Ecosystem-Based Development on Managing Digital Transformation

Abstract

Digitalization, megatrends, the new opportunities offered by technologies have caused societies to break through towards the fourth industrial transformation. It will change the whole society and its structures alongside the business. All societies, not just corporations, but also cities and regions, have to prepare for the change caused by digitalization. That challenges also traditional organizational structures. This requires a new type of business operation and organization. As a nation, Finland is adopting an ecosystem approach to resource-efficient orientation, avoiding mutual competition and increasing rapid innovation activity. Agile implementation of new issues is essential in different ministries. The national goal is to be the leading country in the exploitation of digitalization. Cities are responding to the rapid development of society and are moving from traditional organizational structures to ecosystem development and building their own network to involve in developing new operations. While cities largely receive their own funding as taxes, development and change management must be considered in the same way as in businesses. A key measure of efficiency is the improved service and achieved cost efficiency. The article examines the transition to ecosystem-based development of the Hämeenlinna city on the Finnish Growth Corridor.