Building Tieto s full lifecycle services through Consulting & System Integration (CSI) Henrik Sund

Transcription

1 Building Tieto s full lifecycle services through Consulting & System Integration (CSI) Henrik Sund

2 Consulting & System Integration (CSI) Based on the new structure effective 2013 (pro forma) Customer sales 1 9/2012: EUR 360 million (pro forma) Personnel: ~ (pro forma) Market position: #1 in Finland #4 in Sweden Sales by country Sales by industry Finland Sweden Germany Italy Norway Other Financial Services Pro forma figures in this presentation are preliminary and may be subject to changes during the completion of the company s operating model design Public, Healthcare & Welfare Manufacturing, Retail & Logistics Telecom, Media & Energy

3 CSI market driven by pockets of growth Growth expected to accelerate both in the US and EU accelerate across all sectors Selling environment appears to be stabilizing Certain offerings are clearly more in focus BI Mobility ERP Morgan Stanley CIO Survey 10 Oct 2012

4 Full lice-cycle services and customer process knowledge create our competitive edge Customer's business strategy Business Process Transformations Consulting: Transformation & change management IT Transformations Process E2E responsibility Service E2E responsibility Customer's business processes Customer's business applications Business Process Performance System Landscape Optimization (Modernization / Outsourcing / aas) Front End Applications Productivity Services Infrastructure Services ERP & Enterprise Applications Information Services Integration Services Operations Management Consulting: Business Process Management System Integration: Application Development & Application Management

5 Customers have expressed the need for trusted and innovative partner for transformation services You are good at managing today s IT operations, while you can add significantly more value to us by extending to business transformation. You have pursued offshoring successfully, giving you a potential to deliver more value to us. While we find islands of unique expertise in your organization, we need to see the full value of integrated Tieto. Tieto knows our core processes at times better than ourselves given the long term relationship.

6 Our existing services stack can already today support our customers transformation needs Example Tieto solution for customer experience management for a retail bank Solution includes Consulting and design Solution development Application maintenance Operations management

7 We have an exciting opportunity to strengthen our services stack and provide full life-cycle IT services Tieto s full life-cycle IT services Consulting and system integration Industry products Managed services Current position Market opportunity Modernization Consulting Integration Operations Consulting Integration ~4 500 experts currently delivering consulting and system integration services Managed services delivering critical services to ~800 customers Differentiating industry products e.g. Financial services and Healthcare Cross selling potential to top customers in Finland and Sweden >100 M over next years

8 This provides an opportunity for revenue growth and improved profitability EBIT % Appllication Maintenance CSI 2012 Consulting and integration Average market growth Growth CSI 2016 Tieto target profitability 2016 Size of the bubble represents revenue in 2012 and 2016 (M ) CSI focus Initially 7 prioritized offerings Cross-sell potential in core markets Repeatability will increase profit Industry consulting prioritized on selected business processes

9 CSI will focus on reinforcing the identity of an Integrated Tieto during 2013 During 2013 Reinforce Tieto identity through CSI services Active cross-selling of CSI services to top 50 customers in the Nordic region Building our identity on prioritized offerings and needed competencies Consulting & transformation services Standardization, automation and repeatable building blocks based on increased knowledge re-use Strengthening our offshore capabilities Transforming services towards cloud Consolidation of CSI non-core operations

10 Tieto top customers in Finland and Sweden give good cross-selling potential for CSI services Cross-selling potential of CSI services to top customers in Finland and Sweden over EUR 100 million over following years Telecom, Media, Energy, Utilities Public & HCW Sweden Finland Sweden Finland Our main competition varies between customer segments At very large global customers Global IT companies Offshore IT companies Manufacturing, Retail & Logistics Financial Services Sweden Finland Sweden Finland Cross-selling potential of CSI services to existing Tieto top customers (EUR million) At large and midsize customers large IT companies with local presence smaller local niche players

11 During 2013 we will prioritize key offering domains to further strengthen our service stack Financial Services Public, Healthcare and Welfare Manufacturing, Retail and Logistics Telecom, Media & Energy Industry consulting Mobility Business Intelligence Application management SAP Advanced case management Intelligent traffic solutions Prioritization built on immediate cross-selling potential Ease of repeatability & integration with our products and managed services Based on changing needs in our customer s business environment

12 We will leverage our success stories in complete IT life-cycle to build momentum to develop enterprises Savon Voima Verkko Electricity Outage Information System Prisma Russia Mobile Shopper How to increase customer loyalty with mobility? Mitä tänään syötäisiin for Ruokakesko (Pirkka) Mobile Field Engineer Tieto Lean ERP Effica Läsnä Daycare Helsinki Appstore Apps.hel.fi Business & IT Transformation / Concept Mobile Tieto Industry Solutions.. ECM BAS SOA Portal Single sign on and identification gateway TNS! Tieto mobile gateway Private appstore Tieto Open Application Suite RDBMS NoSQL BigData Tieto Cloud Server / Infrastructure Services

13 . and societies. City of Helsinki case management It will allow the city to reduce its paper consumption by 40 percent in This will generate savings of approximately EUR 300,000 Process E2E responsibility Service E2E responsibility Vision of electronic case management DOCUMENT AUTHORING MEETING PROCEDURE COUNCIL MEETINGS Application maintenance Infrastructure services CASE PROCESSING DOCUMENT MANAGEMENT RECORDS MANAGEMENT Open access drives transparency in democracy Faster processing by reducing case processing bottlenecks Efficient decision making through paperless transactions

14 through information technology Modernizing Helsinki Region Transport will unify the current passenger information systems and bring up-to-date passenger information to all Helsinki region public transport contactless ticketing system Real-time transaction integrated ticketing and information system Modernization Concept and design Real-time passenger information Independent service components EMV compliant Mobility Security UX design Program management.. ECM Asset & resource management SOA & Integrations 3rd party hardware Online sales Single sign on & Identity management Testing Business Intelligence Application installation Application maintenance Database and middleware 24/7 support services & field services & operational support services

15 Our journey towards providing a complete IT life-cycle has began 2014 and beyond Build organization and transition to an industry driven structure Start consolidation of non core operatings Cross-sell of CSI services to existing customers Strengthen our core business and bring more focus Invest in first set of offerings towards integrated solution Internal transformation journey as well Accelerate CSI growth in Sweden Leverage footprint in Finland and Sweden and expand to Nordics (and other East European countries as Continue streamlining operations

16 We believe in becoming world class And our customers believe in us for their transformation needs Innovative front-end solutions Solution built with repeatable building blocks for faster time-to-market Industry expertise and thought leadership - solving customers business challenges with the help of IT Standardized core solutions for the enterprises Create new repeatable IT solutions for standard business activities 2010 Tieto Corporation AM factory with streamlined processes

17 2011 Tieto Corporation