europe, and in many other countries around “Today, strong growth is taking place the state and partly by the companies. Finpro ways to enter the market and ways to promote In Finland, there are a great number of small the world. This way, all possible business in mobile payments. When you park your cooperates closely with other organizations themselves. and medium-sized companies with excellent related information transfers could be done car you wonder if you can pay for it by promoting business development such as the “Finnish companies certainly do not technology and ideas that have the will and the Information society is though the net.“ your mobile phone. Information society has National Technology Agency, Tekes; financing promote themselves for nothing. As seen at ability to start operating internationally. an everyday reality for Finns The penetration of Internet connections is thoroughly slipped in,“ says Mr. Lappalainen. ■ organizations such as Sitra and Finnvera; Finpro, it seems the contrary, they hide their The role of Finpro is to support these companies People have talked about the information above the critical point, near 50%. This means as well as Employment and Economic strengths very well,“ says Mr. Lappalainen. in their efforts to expand rapidly in different society for decades. However, most Finns that the active population can, more or less, be Diana Törnroos Development Centres in different parts of When it comes to international risk parts of the world.“ missed the subtle step in which they moved totally reached through the Internet. Finland. financing, the boom of Finnish information New technical and business ideas can from discussion to practice around the turn of “Passing the critical point is facilitated technology is only beginning. In practice, come from anywhere and they can also be the millennium. The information society had by the experimental mind of Finns and the Additional information: international money has been invested in tested in a large area. Finpro supports the already been a part of everyday life. availability of reliable services throughout the www.finpro.fi Finland for only a year or two and investors companies, for example, by providing market Mr. Lappalainen is involved in promoting country. This gives a good base for becoming have already seen some exciting results. information from 40 countries, if necessary. the internationalization of Finnish companies pioneers and also staying as such,“ says Mr. “If I were a foreign investor...yes, I would “You must also be able to find local for Finpro and has a clear picture of the Tanskanen, Senior Consultant at Finpro. be seriously interested in Finland. A fairly good partners in the international network because development of the living information society. 46 47 SOCIETY, GOVERNMENT

Pekka Himanen: Linus Torvalds is a “good“ hacker Would you like to have a direct access to the EU´s laboratory for wireless data communica- tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- ogy programmes introduce you to the latest technologies and offer a chance to take advan- tage of R&D co-operation with Finnish compa- nies and universities.

Philosopher Pekka Himanen, one of the young generation researchers, studies phenomena related to the Himanen thinks that enjoying life has become more accepted in Finland. This can be modern information society. seen among other things at Helsinki Samba Carnaval in Helsinki in June every year.

