Contents - WTC Turku
Transcription
Contents - WTC Turku
2 / 2014 New Stars of Turku Ismo Kallio Ressu Redford Robin Pepe Willberg, 1999 Star Awardee attended this year’s celebration also. New shining Stars in front of WTC p. 4 ’China has relaxed its currency regulations, you can pay your Chinese supplier directly in yuan’, says Riku Louho, Head of Cash Management at Danske Bank’s Western Finland Finance Center. p. 6 ’Customs’ online services do not require any special software or technical expertise’, assures Chief Customs Inspector Kirsi Azaize. p. 8 Contents What about Team Finland? 2 Towards a more three-dimensional future 2 Meriaura Group pioneers green energy 3 Three new Stars of Turku shining brightly 4 Small company – big world 5 China relaxed its currency regulations 6 Expertise of local businesses under one roof 7 Passenger ferry powered by liquefied natural gas 7 Handling customs formalities competently 8 Successful outsourcing 9 Marketing Communication is important 10 Suomen Joutsen, promoter of Finnish Export around the world 11 Future vision of Tianjin 12 2 WTC TURKU WHAT ABOUT TEAM FINLAND? I n September 2012 over 1,500 people from various organizations and companies were gathered at Finlandia Hall, led by then ministers – Prime Minister Jyrki Katainen, Minister of Economic Affairs Jyri Häkämies and Minister for European Affairs and Foreign Trade Alexander Stubb. The purpose of the gathering was to discuss ways for Finland to succeed amidst ever-increasing global competition and to launch the Team Finland project to secure the future of Finnish export industries. The event was opened by President of the Republic Sauli Niinistö. His message was clear: our export promotion system has to be overhauled and overlapping activities reduced. The Prime Minister’s Office founded its own Team Finland unit, whose task was to create and implement a strategy for the project. Team Finland’s government-funded internationalization services fall into six categories: Advice, Networks, Visibility, Financing, Public Affairs and Opportunities. The most tangible change so far has been Finpro’s reorganization, which has clarified the boundary between public export promotion and paid consulting services. It is essential to ensure that regional actors have sufficient resources to provide high-quality services to companies contacting the Team Finland network for the first time and that the network’s joint customer relationship management system will be operational by the end of 2015 as planned. ” internationalization program whose operating model was adopted as a guideline for the Finland Chamber of Commerce’s Team Finland strategy and forwarded to regional chambers and the government. Even then export promoters in Southwest Finland were getting together unofficially from time to time to cooperate, to coordinate their activities and reduce overlap. Some have criticized the large number of organizations producing services and promoting internationalization within the Team Finland network. Are there too many of them? Certainly not. The European economy is slowly recovering, but Finland is lagging behind. The country needs the contribution of every single actor, as long as we make sure that they have the deep expertise required in each industry and market. ’Team Finland must be carried out effectively and activated quickly’, President Sauli Niinistö The Centre for Economic Development (ELY) in Southwest Finland has paved the way for the project. As early as 2005, they piloted a regional Mirja Kärkäs-Lainio Editor-in-chief Director WTC Turku Towards a more three-dimensional future T he term 3D printing does not refer to a single technology: there are several different technologies with their own strengths and weaknesses, Dan Björklöf, CEO of Alphaform Oy informed the audience at a WTC Turku seminar. Most objects produced by 3D printers can also be manufactured by more traditional means, but 3D printing has certain advantages, especially its speed. In fact, 3D printing technologies were originally developed to bring products to market more quickly. Alphaform - European leader in 3D printing Alphaform currently uses about 10 different technologies and hundreds of different materials. They were one of the first companies in Europe to make use of 3D printing and rapid prototyping about 20 years ago – long before everyone started talking about the potential of these technologies. In addition to Finland, the company operates in Germany, England and Sweden. Their top clients include the automobile and Formula 1 industries, ICT companies and medical technology manufacturers. In the Turku region, Alphaform does a lot of business with the local pharmaceutical industry and the maritime cluster. Will 3D printing make factories obsolete? Björklöf thinks that the media hype surrounding 3D printing may have created some inflated expectations and that it will take a few years to get a more realistic idea of what is ultimately feasible and profitable. Especially the notion that cheap 3D printers will revolutionize the production of consumer goods as people will be able to print out household Dan Björklöf, CEO of Alphaform Oy explains that 3D printing beats traditional methods when wanting to produce a small number of things very quickly. products at home seems rather far-fetched when you consider the relatively high cost and low quality of these do-it-yourself products, Björklöf points out. However, if technologies keep improving and materials become more durable and affordable, largescale production of goods by 3D printing may eventually be profitable. 