Silent Signal 2/2013

Vapa Media publication

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WHAT’S ALLTHISABOUT?

The Silent Signal trend report discusses the digital revolution and the multiplicity of consequences it has for the lives of consumers, companies and media.

The report, scheduled to appear three times a year, consists of expert articles by top actors of digitalism, marketing, advertising and communication both from Finland and abroad.

The Silent Signal trend report is published by Vapa Media in order to inspire discussion around the central functions of the web and in order to encourage further collective thinking.

You are welcome to take part in the conversation on the Facebook page of the report.

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WHAT’S ALL THIS ABOUT?

AUTHORS OF THESILENT SIGNAL 2|2013

THE FUTURE OF FINLAND?IDA HAKOLA & ILONA HIILA

THE RENAISSANCE SOCIETYMIKA AALTONEN & ROLF JENSEN

FIRST ACROSS THE FINISH LINEALEXANDER STUBB

FROM TEACHING OLD HABITS TO NURTURING INNOVATION. FAST!LIINUS HIETANIEMI

THE FUTURE OF THEWELFARE SOCIETYKOKO HUBARA & MARIKA KETOLA

ABOUT THE REPORTAND THE PUBLISHER

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TABLE OF CONTENTS:

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Mika Aaltonen has P.hD. in econom-ics and is a docent of foresight and complexity. He is also a Research Di-rector at Aalto University, a member and the leader of the Baltic region of the Royal Society of Arts and also the CEO of Helsinki Sustainability Cent-er. Aaltonen’s and Jensen’s book, The Renaissance Society, was published in the USA in May 2013 by McGraw-Hill.

Rolf Jensen is the Chief Imagination 7ɉKMZ�WN�\PM�,IVQ[P�,ZMIU�+WUXIVa��He is an internationally requested lec-turer and adviser for companies. He is a member of The World Future Socie-ty based in Washington. Jensen’s and Aaltonen’s book, The Renaissance So-ciety, was published in the USA in May 2013 by McGraw-Hill.

Ida Hakola & Ilona Hiila are the found-ing partners of content agency Vapa Me-LQI�IVL�\PM�ɇZ[\�PMZITL[�WN�KWV\MV\�[\ZI\MOa�QV�Finland. This duo believes that web contents will play an ever-larger role in the success of the web-oriented everyday life of companies. <PMa�IZM�IT[W�\PM�I]\PWZ[�WN�\PM�ɇZ[\�.QVVQ[P�content strategy book (“Strateginen ote verk-

koon”), published in October 2012.

THE AUTHORS OF SILENT SIGNAL 2|2013

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Koko Hubara is a report-er who has worked in vari-ous projects of A-klinikkasäätiö since 2008, facing and con-necting with people online. She takes special interest in the po-sition of child welfare services in the online environment.

Marika Ketola is a psycholo-gist, who has worked with on-line crisis help in the Finnish Association for Mental Health since 2003. She was also a project manager of the E-Men-tal Health Project between 2008 and 2010.

Liinus Hietaniemi is a recent graduate of Harvard University, where he studied sociol-ogy. After his graduation, Liinus worked for a Finnish research based startup, Futureful, as they launched their smart web browser for iPad in the US. Right now, the 24-year-old is wondering whether he should start his ca-reer as an entrepreneur or pursue a degree in physics. He gets excited about people, so ping him with your thoughts -- about anything. @L_Hietsu.

Alexander Stubb is the Minister for Europe-IV�)ɆIQZ[�IVL�.WZMQOV�<ZILM�WN�.QVTIVL��0M�Q[�also an active tweeter who believes that st-rong digital know-how is essential for main-taining competitiveness on the international market.

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Future. The theme of the second Silent Signal of the year comes down to this very powerful word. Future is a topic that has always intrigued us, both people and companies. The reasons are obvious: it is full of possibilities – and of course y�ZQ[S[��<PM�KWUXIVa�\PI\�ɇZ[\�ɇO]ZM[�W]\�I�_Ia�to either foretell or create future has a huge advantage in the competition against its rivals. In the digital era, instead of a crystal ball we turn

our heads and hopes to technologies and the future they enable. What kind of new services they generate, what new information they reveal and what needs they create in consumers?

THE FUTURE OF FINLAND?

Ida Hakola & Ilona Hiila

Vapa Media Oy

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Digitalization creates valuable viewpoints also considering the future of Finland. How this northern nation with its industry long ago escaped to lower-cost countries can succeed in the ever increasing global competition? The answer lies in innovation, new ideas and new forms of service that digitalization enables.

The second Silent Signal of the year discusses the opportunities and regulations that digitalization holds for the future of Finland. Articles dealing with the economy, power of an individual, working life and the welfare society boldly take a stand on how digital Finland will be in the year 2013 and forward.

The Power of IndividualRedefines FutureResearching or foretelling the future isn’t VMKM[[IZQTa� I� Y]QKS� ɇ`� NWZ� PIXXQVM[[��though. In the previous issue of Silent Signal professor Alf Rehn even claimed \PI\�MɆWZ\[�\W�XZMLQK\�WZ�ZM[MIZKP�\PM�N]\]ZM�are boring and predictable in the beginning _Q\P��?Pa��\PMV��[W�U]KP�\QUM�IVL�MɆWZ\�Q[�put into thinking about the future?

Futurists Mika Aaltonen and Rolf Jensen believe that people are interested in the future as we will all spend the rest of our lives in it. In their article “The Renaissance Society” Aaltonen and Jensen discuss about a society where, instead of governments and future committees,

the future is being steered and build by the citizens, consumers and John Smiths empowered by the digitalization. According to them, social media has brought along a rebirth comparable to the invention of the printing house – the third renaissance. Mankind has never been this close to reforming its own future.