innish Pekka Himanen, Ph.D., is a visiting example. Himanen mentions an observation he “Freedom like this does not mean neglect- “There is some kind of survival spirit in the “The Finnish word for stock market, Himanen emphasizes that even if we are researcher at the University of California made while wandering on the streets of India: ing schedules, but it gives more space to air. Everybody is trying to keep up; every day ‘pörssi’ is very often personified in the news more and more independent of time and place, F at Berkeley. He just finished his book “The “I noticed that street sweepers came every employees. Finnish winter, for example, has is like the survival of the fittest. That means discourse. You can see headlines like ‘Stock there is still need for one of the oldest human Hacker Ethic“ with Manuel Castells . day, but the streets nevertheless became not only a few daylight hours per day, so it is abso- there will be no time left for careful delibera- market had a bad day’ or ‘Stock market felt skills: how to interact with others. “Hacker ethic is an expression I use to a bit cleaner. However, it seemed, the street lutely crazy if people must spend these hours at tion, which really would be important to the better today’, as if we were talking about a “We are not separate, creative individuals, describe the new work ethic. A hacker, in its sweepers were not blamed for this. I realized work,“ Himanen says. firm. This phenomenon is well represented person,“ Himanen describes. but we need each other in order to bring out the original sense, is not a criminal, but rather that the Indian street sweeper’s task is not to Time-orientated attitude towards work has in the ritual way in which brokers clap their best in us,“ Himanen says. a skillful person like, for example, Linus Tor- sweep the street, but to exist impeccably in the its origins in industrialization and in modern hands in the gallery every day when the New But how does a hard-working Finn, raised valds. ‘Good’ hackers like him have created capacity of a street sweeper.“ times. A pre-modern farmer had a task-orien- York Stock Exchange closes. Like Finns do Net grannies needed by the Protestant work ethic, learn to let loose the technological basis of our time. Linux and The same phenomenon can be seen in the tated view on work and would have watched after a charter flight – wow, we survived it,“ Ageism is also a matter of concern in today’s and take the afternoon off when the work is even the Internet are products of the new work Finnish academy as well: an impeccable stu- in astonishment if he had been told to cultivate Himanen describes. Internet society. It is not only ethically question- done? ethic,“ says Himanen. dent is one who gets a Master’s degree as the land from nine to five, five days a week. Himanen is also concerned about the able to neglect older people in recruiting, but it “I think the tradition of the Protestant ethic soon as possible and then leaves the campus. The task-orientated view on work is already recent development of a wired society. The can also be downright harmful to firms. is about to lose its grip on us. After all, we Profound learning is of secondary importance. becoming more popular. It all started in the IT eighties are typically considered the golden “Seniority is too often underrated. After all, are raised to be extremely responsible about Information society Himanen sees the change in the attitude corporations in Silicon Valley; this new attitude years of hard values in Finland, but Himanen seniority would bring some realism based on work, but we should have a similar attitude brings a new work ethic towards work as a strategic key to the success has begun to spread to other fields as well. thinks the nineties and the new millennium are a longer time perspective. Every IT corporation towards our leisure time and ourselves. Actually, “We are still stubbornly clung to the time-ori- of today’s IT corporations. The most important even more so. Investing in stock and surfing should have an obligatory ‘net granny’ on its enjoying life has already become more accepted entated view on work,“ says philosopher Pekka thing should be the result of an employee’s the Internet have become almost a respon- Board,“ Himanen throws out an idea. in Finland, for example the Internet millionaires Himanen. Measuring work by time spent at the work, not the hours spent from nine to five at Less speed, more consideration sibility for “Matti Meikäläinen“, the Finnish Elderly people are not only neglected by with their sports cars have not been disapproved workplace constrains the creative potential that the workplace. Modern technology makes work Himanen advises IT corporations to be careful equivalent of John Doe. others, they are often afraid of the new and of by the public,“ Himanen concludes. ■ is hidden inside individuals. independent of time and place, so why should with the gas pedal. The rapid growth in IT busi- “Changes in the stock market have become worried about their capacity to learn. They The old-fashioned surveillance of impecca- an employer care when and where the work is ness makes it tempting to step on the gas, but one of the most important headlines of television often feel themselves totally illiterate in the Annele Apajakari ble existence at the workplace is visible not done if it is done well? more time and effort should actually be put into news. Why?“ Himanen asks since 80 % of Finns wired society, so they need to be motivated. only in the western world but also in India, for considering where to turn the steering wheel. don’t have one single share to worry about. 48 49 SOCIETY, GOVERNMENT AND R&D

Aim of public management: Further development of

Would you like to have a direct access to the electronic transactions EU´s laboratory for wireless data communica- tions? Would you like to lower your R&D budget and increase your profits? The Tekes technol- ogy programmes introduce you to the latest The use of information and communications technology has a long technologies and offer a chance to take advan- tradition in public administration. Many transactions between the tage of R&D co-operation with Finnish compa- government and its citizens are largely automated using databases nies and universities. and electronic data transfer. Currently the opening of government information sources and the development of electronic methods, as an alternative to transactions using the telephone, mail or office visits, are core of new development. Information management in the government is coordinated by the Ministry of Finance. The Ministry is located in the Council of State Palace, a neo-classical construction taken into use in 1822.