3 WTC TURKU Meriaura Group pioneers green energy and logistics solutions On the traditional WTC cruise on steamship Ukkopekka, Jussi Mälkiä, CEO of Meriaura Group, spoke in favor of green energy policies and explained how to turn them into business opportunities. ince its founding in 1986, explains Jussi Mälkiä, CEO of Meriaura Group, the local shipping company has grown almost from scratch to a medium-sized enterprise and now accounts for about 2% of all import and export transportation in the Baltic sea region. The company’s turnover is around €50 million. Meriaura’s services include the shipping of industrial products and raw materials and various kinds of project transportations. The company carries 2 million tons of freight per year. S Energy-efficient vessels running on biofuel Meriaura is in the process of acquiring two new dry cargo ships that will cost close to €20 million in all. These EcoCoaster vessels will be environmentally friendly and energy-efficient. The company plans to launch the ships in 2015. Their energy consumption will be 40 to 60% lower than usual, as they will be powered by EcoFuel. The vessels may later be fitted with fuel cells, whose development has slowed down a bit recently. The EcoCoasters are meant to replace dry cargo ships that the company is currently renting. Meriaura’s fleet consists of 12 dry cargo ships and three special purpose vessels. One of the latter is M/S Meri, which is the first vessel in the world running on biofuel manufactured from fish waste. Using such biofuels will be more profitable as of January 2015, when the EU’s sulphur directive takes effect. At the moment, biofuel can not compete with traditional fuel oil but can replace diesel fuel, Mälkiä says. WTC Turku Chairman Jari Lähteenmäki together with Marjukka Karttunen (left), Paula Virri and Marita Anstead. 4 WTC TURKU Three new Stars of Turku shining brightly Minna Arve, then Chair of the City Board, congratulated the stars on behalf of the city of Turku and thanked them for their contributions. On the right, WTC Turku Chairman Jari Lähteenmäki with Tatu Virta, Chairman of JCI Aurajoki. T he winners of the Star of Turku 2014 awards were revealed on September 8 in Veistämönaukio square. Three stars were added to our very own Walk of Fame. This year’s honorees were actor Ismo Kallio, musician Ressu Redford and pop star Robin. The public was able to participate by casting their vote online, but the final decision was left to a jury made up of the organizers of the awards. Members of the jury included the city’s Communication Director Antti Kirkkola, Chairman Tatu Virta and Project Leader Kim Björk from Ressu Redford rushed in from the recording studio to receive the award. – It is wonderful to be recognized along with these high achievers. Here in Turku, we like to do everything as well as possible, in our own special way. We promote our home town by doing things in style, Ressu Redford muses. Aurajoki Junior Chamber of Commerce, Director of World Trade Center Turku Mirja Kärkäs-Lainio and Producer Marianne Holmström from Radio City Turku. The Star of Turku awards celebrate individuals or groups that have made the city of Turku known through outstanding achievements in the arts, entertainment or sports. The stars are awarded every three years and metal plaques bearing the names of the honorees are placed in Veistämönaukio square in front of World Trade Center Turku. Multi-platinum selling pop star Robin is the youngest ever Star of Turku. – It feels awesome! I didn’t hear about this recognition until yesterday, since my parents and my manager kept it a secret. Now I’m on the Walk of Fame in incredible company, even Michael Monroe is there, Robin enthuses. The beloved veteran actor Ismo Kallio was delighted to be honored. – Turku is where I was born, went to school and where I come back every summer, says Kallio, who has often performed in musicals at Samppalinna summer theater in Turku. WTC Turku Director Mirja Kärkäs-Lainio was happy to sit next to Kallio. 