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Building Tieto’s full life-cycle services throughConsulting & SystemIntegration (CSI)Henrik Sund
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Sales by countryFinland
Sweden
Germany
Italy
Norway
Other
Sales by industryFinancial Services
Public, Healthcare& WelfareManufacturing,Retail & LogisticsTelecom, Media &Energy
Customer sales 1–9/2012:EUR 360 million (pro forma)
Personnel:~ 4 500 (pro forma)
Market position:#1 in Finland#4 in Sweden
Consulting & System Integration (CSI)Based on the new structure effective 2013 (pro forma)
Pro forma figures in this presentation are preliminary and may besubject to changes during the completion of the company’soperating model design
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CSI market driven by pockets of growth
Morgan Stanley CIO Survey 10 Oct 2012
Growth expected to• accelerate both in the US
and EU• accelerate across all sectors
Selling environment appearsto be stabilizing
Certain offerings are clearlymore in focus• BI• Mobility• ERP
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Process E2E responsibility
Full lice-cycle services and customer processknowledge create our competitive edge
Customer's business strategy
Business Process Transformations
IT Transformations
Serv
ice
E2E
resp
onsi
bilit
y
Customer's business processes
Customer's business applications
Business Process Performance
System Landscape Optimization (Modernization / Outsourcing / aaS)
Front End Applications
Productivity Services
ERP & EnterpriseApplications
Information Services
Integration Services
Infrastructure Services
Consulting:Transformation &change management
Consulting:Business ProcessManagement
System Integration:Application Development &Application Management
Operations Management
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Customers have expressed the need fortrusted and innovative partner fortransformation services
”You have pursuedoffshoring successfully,giving you a potential todeliver more value to us.”
“While we find islands ofunique expertise in yourorganization, we need tosee the full value ofintegrated Tieto.”
”Tieto knows our coreprocesses at times betterthan ourselves given thelong term relationship.”
”You are good at managing today’sIT operations, while you can addsignificantly more value to us byextending to businesstransformation.”
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Our existing services stack can already todaysupport our customers’ transformation needs
Example Tieto solutionfor customer experiencemanagement for a retailbank
Solution includes• Consulting and design• Solution development• Application maintenance• Operations management
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We have an exciting opportunity to strengthenour services stack and provide full life-cycle ITservices
Integration OperationsConsulting
CurrentpositionCurrentpositionCurrentposition
Consulting Integration
Marketopportunity
Marketopportunity
Marketopportunity
Tieto’s full life-cycleIT services• Consulting and system
integration• Industry products• Managed services
• ~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
Modernization
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This provides an opportunity for revenuegrowth and improved profitability
CSI focus
• Initially 7 prioritizedofferings
•Cross-sell potential in coremarkets
•Repeatability will increaseprofit
• Industry consultingprioritized on selectedbusiness processes
Size of the bubble represents revenue in 2012 and 2016 (M€)
Tieto target profitability 2016
Consultingand integration
AppllicationMaintenance
EBIT
%
CSI2012
CSI 2016
Growth
Averagemarket growth
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During 2013
• Active cross-selling of CSI services to top 50customers in the Nordic region
• Building our identity on prioritized offerings andneeded competencies
• Consulting & transformation services• Standardization, automation and
repeatable building blocks based onincreased knowledge re-use
• Strengthening our offshore capabilities• Transforming services towards cloud
• Consolidation of CSI non-core operations
CSI will focus on reinforcing the identity of anIntegrated Tieto during 2013
ReinforceTieto identitythrough CSI
services
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Tieto top customers in Finland and Sweden givegood cross-selling potential for CSI services
Sweden
Finland
Sweden
Finland
Sweden
Finland
Telecom, Media,Energy, Utilities
Public & HCW
Manufacturing,Retail & Logistics
Financial Services
Cross-selling potential of CSI services to top customers in Finland andSweden over EUR 100 million over following years
Sweden
Finland
Our main competition variesbetween customer segments
At very large global customers› Global IT companies› Offshore IT companies
At large and midsize customers› large IT companies with localpresence› smaller local niche players
Cross-selling potential of CSIservices to existing Tieto topcustomers (EUR million)
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During 2013 we will prioritize key offeringdomains to further strengthen our servicestack
• 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
FinancialServices
Public,Healthcareand Welfare
Manufacturing,Retail andLogistics
Telecom,Media & Energy
Industry consulting
Mobility
Business Intelligence
Application management
SAP
Advanced case management
Intelligent traffic solutions
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Tieto Open Application Suite
Tieto Cloud Server / Infrastructure Services
Business & IT Transformation / Concept
Tietomobile
gateway
Industry Solutions
PortalSingle sign on and
identificationgateway
SOA PrivateappstoreTNS!
BigData
BASECM
RDBMS NoSQL
..
Savon VoimaVerkko
Electricity OutageInformation System
Prisma RussiaMobile Shopper
How to increase customer loyalty withmobility?
Mitä tänäänsyötäisiin
for Ruokakesko(Pirkka)
Mobile FieldEngineerTieto Lean
ERP
Helsinki AppstoreApps.hel.fi
We will leverage our success stories incomplete IT life-cycle to build momentum todevelop enterprises …
EfficaLäsnäDaycare
MobileTieto
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…. and societies ….It will allow the city to reduce its paper
consumption by 40 percent in 2011.This will generate savings ofapproximately EUR 300,000
Vision of electronic case management
DOCUMENTAUTHORING
MEETINGPROCEDURE
CASE PROCESSING
RECORDSMANAGEMENT
DOCUMENT MANAGEMENTCOUNCIL
MEETINGS
Process E2E responsibility
Serv
ice
E2E
resp
onsi
bilit
y
City of Helsinki case management
Application maintenance
Infrastructure services
Open accessdrives transparency indemocracy
Faster processingby reducing caseprocessing bottlenecks
Efficient decisionmakingthrough paperlesstransactions
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… through information technology
Modernization Concept and design
TestingOnlinesales
Single sign on& Identity
management
SOA &Integrations
BusinessIntelligence
3rd partyhardware
Asset &resource
managementECM..
Database and middleware
Application maintenance
Mobility Security UX design Program management
Application installation
Modernizing Helsinki Region Transport
contactless ticketing system Real-time transaction integrated ticketing and informationsystem
Independent servicecomponents
EMV compliantReal-time passengerinformation
24/7 support services & field services & operational support services
will unify the current passengerinformation systems and bringup-to-date passengerinformation to all Helsinki regionpublic transport
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Our journey towards providing acomplete IT life-cycle has began
2013
• Cross-sell of CSI servicesto existing customers
• Strengthen our corebusiness and bring morefocus
• Invest in first set ofofferings towardsintegrated solution
• Internal transformationjourney as well
2014 andbeyond
• Accelerate CSI growth inSweden
• Leverage footprint in Finlandand Sweden and expand toNordics (and other EastEuropean countries as
• Continue streamliningoperations
2012
• Build organization andtransition to an industrydriven structure
• Start consolidation of noncore operatings
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Industry expertiseand thought leadership
- solving customers’business challenges
with the help of IT
Innovativefront-endsolutions
Standardized coresolutions for the
enterprises
Solution built withrepeatable
building blocks forfaster time-to-market
AM factory withstreamlined
processes
Create newrepeatable ITsolutions for
standard businessactivities
We believe in becoming world classAnd our customers believe in us for their transformation needsVideo: City of Helsinki - Business benefits from AHJO *
* Video link available in the presentation published at www.tieto.com/Investors
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