n Finland, an aim has been to govern tax proposals are accepted as such. In the other Transparency electronic public administration. In 1998, the Good information administrative affairs in such a way that 30% of the cases, the taxpayer delivers addi- Finnish government decided to create a generic infrastructure as the basis I the citizens and companies need to answer tional information for the tax administration in The Internet makes it possible to significantly system for electronic identification, data information queries less frequently. Permit and order to decrease the tax payment or notifies enhance the availability of government informa- transfer encryption and digital signatures for Finland’s strength in electronic government lies notice procedures required from businesses the administration of extra income that was not tion. Government transparency is an old Scandi- electronic transactions. The Population Register in a good and efficiently employed information The Finnish Ministry of Finance acts as an have been purposefully weeded out. Basic included in the pre-completed tax return. navian tradition. According to the Finnish law on Center offers PKI-based certification services, infrastructure. In developing the infrastructure, expert unit for the government on issues con- databases concerning people, companies, real There are several such reforms that are publicity, the government must actively inform where a citizen can buy an electronic identifica- it is essential that the citizens rely on confiden- cerning the development of governance. The estate, apartments and vehicles, as well as an making life easier for citizens. Population cen- the citizens of its actions and make information tion card the size of a credit card. The private tiality, protection of privacy and high standard Ministry also launches and supports cross- identification system connecting these data- suses have long been done by gathering data readily available. Each authority has its own key and certificates are installed on the smart of information when administration handles administrative development projects. Areas bases, have been developed for governmental from government systems. Certificates of domi- web service and since 1997, a Citizen’s Guide card, see http://www.fineid.fi/. personal information. According to surveys, of activity include information management, use. Beginning in January 2001, companies cile and family relationships needed for govern- containing government information and services Demand for electronic certification citizens’ have good trust in government infor- information security, information services, have a single identification code that can be ment use have been replaced with direct que- has been available at http://www.opas.vn.fi/ services has taken off slowly. It is expected mation processing. The government continues administrative structures and policies as used across government areas. The basic data- ries from the population register center. english. A larger portal for public administration that banks will start using smart cards in to enhance its information security in order to well as quality assurance. The Information bases have also enabled several administrative The changes in operation models have is now being developed. Internet banking, hereby rapidly increasing keep this trust. ■ Management unit of the Public Management processes to be lightened. increased the need for data gathering in compa- Electronic mail helps communications the number of smart card readers. In public department also participates in international nies. The government aims to receive informa- between the authorities and citizens and com- sector advanced electronic signatures will Olavi Köngäs cooperation relating to information manage- tion from companies in electronic form. This is panies. Today, 80% of government officials be accepted and this will increase the use of Chief Information Officer ment at the EU, OECD and Scandinavian levels. Tax proposal not a problem in larger companies and IT ser- have email facilities and are connected to the certificates in government transactions. It is Finnish Ministry of Finance A good example of the benefits of electronic vice centers, but gathering data from thousands Internet. Email addresses and other contact assumed that there will be demand for a ser- Additional information: data collection and the use of basic databases of small companies is difficult. A model devel- data for officials can be found in the Finnish vice enabling the checking of one’s own data www.vn.fi/vm/english is the tax proposal practice. Most taxpayers oped for small and medium-sized enterprises public sector’s contact information directory at in a public database, for example. This right, receive a pre-completed tax return from the utilizes a private service company as the media- http://www.julha.fi/eng/julhaframeeng.htm. given in the privacy law, still often requires a Finnish tax administration, filled-in with data tor. The company can use web forms or data visit to a government office. received from employers, banks, insurance transfer for sending reports to the service com- companies and basic databases. With the pany, which in turn transfers the data for the Electronic ID card pre-completed tax return, a proposal with the tax administrators or pension insurance compa- A reliable identification of people, as well amount to be returned or an invoice of extra nies, for example. as security of the integrity of an electroni- taxes is included. Approximately 70% of the cally delivered document, is often needed in 50 51 SOCIETY, GOVERNMENT AND R&D

Unique phenomenon worldwide: The Committee for the Future of the Finnish Would you like to have a direct access to the EU´s laboratory for wirelessLinus data Torvalds, communica as guest of the Committee- for the Future, at an online Internet seminar tions? Would you like to lowerheld Juneyour 6, 2000. R&D From thebudget left: Chairman MP Tiuri, Mr. Torvalds, MP Olin, MP Markkula and increase your profits?and The Committee Tekes Counselor technol Paula Tiihonen,- in the back. Parliament ogy programmes introduce you to the latest technologies and offer a chanceThe information to take society advan introduces- tage of R&D co-operation withnew issues Finnish into discussions compa on- values: nies and universities. What are the justified rights of minorities in society?