Growth Through Digital EconomyFrom the viewpoint of Finnish companies the future seems undeniably more QV\MZVI\QWVIT�� .QVTIVL�WɆMZ[�I�OWWL�PWUM�but the playground gets small when talking about the ideal markets and business models for startup companies, which require global users and audiences.

<PM� 5QVQ[\MZ� NWZ� -]ZWXMIV� )ɆIQZ[� IVL�Foreign Trade of Finland, Alexander Stubb, believes that Finland has all it takes to go for growth in the digital market. In his article “First Across the Finish Line” Minister Stubb claims that the faith of the Finnish people is increasingly in the hands of innovative, courageous and boldly globalizing companies. Minister Stubb states that the business potential of online shops, for instance, has not been fully utilized. Is this something the Finnish export industry should go at?

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Flexible Work and Reformed Education as Competitive Advantage The pride of Finland has always been the internationally recognized education system. But is it good enough to keep up with the requirements of the ever-changing world? Instead of forwarding old thinking and operations models, shouldn’t the focus be on enabling innovative thinking?

Liinus Hietaniemi, a Harvard graduate who took part in developing the Finnish startup Futureful, believes that to secure its place on the top, the Finnish education system should be developed to be more ɈM`QJTM� IVL� N]\]ZM�oriented. In his article “From Teaching Old Habits to Nurturing Innovation. FAST!” Hietaniemi suggests that the same ɈM`QJQTQ\a� [PW]TL� JM�made use of in the working life, as well. Besides money, \PMZM� IZM� UIVa� W\PMZ� NIK\WZ[� LMɇVQVO�the engagement of the employees of today. Working is not bound to physical location anymore. Instead of seeing it as a challenge, companies should take it as an opportunity.

Can Digitalization Savethe Welfare Society?When talking about the future of Finland, the issue of maintaining the welfare society inevitably pops up. However, maybe the discussion should be more directed to

improving the system than maintaining the old one. Digital solutions will be play a major role in then future when the society is being run and held together with decreasing monetary and human resources.

Digital services and the low-threshold they provide have enabled social services to spread online. In their article “The Future of the Welfare Society” journalist Koko Hubara and psychologist Marika Ketola enlighten their own experiences

and observations on the reception and development of these online services. There has been some success already, but major issues still wait to be solved. Most of them being structural – and attitudinal.

What Is Your Future Like??M� PWXM� \PI\� \PM� ɇN\P� Q[[]M� WN� ;QTMV\�Signal, like the previous ones, will awake new thoughts and ideas. The discussion about the theme, the future of Finland, will continue in Facebook at www.facebook.com/hiljainensignaali and in Twitter with the hashtag #silentsignal. Share your view of the digital future of Finland or comment on the articles. Instead of stating truths, our aim is to generate discussion.

“Digitalization creates valuable viewpoints also considering the future of Finland. How

this northern nation with its industry escaped to low-cost

countries long ago can succeed in the ever increasing global

competition?”

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“IN THE DIGITAL ERA, INSTEAD OF A CRYSTAL BALL WE TURN OUR HEADS

AND HOPES TO TECHNOLOGIES AND

THE FUTURE THEY ENABLE.”

#silentsignal

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THE RENAISSANCE SOCIETY

Mika Aaltonen

Aalto UniversityHelsinki Sustainability Center

Rolf Jensen

Dream Company

We shall all spend the rest of our lives in

the future. That’s why it is a fascinating

subject. How will society change during

the next 10 years when – hopefully – the

economic crisis is over? We need answers.

The Renaissance Society is our answer.

The article is based on previously published paper in History Magazine

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We are heading towards a new type of so-ciety – it is driven forward by you and me, not by the established centralized institu-tions. Think about it: how do you make your consuming decisions? Most likely you lis-ten to friends and colleagues or you con-sult the social media. Do you read the pro-fessional reviews in the newspaper? Today this is less likely. In a nutshell this is what is happening in the western societies right now. We connect with our peers; we trust ”people like me”. This means changes to come in the social and political fabric. Most importantly, it is a change in the way we comprehend our role, our responsibilities, and possibilities as individuals in our so-ciety.

It is called the Renaissance Society because of history. Much has changed in the 600 years since the Renaissance began in Northern Italy but the social situation was in essence, in principle, the same as today. The Vatican lost its iron grip on Europe because of rivalry between two popes and extreme uncertainty caused by recurring epidemics of plague. This resulted in loss of trust in the established authorities and unleashed avalanche of energy and creativity. Inspired by people like Leonardo da Vinci and William Shakespeare ordinary

people got the revolutionary idea: we can form our own opinions about things, we can decide for ourselves, we can create our own future. The new printing press invented by Gutenberg around 1439 accelerated the spreading of new ideas – just like the social media today. What happened was soon called the renaissance, meaning a re-birth. Common people were born again as true human beings, as individuals. It was a spiritual revolution in art, in science and in the exploration of the world and today it is viewed as the golden period that succeeded the ”dark” middle ages.

Today people have much more personal freedom than ”renaissance man” – no doubt about that. But society is still a top-down one and organized as a hierarchy. /ZIL]ITTa��\PQ[�PQMZIZKPa�Q[�JMKWUQVO�ɈI\\MZ�due to better education and technology. Common people are transforming the national dialogue from a top-down one to a horizontal one. We have two megatrends ZMQVNWZKQVO� MIKP� W\PMZ�� <PM� ɇZ[\� Q[� \PM�declining trust in big institutions; the other is the social media and new ways of manufacturing.

