Aihearkisto: Articles in English

Circular Economy Co-creation in Ho, Ghana

Articles in English, Kiertotalouden ratkaisut, LAMK Pro

An aim of cooperation between Ho (Ghana), Rustenburg (South Africa) and Lahti (Finland) is identifying circular economy opportunities and pilot projects. The co-creation process includes baseline studies, stakeholder discussions and workshops.  The article presents two identified waste pilot projects in Ho.

Author: Maarit Virtanen

Introduction

In Ho, the lack of waste management services is visible and there is no organised recycling of materials except for metals and small amounts of plastics. However, for example, organic waste is widely used for animal fodder. There is also reuse for items like empty plastic bottles, containers and cardboard boxes. Furthermore, various reuse, renting and repair services are available around the town. Even the public transportation is based on an efficient taxi system with cheap prizes, joint rides and constant availability of service.

 Ho Market Place Waste Recycling

The new Ho Market Place is expected to open in 2017. The Market Place hosts around 2000 sellers on market days, which take place every fifth day. The market place is used daily and has been identified as a suitable place to pilot waste sorting and recycling. The new main market building has space for 390 sellers, and there are also several other new stalls in the area. Almost everything is sold in the market; garden and agricultural products, a lot of yam and charcoal, fish, groceries, textiles, clothes, plastics, pesticides, canned food etc.

Figure 1. Ho Market Place

The largest waste fractions generated at the Market Place are plastics, cardboard, paper, organic waste and charcoal waste. Almost all waste fractions generated have some kind of monetary value, although currently only metals, plastics, paper and cardboard have a possible buyer in Ho. Materials are transported to Accra for processing.

For the piloting of recycling, it was decided to focus on the biggest waste streams that already have a market, and to organic waste. A composting facility is needed for organic waste recycling.  The stakeholders involved in the value chain include waste producers, waste management companies, private companies buying and processing recyclables, the Ho Municipal Assembly, Market and Traders Associations, research institutes, farmers and other possible users for the compost, and local NGOs.

The separation of recyclable waste at market place can be done by waste pickers or buy sellers. Since waste separation is a totally new concept for the sellers, and they change, education can be challenging. The best solution could be to have separate waste bins for organic waste and other recyclables, and also have trained waste pickers circulating the area and collecting materials. At the moment, collecting recyclable waste is not seen a worthwhile job, so awareness raising is also needed on the value of materials.

Before starting the pilot, the amounts and availability of waste must be studied. There is already local utilisation for, for example, some of the organic waste and a token fee can be expected for it. What is also needed for the pilot is intensive training for waste pickers and market sellers, and equipment for waste collection. In addition, municipal waste regulations should be formulated to support waste sorting and recycling. A separate plan is needed for the small-scale composting facility.

Figure 2. Waste ends up in streams and rivers in Ho

Waste Recycling Pilot at Ho Technical University

Ho Technical University (HTU) has about 5 000 students and a campus area with several departments, offices, restaurants and student hostels. HTU has proposed a waste recycling pilot in the campus. The largest waste fractions produced at HTU include paper, cardboard, plastics and organic waste. There is also some metal and cans. In addition, small amounts of e-waste, glass, leather waste, and used clothes are produced. The waste is generated by students, staff, vendors, restaurants, workshops and hospitalities. Organic waste includes garden waste.

Similar to the market place, the easiest waste fractions to start with are those with existing markets, like cardboard, paper and plastics. Considerable amounts of paper are stored at campus, so the first step in the pilot is to organise their recycling. The collection of organic waste requires a composting facility, which should be a common one for campus and organic waste from the market. The university has a Department of Agriculture that has a farm and could participate in composting and relater research.

Since waste recycling is new in Ho, HTU campus would provide a good piloting opportunity for also testing different communication and education methods with students involved in the whole process. In addition to material recycling, different upcycling and reuse opportunities can be explored together with students.

Next Steps

The circular economy concept has been recognised with enthusiasm in Ho, and a wide range of stakeholders has been involved in the two workshops organised. The next aim is to co-create concrete pilots to test the concepts. Cooperation with Ho is a part of Co-creating Sustainable Cities project funded by the Ministry for Foreign Affairs of Finland, and coordinated by Lahti University of Applied Sciences.