The Committee for the Future must take a stand tasks that can be carried out using mobile on several difficult issues. The Committee has phones. In short, we have moved to a self- recently pondered on the truly political problem service society. Discussions on the costs of old- of reconciling the needs of democracy, equality fashioned, face-to-face, personal services are and the new information society. becoming more and more common. How many How small of a minority can justifiably extra costs, related to administration, offices, demand personal services, especially if the facilities and human resources, do taxpayers services are public, i.e. maintained by tax face because certain people are determined not revenues, if the majority is willing to use these to use services on the Internet? Computers are services via the Internet? not yet in every Finnish household, but nearly Finland has been active in transferring everyone has a mobile phone. Some groups heavy and bureaucratic tasks and services with wonder why public funds could not be used to The Parliament House in Helsinki multiple phases to machines. In fact, automa- teach the rest of the Finnish population how tion swept through industrial production as to use the Internet for various services, conse- early as the 1960s and 1970s. The 1980s saw quently ridding the society of massive office inland is so far the only country to ates the effects that technology and its devel- create brilliant scenarios and forecasts as well of issues including: the status and future of the the same trend affect banks, insurance compa- buildings and moving to 24-hour service that is have instituted a committee to deal with opment have on society at large. as a variety of papers. What is particularly Nordic welfare model, international models for nies, stores and markets as well as the public maintained at computing centers. F the future right in the heart of politics, The MPs’ ability to predict the future noteworthy and valuable in Finland is that poli- solving unemployment issues, new forms of sector. In the 1990s, the Government decreed This brings us to a question that is ethically the Parliament. The Committee for the Future is put to the test as they personally ticians do not hide behind such experts. The work, gene technology, entrepreneurship, the that all public authorities should prepare for challenging to democracy: How does one define first operated on a temporary basis but was evaluate social development from a global, Committee, with its 17 politicians ranging in necessity of new and continuous learning, ger- transferring operations to the Internet, thus the limits of the will and wielding of power of declared a permanent organ in the Constitution European and Finnish point of view. They their worldview from right to left, from Coalition ontechnology as the population begins to age, emphasizing the principle of 24-hour service. As the majority and minority? What are the justi- that entered into force on March 1, 2000. The also give recommendations on measures to be to leftists, produces its own texts and takes the information society and the Internet. ■ voluntary interest in the matter was not enough fied rights of minorities in society? Is it wrong Committee consists of 17 Members of Parlia- taken. While visions, development frameworks, responsibility for the content of the material it to guarantee successful transition, the Parlia- for a small minority to demand expensive serv- ment, chosen from different parties in propor- scenarios and policies are important; the publishes. Additional information: ment enacted a law for the so-called citizen ices in the name of equal treatment of citizens tion to election results. Committee’s work includes much more than Since no subject or problem is prohibited, www.parliament.fi/Fu- card, which was used for electronic identifica- guaranteed by the Constitution, if the majority is willing to learn and use cheaper electronic The Committee for the Future is respon- merely drawing up general policies. It is the Committee is free to draft its own agenda. tureCommittee tion in 1999 to regulate digital signatures and sible for preparing parliamentary issues it becoming increasingly more important to While some of the subjects are quickly dealt to obligate authorities to offer their services in Internet services? Should personal and receives and, if so requested, to provide properly react to weak signals concerning, for with by the Committee itself in separate electronic format to citizens. individual services offered by public authorities other committees with reports on future-related example, citizens’ worries and wishes or future seminars, for example, other issues are taken Finland now tops statistics concerning carry additional charges, comparable to those questions in their field. The Committee for the technological revolutions. to plenary sessions for the 200 MPs to handle automation, rationalization, and utilization of adopted at gas stations if the customer does Future also deals with issues related to devel- While the Committee consults with experts in topical discussions. Official reports are information technology. For example, over 60 not fill the tank and wash the windshield but opment factors and models and carries out sur- in various fields, results are always formulated always deliberated in a plenary session and percent of Finns no longer do business in banks, rather expects the attendant to do it? ■ veys on the research of the future, including from a politician’s point of view. The world is the subjects chosen are ones that the Commit- but rather use their PC or mobile phones to methodological issues. In addition, the Commit- full of research centers, universities and think tee believes need more detailed analysis. The handle their transactions. Nearly every newspa- Paula Tiihonen tee acts as the parliamentary organ that evalu- tanks that work on future-related issues and reports from the late 1990s dealt with a number per edition now includes news on the various Committee Counsel 52 53 SOCIETY, GOVERNMENT AND R&D

– gateway to Finland´s world class Ongoing technology programmes within the ICT-sector ICTTechnology technology • Electronics for the information society ETX 1997-2001 www.tekes.fi/english/programm/etx

• Future products – added value with programmes microtechnologies PRESTO 1999-2002 www.tekes.fi/english/programm/presto

– the gateway to Finland´s • Turning well-being technology into a success Would you like to have a direct access to the story iWELL 2000-2003 EU´sworld laboratory class for IwirelessCT technology data communica - www.tekes.fi/english/programm/iwell tions? Would you like to lower your R&D budget • Software products – a launch pad for global andWould increase you your like profits?to have aThe direct Tekes access technol to- succcess SPIN 2000-2003 ogythe programmes EU´s laboratory introduce for wireless you to datathe latestcom- www.tekes.fi/english/programm/spin technologiesmunications? and Would offer a youchance like toto takelower advan your- • Telecommunications – creating a global village tageR&D of R&Dbudget co-operation and increase with your Finnish profits? compa The- TLX 1997-2001 niesTekes and technologyuniversities. programmes introduce you www.tekes.fi/english/programm/tlx to the latest technologies and offer a chance • User-oriented information technology USIX to take advantage of R&D co-operation with 1999-2002 Finnish companies and universities. www.tekes.fi/english/programm/usix