5 WTC TURKU Your company is not too small to succeed in the big world -Real learning comes from mistakes, failure is necessary, says William H. Frost, author of Small Company. Big World encouragingly. SMEs should not be afraid to venture abroad, especially since they can always consult those with more experience and learn from their mistakes. I nternationalization is not rocket science – anybody can do it, assures William H. Frost, founder, owner and CEO of Paris-based consultancy SAI (Strategy Analysis International). Over the course of more than three decades, Mr. Frost has helped over 500 SMEs to take their business abroad, many of them from Finland and Scandinavia. The lessons he learned are summed up in a recently published book called Small Company. Big World. and were discussed in a presentation Frost gave at WTC Turku. – We have ourselves internationalized and have made most mistakes in the book, Frost says. Why should you go abroad? According to Mr. Frost, it is important to take your business abroad because that is where the growth is: if you stay at home, you’ll grow a little, but if you become international, you’ll grow twice as fast. It is also where your future customers are; if you choose not to internationalize, you will soon have to deal with international competitors at home anyway. Another reason is because your government wants you to – most people in Finland work for SMEs rather than big corporations, so the government is keen on supporting your internationalization efforts in the hopes of creating new jobs. However, the best reason of all is because you yourself believe in your potential and want to pursue new opportunities abroad, Frost adds. Focus on your customers – It is not the market that buys your product, it’s people, Mr. Frost stresses. First of all, you must find out whether there are any potential buyers in your target market. You must also know who you are competing against and what you can offer your customers that others can not. Your unique selling points should be prominently displayed on your website and emphasized in all marketing and communications with prospective partners. Most crucially, Frost points out, you have to understand how your foreign buyer makes money and explain them how working with you will boost their business. In other words, you will need to learn how to co-produce services with your customer. – Finns sit in the woods and invent things. I’ve never understood how they do this. Things are easier to sell if you know who you’re developing them for, Frost says, tongue in cheek. 6 WTC TURKU Doing business in China? - Consider using documentary credits and local currency C hina is Finland’s top trading partner in Asia. It was our fourth biggest source of imports in 2013 and has also become a popular export destination. Yet China is still seen as an exotic country that raises questions about the reliability of local partners, the terms and conditions of business agreements and the right choice of payment methods. Protecting your company from risks in international trade Doing business in a faraway country, in an unfamiliar business environment and often with new partners can be risky when it comes to payments and financing, says Aija Sundgrén, Senior Manager from Danske Bank’s Trade Finance. Problems in foreign trade may arise from unreliable partners, missing or incorrect documents, unknown foreign banks, unexpected political developments and fluctuations in currency or interest rates. Each company must decide for itself which risks it is willing to live with and which risks it wants to hedge against. The best way for exporters to protect themselves from risks related to the buyer, the buyer’s country and foreign banks is to use a confirmed documentary credit. Importers can likewise rely on documentary credit or documentary collection. Trading in Chinese yuan European and American companies have traditionally used the dollar or euro when trading with the Chinese. Head of Cash Management Riku Louho from Danske Bank’s Western Finland Finance Center explained that these foreign currencies pose a risk for your Chinese partner, if they normally use their local currency. However, as China has relaxed its currency regulations, a Finnish importer, for example, can now pay their Chinese supplier directly in yuan. Since this is often easier and safer for the Chinese company, the Finnish buyer might get a discount. It may also be possible to find a partner who would not otherwise be interested in foreign trade. It is therefore worth your while to look into using the local currency while negotiating an agreement. To minimize currency risks, Finnish companies trading in yuan can use currency forwards or options. Aija Sundgrén, Senior Manager at Trade Finance Danske Bank Oyj. Riku Louho, Head of Cash Management at Western Finland Finance Center, Danske Bank Oyj. Jari Soukola, Local Head of Business Banking in Western Finland at Danske Bank Oyj (right) and Jyri Inki, then Financial Director, Auramarine Oy. 7 WTC TURKU Showcasing the expertise of local businesses under one roof S outhwest Finland is home to companies operating in a wide range of industries but lacks premises where the achievements and the potential of these companies could be showcased under one roof. Small and medium-sized businesses play a particularly important role in the regional