Author

Maarit Virtanen is the Project Manager for Co-creating Sustainable Cities and Kiertoliike projects at Lahti University of Applied Sciences.

All photos by Maarit Virtanen.

Published 28.11.2017

Reference to this publication

Virtanen, M. 2017. Circular Economy Co-creation in Ho, Ghana. LAMK Pro. [Electronic magazine]. [Cited and date of citation]. Available at: http://www.lamkpub.fi/2017/11/28/circular-economy-co-creation-in-ho-ghana/

Creative Commons -lisenssi

Size doesn’t matter: The Importance of Strategic Management & Planning in SMEs

Articles in English, LAMK Pro, Yrittäjyys

Today, businesses which carefully design their future plans based on strategies are said to out-rival their competitors and develop sustainability in the long-term. This article is aimed to outline an idea of the importance of strategic management and planning within small and medium-sized enterprises which commonly constitute the largest economic share by output.

Authors: Daria Torzhevskaia and Minna Porasmaa

The Meaning of Strategic Management

The function of strategic management is to formulate and put into practice the major company’s initiatives considering available resources and assessing the internal and external environments in which the organisation operates. It provides a general direction to the enterprise and involves specifying the organisation’s objectives, developing policies and plans to reach these objectives, and then allocating resources to implement the plans. Accurately executed strategic management navigate and orientate individuals within organisations, make them more mobilised, encouraged and following the same focus and direction. In order to achieve a successful strategic fit a company should be consistent in its external environment which includes relationships with its rivals, customers and suppliers and internal goals, capabilities and structures. (Hambrick & Chen 2007.)

Strategic Planning in Small and Medium-Sized Enterprises

Smaller firms are not simply the smaller versions of larger organisations, but they behave in the market very differently. The substantial body of research acknowledges a positive relationship between strategic orientation and firm success. (Jones & Sisay 2014.) However, due to insufficiency of market knowledge and capital, a limited access to research and personal intuitive management style, SMEs commonly ignore strategic orientation. Even though most of the research practices on strategic management are applied to large corporations, the relevance of strategy in small businesses does not diminish in comparison with bigger entities. Small firms can even display an explicit strategic competitive behaviour. (Lobontiu 2002.)

The opportunity exploration and reasonable resources exploitation directly affect small business performance. Virtually, SMEs cannot compete with larger firms in terms of investment in Research and Development (R&D), economies of scale or significant promotional expenditure (e.g. nation-wide marketing campaigns). (Hill & McGowan 1999.) Thus, given the advantages of flexibility within a small entity, the strategic concept has to be more flexible and adaptable for them.

Every globally recognised company started out small. A shared key to success of those organisations laid in their ability to see the goal and effectively plan their actions towards it.  (TXM Lean Solutions 2017.) The conclusion from this is whenever an initiative to start up a business emerges, the first things for key long-term success is to establish a clear reason for existence (Mission), a big dream driving company’s operations (Vision) and fundamental principles that would guide its daily decision-making (Values). The objectives and goals have to be set out and communicated across the team to ensure the operational and human capabilities are aligned with the strategy execution requirements.

Case Study

In order to display a practical application of the ideas above, the strategic planning significance can be underpinned by one particular construction industry example. The case company strategy turned out to be more intuitive than deliberate with a strong orientation towards operational rather than strategic issues.

The research has been undertaken within a small general contractor located in Sydney, Australia, – the market with an intense and tough competition – which provides design and construction services with a particular operational emphasis on project management. The company had been functioning well with a short-term project success orientation until it reached a certain point of maturity where it had to choose: either to reinvent its vision and devise a future survival strategy or accept the failure to grow. The empirical research by interviewing the company’s representatives has revealed that the main growth restricting factor was its inability to develop the fundamental principles and values which would guide its daily decision making. This in turn has disrupted the company’s ability to effectively develop in a more complex and profitable business model by using a proposed external opportunity to cooperate under Joint Venture. (Torzhevskaia 2017.)

Being strategically unprepared for future, the company was largely myopic at reaching out higher efficiency of its operations and taking advantage of market prospects at its full capacity. It has been observed how a strategically uncertain position of the case company has entailed troubles in project management, brand identification and relationships with stakeholders. (Torzhevskaia 2017.) This case is a bright example of how significant the potential losses may be if an entity is not given a purpose and a direction to move forward. Such position has a more or less predictable outcome which is likely a recession, stagnation or an end of development.