Photo: Polar Electro

Current technology programmes in the ICT field focus on telecommunications, electronics, micro- mechanics, well-being technology, software products and user-oriented information technology. In 2000, Tekes financing for the ICT sector was about EUR 100 million. he Tekes technology programmes tion on both the programmes and the projects In the iWELL technology programme sev- European Health Telematics funded project with terminal device, so service providers do not Research and technology development expenditure include top Finnish ICT companies involved can also be found on the Tekes web eral new concepts have developed, including a total budget of EUR 1.,5 million. have to create different versions of the same as a percentage of GDP is increasing in Finland. “Tand research groups,” says Director pages, which include the contact information of IT solutions promoting distance health services service for different user groups. R&D investments reached EUR 3.7 billion, or 3.1 Kari Tilli of Tekes. “We are dealing with high- programme managers and project leaders. and home care, ways of using ubiquitous com- More Information: The researchers have tested the platform per cent of GDP in 1999. The private sector share profile teams whose projects show where this Tekes is currently running about 60 tech- puting to monitor health, and wireless informa- www.tekes.fi/english/programm/iwell with a novel sports service, which offers, for accounted for almost EUR 2.6 billion. The growth in quickly developing field is heading. Finnish ICT nology programmes with total expenditures of tion systems supporting self-care. www.biomed.ntua.gr/momeda example, ice hockey videos and related back- R&D investments reflects improvements in the Finn- professionals are even globally speaking at the EUR 1.3 billion. Annually there are 1600-2400 ground information. The content provider inter- ish technology environment. These improvements are also reflected in various indicators of competi- leading edge of this field.” participating companies and 700-900 research face has also been investigated: the aim is to tiveness and the level of technology. The rapid development of the Finnish ICT units in the technology programmes. World’s first doctor’s workstation Tool for content providers: One create an interface which requires a minimal industry has been partly encouraged by tech- Current technology programmes in the ICT on a mobile phone platform for different mobile amount of programming. Thanks to the new nology programmes, which provide companies field focus on telecommunications, electron- One of the developed concepts is Momeda, the multimedia services tool, it is effortless to create new services for with the latest research results and offer the ics, micro-mechanics, well-being technology, world’s first doctor’s workstation on a mobile the Princess platform. The Tekes way to research community good contacts in the busi- software products and user-oriented informa- phone. This allows the doctor to receive X-rays Telecommunications – Creating a Global Village The partners of the Princess project are ness world. Tekes financing for the projects in tion technology. and patient data from an electronic case history (TLX) is one of the biggest technology pro- MediaTeam Oulu, VTT Electronics, CCC, Nokia success these programmes covers research and devel- to provide distance consultations, for example. grammes of Tekes with over 150 participants. Mobile Phones, Nokia Networks, Sonera and opment work carried out in Finland. More information about technology pro- The software developed for Momeda, TLX concentrates on access techniques, serv- Tekes. Tekes, the National Technology Agency of “While most technology programmes have grammes: which operates on a Nokia Communicator, is ices, invoicing, data security, wireless and Finland been restricted to national circles so far, we www.tekes.fi/eng/technology/ already being used by the on-duty neurosurgery mobile techniques, wide-band core networks, More information: • Funding for technological R&D projects now wish to expand to international co-opera- unit at Oulu University Hospital. It won a spe- and new businesses in telecommunications. www.tekes.fi/english/programm/tlx carried out in Finland tion, that is, to generate joint projects which Finnish wireless welfare cial award at the European Picture Archive and One project of TLX is the Princess. www.mediateam.oulu.fi/projects/ ■ • Funding and managing national include both Finnish and foreign companies Communication Systems Congress in Austria. In the Princess project, the researchers technology programmes and research teams. Such co-operation would services aim abroad The two-year Momeda telemedicine project have developed a service platform for mobile • Co-ordination and financing clearly benefit all parties”, says Kari Tilli. Finland has been studying wireless information is a joint venture by Oulu University Hospital in multimedia services (movies, e-commerce, international co-operation Technology programmes last three to five technology and related services for welfare Finland, the Pisa Research Centre in Italy, ICCS video surveillance, information retrieval, for • Promotion of innovation and an years and the projects funded within the pro- services for several years. R&D has come up in Greece, and CCC, a Finnish software com- example) which can be used with most ter- environment which facilitates it grammes are partly public. Information con- with several operating concepts, prototypes pany. The main coordinator of the project and minal devices: from next generation mobile Tekes R&D funding in 2000 totalled EUR cerning the programmes is distributed through and a few products that are already in use. one of the programmers involved is 3C Automa- phones to multimedia computers. The platform Additional information: 373 million for 2300 projects. By investing in seminars, web pages and publications. Informa- tion Ltd of Oulunsalo of Finland. Momeda is a adapts the services according to the user’s www.tekes.fi/eng these, Tekes triggered the launching of R&D projects worth about EUR 730 million.The funds for financing are awarded from the 54 state budget. 55 SOCIETY, GOVERNMENT AND R&D

