Private-sector building developers and contractors have dominated the Finnish housing construction market over the last few years. Almost all these housing projects have been carried out using traditional procurement methods and all the contractors have utilized the same construction technology. Competitive tendering has been based on labour and material costs. Contractors have neither been encouraged to develop their own concepts for production nor to abandon the price competition approach. The result has been an end product lacking individuality. Competitiveness has not been based on product development, because innovation has not traditionally been an intrinsic part of the business. The need for innovative development is increasing, however, as clients in the construction market are increasingly demanding new housing concepts that offer more flexibility and variety. According to recent research, home buyers nowadays assume that their new homes will be capable of being adapted to their evolving life circumstances. The key issues regarding the fulfilment of clients' dwelling needs are the functionality and adaptability of the spaces within ecologically sustainable solutions, together with the possibilities afforded by information technology for various new fixtures. Today's contractors are being forced to change their strategies in order to secure a viable future. The most advanced contractors differ from their competitors by integrating their technical and service strategies. As a result, these contractors have taken advantage of their own innovations, such as the lean building process in residential construction. This paper will discuss experimental housing projects in which product orientation has been implemented successfully. The aim of these research projects has been to improve competitiveness by utilizing technological innovation and building processes with proven success. A concrete example of sophisticated product orientation is the YIT. Media Home launched by YIT-Rakennus Oy, one of Finland's biggest contractors in the housing sector. A major aim of the YIT Media Home brand is to incorporate and integrate the latest information technology innovations into its development and implementation. These include fixed broadband Internet access with a local area network, the introduction of modern security services and HVAC controlling systems.
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