This case can teach us a few things. First, the strategic planning cannot be underestimated regardless of the type and scale of activity. Second, an ongoing reflection and environmental scanning are key for recognising opportunities in the external environment. Thirdly, all the above conclusions are especially applicable for the small businesses which success is strongly determined by the ability to scan the environment and adapt to changes considering its internal capacity. Finally, the more complex the business model becomes and the higher market expectations emerge, the more dynamic leadership and strategic orientation is required.

In Conclusion

The strategic planning activities have to operate at the pace of business, providing real-time perspectives for management to quickly respond to market swings, reallocate resources and take advantage of emerging prospects. Companies that tend to integrate and develop their strategic planning techniques compete more effectively generating higher sales and profit margins, return on assets and employee growth being at the same time more innovative and nationally recognised.(Desai 2015.)

It has been a matter of disputes and extensive discussions whether strategic planning is necessary within businesses. However, the industry case described above adds to the significance of proper strategic management disregarding the scope and nature of operations. In parallel, a traveler without a final image of destination and a sense of direction is likely to get lost throughout a journey. It is hard to argue that every manager who is aiming at success has to be led by the strategic plan with clear goals as well as every intelligent traveller is guided with a map and a compass.

References

Chinowsky, P. & Meredith, J. 2000. Strategic Management in Construction. Journal of Construction Engineering and Management. [Electronic journal]. Vol. 126 (1), 1-9. [Cited 5 Oct 2017]. Available at: https://doi.org/10.1061/(ASCE)0733-9364(2000)126:1(1)

Desai, F. 2015. Why Global Corporations Need to Redesign Their Strategic Planning Function. [Electronic magazine]. Forbes Nov 2, 2015. [Cited 5 Oct 2017]. Available at: https://www.forbes.com/sites/falgunidesai/2015/11/02/why-global-corporations-need-to-redesign-their-strategic-planning-function/#1ac124d06ee3

Hambrick, D. & Chen, J. 2007. What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal. [Electronic journal]. Vol. 28 (9), 935-955. [Cited 5 Oct 2017]. Available at: http://dx.doi.org/10.1002/smj.615

Hill, J. & McGowan, P. 1999. A qualitative approach to developing small firm marketing planning competencies. Qualitative Market Research: An International Journal. [Electronic journal].  Vol. 2 (3), 167-175. [Cited 5 Oct 2017]. Available at: https://doi.org/10.1108/13522759910291662

Jones, R. & Sisay, S. 2014. Small and Medium Enterprises. Strategic Management in SMEs: An Orientation Approach. In: Todorov, K. & Smallbone, D. (eds) Handbook of Research on Strategic Management in Small and Medium Enterprises. [Electronic book]. Hershey, PA: IGI Global. Advances in Logistics, Operations, and Management Science (ALOMS) Book Series , 1-23. [Cited 5 Oct 2017]. Available at: https://doi.org/10.4018/978-1-4666-5962-9.ch001

Lobontiu, G. 2002. Strategies and Strategic Management in Small Business. [Electronic document]. Copenhagen: Department of Management, Politics and Philosophy. Copenhagen Business School. MPP Working Paper No. 15/2002.  [Cited 5 Oct 2017]. Available at: http://openarchive.cbs.dk/bitstream/handle/10398/6373/wp15-2002.pdf?…1

Torzhevskaia, D. 2017. Strategic Management in Construction Industry. Case Company: Custom Design & Construction. [Online document]. Bachelor’s thesis. Lahti University of Applied Sciences, Faculty of Business and Hospitality Management. Lahti. [Cited 5 Oct 2017]. Available at: http://www.urn.fi/URN:NBN:fi:amk-2017101316038

TXM Lean Solutions 2017. Blog: Why do So Few Small Companies Become Big Companies? [Cited 5 Oct 2017]. Available at: http://txm.com.au/blog/small-companies-become-big-companies

Authors

Daria Torzhevskaia has studied International Business at Lahti University of Applied Sciences and will graduate and receive a BBA degree in October 2017.

DSc. (Econ. And Bus. Adm.) Minna Porasmaa works as a Senior Lecturer at Lahti University of Applied Sciences, Faculty of Business and Hospitality Management.

