September 2004 (Revised December 2004)
Case
HBS Case Collection

Metso Paper: Globalization of Finnish Metal Workshops

By: Lynda M. Applegate, Marikka Heikkila and Kalle Lyytinen

Format:Print
| Pages:29

Abstract

Metso Paper, the world's largest producer of paper machines, aims to transform itself into a knowledge- and information-based service and solution provider for the paper industry by aggressively exploiting information technologies. In the fall of 2002, Jorma Hujala, a vice-president of the Development, References, and Projects Department of Metso Paper's largest business unit, Rautpohja, attended a corporate-wide brainstorming meeting to decide how to improve the paper machine production and delivery process. Due to low growth in its traditional markets, the company needs to consider extending its strategy and business model to become not just a machine producer but also a supplier of services related to the value chain of paper production. In executing the new strategy, the company considers its world-class knowledge and capabilities to be its key competitive asset. Over the past decade, the department had improved project delivery performance through aggressive use of IT. Hujala and his team had to think carefully about how to enable and support the new corporate strategy and how to continue to develop their IT services and competencies accordingly.

Keywords

Production; Customer Value and Value Chain; Information Technology; Corporate Strategy; Knowledge Management; Machinery and Machining; Expansion; Service Delivery; Manufacturing Industry; Pulp and Paper Industry; Finland

Citation

Applegate, Lynda M., Marikka Heikkila, and Kalle Lyytinen. "Metso Paper: Globalization of Finnish Metal Workshops." Harvard Business School Case 805-057, September 2004. (Revised December 2004.)