Business Transformation through Innovation and Knowledge Management: An Academic Perspective 713 Planning Continuity – Case Manufacturing Industry Raija Halonen, Department of Information Processing Science, University of Oulu, Oulu, Finland & Centre for Innovation & Structural Change, National University or Ireland Galway, Ireland raija.halonen@oulu.fi Sari Koutonen, Tieto Finland Oy, Kuopio, Finland sari.koutonen@tieto.com Abstract Enterprises need to prepare themselves for versatile threats such as problems with information systems, fires, nature catastrophes and loosing their key persons. To overcome these threats, the enterprises should have plans to continue their business. So far, there is only little research done on business continuity and business recovery. The current study aims to add scientific knowledge with an empirical study that was carried out in a private enterprise. The research project was a part of a greater scheme that was initiated to investigate the current procedures and to improve and design a recovery plan to be implemented for the whole enterprise. Keywords: business continuity plan, business continuity management, business recovery planning, information risk management. Introduction Today, enterprises face more threats than ever in their history. The threats are created by individuals either in the organisation or outside of it; or they happen due to natural catastrophes. For instance, problems with information systems, terror attacks or fires represent threats that only seldom are forecasted. Therefore, the enterprises should have explicit plans that guide them in continuing business if the threat is realised. (Hawkins et al., 2000.) Typically, the prior research on continuity planning has focused on general continuity of business, e.g. about managing information security risks and business; risks in outsourcing information technology (IT); and making risk analysis for recovery (Aubert et al., 2005; Colwill & Grey, 2007; Fallara, 2004; Herbane et al., 2004; Iyer & Sarkis, 1998). However, not all enterprises value business continuity: instead, some think it as a burden that spends time, money and resources (Jordan, 1999; Hayes, 2006). It seems that the requirements set by manufacturing enterprises are not explored (Kepenach, 2007; Lam, 2002). This shortage in the prior knowledge is compensated by our study. Based on our empirical study in a manufacturing enterprise, we sought answers for the following research questions: How are risks related with automation processes and vendor chains noted in continuity planning? How is the management of information technology risks tied as part of business continuity and recovery planning? To response the research questions, a case study was conducted in a Nordic manufacturing organisation. The case study consisted of a pilot project that aimed to produce applicable models for continuity planning, recovery planning and risk management in the organisation.