Presentation is loading. Please wait.

Presentation is loading. Please wait.

High-tech Marketing - HUT

Similar presentations

Presentation on theme: "High-tech Marketing - HUT"— Presentation transcript:

1 High-tech Marketing - HUT
High-tech Marketing Arto Rajala, Dr. Helsinki School of Economics Department of Marketing Arto Rajala (HSE)

2 High-tech Marketing - HUT
Outline Definitions Characteristics of High Technology Commercializing High-Tech Products Identifying and Crossing the Chasm On the Mainstream Market Managing Marketing Offerings in High-Tech Conclusions Appendix: High Technology in Finland High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

3 Marketing & High Technology
Definitions Marketing & High Technology

4 Defining Marketing Marketing is a business (management) discipline or orientation ”...performance of business activities that direct goods and services from produces to consumer or user (AMA)” Understanding actual and potential customer needs, by developing/modifying products, facilitating customer access to its offerings, attracting and influencing the market, creating differential advantages (brand) Establishing and maintaining customer relationships Managing 4P’s (Product, Price, Place, Promotion) Segmenting  Targeting  Positioning High-tech Marketing - Arto Rajala (HSE)

5 Mass Marketing Segment Marketing Niche Marketing Micromarketing
Through Market Segmentation, Companies Divide Large, Heterogeneous Markets into Smaller Segments that Can be Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs. Mass Marketing Same product to all consumers (no segmentation, i.e Coca-Cola) Segment Marketing Different products to one or more segments (some segmentation, i.e. Marriott) Niche Marketing Different products to subgroups within segments (more segmentation, i.e. Standard or Luxury SUV’s) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Local Marketing Tailoring brands/ promotions to local customer groups, i.e Sears Individual Marketing Tailoring products and programs to the needs of individual customers, i.e. Dell High-tech Marketing - Arto Rajala (HSE)

6 Segmentation Process Market Segmentation Market Targeting
1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment See more in e.g. Kotler & Armstrong (2003), Principles of Marketing. 10th edition, Prentice Hall. High-tech Marketing - Arto Rajala (HSE)

7 Requirements for Effective Segmentation
Size, purchasing power, profiles of segments can be measured. Segments can be effectively reached and served. Segments are large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable Segments must respond differently to different marketing mix elements & programs. Effective programs can be designed to attract and serve the segments. High-tech Marketing - Arto Rajala (HSE)

8 Characteristics of High Technology…
Novelty – advanced compared to the-state-of-the-art Knowledge intensity – based on radical innovation Leading-edge technology The-state-of-the-art in the field and not widespread acceptance by those working in the field Technology-base is new Cross-industry characteristics Ability to create/modify new applications Dependence on R&D and highly educated people R&D investments > 4% of turnover (OECD) usually between 10% - 20% Long R&D phase – short market existence High-tech Marketing - Arto Rajala (HSE)

9 …Characteristics of High Technology
High-tech Marketing - HUT …Characteristics of High Technology Developer’s vs. user’s view on technology Technology adapters = CUSTOMERS Technology providers = SUPPLIERS Customer perceived value Added value to customer Knowledge intensity Different technology settings Technology life cycle From product to process technologies High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

10 A Definition of High-Tech … … from Marketing Point of View
High-tech Marketing - HUT A Definition of High-Tech … … from Marketing Point of View “High-tech is that of the leading-edge technology involving a high level of knowledge intensity, which enhances the value of the product or process to the customer in the sense that it provides better quality, lower costs, or it makes the use of the object easier compared to the old technology” High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

11 What Makes High-Tech so Difficult for Marketers?
High Technology What Makes High-Tech so Difficult for Marketers?

12 Innovations – CORE of high techonology
Innovation ~ a totally new, or a remarkable enhanced, product, service or production system/process Product innovations New, or enhanced innovative products or services Process innovations New information and material flows within and between units and organizations as well as innovative principles of working, working methods, roles and the tools used in the business process Organizational (managerial) innovations Refers to innovations about administrative, social and organizational elements (e.g. new organizational structure, management & reward systems, business models) Process and organizational innovations differ from product innovations in terms of the implementation of ideas. Process and organizational innovations have an internal focus, i.e., they are most often implemented within the company Product innovations are embedded into products and launched into external markets by different individuals and departments High-tech Marketing - Arto Rajala (HSE)

