Showing posts with label Elonmerkki. Show all posts
Showing posts with label Elonmerkki. Show all posts

Sunday, September 4, 2011

The Audacity To Think differently



At this year´s Elonmerkki-conference (25.8.2011), the "Branding of Finland" -project  was visibly represented through the Finnfacts- display stand. It has been almost a year since the national "brand-team" published their report with the help of Jorma Ollila, yet the work still continues. Last year the team concluded  that Finland´s strengths and modes to distinguish itself  is through "great functionality of the society, nature and education". The executive director of Musex (Music Export Finland) Ms. Paulina Ahokas was a member of the Jorma Ollila -led brand team. Her organisation, Musex, focuses on representing Finnish music industry abroad and tries to improve the export revenue income. Ms. Ahokas also served as the moderator for "Elonmerkki", and gave her view on the significance of design in exporting the Finnish brand abroad. International economy is in turmoil, and the way to survive is through constant adaptation and renewal. In this regard, Finland as a country has a lot to catch up to, according to Ahokas. Companies must recognize the significance of design in renewal, differentiation and profitability. In sum, "design" is not plain decorative speak for the organization, but a strategic approach on action.

Finnish know-how, and ways to export it abroad  was an underlying theme in many of the day´s speeches.
Panel discussion "Design in boosting competitivity" (Design vauhdittamaan kilpailukykyä) highlighted the concerns, hopes and visions for the Finnish brand internationally. Panel members were Atte Jääskeläinen (YLE, Finnish Broadcasting Company), Mirkku Kullberg (Artek, Finnish  furniture company), and Veera Heinonen representing Finnish Foreign Ministry. The moderator for the panel was Pekka Timonen, the leader for the World Design Capital Helsinki 2012-project.

The shared view among the panel members was apologetic. According to Veera Heinonen, the encapsulated message of last year´s Finnish brand team (functionality, education and nature) is good, but it has not been successfully communicated globally. The problem lies with under-communication, if anything. The notions of "sauna, Sibelius and Finnish Grit" are old-fashioned and need to be upgraded. As a skillful recent example Heinonen mentions last winter´s "Finnish snow-how" -phenomenon, and how it gained international attention and recognition. While the rest of the Europe struggled with too much snow on their airports, Finnish airports remained open, no matter what. This skill with snow removal was widely admired and reported even at CNN. But how could this one-shot attention be integrated as part of the country brand? How could it generate longtime buzz and boost export?

According to Kullberg from Artek, their company is often  mentioned internationally when referring to Finnish design. The problem is, that the company is actually smaller than their fame and name-recognition. Their small size comes as a surprise to many foreign stakeholders and has turned into a golden cage for the company itself. How does a company utilize their brandname productively while avoiding pitfalls? At times, it felt like Artek´s challenge was in risk-taking. This is what Kullberg admitted herself.

In effect, the panel concluded that a much of the challenge with communicating Finnish brand lies with cultural modesty and reservedness. We simply do not have the natural tendency to speak loud enough repeatedly and take risks when it comes to marketing and communication. The phenomena of "Rovio" is admired yet feared at the same time. Is that the kind of attitude we should adapt in marketing? Surely Vesterbacka is pushing the limits of good behaviour- after all, it is not "The Finnish way" to act. But discreetness does not gain you followers in today´s cacophony of messages sent. In the end, everybody cannot be pleased, when it comes to designing the message. From where can we garner the audacity to talk louder and push for influence?

The uber-innovation activist (yes, that is his self-made title, "yli-innovaatio aktivisti") Anssi Tuulenmäki from Aalto university had many pointers to give in this. Hopefully the panel members were listening and throwing their shy ponderings away. Tuulenmäki is not shy to admit the influence of environment to communication style. The Finnish landscape has been traditionally rural, cold, distant, barren and small-scale. There is not simply even enough of Finns to speak of to gain profits based on mass. However, the nationally characteristic ability to survive on the basis of smallness, independence and reliability are strong assets to be recognized.
The seed for success lies in differentiation and clever innovation. What do we do differently than the others, and how can we capitalize that? Simple, yet the idea does not bear labor for offspring easily.