economy and new ones are cropping up all the time, says Niko Kyynäräinen, Director of Turku Region Development Centre. It is especially advantageous for these small players to pool their resources and build a network to market their products and services together. Local businesses and the public sector are working on a virtual visitor center, which is to be accompanied by real-world facilities later on, Mr. Kyynäräinen says. Some larger companies have also agreed to take part, which raises the public profile of the project and helps with the funding, he explains. According to Hele Kaunismäki, Project Manager at Turku Region Development Centre, a visitor center is a marketing tool similar to company visits. It can help introduce potential customers, employees and other interested parties to your products and know-how and persuade them to co-operate with you. Sharing the facilities and costs with dozens of other local businesses makes it possible even for small companies to offer visitors a truly impressive and memorable experience, Ms. Kaunismäki notes. The virtual visitor center will include facts about local companies, their products and their history as well as information on services that users of the site may require when they decide to visit the region in real life. The virtual center will eventually include interactive elements and be available in English as well as Finnish, says Kaunismäki. Local businesses and the public sector are working on a virtual visitor center, which is to be accompanied by real-world facilities later on, Mr. Kyynäräinen says. M/S Viking Grace – the first passenger ferry in the world powered by liquefied natural gas W hen our new ship M/S Viking Grace was being planned, the goal was to entice new customers who would not normally set foot on a cruise ferry, Project Coordinator Johanna Molin told WTC club members. The interior of the ferry was designed by dSign Vertti Kivi & co, who had no previous experience of passenger ferries and set out to create a completely original environment that would delight even the most discerning travellers, Ms. Molin explains. Companies who would like to treat their employees to an enjoyable meeting at sea can make use of M/S Viking Grace’s elegantly designed conference facilities equipped with the latest technology. Between meetings, passengers can take spa with a sea view or rest in their cabins, furnished with luxury beds that guarantee a good night’s sleep. The aim of Viking Grace was to attract 1 million passengers within the first year, but it only took 8 months to reach that milestone, says Johanna Molin. advantage of the wide selection and affordable prices of the largest floating duty-free shop in the world, relax in a Johanna Ekbom, Sales Promotor at Viking Line Abp, told the audience more about organizing different kinds of meetings and conferences on board M/S Viking Grace, M/S Amorella and in Åland. Whether you prefer a one-day minicruise or spending the night on a private island is up to you. Ms. Ekbom assures that the staff will be happy to entertain you for example by arranging a wine-tasting or a dance course, according to your group’s wishes. 8 WTC TURKU Handling customs formalities competently online restrictions manual. The most convenient and efficient way to lodge customs declarations is to use the Customs’ online services, Azaize says. These web services do not require any special software or technical expertise. If your company needs the Customs’ services on a regular basis, you can apply for authorization to contact them through message exchange, which allows you to handle all communications within your own computer system. Placing goods under a customs procedure - Don’t break the law, all the necessary information can be found in the EU’s Custom Codex, which is available on the web, says Kirsi Azaize, Chief Customs Inspector at the Finnish Customs. T hose members of your staff who deal with Customs procedures must know what they are doing – ignorance is no excuse if you end up breaking the law, Chief Customs Inspector Kirsi Azaize stressed at a WTC seminar. Fortunately, all the necessary information can be found in the EU’s Custom Codex, which is available on the EUR-Lex website. Customs declarations When you plan to import goods from outside the customs territory of the EU, you must lodge an entry summary declaration before the goods arrive at the border. On arrival, you must submit a customs declaration to determine which customs procedure the goods will be placed under. Before submitting a customs declaration, you must find out the right commodity code, check if any import prohibitions or restrictions apply and acquire any required import permits beforehand. Ms. Azaize advises looking up restrictions on different types of goods in Finnish Customs’ The most common customs procedure is release for free circulation. Goods can also be placed under a customs procedure with economic impact (customs warehousing, inward processing, processing