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The Two MegatrendsAccording to Pew Research Center trust in the US government has declined from 75% QV�\PM��!��[�\W�� QV��<PM�ɇO]ZM[�NZWU�other Western countries are similar. CEOs of large corporations are only trusted by 23% of the population. In contrast, teachers are trusted by 84% according to Gallup. +WVɇLMVKM� QV� WZOIVQbML� ZMTQOQWV� LMKTQVML�from 68% in 1975 to 44% in 2011. Gallup has also asked about the chances that today’s youth will have a better life than their parents. 50% says that it is unlikely. These ɇO]ZM[� ZMXZM[MV\� I� TWVO� \MZU� \ZMVL�� VW\�just some reaction to the economic crisis. People are loosing trust in their institutions and trust their own views more. We are taking back responsibility for our own lives. The trend should not be confused with a revolution, though. Whereas revolution is a protest, the renaissance trend is a positive action not directed against top-down information, although it is undermining it unless the established institutions change the way they communicate. Therefore they must join the horizontal dialogue – like some companies have already started to do.

<PM�QV\MZVM\�PI[�ZM^WT]\QWVQbML�\PM�ɈW_�WN�information from a top-down, a hierarchical ɈW_�WN�QVNWZUI\QWV�\W�I�PWZQbWV\IT�WVM�� million people are visiting You Tube, the video-sharing website, every month. We are selling and buying on eBay, and we are publishing our own books. In some not too distant future most of us will become authors, and perhaps even movie directors.

The digital world, the world of bits is transforming the social fabric of the rich part of the world and the horizontal trend is winning. The enabler is the internet – the great equalizer of this century. Today we have access to the same information as the government, almost.

The Third Industrial RevolutionThe next industrial revolution will happen in TM[[�\PIV��aMIZ[��<PM�ɇZ[\�ZM^WT]\QWV�_I[�the factory; the next was the assembly line. The coming one is about nanotechnology and especially the 3D printer. The 3D printer produces all kind of objects, from vases to bicycles. It will make the one-person factory possible and eventually take the position of the assembly line as

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\PM�_Ia�_M�XZWL]KM�[\]Ɇ��1UIOQVM�UQTTQWV[�of small factories all over the country producing and selling products all over the world. All of us can become entrepreneurs and thanks to the internet market and sell all over the world. The 3D printer is not competitive in mass production but the consumer trend is towards personalized [\]Ɇ��?M�_IV\�\W�\MTT�W]Z�[\WZa�\PZW]OP�W]Z�products. Again we have the trend from big to small, from the few to the many, from top-down to you and me – a truly horizontal world.

The Competition between East and WestThe renaissance society is the scenario for the western societies, the mature economies. They have been extremely successful in creating economic growth in the last century. Now we are looking for the next dream, a new era of growth, not material growth but growth in thriving and happiness. In 10 years we will supplement \PM�/,8�ɇO]ZM[�_Q\P� \PM�PIXXQVM[[� QVLM`��Some future president will promise not more wealth, but more happiness in society.

In China and most of the rest of Asia KWUUWV�XMWXTM�IZM�I\�\PM�UWUMV\�N]TɇTTQVO�their material dream and they are working just as hard as we did when a brand new car and a bigger house was a possibility. <PM�)[QIV�UI\MZQIT�LZMIU�UIa�JM�N]TɇTTML�in 20 years time or a little less. Until then we have an asymmetry in dreams – material versus immaterial. However the need to act in a forward-looking and creative way rests with the USA and the other mature economies. Creativity is called for.

“Again we have the trend from big to small,

from the few to the many, from top-down to you and me – a truly

horizontal world.”

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How Will the Renaissance Society transform the Way We Live?When the internet was invented, when the PC appeared on our desks, when the mobile phone became our companion it was impossible to predict what would happen. Great things happened because millions of people contributed with ideas and innovations. And we have only seen the beginning. A few ideas of the things to come can be imagined today:

As mentioned above the 3D printer will enable millions of ”Makers” (Chris Andersons word for them), entrepreneurs to start their own small factory and market their products all over the world. Today a few hundred companies decide about the products we may need, be it technology or fashion. When we have millions of small companies an avalanche of ideas will emerge. A few years ago a small company would sell to the local market and to friends. Thanks to the internet and better search engines the small company can reach a worldwide market place.

The government especially on the local level will transform into what Anne-Marie Slaughter in The Wired World in 2013 calls ”government as platform”. Meaning the government is the control tower but they don’t operate the airplanes. Family and neighbourhoods will take care of many of the services done by government today. Because they know their neighbourhood.

If you want to start a company or make I� ɇTU� aW]� KIV� I[S� \PM� JIVS� NWZ� I� TWIV��The new possibility is to ask the public – worldwide – to fund your project. If the public like your idea it will get funded. It has begun; just one crowd funding website, kickstarter.com, has funded 37.000 projects since it started in 2009 and successfully raised 500 million dollars. Remember we have only seen the beginning.

The company may ask their R&D department to develop a certain idea. Or they will ask the public – that is crowdsoursing. The reason is that somewhere in the world some people will always have a better solution than the internal experts.

The future is about change. Societies have always changed but the next 10 years could mean bigger changes than ever experienced before. It is not a revolution, it is not a protest, it is our society transforming gradually – like a glacier, slowly but surely. Seen in the longer term, however, we will have a new type of society, The Renaissance Society. At some point most people will realize – yes, this is a new type WN�[WKQM\a#�\PQ[�Q[�LQɆMZMV\�NZWU�\PM�[WKQM\a�we knew in 2013.