One of Tuulenmäki´s clever insights into "differentiating the message" is being ordinary. In this day and age, we have all come to associate startling messages with something special, lavish, unique, outstanding, better than the norm. But this not always the mode to take. As an example he cites Lauren Luke, your-average single mom from South Shield, England, who happened to stumble into making amateur makeup-videos into the internet sometime in 2007. Today, she is a Youtube-phenomenon with 111 million views, her own cosmetics line sold at Sephora, a book, newspaper column and a Nintendo game. Her secret lies in being ordinary and approachable, not the supermodel-style we have come to associate with cosmetics. Can an entire nation take example from this? Of course, according to Tuulenmäki. The best communication is different communication. Copying the mainstream is not strategic innovation. It is safe, yet poor and lazy thinking. Common convention is the killer of brilliant ideas, regardless of the field of operation.


Are Finnish companies doing things differently enough? Is the value of deviation and difference acknowledged? The speech of Anssi Tuulenmäki surely left the audience with a thought or two to reflect on, hopefully with fruitful results.


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Tuesday, August 30, 2011

The Betting industry and reputation management : Case Veikkaus



"Reputation or media cannot be controlled. " This is how the director of communication at Veikkaus sums up his experience in dealing with public relations and general perception of the company. Veikkaus, the Finnish national betting agency is owned by the Finnish government. The total profits are directed to sports, art, youth work and science. It controls a large majority of the gaming markets in Finland, which according to many foreign betting companies causes an unfair advantage to free market principles. Sports betting is completely operated by Veikkaus in Finland, and the market access is restricted for other companies. Four years ago foreign companies attempted to take Veikkaus to EU-court in order to end the monopoly. This meant that Veikkaus, and its director of communication Ilkka Juva needed to work hard to defend the company´s image and reputation in front of the international public and media.
"Actually they attacked against the Finnish legislation, not us. 
             But still it irritated me."


What is reputation? Where does a company reputation stem from? Development manager Riku Ruoholahti from the T-Media Oy /Reputation Institute Finland gave a short speech at this year´s "Elonmerkki" -media conference regarding this topic. According to Ruoholahti, reputation cannot be compressed to cover just the balance sheet or sales revenue of a particular company. In reality, it originates from everything a company does: all its interaction with various stakeholders composes the perception. It is a question of trust and a positive emotional bond at its best: good reputation ensures that customers are satisfied and recommend you, employees are loyal and the media views you favorably.

Certainly the particular field of business affects the reputation. When thinking of the tobacco industry in the 21st century, it is hard to imagine how reputation good be naturally decent, at least with regard to its traditional product compilation. The same way, it could be argued that betting and gambling are considered infamous in the Western world. Finnish "Veikkaus" however, has managed to prove otherwise.

Despite the deplorable incident with the other international betting companies, Veikkaus managed to bypass the accusations of monopoly and strengthen its position. According to Ruoholahti from the Reputation Institute, Veikkaus is now the fifth most reputable company in Finland (the number one spot goes to the confectionery company Fazer). Mr. Juva admits that  the goal of Veikkaus has been to systematically stand behind its image as a public benefactor. All the proceeds go "back" for the citizens. In other words, through the act of entertaining games one can take part in taking care of the society as a whole. Charity through betting. This message clearly has saved the reputation of Veikkaus in the midst of European Union and their warnings. In the light of his experiences, Juva upholds skillful mastery of communication as the utmost important asset for today´s company. In his view, communication specialists should be present in the company boardrooms, and not as just  plain sidesupport players. Although media cannot be controlled, one can participate into the ongoing discussion and form a mutually beneficial dialogue.