under customs control or temporary admission), reexported from the EU or released for transit. Choosing a customs procedure may be postponed while the goods are stored temporarily. Customs duties and value added tax are levied on most imports from outside the EU. If you want to return goods to the sender to be exchanged or repaired, Kirsi Azaize reminds you must notify the Customs in advance so you can avoid paying the applicable charges twice. Export declarations When you sell goods to buyers outside the EU, an export declaration must be lodged, though no duties or VAT are levied on exports. These declarations are always submitted electronically. While trading within the EU, you have to notify Customs for statistics purposes if the value of your sales exceeds the stipulated limit per calendar year. In 2014, this limit was €500,000. 9 WTC TURKU Successful outsourcing – Define your needs and choose the right measuring tools P artner Ilkka Töyrylä from Midagon Oy and CEO Riitta Lehikoinen from Winway Oy spent an afternoon at WTC Turku to share their experiences and to offer tips on avoiding the worst pitfalls of outsourcing. Assessing your needs and managing risks Ms. Lehikoinen observes that companies are often dissatisfied with the results of outsourcing, even though things seemed to be running so smoothly while they were still at the negotiating table. She says this might happen especially when the preliminary stages of outsourcing – defining the company’s strategy and the operations to be outsourced – are neglected while rushing to select service providers. Before outsourcing, a company should therefore take a good look at their operations, consider their core competencies and assess the risks associated with outsourcing particular business processes. In addition, Töyrylä notes that you should decide in advance how performance will be monitored and Outsourcing can reduce costs and improve quality, but it depends on the buyer’s competence whether either of these goals are in fact achieved, says Ilkka Töyrylä, Partner at Midagon Oy. Last year Mr. Töyrylä published an outsourcing handbook with Riitta Lehikoinen, CEO of Winway Oy. what kind of penalties will be imposed if the quality of services falls short of your requirements. Choosing the right instruments for measuring quality is very important to guarantee reliable results, Töyrylä stresses. Some things such as the friendliness and local knowledge of customer service representatives are particularly hard to measure, he adds. Selecting service providers Ms. Lehikoinen recommends that you negotiate with at least two potential providers, or else your partner will have little incentive to offer you a good deal. It is also in the long-term interest of providers, she believes, that they are forced to improve the quality of their services due to competition. Lehikoinen emphasizes that you must have the courage to decline proposals that fail to meet your standards – even if you feel that your time and effort will otherwise have been wasted – since accepting a poor proposal will lead to poor services, which should be avoided at every turn. Before signing a contract, you should make sure that you have a reasonably easy way of terminating it if the partnership fails your expectations, the two experts advise. Outsourcing is a normal part of doing business One of the attendees wondered why the term outsourcing has such a bad ring to it, though the idea is to improve quality and efficiency. Lehikoinen agrees that outsourcing is often perceived as a negative development, but points out that it essentially amounts to the same thing as a new company buying a service that it never produced itself from another company. Stories with a happy ending where everyone including outsourced employees are satisfied with the results are rarely portrayed in the media, she adds. 10 WTC TURKU Grow your Business with the efficient MARKETING COMMUNICATION M arketing communications are an important part of marketing and an indispensable tool for setting a company and its products apart from the competition. Their purpose is to create and maintain a relationship between you and your customers. Since marketing communications take a lot of time and money, they should be planned carefully, says Communications Entrepreneur Merja Heponiemi, founder of Tenho Oy. Ms. Heponiemi told attendees at a WTC Turku seminar that planning should begin with an analysis of the current situation. After that, you can set goals for the future and decide how to track your performance. Tools To find the the right marketing tools, you have to get to know your customers, find out which medium is likely to reach them and what kind of message they might respond to, Merja Heponiemi says. Some sort of presence in the social media can increase your credibility even if your target audience is more interested in the local newspaper than Facebook. If a company is not active online in this day and age, one might wonder if it even exists, Heponiemi