13 Continuum of Innovations
Incremental Innovation Extension of existing product or process Product characteristics well defined Competitive advantage on low-cost production Often developed in response to specific market need Demand-side market Customer pull Radical Innovation Now technology creates new market R&D invention in the lab Superior functional performance over ’old’ technology Specific market opportunity or need of only secondary concern Supply-side market Technology push High-tech Marketing - Arto Rajala (HSE)

14 Technology Life-Cycle
High-tech Marketing - HUT Technology Life-Cycle Source: Anderson & Tushman (1990) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

15 Nature of High Tech Markets
Why are high-tech markets different ? Market uncertainty Ambiguity about the type and extent of customer needs that can be satisfied by the technology Technological uncertainty Not knowing whether the technology - or the company providing it - can deliver on its promise to meet needs, once they have been articulated Competitive volatility Changes in the competitive landscape High-tech Marketing - Arto Rajala (HSE)

16 Sources of Uncertainties
Market Uncertainty Sources of Market Uncertainty What needs might be met by the new technology? How will needs change in the future? Will the market adopt industry standards? How fast will the innovation spread? How large is the potential market? Technological Uncertainty Sources of Technological Uncertainty Will the new product function as promised? Will the delivery timetable be met? Will the vendor give high-quality service? Will there be side effects of the product or service? Will the new technology make ours obsolete? Marketing of High Technology Products and Innovations Competitive Volatility Sources of Competitive Uncertainty Who will be the new competitors in future? What competitive tactics will be used? What products will we compete with Source: Mohr (2001) High-tech Marketing - Arto Rajala (HSE)

17 Challenges for Marketing
New designs must win market share Role of distribution channel Customer perceptions Competition From higher performance to lower costs and differentiation through minor design variations and strategic positioning tactics incremental changes take place Segmenting  Targeting  Positioning High-tech Marketing - Arto Rajala (HSE)

18 Commercialising High-Tech Products (1/2)
High-tech Marketing - HUT Commercialising High-Tech Products (1/2) Identifying and Crossing the Chasm Arto Rajala (HSE)

19 High-tech Marketing - HUT
Key Issues Why so many excellent products fail? 90-95 % of new product ideas newer reach market 30-50 % of introduced products seem to fail on the market Are there differences between high-tech and low-tech product concerning the commercialisation process? Critical issue: Time-to-Market Using the ‘Market Development Model’ High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

20 Technology Adoption Life-Cycle
High-tech Marketing - HUT Technology Adoption Life-Cycle Pragmatists: Stick with the herd! Conservatives: Hold on! Visionaries: Get ahead of the herd! Adopters Early 14% Late Majority 33% Early Majority Innovators 2,5% Laggards 16,5% Skeptics: No way! Techies: Try it! Pragmatists create the dynamics of high-tech market development. Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

21 Innovators ~ Technology Enthusiasts
High-tech Marketing - HUT Innovators ~ Technology Enthusiasts Primary Motivation: Learn about new technologies for their own sake Key Characteristics: Strong aptitude for technical information Like to alpha test new products Can ignore the missing elements Do whatever they can to help Challenges: Want unrestricted access to top technical people Want no-profit pricing (preferably free) Fundamentally committed to new tech They love to get their hands on the latest and greatest innovation All organisations support techies From marketing point of view… they usually do not have the money they are gatekeepers to the rest of life cycle innovations get hearing with their endorsement new products are ‘given’ to them to gain their support High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 6

22 Early Adopters ~ Visionaries
High-tech Marketing - HUT Early Adopters ~ Visionaries Primary Motivation: Gain dramatic competitive advantage via revolutionary breakthrough Key Characteristics: Great imaginations for strategic applications Attracted by high-risk, high-reward propositions Will commit to supply the missing elements Perceive order-of-magnitude gains — so not price-sensitive Challenges: Want rapid time-to-market Demand high degree of customization and support Are the true revolutionaries in business government who want to use the innovation to make a brake with the past and start an entirely new future Being first to exploit the new capability to achieve competitive advantage Extraordinary influence on high-tech marketing are the first constituency who can and will bring real money to the table help publicise the new innovation, but… Each visionary require special modifications that no one else would use overtax R&D resources need to find customers for ‘standard solutions’ High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 7