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Sunday, August 28, 2011

Angry Birds, Peter Vesterbacka and the Uncomfortable Insolance





Vesterbacka´s speech at this year´s Elonmerkki -conference divided opinions. Some thought he was inspiring. Some said he is brave and exemplary. Others- could not take his arrogance. The underlying discussion beneath the day´s speeches had been Finnish design and ways to take it abroad  - marketing. Or, the lack of better Finnish marketing. As Artek´s leader admitted, they are well-known internationally, but  do not know how to capitalize their fame. Vesterbacka knows a thing or two about capitalizing and taking action when the iron is  hot. And he is not afraid to say it out loud, without embarrassment or demure attitude. And this direct pride is not accustomed to in the Finnish landscape. It is... showy.

The Chief Marketing officer of Rovio ( the company responsible for producing "Angry Birds" game into our cultural consciousness) does not bow down in front of his company´s success. He drops facts and numbers like Agent Orange to a Vietnamese field. The audience gasps and smiles uncomfortably. Some cheer.
"Surely this kind of success cannot happen just like that? Surely this kind of success cannot last? Just look at What happened to Nokia- we shouldn´t brag."




The "Angry Birds" has been downloaded approximately 350 million times so far. At the present rate, it is being downloaded 1 million times a day. 200 million minutes are played every day. They have around 130 million active users around the world. According to Vesterbacka, the company is growing faster than YouTube, Google or Facebook (at present). Last year the company´s revenue was a meager 6,5 million euros. This year, they are expecting the number to reach 100 million (euros). Within the next couple of years, they are going public.  Vesterbacka himself was voted the seventh most influential person in the world
(TIME -magazine, April 2011). Interestingly, the international commentators found his reaction to the newly appointed status as "humble". So what is it that made the company so huge?

Before the company made it huge, they were in deep trouble. Money had been burnt by the owners Niklas and Mikael Hed, and something needed to be done. "Angry Birds" was Rovio´s 52. game. There were 51 attempts to make it before the success, and in the beginning, even the birds weren´t that catchy. Game designer Jaakko Iisalo´s pet project was a raw idea that needed a lot of meat for the bones. There were no pigs, there was no slingshot. Besides the brain power of gifted designers, there was also the marketing genius of Peter Vesterbacka, who knew the direction to go for and the measures needed to make the game big. Before the slingshot, the game was not understandable for the average user. Before the pigs, there was no enemy to go against. (Adding the pigs as enemy was also a clever move the in the midst of global swine flu-epidemic). In December 2009 the catapult-puzzle  game was released. By February 2010 it was the top-selling game in both UK and US Apple application stores.



When asked, even Vesterbacka himself does not know the exact reason for the worldwide popularity of the game. He lists the swine flu, the fun and colorful characters, the concurrent rise of the touch-screen smartphones, attention to detail, smart marketing and a cheery game-idea (there are no negative punishments for mistakes).

By now, Rovio´s main goal is to strengthen and widen the brand. There is the cookbook coming, the toys, the film, the shoes, the clothes... Vesterbacka is comparing the brand to the world famous "SpongeBob" -phenomenon, which still (after its creation in 1974) is selling merchandise in the ranges of 4 billion US dollars
annually. The great goal is to be the first entertainment brand with 1 billion fans.This is no small talk, no unassuming muttering, this is plain determination. Will the company make it there?

While focusing on "Angry Birds", it is easy to forget that there is much more happening overall in the Finnish game industry, and Rovio is just the first mega success on the road to many more. According to the recent  Finnish Game Industry  2010-2011 study, the revenues of the whole game industry have grown steadily, and topped 100 million euros last year. The revenues for this year are expected to rise to 165 million euros. In comparison to  game industries in other Scandinavian countries, Finland is now holding the number one spot. In the light of this, it is surprising to learn how little the Finnish government is investing in the education or finance regarding game industry. Preconceived ideas against the field of entertainment?