Challenge of The Technical Research Centre of Finland (VTT): The next generation networks

Services Profiles Would you like to have a direct access to the Service Architecture Adaptation EU´s laboratory for wireless data communica- Service Creation tions? Would you like to lower your R&D budget Distribution Technologies and increase your profits? The Tekes technol- IP Technologies Network Management ogy programmes introduce you to the latest Mobility technologies and offer a chance to take advan- , Service Quality Network Architecture Middleware Service Management IPv6, IPSec, SIP etc. tage of R&D co-operation with Finnish compa- nies and universities. , Security 2G/3G, ISDN AII-IP Access Techniques LAN, WLAN xDSL, BT Optical Networks

The architecture and layer interactions of next generation networks. VTT Information Technology is studying the next generation networks. The Nokia MetroSite system provides high-capacity boost for GSM networks.

nternet services through mobile phones management of services on different layers of audio-visual information with indexes, the sce- UMTS an WLAN are complementing UMTS is applicable, as well as situations VTT Information Technology is one of the nine (m-commerce) has been the driving force in this complex environment. nario contains enormous application potential solutions where WLANs provide more value for the research institutes of VTT, Technical Research I the year 2000 within the IT market. It is for the benefit of users and service providers. money to the customer. Centre of Finland. crucial to have access to the Internet via mobile A third generation partnership project The telecom standardization has been car- The technical details of the inter-workings At VTT Information Technology, we have a terminals to provide services for nomadic users. Enormous application potentials (3GPP consortium), standardizing Universal ried out by standardization bodies dominated by between different network technologies require staff of 250 experts and an annual turnover of The expectation value in m-business value is for location aware services Mobile Telecommunication System (UMTS), has (monopolistic) telephone operators and manu- hard work. By understanding the nature of the 105 million FIM (17.2 million EUR or 19 million high. The venture capitalists and incubators are Mobile information services are today specified a concept called “Virtual Home Envi- facturers. This has been the case for mobile systems and the needs of the end-users we USD). contributing to start-up companies with promis- limited to SMS and WAP techniques, where ronment”, VHE. Its main idea is to provide communications that we describe in terms of try to focus on relevant details when providing We perform research and development in ing business plans. the most useful everyday services are related anytime services that are independent of loca- generations: analogue (1G), digital GSM (2G) solutions to these problems. One of the key the fields of information systems, telecommu- What is behind the phenomenon? During to monetary transactions. Information on the tion, terminal and bandwidth. As the objective and UMTS (3G). The internet however is loosely elements is the integrated network manage- nications and media technologies. the e-commerce boom, the IT-community real- physical location of both the user and the ser- is desirable, the solution still leans towards guided by the standardization work of Internet ment system of these fixed and wireless net- Our research work comprises: monolithic telecom architectures (e.g. Telecom- ized the huge potential of the integration of vice will allow new, location-aware services. Engineering Task Force (IETF) and industrial work technologies. • confidential commissions to support our telecom and information networks, as well as Typically, those services are only feasible if munications Information Networking Architec- Consortia as WWW Consortium (W3C) and In 2001 we are focusing on different archi- clients´ product development commercial service provision for the users. the user is sufficiently close to the physical ture, TINA). On the other hand, the Internet ser- WAP Forum. These approaches result in differ- tectures related to future service and network While e-commerce has not yet fulfilled the service access point, or vice versa (in case the vice architecture has always been very simple: ent networks, services and architectures. Both systems. We see that all the architectures listed • joint venture projects together with our clients and public counterparts immense expectations, the focus has shifted physical service is mobile). Another type of there is a user and a provider. approaches have their advantages, which we above must be connected to get the holistic towards services providing added value for location-aware services is associated with the When combining telecom and Internet are aiming to combine. view of the matter. Thus, the main research and • strategic, self-financed research projects mobile users. mobile user’s route selection and guidance. As worlds, we come to a new solution suggesting There is a vivid discussion going on about development challenges lie in integration and in order to strengthen our know-how. VTT Information Technology is studying the an example, one could easily think of sending that all IP services combined with service the future network technologies providing the inter-workings of the sub-architectures. ■ next generation networks, their services and queries to nearby restaurants (and receiving management systems, users and content pro- the best connections and services for their Additional information: management on various levels. In order to char- tempting offers); or monitoring traffic status on viders. Service management is responsible for users. The most pungent arguments have been VTT Information Technology www.vtt.fi acterize the future system, we have defined routes ahead. Many location-aware services customer and service management (authentica- declaimed for and against UMTS and wireless Harri Hansen, Timo Kyntäjä, Matti Penttilä a concept called “Mobile Multisystem Environ- will benefit from close to real-time network tion, authorization, profiles, etc.), service quality local area networks (WLAN). We are arguing ment”, (MME). We are concentrating on resolv- access to both the location information and the (transactions, load balance, etc.) and security that UMTS and WLANs are complementing ing problems related to service platforms, ser- location-aware service –the latter often bi- issues (authentication, encryption, privacy, etc.). solutions. There are situations where only vice and network architectures, as well as the directionally. Combined with the on-line mobile 56 57 IT SUPPLIER INDEX FINLAND IN FIGURES