explains. She adds, however, that no digital tools can replace talking to people in person, especially when it comes to business-tobusiness sales. Increasing your brand’s online visibility Ida Erling, CEO of laboratory equipment manufacturer Labrox Oy, also believes in the power of personal contacts and networking. I will not say that personal selling is compulsory, since it is actually quite enjoyable! Ms. Erling points out. As a small company that has been in business just for three years, Labrox has made a conscious effort to be noticed online. Erling recommends blogging and Twitter as ways of improving your online visibility. According to her, frequent updates will boost your Google ranking and help people find you, regardless of how many followers you manage to attract. Merja Heponiemi says no product sells itself, no matter how good it is. 11 WTC TURKU SWAN OF FINLAND – promoted Finnish Exports in the 1930s country that Suomen Joutsen visited. The local press reported widely on the exhibitions on board and they attracted a great many viewers, as attested by the numerous foreign newspaper clippings that Mr. Auvinen has studied. Finland was a comparatively little-known country at the time; hence the publicity and the interest generated by our threemasted embassy were invaluable both to Finnish exporters and the government, Auvinen says. Author and historian Visa Auvinen, President of the Suomen Joutsen heritage society, gave WTC club members a lecture on how the frigate Suomen Joutsen (“Swan of Finland”) sailed around the world promoting Finnish exports in the 1930s. T he captain’s saloon where this event took place once served as one of Finland’s diplomatic missions abroad. These days, it is one of the most prestigious conference rooms in the city, and has hosted presidents and other dignitaries such as Vladimir Putin and Tarja Halonen, says Visa Auvinen, President of the Suomen Joutsen heritage society. Former cargo ship and seamen’s school becomes a national treasure Suomen Joutsen was built in St. Nazaire in 1902 as Laënnec, a French cargo ship. In 1922 she was bought by the Germans and turned into a school ship called Oldenburg. From 1930 onwards, she served as a training ship for the Finnish Navy. From 1961 to 1988, Suomen Joutsen was a seamen’s school in Turku. Since 1991 the ship has belonged to the city of Turku. In 2002 Suomen Joutsen was moved to its current location in front of the maritime museum Forum Marinum, where anyone can visit this rare gem. According to Mr. Auvinen, 240 similar ships were originally built with the French government’s support, but in addition to Suomen Joutsen, only one of them has survived. Floating Finnish embassy In the 1930s the predecessor of today’s Finpro, the Finnish Export Society, was looking for new ways to promote Finnish exports and hit upon the idea of a floating exhibition, says Auvinen. Between 1934 and 1937, Suomen Joutsen made three trips to different parts of the world, first to the Levant, then to South America and lastly to Dakar and Central America. A wide range of Finnish goods such as paper products, furniture, dairy products, china and cutlery, were displayed at local ports along the way. A total of 62 companies participated, some of them still in business. As the only open space big enough to accommodate an exhibition was in the crew’s living quarters, some of the sailors had to sleep on the floor of the exhibition room and others in the sail store while the ship was at port, Visa Auvinen remarks. Since fully rigged sailing ships touring the world had become a rarity by then, Finland made it to the headlines in every Future Vision of Tianjin - Southwest Finland Cooperation T urku signed a contract with Tianjin Binhai New Area in September 2014 to support Finnish technology exports to China, especially to the Binhai area. This technology transfer project includes many forms of cooperation between Tianjin and Finland. Turku Region Development Centre and WTC Turku organized a workshop for the visitors from Tianjin Economic-Technological Development Area and companies from Turku. The workshop focused on finding ways for Southwest Finland and Tianjin to cooperate. One example was improving the quality of air in Binhai and Beijing. Tianjin might also be interested in Southwest Finland’s maritime industries, or the local power companies and cleantech businesses related to energy efficiency and alternative energy sources. The workshop revealed that cooperating on these and other issues was possible, but putting the plans into practice still needs to be worked out. Business Development Officer Megumi Hayashi (left) from Turku Region Development Centre was the main organizer of the event. Publisher: Editor-in-chief: Sub-editor: Layout: World Trade Center Turku Veistämönaukio 1–3, 20100 Turku, FINLAND Tel: +358 2 281 3100 [email protected] www.wtc-turku.fi Mirja Kärkäs-Lainio WTC Turku Marjaana Suonpää Freelancer Tanja Nurmi WTC Turku Anne-Marie Ojala WTC Turku