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“WE ARE HEADING TOWARDS A NEW TYPE OF SOCIETY – IT IS DRIVEN FORWARD BY YOU AND ME, NOT BY THE ESTABLISHED

INSTITUTIONS”

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“WE ARE HEADING TOWARDS A NEW TYPE OF SOCIETY – IT IS DRIVEN FORWARD BY YOU AND ME, NOT BY THE ESTABLISHED

INSTITUTIONS”#silentsignal

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FIRST ACROSS THE FINISH LINE

Alexander Stubb

5QVQ[\MZ�NWZ�-]ZWXMIV�)ɆIQZ[�IVL�.WZMQOV�<ZILM

Finland has what it takes to make it on top of this international race: we are agile, our basic infrastructure works well and [W� LWM[� W]Z� [WKQM\a�� ?M� PI^M� I� ɇZU� OZI[X� WN� \PM� NIK\�that a well-functioning communications network is the cornerstone for a digitalized world, and that the internet is

as essential to society’s infrastructure as roads and electrical grids are. Almost throughout Finland citizens already have access to high-speed internet and 67% of them own broadband connections. The fourth generation mobile grid is being extended across the nation in cooperation with private sector developers, and all this is being managed with reasonable monetary expenses. In international comparisons, our public sector’s electronic services are well-developed and almost every Finn uses the internet as a daily tool.

So we have all the key elements in place. But how are we going \W�UISM�[]ZM�_M�_QTT�JM�\PM�ɇZ[\�IKZW[[�\PM�ɇVQ[P�TQVM'�7]Z�\ZIQVQVO�program will include the freeing of the internal digital market, business innovations and the courage to take our ideas and show them to the world.

Digital revolution has been a much discussed topic for quite some

\QUM�VW_��1\[�\Z]M�MɄMK\[�IZM��PW_M^MZ��R][\�VW_�IJW]\�\W�MV\MZ�W]Z�TQ-^M[��)KKWZLQVO�\W�-]ZWXMIV�+WUUQ[[QWV�ZMXWZ\[��\PM�LQOQ\IT�MKWVWUa�is growing at a rate seven times that of other economic sectors.

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Europe Has the Markets Next DoorThe internal digital market zone in the European Union will keep growing in importance. Internal digital market refers to the sales and retail of goods, services and digital contents via digital channels. From a consumer point of view, we could be talking about ordering a book or downloading a video or mobile game from an online store.

Currently there are as many markets within Europe as there are member states. Small, fragmented market zones have trouble attracting either businesses or consumers. Digital entrepreneurs are still forced to acquire permits and wrestle with LQɆMZMV\�TMOQ[TI\QWV�QV�MIKP�-=�KW]V\Za�

Even with the rapid growth of online purchasing in Europe during recent years, only 57% of Europeans online do any shopping on the internet; in the US, \PQ[� ɇO]ZM� [\IVL[� I\� �� ;W]\P� 3WZMI�remains a lone pioneer: an impressive !� � WN� ;W]\P� 3WZMIV� QV\MZVM\� ][MZ[�

conduct online shopping. Already half of the music consumed in the United States is downloaded online, while in Europe the ɇO]ZM�[\QTT�PW^MZ[�I\�WVTa��! ��)UMZQKI� Q[�several steps ahead of us, Europe, and we need to start catching up to them.

Online trade is growing in several EU countries but international purchases still remain a fairly small slice of this pie. There have been estimates that only 10% of digital trade in the European Union is done across borders. This state of things should develop more towards a situation where a consumer can, instead of having to rely only on domestic options, turn to online stores in other EU countries that WɆMZ�UWZM�IɆWZLIJTM�XZQKM[��PQOPMZ�Y]ITQ\a�and a wider range of products. According to research estimates, a well-functioning internal digital market could increase the European Union GDP by €500 billion by the year 2020.

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Jobs Through EntrepreneurshipThe young people in our society

are brave to tackle the challenges of entrepreneurship: startup companies are generating incredible business ideas as we speak. Thanks to Nokia, Finland has accumulated vast resources of know-how that are visible for example in our success in the gaming industry. Rovio’s Angry Birds PI^M� ɈW_V� QV\W� [UIZ\XPWVM[� IKZW[[� \PM�world and shown for once and for all that it is possible for a Finnish company to rise on top and become a major international player. Even in these times of the online world becoming very centralized around certain areas and actors, there is no need to think that a lone company could not make it big out there.

.QVTIVL�WɆMZ[�J][QVM[[M[�I�OWWL��[WTQL�home base to work from. We are willing to take care of our competitive edge, as can be seen from our decision in the spring to lower the corporate tax in Finland.

An Upward SpiralA major structural change took place in

Finland when most of our manufacturing of mobile phone devices moved to other parts of the world. This is now visible in the overall volumes of the foreign trade done on the electronics sector. On the other hand, there still are many businesses in Finland that require imported IT-related components; these companies are mostly found on the electronics sector as well I[�QV�\PM�ɇMTL�WN�QVL][\ZQIT�_WZS[PWX[�IVL�manufacturers of electrical machinery.

The IT sector’s production chains have

spread throughout the world. The essential questions remain: how can Finnish companies secure the best possible additional value from the manufacturing of XZWL]K\[�IVL�PW_�KIV�\PQ[�̂ IT]M�JMVMɇ\�\PM�.QVVQ[P� MKWVWUa'� <PM� MKWVWUQK� JMVMɇ\[�for Finland in freeing up trade are today indirect and cannot necessarily be turned into straightforward statistics and numbers. It is wealth that will be channeled into our economy through the global growth of the sector and as various service incomes and KWUXIVa�XZWɇ\[�JMOQV�\W�UI\MZQITQbM��

<PM�ɈW_�WN�KIXQ\IT� QV\W�.QVTIVL�_QTT�JM�built on new cornerstones: intellectual property and the services we can provide in the use of various products. This sort of logic would not be possible without modern information technology; neither could

the ICT sector produce Finland the economic gains it does without the freeing of trade. What we are seeing is a true upward spiral that we must seek to support both domestically and

internationally. Finland is a forerunner when it comes to thinking and analyzing value chains. Therefore we are in favor of freeing up the trade of IT products as much as possible and integrating new innovations as seamlessly as possible into the new agreements on information technology.