Published 25.10.2017

Illustration: http://blog.muipr.com/wp-content/uploads/2014/08/marketing-624×5001.jpg

Handshakes and cheek kisses in Finland – How about in Vietnam?

Articles in English, LAMK Pro

In the first autumn term of their studies, students in the English and the Finnish Business Information Technology degree programme take a course called Company’s Business and Personnel. During the course, the students form multicultural teams and find a Finnish company or other organisation to cooperate with in order to learn business management and gain some experience of the Finnish working life. When visiting these organisations, the students conduct interviews, observe business operations and collect material to complete assignments in several other courses they are taking. One of the objectives of the course is to put business and multicultural theory into practice in both daily life and the context of work. In this article, we describe some of the differences between the Finnish and Vietnamese culture as experienced and observed by the participating students.

Authors: Marja Leena Kukkurainen, Minna Ulmala, Linh Vu Viet, Trung Ung Kien & Juan Bravo Zúñiga

Recognising culture in individual and organisational behaviour

Depending on the particular context and what is referred to, the term “culture” can have many definitions. Arguably, however, culture always affects human behaviour. This can be observed and experienced especially when we are exposed to different kinds of cultures. Cultural characteristics often become clearer to most people when they are seen from the perspective of another culture. (O’Neil 2006.)

The concept of organisational culture is the result of all the different ways that the members of an organisation share ideas, values, and expectations within their organisation (Armenakis, Brown & Mehta 2011). Schein (2004) describes organisational culture as a three level phenomenon, which is shown below in Figure 1 based on Armenakis, Brown and Mehta (2011). They also give an overview of other typologies created by different authors who have focused on, for instance, the level of adaptation, participation, balance and ethics in their theory.

Figure 1. The levels of organisational culture (Schein 2004 in Armenakis, Brown & Mehta  2011, 306)

When organisations have performance problems, they also face a challenge to change their culture. Such organisational transformation consists of content (what) and a process (how). In practice, change focuses on artefacts, beliefs, values and assumptions (what), and the related change process (how) is managed by building an organisations readiness to change and by adopting and institutionalising the related cultural change. (Armenakis, Brown & Mehta 2011, 307.)

These cultural aspects are developed within a company and will set guidelines for the work environment. Good habits developed within a particular organisational culture can significantly improve the results delivered by a group of people. At the same time, many other habits might evolve and create cultural aspects that affect the performance of workers. Through good communication and a well-built relationship with workers, a manager can understand specific elements of the group’s culture. These elements can be directly related good performance and be employed to reach greater goals. (Prajogo & McDermott 2010.)

National differences

Hofstede (1980) has some decades ago described the national cultures and the problems that all societies have to deal with (Minkov & Hofstede 2011). The first is power distance which tells about the social inequality and relationships with authority. Second dimension individualism – collectivism tells about the relationship between the individual and the group. Masculinity – femininity dimension tells about the implications of the social (later emotional) consequences having been born as a boy or a girl. Finally the way people deal with uncertainty, how they control aggression and express emotions is cultural behavior. In later editions this was referred to the extent to which the members of a culture feel threatened by ambiguous or unknown situations. Hofstede worked later more with these dimensions and introduced the fifth one as long-term – short-term orientation which means how the  people focus their efforts. (Minkov & Hofstede 2011, s. 12-13.) The five dimensions are described in the figure 2.

Figure 2. Cultural differences (by Minkov & Hofstede 2011)

Student experiences

We have analyzed the experiences and observations of the IT students and described the cultural differences they found in six categories between the Finnish and Vietnamese culture. Students were able to recognize differences in working ethics, equality and communication. In Finland the communication is more informal, and more “straight to the  point” –way than in Vietnam.  There were also differences in the way people feel in conflicting situations and how they prefer working in teams. Also there are differences in the openness to express emotions and feelings between genders. In the Vietnamese culture people avoid to show their anger, sadness and discontent. Living together in extended family is more usual in Vietnam than in Finland. More information about the differences are described in the table 1.

Table 1. Differences between the Finnish and Vietnamese culture

Discussion

The original dimensions of  Hofstede (Hofstede 1980, by Minkov & Hofstede 2011) were easily noticed in this small empirical material. The power distance was recognized by the students in communication with authorities and in equality.  Also individualism – collectivism dimension and uncertainty avoidance were noticed. The Finnish students were perceived to express opinions instead of the Vietnamese who avoid the expression of the negative emotions and also feel scared of facing problems and like to work individually more.