23 Early Majority ~ Pragmatists
High-tech Marketing - HUT Early Majority ~ Pragmatists Primary Motivation: Gain productivity improvements via evolutionary change Key Characteristics: Astute managers of mission-critical applications Understand real-world issues and tradeoffs Focus on proven applications Like to go with the market leader Challenges: Insist on good references from trusted colleagues Want to see the solution in production at the reference site Make the bulk of all technology infrastructure phases do not love technology of its own sake believe on evolution not revolution Interested in enhancing their systems’ efficiency by using new technology strong reference base needed -- trust adopt the new innovation when time is ready Prefer to buy from market leader everyone else in the market makes the product work with the leader’s market leader attracts many third-party companies into its aftermarket High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 8

24 Late Majority ~ Conservatives
High-tech Marketing - HUT Late Majority ~ Conservatives Primary Motivation: Just stay even with the competition. Key Characteristics: Better with people than technology Risk averse Price-sensitive Highly reliant on a single, trusted advisor Challenges: Need completely pre-assembled solutions Would benefit from value-added services but do not want to pay for them Pessimistic about their ability to gain any value from technology investments undertake them only when they must - no other alternatives or others pass them by price-sensitive, sceptical, and very demanding However, they represent a large opportunity for high-tech products need to be handled with care simplify and commodities systems - just work, no more ‘they are happy to by several dozen of the world’s most advanced microprocessors, as long as they are deeply embedded inside a BMW’ High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 9

25 High-tech Marketing - HUT
Laggards ~ Skeptics Primary Motivation: Maintain status quo. Key Characteristics: Good at debunking marketing hype Disbelieve productivity-improvement arguments Believe in the law of unintended consequences Seek to block purchases of new technology Challenges: Not a customer Can be formidable opposition to early adoption High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 10

26 The Logic of Commercialising High-Tech Products
High-tech Marketing - HUT The Logic of Commercialising High-Tech Products Seeding new products to Techis Techis help and educate Visionaries Visionaries serve good references for the Pragmatists Becoming the market leader by serving Pragmatists and setting standards Leverage success - generate sufficient volume & experience -- reliable products which are also cheap enough to Conservatives Leaving Sceptics to their on devices High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

27 High-tech Marketing - HUT
Discovering the Chasm Early Market Mainstream Market Chasm High-tech products are warmly welcome in an early market but then they usually fall into a chasm (sales will falter and often plummet) Visionaries don’t see enough of a head start Pragmatists see no reason to start yet Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 13

28 High-tech Marketing - HUT
Crossing the Chasm High-tech paradox… 80% of many solutions but none of 100% Pragmatists won't buy 80% solutions !!! High-tech myopia… Committing to the most common enhancement requests Never finishing any one customer's wish-list Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE) 14

29 Successful Crossing Understanding the difference between visionaries and pragmatists The former is willing to bet ‘on the come’ The latter want to see the solutions in production (i.e. see the whole product before they by it)’ Clear focus on a single beachhead Use a niche strategy  a full solution for one niche Putting all eggs in one basket (e.g. Nokia in 1990s) Global focus with local applicapility ‘Think global act local’ Gaining the acceptance within a mainstream market Gaining the acceptance within a mainstream market High-tech Marketing - Arto Rajala (HSE)

30 Commercialising High-Tech Products (2/2)
High-tech Marketing - HUT Commercialising High-Tech Products (2/2) On the Mainstream Market Arto Rajala (HSE)

31 Market Development Model
High-tech Marketing - HUT Market Development Model Main Street Tornado Total Assimilation Early Market Chasm Bowling Alley Mainstream Market Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

32 Beyond the Chasm ~ Assessing Mass Market
High-tech Marketing - HUT Beyond the Chasm ~ Assessing Mass Market The Bowling Alley a period of niche-based adoption in advance of the general marketplace, driven by compelling customer needs and the willingness of vendors to craft niche-specific whole products The Tornado a period of mass-market adoption, when the general marketplace switches over to the new infrastructure paradigm Main Street a period of aftermarket development, when the base infrastructure has been deployed and the goal now is to flesh out its potential End of Life wholly new paradigms (technology) come to market High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