In the ongoing process of the global information society, Finland is a far more major player than its size would have anyone assume. We are a forerunner nation and our views command attention.

”The flow of capital into Finland will be built on

new cornerstones: intel-lectual property and the services we can provide”

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“THE INTERNAL DIGITAL MARKET ZONE

IN THE EUROPEAN UNION WILL KEEP ON GROWING IN

IMPORTANCE.”

#silentsignal

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DQL�aW]�SVW_�\PI\�Ja�\PM�\QUM�aW]�PI^M�ɇVQ[PML�ZMILQVO�\PQ[�IZ\QKTM��UWZM�\PIV��new people have been connected to the internet and almost a thousand new websites have been registered? Information and resources are being distributed at an ever-increasing rate. Only ten years ago, if you wanted to create a scalable internet platform, you had to buy physical hardware. Today, you can use cloud servers, which need no space and cost a fraction of the price of a physical server. What if you needed legal advice in establishing a company? Google has all the answers. What if you do not know how to design and program software? Teach

aW]Z[MTN�WZ�W]\[W]ZKM�\PM�RWJ�y�MQ\PMZ�KIV�VW_�JM�LWVM�MI[QTa�WVTQVM��7VTQVM�ML]KI\QWV�[Q\M[�WɆMZ�I�wide variety of free programming classes from the world’s top universities and sites like freelancer.com have an endless online supply of coders and designers ready to start work minutes after you WɆMZ�Q\��)[�I�ZM[]T\��QVVW^I\QWV�Q[�JMKWUQVO�IKKM[[QJTM�\W�IVaWVM�_Q\P�IV�QV\MZVM\�KWVVMK\QWV�

FROM TEACHING OLD HABITS

TO NURTURING INNOVATION.

FAST!

Liinus Hietaniemi

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The Structure of a Modern CompanyInternet is changing the structure of KWUXIVQM[� Ja� WɆMZQVO� UWZM� ɈM`QJTM�solutions. While bigger companies are slow to get rid of their rigid customs, startups thrive in these new conditions. For example, thanks to Skype, Google Docs, and such, work location is irrelevant. In fact, having the team in the same place all the time may not be very useful to begin with. Immediate access to a world market has opened an enormous opportunity, which calls for the outward facing part of the company to be where the users are. For iOS applications, the most potent market right now is in the United States. For that reason, the Finnish startup Futureful has KWɆMM�_Q\P�XMWXTM�QV�;IV�.ZIVKQ[KW��_PQTM�research and development takes place in Finland and Poland. Why not move the entire company to San Francisco then? The quality of software engineers in Finland or Poland is as high as anywhere else in the world, while the costs tend to be lower than in the world’s tech hub.

However, there are prerequisites for a scattered organization to innovate MɉKQMV\Ta�� .WZ� M`IUXTM�� \PM� _WZS� VMML[�to be measurable. For the employees of a startup company, this is often the case. Programmers write code, designers create drafts, and salesmen generate sales. Meanwhile, in many large corporations, there are middle managers, whose job is...... to sustain bureaucracy? I am not sure, to be honest and I cannot think of any reason why Marissa Mayer, CEO of Yahoo!, would call her employees back to \PM�WɉKM��]VTM[[�[PM�_I[�VW\�[]ZM�MQ\PMZ��Nevertheless, this does not have to be the case for large companies. Google, for example, has basically no middle managers. There is the top management, and then egalitarian project groups, which emerge and disperse out of necessity. The project groups are organized like startups: it is a mix of engineers, designers, and product guys, and they own their projects – they just happen to have unlimited resources behind them. It is no wonder

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“If you empower your employees to innovate

by backing them up with funding and expertise while rewarding them

fairly for their success, you will hold on to many more

zealous minds.”

then that Google has reigned and Yahoo L_QVLTML� QV� \PM�NIKM�WN�ɇMZKM�KWUXM\Q\QWV�from agile startups.

)Va� KWUXIVa�_IV\QVO� \W� [\Ia� IɈWI\� QV�the fast-changing environment needs to follow the example of Google and others, who have understood the changing role of large corporations. Anyone with an innovative mindset can now easily quit and the only thing that corporations can WɆMZ� \PM[M� XMWXTM� IZM� ZM[W]ZKM[�� 1N� aW]�empower your employees to innovate by backing them up with funding and expertise while rewarding them fairly for their success, you will hold on to many more zealous minds. As a bonus, you will facilitate your company’s continued existence. With more freedom should IT[W� KWUM� ɈM`QJQTQ\a�of location – letting employees work wherever they wish is becoming an expectation rather than a luxury. This allows any company to hire from a global pool of talent and may also inspire employees in its own right. Mothers and fathers may choose to work from home, so they can spend more time with their children. Some may seek out co-working spaces where they can enjoy and learn from the company of like-minded folks.

Reforming EducationHowever, the nurturing of an innovative mindset should start long before you enter professional life. Therefore, as work and its requirements change, so must the education system. Otherwise we are educating our future leaders for the world WN� \PM� XI[\�� )[� \PM�UWZM� ɈM`QJTM� ɇMTL� WN�QVVW^I\QWV�_QTT�LQUQVQ[P�\PM�[QOVQɇKIVKM�WN�formal education altogether, Finland should be in a rush to reshape the objectives of ML]KI\QWV� WV� M^MZa� ɇMTL� IVL� M^MZa� TM^MT�

from elementary to university. Or else, the outdated education system becomes even more of a distraction for innovation.

