IT Strengths and Weaknesses in Finland

The World Competitiveness Yearbook for 1997 from the IMD has ranked Finland as the fourth most competitive nation in the world. The United States, Singapore and Hong Kong achieved higher scores. The ranking evolution for Finland can be accessed on-line by following the link.

STRENGHTS

By employing Michael Porter's Diamond Framework for the Competitive Advantage of Nations we can analyze Finland's competitive advantages.

o Factor Endowments

• Finland's infrastructure is ranked third in the world. The essential technologies for varied advanced applications are available. ATM connections should be in place by the year 2000. Finland's citizens are the forerunners for mobile telecommunications and numerous other mediums.
• Computer literacy is high. This stems from the exposure children have to computers and advanced technologies at an early age.
• Internet statistics place Finland having the most Internet servers, 55 per 1000 inhabitants.
• The technology R&D is performed y business, facilities and several universities that have established research laboratoriesfor cutting edge technologies. Finland's science and technology is ranked sixth in the world.
• The telecommunications industry is deregulated and pricing strategies are fair to the consumer.
• The decision by the government to take up technology as a competitive strategy will maintain Finland's position in the global environment.

o Demand Conditions

• Finland's people are educated and desire the exposure to new technologies. Finland has been an environment where pilot tests were frequently performed, so its people are accustomed to "new arrivals."
• The demand from the people, universities and telecommunication companies for improved products is constant.

o Related and Supporting Industries

• Finland has numerous companies that devote research dollars to the latest technology. Government departments support the consumers best interest. NOKIA is involved heavily in projects sponsored by universities.

o Firm Strategy, Structure and Rivalry

• Competition between the telcos and government operated telecommunications will increase with the deregulation of international calling.
• NOKIA has established itself globally as a dominant maker or cellular phones. (Motorola is the primary manufacturer. Nokia places second.)

Finland has set its objective to become the one of the leading information socities of the world. A society in which the information and media industries are important business sectors, everyone has access to services and the skill to use them, and structures and procedures of business life are augmented by the development of information technology.

WEAKNESSES

Finland's weaknesses can be quickly assessed. The domestic economy was ranked twenty-second. Finland must improve its economic condition in order to solidify claims to become a leading information technology society.

The technical know-how is produced abroad and imported in Finland. Finland imports a high percentage of its PCs and electronics equipment. Establishing cooperation between nations supplying knowledge to Finland is imperative. Although Finland has been highly successful in implementing new technologies within their own borders, they must begin to examine the contributions they can make to the EU community.

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AUTHOR'S OPINION

Through my examination of the advanced strides Finland has made in the technology sector, I have come to believe that Finland is the country to watch in terms of developing technology and successfully applying it. Their efforts to research and develop technology, not only on the business or government levels, but by contributions of university students, is astounding. The willingness of the Finnish people to embrace the lastest technologies provides an outstanding environment to launch "cutting edge" technologies. The fact that they are well educated and exposed at a young age to these advances, contributes to their ease in adjusting.

My one concern is that Finland imports a large percentage of its equipment. The dependence upon outside sources for such advanced equipment must be either be minimized or viable alternatives proposed.

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Last Update: 5 May 1997