While previous models for understanding value creation were based on traditional production operations, our new models differentiate between business activities such as production, problem solutions or network services.
New agreement signed today
A new agreement was entered into today between BI and Telenor to the effect that the professor chair for strategy and management will be continued until October 2012. This endowment is worth NOK 5 million.
- Telenor’s support towards the professorship in international strategy and management enables BI to concentrate on research into issues that are important to the majority of the service industries, says Tom Colbjørnsen, President of BI Norwegian School of Management
Different businesses require different strategic models
- Understanding how value creation happens in the different lines of business is a crucial element of a business’s strategy, states professor Øystein D. Fjeldstad of BI, who holds the endowment chair at the BI Norwegian School of Management.
His research is a supplement and further development of the value creation models that were developed by professor Michael E. Porter at Harvard Business School in the mid-eighties. Research done by Prof. Fjelstad demonstrates that successful models for value-creation must begin with the nature of the company’s business, whether this is production, problem-solving or network services.
Professor Fjeldstad’s research has had considerably impacted Norwegian and International business and the research communities. His findings are used actively in fields such as telecommunication, banking and insurance, education, health services and defence. The research has also been included in international textbooks on strategic studies.
Thirty million in eight years
Telenor has a long tradition of supporting research at the BI Norwegian School of Management. In the period 2001 – 2008, Telenor has so far donated almost NOK 30 million to research at BI, and is now contributing another NOK 5 million. Telenor has previously supported BI’s centre management of telecommunications and grid operations and also financed the above-mentioned chair of international strategy and management, as well as several other projects.
- Our collaboration with BI in this field provides important knowledge to Telenor and the industry in general. Telenor and Professor Fjeldstad have worked together since the early 1990s, and some of the ground-breaking value creation models partly resulted from this work, says Jon Fredrik Baksaas, President and CEO of Telenor.