So what are the possible "next" success stories in the field of Finnish game industry? This year the foreign finance was totaling approximately 60 million euros, from which Rovio took the main cut ( 34 million). The second biggest company to hit the big league was called Supercell, which collected 12 million euros in venture capital from Accel Partners. Also a company called Grand Cru has received 1 million.  According to insiders, much is expected from the oldest Finnish game company Housemarque, when it releases its new version of an old game for Sony  and a puzzlegame for iPad. There is also names like Recoil with its "Rochard" -game and "Trine 2" from Frozenbyte. (On a sidenote, you should check out the soundtrack for Trine1, which features world-class classical players instead of machine-generated pseudo-music. Thank me later.)

Besides Rovio therefore, much is happening in the Finnish game industry at the moment. Although the money might be there, the process to reach glory and fame is still slow and laborious. This does not seem to dispirit the energetic designers. The buzz and drive has spread to other cities outside the capital Helsinki,
and the hopes are high. Who will be the next success in a red shirt? According to Rovio´s brand image, as we have come to associate him, it takes a good idea, some smart marketing and pure courage to try. After all, it was the golden 52. game which took the world by storm. Not the first, not the third. The number 52.
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Thursday, August 25, 2011

Survival of the Print media and Differentiation

Markus Frey, the design director from "Kauppalehti" (Finland´s premier business newspaper) admits, that design is not the ultimate savior or wonderdrug for the print industry. More is needed.




According to various "estimated per week spent with media" -research results, the usage among "the old" media is diminishing. (These studies are abundant and widely available for all) Not surprisingly for anyone, the great public around the Western world is spending more and more time among the digital media: web, games, digital tv. What is the common newspaper or magazine to do? Adopt game-like features, transform and shift its presence partly to the internet?

In Frey´s mind, the carefree-attitude in making print media has to be abandoned. Now, a clear message and a unique personality has to be present from the get-go. Yes, a paper has to have a personality. A unique soul, that we want to adapt into our lives. The created identity needs to be different from other existing print media brands, and to catch our attention. This is nothing new in the world of marketing, however.

Frey criticizes the what he considers "overly bad taste" of Finns regarding consumption of media. Much more could be offered and consumed. But is the decreasing popularity of old media to be blamed on the general  bad taste of the greater public? "The product is good, the customers just don´t get it" -approach is weak.

When discussing the success of the "Monocle", Frey mentions emotions, personal relations to the paper and perceived quality. A consumer object becomes more than it is, a friend -and a prestigious one.

Frey also mentions, how the style and idiom of communication changes with times. Guttenberg´s bible would be incomprehensible for most of us today, as its text style is so old. Should print media borrow the style of digital media more? Or, should they evolve and fuse with the new technology entirely? With the arrival of iPads and growing fusion between television and internet, this is not such a small question to ask.
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The Genes of Passion include Simplicity


Christian Lindholm has an impressive resume. He has been called "the god-father of mobile phone users´", with his ideas on making Nokia mobiles (at least in the past) easier to use. Lindholm could be named as the "father" of Symbian s60-smartphone. (Before Symbian had the bad rep that it carries today). He has also been the vice-president of global mobile products for Yahoo! and has been labeled as one of the 180 movers according to VentureBeat. Clearly, this man is to be listened to, if anything.

At Elonmerkki, his main message was the need to reach passion as the ultimate user experience through service design. In this present occupation as the director of Fjordnet Limited, his goal is to transform digital through "elegant simplicity". In other words, he tackles problems of pure misguided design in digital services.
Lindholm´s main thesis is, that anything can, and should be made better. At present the problem in a lot of modern organizations is weak software. Companies do not invest in better programs simply because they, or their employees, do not care enough to change the situation. This ´status quo`, however, is changing. Increasingly people as employees or consumers are demanding better user experience. C**p, as he says, does  not sell. Services like Dropbox are a troublesome issue for monolith companies like Microsoft, simply because they work, and beautifully so. But if the issue is so simple, and easy to point out, why does a megacorporation not tackle it and offer better products? Lindholm does not answer this, and obviously it is a more deep-rooted issue related to bureaucracy, conservatism and resistance to change.