The transformation in the multicultural context as in organizations is always dealing with deep values of the employees. The values and behavior develop during the childhood in our close family.  This is the challenge to managers, teachers and students working in multicultural teams and organizations. We all have to be aware, notice, appreciate and respect the value of our national differences. We need communication and appreciative discussions to learn from each other and to help to express and understand the differences we have in our cultural behavior.

 

Rerefences

Armenakis, A., Brown, S. & Mehta, A. 2011. Organizational Culture: Assessment and Transformation. Journal of Change Management. Vol. 11 (3), 305-328.

Hofstede, G. 1980. Culture’s Consequences: International Differences in Work Related Values. Beverly Hills, CA: Sage Publications.

Minkov, M. & Hofstede, G. 2011. The evolution of Hofstede´s doctrine. Cross Cultural Management: An International Journal. Vol. 18 (1), 10-20.

O’Neil, D. 2006. What is culture? [Online document]. [Cited 1 September 2017]. Available: http://anthro.palomar.edu/culture/culture_1.htm.

Prajogo, D. I. & McDermott, C. M. 2011. The relationship between multidimensional organizational culture and performance. International Journal of Operations & Production Management. [Electronic journal]. Vol. 31 (7), 712-735. [Cited 1 September 2017]. Available: http://dx.doi.org/10.1108/01443571111144823.

Authors

Marja Leena Kukkurainen, PhD, lecturer, Faculty of Business and Hospitality Management

Minna Ulmala, MSc Computer Science, Senior lecturer in Computer Science, Faculty of Business and Hospitality Management

Linh Vu Viet, Business Information Technology student,   Faculty of Business and Hospitality Management

Trung Ung Kien, Business Information Technology student,   Faculty of Business and Hospitality Management

Juan Bravo Zúñiga, Business Information Technology student,   Faculty of Business and Hospitality Management

Illustration: https://pixabay.com/p-310912/ (CC0)

Published 6.9.2017

Slowly, but surely, towards total sanitation in Ho, Ghana

Articles in English, Hyvinvointi ja uudistava kasvu, Kiertotalouden ratkaisut, LAMK Pro

The City of Lahti and Ho Local Municipality sister city cooperation began in 2010 with a focus on sanitation and environmental issues. The cooperation coordinated by Lahti University of Applied Sciences now continues with a new phase for 2017-2018. In this article, the former project coordinator Anna Aalto and the current coordinator Maarit Virtanen reflect on the achievements so far and the future opportunities.

Authors: Anna Aalto and Maarit Virtanen

Anna Aalto has acted as the project coordinator for Lahti – Ho sister city program in 2010 – 2014, and visited Ho again as a sanitation expert in 2017. “When I first visited Ho in 2010, it was my first visit to Sub-Saharan Africa. I could barely understand the dialect, never mind the customs and codes of conduct involving traditional chiefs, opinion leaders, seniority-based hierarchies and a culture of collectivism. Little did I know back then, that seven years later, I would be returning to the town for the tenth time and be greeted as a Grandma – an honourable title for a retired coordinator with an advisory role.”

“Looking at the past seven years, it is easy to note that the city is growing and the society is progressing. The outlook of the city is transforming with grand hotel schemes, new office blocks, modernised central market and developing urban waste removal services. Street naming programme has finally succeeded and most places in the town centre finally have an address. While demonstrating the rising wealth of the middle-class, the growing suburbs also raise the demand for public services and road development.”

Figure 1. Ho and Adeklu Mountain (photo Anna Aalto)

Despite the changes, a lot of tradition is still present. Agriculture remains the backbone of local economy and the development of agricultural sector is a key driver in the municipality’s economic development plans. The concept of ‘African time’ is also alive and well. Programmes tend to start one hour (or more) late and plans are interrupted by rain, as usual.

Attitudes, norms and a culture of dependency hinder toilet ownership

There is still no wastewater treatment available in the Ho region and solid waste management consists mainly of dumping waste at dumpsites. People lack access to improved sanitation in their homes, work places and schools. In fact, the adoption rate of household toilets in Ghana is still relatively low especially due to the common practise of shared toilets and the absence of strong socio-cultural norm that would encourage toilet ownership. In addition, the cultural acceptability of the widely advocated pit latrine technologies is low due to the offensive odours and hot vapour associated with the spreading of diseases.