33 Technology vs. Category Life Cycles
High-tech Marketing - HUT Technology vs. Category Life Cycles Market share is converted into served installed base here Market share is captured here Product Category Life Cycle (Ongoing sales) Technology Adoption Life Cycle (First time adopters) Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

34 Four Marketing Frameworks
High-tech Marketing - HUT Four Marketing Frameworks 1 on 1 Marketing Mass Marketing Deal Driven Niche Marketing Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

35 High-tech Marketing - HUT
Product Mix Offerings Core Products Cameras Inkjet printers Cell phones Word processors Routers, switches Browsers/servers Application Systems Photography Color printing Wireless telephony Word processing Internetworking Worldwide Web Aftermarket Products Film, lenses Cartridges, paper trays Batteries, modems Suite upgrades Performance tools Plug-ins Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

36 High-tech Marketing - HUT
Service Mix Offerings Transaction Services Order processing Maintenance Facilities management Outsourcing Upgrade management Broadcast data feeds Proprietary database access privileges Distribution Services Competitive selling System configuration Implementation support Train-the-trainers Customer service Technical support Warranty Professional Services Consultative selling Business process reengineering Systems integration Project management Custom training System conversion Contract management Source: Moore (1998) High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

37 Managing Marketing Offerings in High-Tech Firms
High-tech Marketing - HUT Managing Marketing Offerings in High-Tech Firms Are the 4 P’s still relevant? Arto Rajala (HSE)

38 Core benefit or service
What is a product? Core product Installation Actual product Core benefit or service Packaging Augmented product Brand name Features After sales services Delivery and credit Potential product Styling Quality Warranty High-tech Marketing - Arto Rajala (HSE)

39 Evolution of the Whole Product
High-tech Marketing - HUT Evolution of the Whole Product Mostly custom work Plug & play some customization Fully integrated Mass customized Source: Moore (1998) Different whole product priorities at different stages of the life cycle. High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

40 What is a Marketing Offering?
High-tech Marketing - HUT What is a Marketing Offering? Problems of (business) customers are often complex and can rarely be solved by a physical product alone Call for marketer’s problem solving abilities and advice Ability to make promises  value proposition e.g. each € spent on the purchase of ERP (Enterprise Resource Planning) software  further 5 € are spent on service and consulting in the choice and implementation of the system Offerings often related to quality  misused term Five elements of a Marketing Offering ... Product, Services, Logistics, Advice, and Adaptation Offerings also depend on the customer’s demand ability !!! High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

41 Elements of an Offering
Product Service Logistics Advice Adaptation Source: Ford et al. (2002) High-tech Marketing - Arto Rajala (HSE)

42 Products A physical part of the offering – what customers see and feel after the purchase Products are often wrongly considered by many customers and suppliers to be the most important element, but... ... usually the product element is relatively unimportant Does not itself have intrinsic value ... ”There is no market for quarter inch drills, but there is an enormous market for quarter inch holes.” High-tech Marketing - Arto Rajala (HSE)

43 Services Are often the major part of the offerings, because ...
products have little value without the associated services (e.g. paper machine & automation software) customers purchase a service instead of a product (e.g. leasing vs. buying cars) companies are depended on ’external’ technologies (e.g. outsourcing design activities in automotive and fashion industries; contract manufacturing in electronic and telecommunication sectors; maintenance in aircraft industry) High-tech Marketing - Arto Rajala (HSE)

44 Logistics Are not just the ways in which the other elements of the offering are delivered, but... often the most vital element of an offering for competitive success  DIFFERENTIATION (JIT, zero-inventory, MRO – maintenance, repair & operations in-plant Important also to advertising agencies, accountants, trainers, and consultants Relationships with competitors to advice and service clients in other countries High-tech Marketing - Arto Rajala (HSE)

45 Advice Concerns all the activities which are aimed at increasing the customer’s understanding  reducing the perceived uncertainty of the customers Suppliers skills in communication its offering and influencing its customers Two-way process in business relationships Reducing supplier’s uncertainties – how the customer will use the offering High-tech Marketing - Arto Rajala (HSE)