The fact that Finnish secondary and primary school students look good in international comparisons is a tribute to Finnish teachers, but it

also reminds us of the highly standardized curriculum – students across Finland learn the same material at the same rate. In the QVKZMI[QVOTa� UMZQ\WKZI\QK� XTIaQVO� ɇMTL� WN�QVVW^I\QWV�[\]LMV\[�_W]TL�JM�_Ia�JM\\MZ�WɆ�acquiring a deep understanding of things that fascinate them. Deep understanding does not mean reading more books about the subject. Instead of memorization, I would recommend Finnish schools, from the

25


elementary to the university level, to ask for exploration through independent projects, where students are forced to come up with their own solutions to their own problems. Sweden sets a great example: while Finnish high school students cram their brains with anecdotal information for the yo-tutkinto (matriculation exams), Swedish students work on the projektarbete, where they are required to plan and execute a real-life project of their choice. Innovation is a process, an ongoing project, and the Finnish school system teaches very little of that.

One of Finland’s strengths is the unique infrastructure, which can support equal opportunity in education for all, and as a result, empowerment for all. Simply reorienting the goals of this system could have a sweeping impact on the country. For example, including programming as a regular school subject would be hugely JMVMɇKQIT�� <PQ[� _W]TL� K]\� \PM� KW[\� WN�software innovation to a minimum, and enable any youngster to push their idea to the real market. Although this learning can be done easily online, in reality, few students have the interest and maturity needed to learn it all independently. Why not assemble wings for them?

From One Solution Model to Independent ThinkingIt remains to be seen how taking the matriculation exam on a computer will change the nature of it and exam taking more widely. As everything in primary and secondary education seems to prepare students for the matriculation exams, one would hope changes at the top to have a NIZ�Ɉ]VO� ZQXXTM� MɆMK\�� 5MIV_PQTM�� QN� aW]�are a teacher, there are ways in which you KIV�ITZMILa�UISM�I�LQɆMZMVKM�QV�NW[\MZQVO�your students’ independent thinking. As an example, do not send everyone on a quest \W� ɇVL� \PM� [IUM� �� XTIV\[� QV� JQWTWOa� y�ask them to pick the one, which is the most interesting personally and let them explain why. In place of word quizzes, let students derive meaning out of those words by KZMI\QVO� ɇTU[�� \PMI\MZ� XMZNWZUIVKM[��poems or whatever suits them. In general, if there is only one right answer to a question on a quiz, an exam or an assignment, you know there is room for improvement. After all, how many real-life problems have only one solution?

t has been exciting to follow Aalto =VQ^MZ[Q\au[� KWV[QLMZIJTM� MɆWZ\[� \W�nurture innovation in recent years. For M`IUXTM�� )IT\W� >MV\]ZM� /IZIOM� WɆMZ[�free working space and Aalto Center for Entrepreneurship gives out grants to early stage projects. Most importantly, however, students at Aalto can now work on their

26


startups for course credit in the Aalto Ventures Program. The Program is a step in the right direction, but still seems to be a victim of the system, as too many of the courses expect students to sit in class and learn from the books. In fact, it is quite a paradox: the more you feed students with a framework of how to innovate, the less likely they are to come up with anything revolutionary. In the best case, the university would merely act as a support function for the young innovators, who would run wild _Q\P� \PMQZ� QLMI[�� .QVITTa�� IN\MZ� ɇ^M�aMIZ[�WN�trial and error the university would give them a degree – as if they still needed one.

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“AS WORK AND ITS REQUIREMENTS

CHANGE, SO MUST THE EDUCATION

SYSTEM.”

#silentsignal

28


THE FUTURE OF THE WELFARE SOCIETY

Koko Hubara ja Marika Ketola

The last decade or so has been a golden age for various projects in the social and health business both in the development branches of the

public sector as well as among third sector organizations. Going with the current trend, it has been highly popular to craft online and mobile services aiming to prevent IVL�UQVQUQbM� VMOI\Q^M� MɆMK\[� I[�_MTT� I[�WVM[� WɆMZQVO� QVNWZUI\QWV� IVL� [MTN�PMTX�guidance. For example, NuSuVeFo (the Finnish cooperative network for online-based youth work) currently has 29 actors or ongoing projects that list the internet as \PMQZ�XZQUIZa�ɇMTL�WN�_WZS�

Representatives of these projects meet each other in conferences and events where they present their brainchild’s

IKKWUXTQ[PUMV\[�NZWU�\PM�TI[\�aMIZ�WN�ɇ^M�year period. Advantages of these projects IZM�[QUQTIZ�ITUW[\�IKZW[[�\PM�ɇMTL"�\PM�_MJ�IVL�UWJQTM�IZM�I�KW[\�MɉKQMV\�MV^QZWVUMV\�and free of limitations set by time and place, \PM� \PZM[PWTL� \W�WɆMZ�IVL�M[XMKQITTa� [MMS�information and help is extremely low, the process is guaranteed to move on the pace and terms of the client, and the employees are given a chance to directly reach people’s everyday lives.

All who have the tools for it have a chance to get their voice heard, including for M`IUXTM�KPQTLZMV�TQ^QVO�]VLMZ�LQɉK]T\�NIUQTa�situations. And tools they have: in 2010, 81% of Finnish households had an internet connection and approximately 3 out of 4 Finns between ages 16 and 74 went online daily.