Over the years, various sanitation development programmes with international donors have come and gone; the preceding Urine-Diverting Dry Toilet (UDDT) school pilot (2010-2014) of ours among them. The development programme paradigm has slowly shifted from donor-driven to community-led approach. In 2010, the common concept of programmes was one where a large international donor would identify beneficiaries and provide a facility of their choice. This approach has greatly increased the access to improved sanitation. Nevertheless, the challenge comes in with the ownership aspect. People come to expect that someone else will also maintain the toilet, since they have provided it. Poorly maintained facilities often become abandoned. For example, water closets are provided for schools without continuous access to water for flushing. A common sight is an improved pit latrine that has filled up the underground vaults, smells to high heavens and is left unused.

Community-driven approach is becoming mainstream in sanitation development

The lack of maintenance and even usage of many donor-provided toilet facilities has been acknowledged, leading to new types of sanitation development programmes. In 2013, the Ho Municipal Assembly started implementing the national Community Led Total Sanitation programme mobilising rural communities to eliminate open defecation. By now, six communities out of around one hundred are declared Open Defecation Free (ODF). Work continues with four dedicated officials that target four communities at the time to bring the change forward.

As we witnessed in some of the new ODF communities on our latest visit in May 2017, the change in attitude is possible. There is a sense of pride of the toilets constructed for all households with local materials and initiative. The community-led approach is now coming to the Ho township with Urban Sanitation Programme addressing the significant lack of household toilet facilities in the urban area. People building houses often neglect to construct a toilet facility and use communal ones. A family of five can pay yearly up to 2000 Ghana cedi (around 450 EUR) of toilet fees alone, which would be more than enough for a household toilet within a few years. Still, not all people see a toilet as a feasible or attractive investment, because the water bills already run high as it is and pit latrines are not recommended for small yards.

The quest for a better toilet to suit local needs and resources

Our UDDT technology pilot has set out to co-design a locally suitable toilet facility that would solve common issues associated with WC and pit latrine. It is clear that WC technology is not a sustainable solution considering economic restrictions, the lack of sewage treatment facilities and water supply shortages. Meanwhile, pit latrine technology suffers from high ground water table, rainy season runoff and especially the lack of user convenience and cultural acceptability.

The from-waste-to-wealth aspect of the UDDT has added a significant motivation for toilet ownership potentially unlocking major development backlog in the sanitation sector. The production of organic fertilisers has indeed created a lot of interest. We were happy to note that people are starting to be aware of the UDDT and the potential of organic fertilisers. As an example, the Director of the main private waste management company in Ghana, Zoomlion Ltd., spoke in depth of the benefits of compost during our radio talk show, while acknowledging the hazards caused by the untreated wastewater from septic tanks. Even the newspaper, on the very day we arrived, had an article on the economic potential of urine as a fertiliser.

Figure 2. Urine Diverting Dry Toilet at Housing Primary School (photo Maarit Virtanen)

In addition, the renowned toilet gurus of the developing world – experts from Kwame Nkrumah University of Technology and Science – invited our project’s engineer and artisan to build a demonstration toilet to Kumasi. The model has been reviewed by UNICEF and major donors who are considering it for schools to replace the pit latrine models. Also the Director of the regional government agency for water and sanitation encouraged us to go meet their National Director to promote the UDDT.

Go big or go home

Our pilot may be small, but it indeed has a lot of potential. Taking advantage of our well-rooted sister-city cooperation, we are in an excellent position to co-create the AGROSAN value-chains holistically in the spirit of frugal innovation. With Finnish circular economy expertise and local engineering and construction know-how we can turn waste into valuable resources that boost the local agricultural productivity and economy.

Partnering with local sanitation programmes, the whole Ho Municipality can be mobilized for total sanitation with the locally suitable toilet designs. What is more, there is a definite potential for achieving great impact with the established national connections and interest. As a regional capital, Ho can display its sanitation development for Volta Region and whole of Ghana.

The work with partners in Ho continues with the Co-creating Sustainable Cities project (2017-2018) funded by the Ministry for Foreign Affairs of Finland. The cooperation also includes new elements on circular economy and cooperation between schools. The idea of turning waste into value, and moving directly towards holistic circular economy solutions on the waste sector has raised a lot of interest among old and new partners. The work continues with an intensive training in Lahti in September 2017, where solutions are co-created with the aim of involving also Finnish companies.

