1. 1 IT on the Arctic Circle Or It looks like English, but it’s actually Finnglish

2. 2 Contents Lapland IS/IT in Lapland: Two businesses Issues in Locating Global IT Industries Is Lapland the answer? If so, what is the question?

3. 3 Lapland – Where? Who? Norway Sweden Russia Byelorus Poland Estonia Latvia Lithuania Finland Lapland Arctic Circle Denmark Germany France Click here to see what the CIA knows about Finlandhere

4. 4 Lapland -- Characteristics Cold About 200,000 people Santa Claus lives there Depopulated; relies on tourism Lots of cloudberries In need of economic strategy Only one university (U of Lapland) with incubatorU of Lapland Various languages; mostly Finnish, lots of Swedish

5. 5 The Strategy Pursue economic opportunities offered by the new media [which are …?] Connect Lapland with Finland economically Finland already is a leader in the new media (cellphones, Nokia in Oulu)

6. 6 The New Media Experience Market is entertainment, culture, arts, industrial design (Finland is a world leader in machine tools) Virtual reality environments with pull from digital tv and the web, 3D (three labs already), telemedicine. Partnerships with Hollywood, Silicon Valley Key is IT and digital content production “It is hard to imagine any other field of industry which could be started in this kind of extreme environment and whose products could be marketed from Lapland to the global market at a competitive price.”

7. 7 The Information Society in Lapland Regional networks Tourist areas have services No single portal No successful marketplaces on the web Individual speciality “stores” (SantaPark, world’s largest snow castle) Plans for teleservices, esp. telemedicine

8. 8 Business Examples Little home market Finland is part of the EC, but not centrally Distance is a problem EC Finland Lapland Intraregional Extraregional International

9. 9 Stonesoft Internet security and information management Most successful Finnish software co. with offices worldwide incl. USA and Swedish subsidiary (important culturally) Began as a private-public partnership, incubated at GE in response to arms deal Has strategic partners Click here to visit Stonesofthere

10. 10 Cybelius Software 3D, virtual reality Subsidiary of CCC, Finnish software company, with operations in the US Develops IT education in Lapland schools. Began in a US incubator. Click here to visit Cybelius Softwarehere

11. 11 Issues in Locating Global IT Industries Traditionally: near resources, labor, markets Now can tap intellectual resources worldwide Programming: India, China, Russia, Israel –Factors are universities, English, low wages, government policy Real capital is kept in home country; design work is done there; projects are managed there; only routine work is outsourced Global software outsourcing is win-win, for a while.

12. 12 Clustering Multiple industries take advantage of economies of scale for resources, talent Clusters develop because of competitive advantage of clustering, willingness to cooperate in competition The more highly regulated the market, the more vicious the competition on those few bases left. Low regulation allows for more voluntary precompetitive cooperation which is where inefficiencies can be eliminated. Click here to read about technology clusters in Michigan; click on “Oakland County” to read about Automation Alleyhere

13. 13 Global Software Outsourcing Cluster uses up human resources, so routine work is outsourced However, as competition heats up, so does the level of sophistication and management overhead Programming may not be the most difficult aspect of development; that may be innovation, design, marketing, after-sales service, installation, education and training, distribution Wages tend to rise in the outsourced country, leading to a search for cheaper labor sources

14. 14 Locating potential distributed IT Industries World-wide logistic area; good transport Intermediate time zone Secure and friendly politics, economics Highly developed telcoms infrastructure Safe, pleasant, attractive environment Rich and unique history and culture Good supply of talented and skilled IT people and other professionals (artists?) Other educated people (story-tellers?) Low taxes Low wages English fluency

15. 15 How to Change??? Level of Economic Growth Political System Culture Key MIS Management Issues Multinational Business and IT Strategy Organizational and Departmental Success Update! Click here for current information on the Lapland Health care District.here

16. 16 IT-led Development Economic Payoffs Employment, Productivity and Economic Growth IT Diffusion IT Production and Use Environmental Factors Industrial Policy Industry Structure Education & Skills Technology Policy Infrastructure Indigenous vs. MNC R&D Political, Social and Economic Environment