Finnish IT supplier index Finland in Figures Additional information in the supplier database PERTTI: http://palvelut.tieke.fi/pertti/search.eng.shtml

4 C Center Ltd IW-Net Oy - Image World RDB-Systems Oy Abako Mediat Oy JPP-Soft Oy RealityModeler Finland Oy Altcomp Finland Oy Jukanlan Dataranch Oy Regex Oy AM-Consulting Oy Jyväskylän Teknologiakeskus Oy Rex Partners Oy Analyste Oy Karjalan Tietovalta Oy RTSe Finland Oy WouldPopulation you like to have a directArea access to the Aronet Oy Konsultointitoimisto Kirjava kana Oy SeBitti Oy EU´s laboratory for wireless data communica- AtBusiness Communications Oy Kunnondata Oy Sector Oy 5.2 million, giving an average density of only 17 338,000 sq. kilometres or 131,000 sq. miles, of Coalition Party 46, Left Alliance 20, Swedish ATK-Kumppani Oy Link Line Oy Serdex Solutions Oy tions?per sq. kilometre;Would annual you growth like rate 0.2%. to Life lower which your 10% is water. R&D There budgetare 188,000 lakes. People’s Party 12, Greens 11, Christian League Bytech Computing Oy Logium Oy Siemens Business Services Oy andexpectancy increase 77 years. The your demographic profits? pyramid 6% Theof the land Tekes is under cultivation, technol with -barley 10, True Finns 1, Reform Group 1. Comgate Oy Lvalue Oy Soft Brains Ab Oy ogyresembles programmes that of most other industrial introduce coun- and youoats the mainto crops. the Forests latest (mainly pine Finland became a member of the European Compusystems Oy Manycom Software Oy Software Point Oy technologiestries, with the middle-aged and groups offer predominat a- chanceand spruce) tocover take 68% of the advan country. - Union in January 1995. Contastic Oy MAVI-Systems Oy Solagem Oy tageing. Averageof R&D household co-operation size 2.2 persons. 54% with Finnish compa- Control Consulting Oy Mediamaisteri Oy Sordino Information Systems Oy of the households live in single-family houses, Data Tree Oy Mendez Finland Oy Sovellustuki Oy nies43% and in apartment universities. blocks. 77% are urban-dwell - Government Working life Dataform Oy Merlin Systems Oy Space Systems Finland Oy ers, with 1.0 million in Helsinki and the adjacent Sovereign parliamentary republic since 1917. 71% of women are employed outside the home. Datafrank Oy Mertor Oy SQ Consulting Oy cities of Espoo and Vantaa. Other major cities 1809-1917 autonomous Grand Duchy within the Average monthly earnings, 3rd quarter 2000: Decode Oy Metapio Oy Stonesoft Oy include Tampere, Turku, Oulu and Lahti. Russian Empire; before that part of the King- men 2,026 USD, women 1,629 USD. The aver- DM Soft Oy Micro Meeting Oy Suomen Eduserver Ky 93% speak Finnish, 6% Swedish. 