The highest form of design for Lindholm represents  the so-called "of course" -logic: an idea is so powerful and well-functioning that we cannot fathom how we lived before it. The newly designed and improved wrench is an example of this. A clever idea by a mechanic to twist the ends of a wrench proved genius. Elegant and simple. Ergonomics re-invented. The old design becomes wrong and the new is accepted as the prevalent norm. This reaction brings with it an emotional bond and eventual love affair with the product or service. (Albeit it is one-sided or imaginatively reciprocal at best)

According to Lindholm, love affair is what companies should be after. "The right-brain business" brings more value for the company- what he does not add, is the other term that could be used to describe this approach. The irrational business, the religion approach. When a brand becomes more than it is, a consumer product or service, when a bond is achieved that almost no rational argument can break. When we actually name our consumer goods (as in vacuum cleaners or cars) like children or pets and they become semi-living objects in our minds. They become the signifiers of a secular church that we attend to with a religious-like mindset when the real spirituality in our lives has diminished in importance. And this is the world that we are moving into.





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Design forms it all - even Communication?

What is design? According to Wikipedia, it can be defined as "specification of an object, manifested by an agent, intended to accomplish goals, in a particular environment, using a set of primitive components, satisfying a set of requirements, subject to constraints; to create a design, in an environment (where the designer operates)". 


Short and sweet. But not really telling us much. Is it something that we know "when we see it"? Is bad design design at all without consistently successful end result? Is mass-production design? Is design only performed by certain individuals with professional ties- who gets to be "a designer"? Is a child´s sand castle design? Is design always art?




The dean of Aalto University´s School of Art and Design, Helena Hyvönen, has attempted to define some of the concepts related to this universe of design. In her speech ("Elonmerkki"), she dares us to look beyond traditional views and stereotypes. The time of strict categorization and authoritarian ownerhip is ending. Hyvönen talks of Designthinking, which is a new way at looking at the age-old concept.
Designthinking approaches the individual as an active creator, never a passive object. Individuals and usability move to the center of focus. In this regard, (good) design talks with the user, not to the user.

Hyvönen admits that the old ways of thinking inside organisations are difficult to break. When before design was considered something extra, separate from the actual product/service, it now needs to be incorporated into the entire process. Design has become essential in the final user experience, and part of the perceived value of the whole package. Simply put, we cannot ignore it. We need to cut the chains of the old school of thinking, and embrace the new, holistic and playful mode of "design-thinking".

As an example of the new joint process of creating design Hyvönen mentions today´s fashion blogs. People customize, tailor and express themselves through their own designs made with store-bought clothes, which they proudly display on their blogs.  The actual fashion designers follow the ideas, and make new design based on this fruitful communication. The circle continues. The ownership to design has become grey area. Everyone can be a designer and part of the process. In this way, design is communication. Communication is design. Design makes the world more understandable and controllable for the individual. Thus through design we create, and re-create our personality and place in the world.




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Wednesday, August 24, 2011

"Elonmerkki" -media conference




Today (25.8.2011) I will be blogging live with 15 other bloggers, related to "Elonmerkki"-media conference, in Helsinki, Finland. It is an honour to be chosen among other bloggers to witness this event.
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The day´s theme is related to design, innovation and their strategic significance for organizational value. The need for differentiation in today´s organization is massive. Various daily messages are bombarding us and fighting for the attention that is getting harder to catch.  Design, as we are have come to associate it, has usually been linked to surface, commercialism, embellishment and frivolous enhancement. The core value has been thought to lie somewhere else. The message of this year´s "Elonmerkki" -conference states otherwise. Design is more than a hip afterthought in an engineer´s daydream. It is a complete experience that tells a story of the product/service for the great public. Design is an inseparable, essential part of the product/service.


All the blogposts will be edited into a book. As a plus, the proceeds originating from this publication will be donated to Unicef. Comments are highly appreciated.
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