As we embark on this 2017-2018 project phase, Grandma’s message for the team is – This is not the time to hold back, it is the time to think big!

Authors

Anna Aalto, Jyväskylä University of Applied Sciences

Maarit Virtanen, Lahti University of Applied Sciences

Published 20.6.2017

 

Opening municipal data in the city of Lahti

Articles in English, LAMK Pro, Yrittäjyys

The city of Lahti decided to open up their data for public use. The biggest challenge was to identify the datasets that will encourage the local community to use the city data to develop new business ideas. This article presents suggestions of which datasets the city of Lahti should make publicly available. Also presented are the most efficient means of defining and modifying said datasets.

Authors: Lenka Zatkova and Sariseelia Sore

Open Data

Data is the basic element of human knowledge. The value of data is in its potential to generate information, understanding and wisdom. (Kitchin 2014, 12.)  The knowledge becomes open if anybody can access, use, modify or share it (Open Knowledge International 2017b). Data is considered to be open when it is available under an open licence, which gives permission to republish the data, sell products or services based on the data and to create new content using the data free of charge (Open Data Institute 2017).

The main idea of opening public data is to increase its value by its usage. Open public data enhances transparency, citizen participation, collaboration and innovations. (Chignard 2013.)

Municipal Open Data and Entrepreneurs

Opening up municipal data for commercial use promotes local entrepreneurship. The objective of cities is to open up as many municipal datasets as possible. The decision about which datasets should be opened depends on their potential value for local entrepreneurs. Entrepreneurs use the data mostly for app development or providing online, analytical, consultancy or training services. (Halonen 2012, 86 -87.)

A demand-based approach is the best to identify the entrepreneurs’ needs for open data (Conradie & Choenni 2014, 14). First, the owner of the data informs what data can be published and after that, the utilisers of the data come up with ideas about its practical applications (Conradie & Choenni 2014, 14; Moneo 2016).

Identification of Needs for Municipal Open Data in Lahti Region

During the research process there were three different approaches used to identify the needs for municipal open data in Lahti Region (Zatkova 2017). First, the companies were asked in a survey about their needs for municipal open data. Considering the early phase of the project, their answers had to be interpreted within the context of their awareness of open data. Keeping in mind that the awareness of open data could turn out to be low, another two approaches were deemed necessary. Firstly, the analysis of the experiences of other Finnish cities who have already opened some datasets. Secondly, the evaluation of recent trends in the business ideas of local start-ups using municipal open data.

A sample of 40 companies providing products or services in the Lahti area revealed their preferences in a survey. They could choose the datasets from a list, as well as suggest their own datasets. The outcomes of the survey are presented below.

The awareness of open data varied greatly among the companies in the sample. Only 25 % claimed to understand the concept and besides knew how they could use the municipal data if opened. The requirements of this group were considered the most relevant as they base on existing needs.

Familiarity of the open data concept by rest of the companies turned out low. Those companies didn’t come up with any business ideas exploiting municipal open data either, but they showed preliminary interest in some datasets. However, the relevancy of such interest is considered limited for purposes of decision-making by the city.

Datasets Desired by Companies with Existing Business Ideas

The most desired datasets by the companies with existing business ideas are closely related to buildings, construction and housing. The exact number of companies per category is shown in figure 1.

Figure 1. Municipal datasets desired by the companies with existing business ideas (Zatkova 2017)

The companies also came up with their own ideas of datasets that would support their business ideas. They suggested that the city should publish the energy savings targets for construction projects, and the energy strategy of the city of Lahti.

The field of energy savings appeared repeatedly also in business ideas among the start-ups that have been established in Lahti area in last four years (Business Development Manager 2017).

Datasets Desired by Companies without Existing Business Ideas

The companies without business ideas related to municipal data assume that access to city data could enhance development of their businesses. Their business areas influence their preferences. The most desired datasets by these companies are shown in figure 2.

Figure 2. The most desired municipal datasets by the companies without a business idea (Zatkova 2017)

The datasets are mostly general and usable by any kind of company, for example, business listings, population data or public bodies’ decisions. Besides these categories, the companies require datasets related to buildings, construction and housing.