85% are dom of Sweden for several centuries. age working week is 38.6 hours. Unemployment DP-Group Oy Ab Microext Oy Sybase Finland Oy Lutheran, 1% Orthodox. The president is elected every six years. rate, 3rd quarter 2000 is 9.7% according to Edimaster Oy Mikrolinna Oy Syntagma Oy Ab 58% of the population have completed The office has been held by Tarja Halonen since OECD standard. EDS Electronic Data Systems Oy Mobisoft Oy SysOpen Yhtiöt Oy post-primary education and 10% have univer- March 1, 2000. The 200 members of Parliament Elinar Oy Ltd MP-MasterPlanet Oy SysteemiLinna Oy sity degrees or their equivalent. are elected for four-year terms. The most recent Elma Oy Electronic Trading MSG Software Oy System Profes Oy Internet connections: 121 per thousand general election (March 1999; poll 68.3%) Economy Emilkko Oy MultiCom Software Oy Tedasys Oy inhabitants; 70 cell phones for every 100 inhab- produced the following result: Social Demo- GDP 1999: 129.7 billion dollars. Annual inflation Endero Software Oy Narki Oy Telekonsultointi Ilmonen Oy itants. cratic Party 51 seats, Centre Party 48, National to the end of November 4.0%. Finland is in the Esdata Ab Nasta-Tieto Ky Tietoenator/Dialogos-Team Oy process of switching to the single European Espina Oy Nedecon - Network Development Consulting TietoEnatorTechnology Oy currency, the euro. Eterra Systems Oy Neliapila Ohjelmistot Oy Tietoniksi Oy Everscreen Mediateam Oy Nettitaivas Oy Tietonovo Oy Evoltec Oy Netwell Oy Tietosavo Oy Economic structure Exports by industries 1999 Finnish Support Center FSC Oy Nixu Oy Tietosuunta Oy Employed persons by industry, 3rd quarter 2000 Finn-Tele Business Oy Nolics Oy Tietotapio Ky USD millions 12 Fivetec Solutions Oy Nomini Networks/Tietotalo Oy Tietotasku Oy Electrical and optical equipment Micellaneous services 31% Metal and 31% engineering 10 Pulp, paper and paper products Fortum Oil and Gas / Neste Data Nomis Oy Tinero Oy Financial services 12% products FRENDS Technology Oy Novo Group Oy TJ Group Oyj Transport and 8 Machinery and equipment communications 7% 14% Electronics and electrical products Future Systems Oy Novo Meridian Oy Toivonen Business Care Consulting INDUSTRY Basic metals and fabricated metal products Commerce 15% 18% Other manufactured items 6 Futursoft Oy NSD-National Software Development Oy Twin Systems Oy Chemicals and rubber/plastics products Construction 7% 13% Consumer goods Gordion-talousjärjestelmä Oy OF-Open Forms Oy Täyttöpää Oy Industry 21% 4 Transport equipment Agriculture and forestry 6% 24% Forest products Hand Held Systems Oy Ohjelmointi Yhtymä Oy P&O Oja Unikit Oy 2 Wood products Hannu Säles Oy Oracle Finland Oy Vakka-Data Oy Other industries 0 Helsoft Oy Parax Oy Valmet Automotive Oy ICL Data Oy Positron Oy (Alpha Positron Oy) Vegasoft Oy ID-Systems IDS Oy PrettyBit Software Oy Vetokonsultit Oy IFS Finland Oy Ab Prog-Net Oy Viasys Oy Mean monthly temperatures in Helsinki 1999 Iin seutu Ky Progman Oy Visulaway Design Oy Inberg Oy Prosessilaskenta Oy VoiceNet Oy Month I II III IV V VI VII VIII IX X XI XII Innosyst ProSolutions Oy Xenetic Oy Mean C° -6 -7 -1 6 7 18 19 15 13 7 3 -2 Innovatics Ky Prosolv-Problem Solver Yomi Solution Oy F° 21 19 30 43 45 64 66 59 55 45 37 28 Insinööritoimisto Sarajärvi Oy PT-Controlnet Oy Mean Max C° -3 -4 2 10 13 24 25 21 18 9 5 0 Insinööritoimisto Visetec Oy Purmon Tietotupa Oy F° 27 25 36 50 55 75 77 70 64 48 41 32 Iocore Solutions Oy Ravensoft Oy Mean Min C° -9 -11 -5 2 2 13 13 10 8 4 0 -5 IT Solicom Oy RAXCO Finland Oy F° 16 12 23 36 36 55 55 50 46 39 32 23 58 59