,QOQ\IT�[MZ^QKM[�PI^M�XZW^ML�\PMQZ�MɄMK\Q^MVM[[�_Q\P�OZMI\�ZM[]T\[��0W_M^MZ��L]M�\W�XZWRMK\�\PQVSQVO�IVL�KPIVOM�ZM[Q[\IVKM�\PMa�PI^M�not become an established part of social and health services.

29


Great Results vs. Change ResistanceBased on the service suppliers’ experiences, the results have been astoundingly good – especially when it comes to reaching people on a wide scale of their everyday lives. Finland’s Slot Machine Association, one of the primary funders of online projects, states in its development strategy for 2012-2015: “—it is our hope that associations can in cooperation with the U]VQKQXITQ\QM[� ɇVL�_Ia[� \W� JZQVO� \WOM\PMZ�the organizational work we sponsor and the public sector services in a way that will JMVMɇ\�KQ\QbMV[�w

This is not how it works, though. Innovations are not developed as a part of the existing system of services, but in separate projects and networks where they lose touch with the professionals who actually work on a daily basis on the ɇMTL��?Pa�Q[�\PQ[�IVL�_Pa�LWVu\�\PM�N]VLMZ[�actually insist on co-operation between sectors?

As we see it, there are two reasons for this. First of all, social and health workers are overburdened by their jobs; according to several studies, they see developments and changes adding up to their already high levels of stress. Online and mobile environments are also still relatively new tools for the social and health sector,

M^MV�\PW]OP�ɇZ[\�KWV\IK\�\W�KQ\QbMV[�Q[�VW_�often made through them and databases have moved on from physical to electronic archives.

When you are a project worker M`XTIQVQVO�I�VM_�WVTQVM�[MZ^QKM�\W�ZMIT�ɇMTL�workers, they tend to have doubts about it to say the least. Often you will be greeted with questions like “How do we know they are actual, real people on the other side of that screen?” and “How does this serve the XMWXTM�_PW�VMML�\W�ɇVL�ZMIT�PMTX'w

Here you can see the pre-existing attitude and setting: online social and health work is not a genuine meeting of service provider and citizen and it alone is not enough to be considered service or treatment.

It is also important to bear in mind that the succession from one generation of employees to another is still taking place. Most social and health workers began their careers not only before the electronic revolution but also before the rise of the project-oriented society. It must be hard to imagine your work as something else than a face-to-face meeting with your client; after all, it used to be the focus of your professional identity when you got into this work. This can raise a strong front of

30


resistance against change.Another far more serious reason for the

current situation is the rigidity of societal and economic frameworks. They restrict the sector in such major ways that even QN�_M�_MZM�\W�[]LLMVTa�ɇVL�I�_PWTM�VM_��online- and mobile-oriented way of thinking in the sector, it still might not be possible to implement the necessary changes within the current system’s limits.

Several of the organizations developing WVTQVM� [MZ^QKM[� IT[W� IOZMM� _Q\P� \PM� ɇMTL�that project thinking is not without its problems: the time spent on things is limited as projects run for a certain time and then simply are concluded and closed. <PQ[�[KPML]TQVO�IɆMK\[�PW_�IK\QWV[�KIV�JM�taken within a single project.

Additionally, projects tend to have their main focus in designing, developing and reporting on these matters; this sets the framework for how funds can be used. According to the Finnish law on Slot Machine Association donations, a donation can be given as a funding to the activities of an organization or as special support funds. Donations for projects fall into the latter of these, which QV�\]ZV�ZMY]QZM[�\PM�XZWRMK\�\W�JM�[XMKQɇML�and limited to a certain purpose.

As online and mobile services are still more or less newcomers in the social and health sector, they have so far been mainly funded with project donations. It used to be that without proper foreknowledge and experience on the possibilities of online services, the reasonable thing for projects was to be narrowed down to doing pilot KI[M[�IVL�ɇMTL�ZM[MIZKP��The Web Lowers the

Threshold to Get HelpBut now the situation has changed. Vast amounts of projects have been run and we are now aware that same principles of respect and humanity apply to meeting clients online than they do in face-to-face interaction. We have realized that the internet is simply a working environment among other working environments: work done online is an equally essential part of the services as the work done in meeting individuals and families in their homes.

Let us look at a recent example. A nurse is employed with an online service directed for people in need of support. The nurse’s primary job is in the same organization that runs the online service as a part of its development. Since nursing is her primary job, she does online work outside her own working hours and in addition to

her regular job – working with young people online is labeled as development work. So in this case her salary comes from two separate sources and due to red tape, her two jobs

cannot be merged into one.In the context of face-to-face social

and health work such a model simply will not work, especially not online. As mentioned before, the idea cannot be to overload workers even more than they are now but to organize their work in a more client-friendly way. There is no synergy to JM� PIL� QN� XMWXTM� IZM� NWZKML� \W� IZ\QɇKQITTa�separate two forms of the same job. Tacit knowledge will be born… and remain in the private reserves of a single employee. Tacit knowledge is something that has seen P]OM�MɆWZ\[�NWZ�Q\�\W�JM�[]KKM[[N]TTa�[PIZML�QV� \PM� ɇMTL� WN� [WKQIT� _WZS"� Q\� Q[� \PMZMNWZM�

“The web is a dynamic environment. There social

work is conducted over a much lower threshold than in the real world”

31


even more backward that it should remain so hidden in actions meant to develop the system.

The web is a dynamic environment. There social work is conducted over a much lower threshold than in the real world, and a simple situation of providing preventative information to a client can quickly turn into a meeting where the social worker attempts to repair and reverse negative developments. All clients looking for these web services do so in order to get help for their complicated situation in life. This means both the social worker and the client need to have a clear picture of what and how big their responsibility is and how it connects with the real world.

