Current sentiment in the industry in Finland is very cautious. I do not know if I increase my sales with this analysis, but it is a result of around 50 discussions with the industry and kind of interesting if one looks at it as sign of the times.

1. Current challenges
companies have
Jukka Märijärvi
Landon Oy
11 08 2014
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

2. Presentation Summary
This is my summary on discussions on Finnish high tech industry during
late 2013 and early 2014
• Pressure to cut – and then cut … and then what
• We know what we should do but are not doing it
• Being overly optimistic on how much change and improvement is
really happening
• Complexity is increasing
• How do I know what is going on?
• IT-costs are high, but also feeling that the cost is not delivering the
most
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

3. Pressure to cut – and then cut … and then what
• Problem is that with “cut” one can only do that much.
• “Cutting mode” has a risk of staying on..
• But shouldn’t the strategic mode be “GROWTH”
• Difficult or next to impossible to do both at the same time
• Mindset question – focus means doing only one. Most often “CUT”
• Over time companies grow to a certain direction… Bad times come and then
cuts are needed.
• “Cut managers” and “growth managers” are also different profile persons
• Do you have any visionaries and leaders left?
• In high tech “we are the worlds 11th smartphone company” is not a viable
strategy. You either are #1-3 of “segment XYZ” or you are done.
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

4. We know what we should be doing, but are
not doing it
• Companies spend a lot in testing and verification, and changing to the
Agile. Now even Lean…
• Spend on fixing problems in the product, and troubleshooting situations in
the field – we are serving the customer of course in a way, but
• We know from in intuition that we should invest on the front-end: strategy,
portfolio decisions, design, specifications and architecture.
• And everything else follows!
BUT WE ARE NOT DOING IT
• Focusing on short term issues leaves no stamina left to think the right
thing, and longer term
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

5. Being overly optimistic on how much change and
improvement is really happening on its’ own.
• We hear often that companies no not really do change mgmt because
improvements are done in small steps and companies have
competencies to do it.
• “X,Y,Z will happen before the end of the year”.
• Yet, progress is slow and operative challenges looks to hinder the
progress.
• You are most probably not doing enough considering the competition
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

6. Complexity is increasing
• More players entering …
• Complex chains of deliveries, product components and vendors.
• Complex chains of product planning, creation and verification.
… all this calls for better planning
• And customers are demanding more – not just plain product is
enough – like a stock Android device.
Actual key problem is that how to design a portfolio and how to sell,
and how to set prices and yet to do this as lean and cheap as possible!
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

7. How do I know what is going on?
• Increasingly we notice that inside a company there are many truths:
Top mgmt, sales, product planning and R&D all have their separate
plans and excels – and those seem to be only local - are not
connected.
• .. If strategy, business plans, portfolio, roadmaps and product
contents to sprint teams are not connected to one chain with a IT-
tool support, be sure that only the Agile/Scrum team is deciding on
the products and their features.
• We mostly see them disconnected. I.e. roadmaps and portfolio is not
derived from strategy, but everything is separate and over time out of
sync.
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

8. IT-costs are high, but also feeling that the cost
is not delivering the most
• Lots of tools and high cost of licenses
• Still manual work, tools overlapping and not integrated, manual
transfers between tools
• Example SAP needs to be filled in by hand, No automatic transfer between
project mgmt. system,
• All tools have wonderful reporting but do not give the ones we need
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

9. You can solve these problems
• Process and Business mgmt. change management
• Tools for the front-end
• Integrations between tools – no more manual, error prone transfers
• Reporting portal – input all possible data and you get reports out
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com

10. You cannot save yourself into growth
Your company should grow .. And
many other things will follow
11.08.2014
Landon Oy - better, faster, higher Jukka Marijarvi
jukkasm@gmail.com