46 Adaptation Occurs when a supplier makes a change to any element of its offering that it would not normally do for other customers Important to demonstrate commitment to a relationship Results in considerable costs & disruption to a company’s operations Translating customer problems into offerings that can provide solutions for different customers with the maximum commonality  Need for close internal coordination High-tech Marketing - Arto Rajala (HSE)

47 Matching Offerings to Problems
Offering < Problem Only a part of the problem is solved by the offering Technological, resource or cost problems (supplier) Poor diagnostics of the problem (customer or supplier) Offering = Problem Solution exactly solves the problem Optimal quality – contractual Offering > Problem Offering does more than solve the original problem  Customer delight Demonstrating commitment & building a relationship Offering <> Problem Solution exceeds the problem in some aspects but fails to meet requirements in others (e.g. over-standardization, poor communication) High-tech Marketing - Arto Rajala (HSE)

48 High-tech Marketing - HUT
Product Platform Product platform is a collection of common elements, particularly the underlying technology elements, implemented across a range of products. It is primarily a definition for planning, decision making, and strategic thinking. Especially important in high-tech firms in which multiple products are related by common technology. Platform defines the cost structure, capabilities, and differentiation of the resulting products. Separating product platform strategy from product line and individual product strategy, a company can concentrate on its most important strategic issues. High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

49 Product Platform Product 3 Product 1b Product 4 Product 1 Product 1a
Segment III Product 1b Product 4 Segment II Product 1 Product 1a Unique product elements Product 2 Segment I Element C Common platform elements Element B Element A Source: McGrath (2000, 55) High-tech Marketing - Arto Rajala (HSE)

50 High-tech Marketing - HUT
Main Characteristics Product platform is NOT a product! ... but the lowest common determinator of relevant technology in a set of products or product line Product failures in high-tech firms often caused by incomplete product platform strategy Nature of product platforms varies across industries e.g. in PC it consists of the microprocessor combined with its operating system, packaging, power supply, memory, disk drives, monitors, and interfaces e.g. it can be a chemical compound combined with with the manufacturing process High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

51 Conclusions What have we learned?

52 ‘Current Wisdom’ on High-Tech Marketing
High-tech Marketing - HUT ‘Current Wisdom’ on High-Tech Marketing Interaction between marketing and R&D Coping with the high levels of technological and market uncertainty Marketing capabilities & business competencies Product development processes Rapid changes in technology and market settings Shortening the ‘breakthrough-time’ Market offering and product platform approaches Increasing importance of services Emphasise technical support and after sales service Differentiating from competitors Building strong relationships with suppliers, channels and customers Analysing value systems  Networks, strategic alliances, partnerships Rely on qualitative rather than quantitative approaches for market research What the customers really value? High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

53 High-tech Marketing - HUT
What does this mean? The ‘High-Tech’ label is not ‘once and for all’, so today’s hot new technologies becomes tomorrow’s basic technology Surprisingly, high-tech marketing is not so different from that of low-tech as often claimed … … but there is a special need for more marketing focus in high-tech context because ... Customer’s view is easily overlooked To avoid developing a product which are ‘engineer's dilemma but marketer’s nightmare’ Knowing competitors well enough Global view of high-tech business Cross-industry effects and convergence of different technologies Focusing more and more on services High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

54 High-tech Marketing - HUT
References High Technology in Finland 2001 (also 1999, 1997, 1995, 1993, 1991), Finnish Academies of Technology. McGrath, Michel E. (2001), Product Strategy for High-Technology Companies: Accelerateing Your Business to Web Speed. N.Y: McGrew Hill. Mohr, J. J. (2001), Marketing of High-Technology Products and Innovations. Upper Saddle River, N.J: Prentice Hall. Moore, G. (1995), Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers. New York: HarperCollins Publishers. Moore, G. (1998), Inside the Tornado: Marketing Strategies from Silicon Valley’s Cutting Edge. Moore, J. F. (1997), The Death of Competition: Leadership & Strategy in the Age of Business Ecosystems. N.Y.: HarperCollins Publisher. Paija, L. (2001), Finnish ICT Cluster in the Digital Economy, Helsinki: Taloustieto Oy. Simon, H. (1996), Hidden Champions: Lessons for 500 of the World’s Best Unknown Companies. Boston, Mass: Harvard Business School Press. Tapscott, D. (1999), Creating Value in the Network Economy. A Harvard Business Review Book. Tidd, Joe, John Bessant and Keith Pavitt (1997), Managing Innovation: Integrating Technological, Market and Organizational Change. Chichester, UK: John Wiley & Sons High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