It is unreasonable both for clients and \PM� [\IɆ� \PI\� [W� U]KP� WN� \PM� ZM[W]ZKM[�are channeled into development projects. In reality, online services are all about the varied and high tempo care and service work, just like the face-to-face meetings between client and sector employee.

Options Create More WelfareIn order for the welfare society and its services to remain and prosper, it is essential to recognize that web-based services must not completely replace traditional services but the two should work in concert and overlap where it’s practical. There have been worries concerning online services and if they create a false sense of security and satisfaction about the availability and interactivity of social and health services. Research shows, however, that users tend to view internet assistance more as an addition to traditional services than as a complete replacement for them.

There will without a doubt always be a segment of service users and providers who prefer face-to-face appointments to online interaction. On the other hand, there are also plenty of people who feel that

the new technology allows access to the services easily and anonymously; for some, this can be a crucial factor in seeking help and being ready to receive it. The children of today are growing up to be the digital native youths of tomorrow and for them conducting all of their business online, including issues of personal wellbeing and their rights and duties as a citizen, will be second nature.

We must consider both of these facts carefully and continue to strive to best meet the needs of our clients. It is our hope that the next step in the digital and mobile development of the sector would be for developers to come together in creating a new model, a model that could help integrate all the best innovations into the real world service systems.

1\� _QTT� ZMY]QZM� I� UWLMT� \PI\� Q[� ɈM`QJTM�enough not to be made immediately obsolete by the web’s rapid evolution. We also need for the system to run primarily on the terms of the employees _PW�ITZMILa�JMIZ� I� [QOVQɇKIV\� J]ZLMV�I[�well as the clients who lead their lives under increasingly challenging situations. A system that merely serves the project framework simply will not do anymore. The web and mobile solutions already have a [QOVQɇKIV\� ZWTM� IVL� LMUIVL�� <PMZMNWZM�it must be thoroughly considered how to make them a natural part of the welfare society of tomorrow.

Sources:

5IZS[��1[IIK��5�#�+I^IVVIOP��3I\M#�/MOI��4QVI��Hands-on Help. Computer-aided Psychotherapy.

Hove and New York: Psychology Press

1V\MZVM\QV�Sĕa\\ħ\QTI[\W"�P\\X"��___�[\I\�Ʌ�\QT�[]\Q^Q��[]\Q^QG��G��GSI\G��GɅ�P\UT��

:)AV�I^][\][[\ZI\MOQI��"�P\\X["��___�ZIa�Ʌ�[Q\M[�LMNI]T\�ɅTM[�MUUQGUMLQIJIVS�)^][\][[\ZI\MOQIG��XLN��

4ISQ�ZIPI�I]\WUII\\QI^][\]S[Q[\I"�P\\X"��___�ɅVTM`�Ʌ�Ʌ�TISQ�IRIV\I[I��

32


“ONLINE SOLUTIONS NEED TO BE

INTEGRATED INTO SOCIAL AND HEALTH SERVICES, NOT TO BE

KEPT SEPARATE.”

#silentsignal

33


34


w)\�ɅZ[\��WVTa�\PM�UW[\�WJ[MZÎV\�_QTT�LM\MK\�\PM�[W]VL_I^M[�ZQXXTQVO�QV�\PM�IQZ�w

The Silent Signal trend report gathers the whispers under one title and presents NZM[P� M`XMZ\� XMZ[XMK\Q^M[� WV� \PM� MɆMK\� LQOQ\ITQbI\QWV� PI[� WV� KWV[]UMZQ[U��citizenship and companies.

�<PM�ZMXWZ\��[KPML]TML�\W�IXXMIZ�\PZMM�\QUM[�I�aMIZ��KWV[Q[\[�WN�LQɆMZMV\�M`XMZ\�articles by top actors of digitalism, marketing, advertising and communication both from Finland and abroad.

<PM�;QTMV\�;QOVIT�_I[� ɇZ[\� X]JTQ[PML� QV� .MJZ]IZa� �� <PM� ZMXWZ\� Q[� NZMM�WN�charge and free to use, except for commercial purposes. Regarding the use of the report, the terms of the Creative Commons license apply. Please remember to make correct references (Vapa Media, The Silent Signal trend report) and provide a link to the original report whenever you use or cite the contents of the report. <PM�ZMXWZ\� Q[�IÎQTIJTM� NWZ�LW_VTWIL� QV�.QVVQ[P�I\�___�PQTRIQVMV[QOVIITQ�ɇ�IVL� QV�-VOTQ[P�I\�___�[QTMV\[QOVIT�ɇ��

Join the conversation: write and comment on the changes taking place on the Facebook-page of the report at facebook.com/hiljainensignaali or comment in twitter #silentsignal !

This report would not have been possible without the help of Vapa Media’s work community, graphic designer Janne Melajoki, all the article authors and the active web public interested in content and digitalism.

Helsinki, May 2013

CONTACT:

Hilkka RissanenVapa Media OyTel. +358 40 8301192-UIQT"�PQTSSI�ZQ[[IVMV(ÎXIUMLQI�ɇ�Twitter.com/hilkkariss

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The Silent Signal –trend report is published by the content agency Vapa Media.

>IXI�5MLQI�Q[�.QVTIVLu[�ɇZ[\�IOMVKa�[XMKQITQbML�in content strategy. We believe in meaningful content and in its power to attract attention.

We create content strategies for companies IVL�WZOIVQbI\QWV[�IVL�PMTX�ÎZQW][�IK\WZ[�LMɇVM�what platforms, messages and content solutions to use in order to best reach their clients on the web. In addition to this, we also do client-oriented website design and social media functions that WɆMZ�QV\MZM[\QVO�KWV\MV\�\W�\IZOM\�I]LQMVKM[�

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Silent Signal 2/2013

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