The companies suggested also publishing data regarding the repair and construction of public buildings, annual plans and the budgets of the technical board and traffic in the city centre (including pedestrians).

Experiences in other cities reveal municipal datasets that are frequently used by other parties. There is a big chance that the same datasets could work also for the city of Lahti. The most relevant datasets include public transportation, traffic, parking information, geospatial data, city services and events. (Development Manager 2017)

The Importance of Cooperation

Experiences in other cities in Finland confirm that the city has to initialize the discussion on open city data, show a real commitment and be responsive towards citizens. Demand for datasets has to be developed in communication with companies, researchers, students and developers. The best way to do it is to take an iterative and cooperative approach supported by, for example, meetups, hackathons and competitions. The city should also be engaged in existing communities in social media. (Development Manager 2017). The involvement of the regional development organisation Ladec is indispensable in all these activities.

Figure 3. Opening up municipal datasets in cooperation with local community (Zatkova 2017)

Figure 3 illustrates recommended stages of the process of opening municipal datasets. The process is iterative. After a dataset is published, it must be regularly updated and, if required, modified.  (Development Manager 2017)

Conclusion

The decision about the municipal datasets to be opened has to be based on real needs. The initial phase of the municipal data opening project in city of Lahti can be supported by the data collected from local companies in spring 2017.  Communication with other cities experienced in the open data issues, would also be very valuable. However, constant cooperation with local community seems to be the most essential part in specifying municipal open datasets. It is also a necessity, after the data has been opened, to regularly in close cooperation with the open data utilizers to discuss requirements for updates and modification of the open datasets.

References

Business Development Manager. 2017. Ladec Oy. Interview 22 February 2017.

Chignard, S. 2013. Paris Innovation Review. [Cited 11 May 2017]. Available at: http://www.paristechreview.com/2013/03/29/brief-history-open-data/

Conradie, P. & Choenni, S. 2014. On the Barriers for Local Government Releasing Open Data. Government Information Quarterly. [Electronic journal]. Vol. 31, S10-S17. [Cited 12 May 2017]. Available at: https://www.researchgate.net/publication/261989071_On_the_barriers_for_local_government_releasing_open_data

Development Manager. 2017. Tredea Oy. Email correspondence. Recipient Zatkova, L. Sent on 9 March 2017.

Halonen, A. 2012. Being Open About Data: Analysis of the UK open data policies and applicability of open data. [Online document]. London, United Kingdom: Finnish Institute in London. [Cited 12 May 2017]. Available at: http://finnishinstitute.cdn.coucouapp.com/media/W1siZiIsIjIwMTYvMDgvMjUvMDkvMzgvMjEvZGQyOGQ5MTUtY2Q4YS00N2U0LWEyZTAtM2FiOWUxN2M0Njc2L2JlaW5nIG9wZW4gYWJvdXQgZGF0YS5wZGYiXV0/being%20open%20about%20data.pdf?sha=cad600352a6ffb0b

Kitchin, R. 2014. The Data Revolution: Big Data, Open Data, Data Infrastructures & Their Consequences. London, United Kingdom: SAGE Publications.

Moneo, A. 2016. International Open Data Conference 2016. [Cited 12 May 2017]. Available at: http://opendatacon.org/five-strategies-enact-municipal-open-data-policy/

Open Data Institute. The Open Data Institute. [Cited 4 May 2017]. Available at: http://theodi.org/guides/publishers-guide-open-data-licensing

Open Knowledge International. Open Definition. [Cited 4 May 2017]. Available at: http://opendefinition.org/od/2.1/en/

Zatkova, L. 2017. Municipal Open Data and Regional Development. Identification of Open Datasets of City of Lahti. [Online document]. Bachelor’s thesis. Lahti University of Applied Sciences, Faculty of Business and Hospitality Management. Lahti. [Cited 2 June 2017]. Available at: http://urn.fi/URN:NBN:fi:amk-2017052910900 

 Authors

Lenka Zatkova has studied Business Information Technology at Lahti University of Applied Sciences and will graduate and receive a BBA degree in June 2017.

Sariseelia Sore works as a Senior Lecturer in Business Information Technology Degree Programme at Lahti University of Applied Sciences, Faculty of Business and Hospitality Management.

Published 8.6.2017