55 Thank You !

56 High Technology in Finland
APPENDIX High Technology in Finland

57 Some statistics… http://tilastokeskus. fi/tk/yr/ttt_huippu
Turnover of high-tech companies ~16 billion € (1999) Share of high-tech in manufacturing output 27 % [USA 32 %] Average growth of production/year ~31 % between Employed 42,000 people (1999) [30,500 (-95, + 8 % /year] Number of R&D stuff 73,000 (2003) [47,000 (-91)] 1,257 doctoral dissertations (2003) [524 (-91)] 20.6 % of total export (2002) 9.7 billion euro [6.0 % in 1991] 16.0 % of total import (2002) 5.7 billion euro [12.1 % in 1991] R&D investments (2003) 3.43 % of GNP (4.9 billion euro of which private sector accounted for 70 %) 2,575 patent applications (2002) [6,762 (1995)] Government budget (2004) for R&D 1,538 M€ (Universities 27 %, Tekes 26 %) i.e. 1.0 % of GNP and 4.5 % of the budget High-tech Marketing - Arto Rajala (HSE)

58 R&D expenditure by sector
High-tech Marketing - Arto Rajala (HSE)

59 R&D personell by sector
High-tech Marketing - Arto Rajala (HSE)

60 R&D funding in the state budget in 2004
High-tech Marketing - Arto Rajala (HSE)

61 Finnish patent applications
High-tech Marketing - Arto Rajala (HSE)

62 GDP share of R&D expenditure (%)
High-tech Marketing - Arto Rajala (HSE)

63 Major High-Tech Sectors in Finland
Electronics Telecommunication Data and Office Equipment Software Biotechnology Environmental technology High technology is a problem from industry classification point of view - no explicit statistic available! ICT- Information & Telecommunication Cluster “Big expectations” High-tech Marketing - Arto Rajala (HSE)

64 Source:
High technology exports and imports: Finland's main trade partners in 2002 Exports  € Million %  Imports  United Kingdom 1,397.6 14.4  United States 1,203.7 21.1  Germany 707.9 7.3 661.1 11.6  France 623.7 6.4  Japan 545.1 9.6 607.7 6.3 466.3 8.2  Russia 590.7 6.1  China 449.5 7.9  United Arab Emirates 487.8 5.0  Sweden 265.2 4.7  Italy 427.1 4.4  Estonia 208.3 3.7 337.9 3.5  Ireland 195.6 3.4 316.5 3.3  Netherlands 163.9 2.9  Switzerland 269.3 2.8  Malaysia 150.2 2.6 269.0  Taiwan 137.3 2.4  Saudi Arabia 237.1  South Korea 125.1 2.2 231.0 124.2 198.5 2.0  Denmark 115.0  Thailand 183.6 1.9 85.2 1.5  Hong Kong 181.3  Singapore 81.4 1.4  Greece 179.1 1.8 74.6 1.3  Poland 174.1  Hungary 74.5  Spain 171.9  Czech Republic 62.3 1.1 143.9  Belgium 58.0 1.0  Total 7,735.9 79.6 5,246.5 92.1  Other countries        1,977.3 20.4  Total exports 9,713.2 100.0  Total imports 5,696.0 High-tech Marketing - Arto Rajala (HSE)

65 High-tech Marketing - Arto Rajala (HSE)

66 Source: Statistics Finland
High-tech Marketing - Arto Rajala (HSE)

67 Factors behind the Finnish success
High-tech Marketing - HUT Factors behind the Finnish success Strong technology-base (Forest & Metal/Engineering Industries) High level of R&D investments (public vs. private) Focusing on core capabilities - outsourcing others (Nokia) Technological co-operation between companies, research co-operation between companies and universities - Networking (Technology Villages) Educated labour force (75% of years old have a university or vocational training) Rapid globalisation - ‘born global’ companies Access to venture capital funding High-tech Marketing - Arto Rajala (HSE) Arto Rajala (HSE)

Download ppt "High-tech Marketing - HUT"

Similar presentations

Ads by Google