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Joni Lehtonin from Tieto shared his ideas in conference Change, quick! on April 24th 2014 in Tallinn, Estonia
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Transformation from Equipment Sales towards Performance Businesses
Joni Lehtonen, MBA, Lean SixSigma Black Belt
Global Solution Head
Tieto, Industrial Internet
© 2013 Tieto Corporation 2 2013-06-07
Tieto is the largest Nordic IT services company
providing full life-cycle services for both
private and public sectors.
We have a global presence through delivery
centres.
We are committed to develop enterprises
and society through IT.
© 2013 Tieto Corporation 3 2013-06-07
Key facts 2013
Sales by Industry Group, %
Financial Services
Public, Healthcare & Welfare
Manufacturing, Retail & Logistics
Telecom, Media & Energy
Product Development Services
Net sales
EUR 1 671 million
EBIT excl. one-off items
EUR 143.8 million, 8.6%
➔ Operations in more than
20 countries
➔ About 15 000 IT experts
© 2013 Tieto Corporation 4 2013-06-07
Manufacturing in Tieto
• Proven industry knowledge
• Serving over 400 customers within manufacturing industry
• Annually over 1200 delivered projects for manufacturing customers
• Over 1000 experts working for manufacturing customers
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Modern Day
Manufacturing
© 2013 Tieto Corporation
Strategic Goals are evolving
MIN
DS
ET
TARGET
Inside-out
Cost Service
Stage 1
Siloed
goals
Stage 2
Scaling
supply chain
functions
Stage 3
Integrated
supply chain
Stage 4
Demand-
driven
value
networks
Stage 5
Value
creation
network
2000
1995
2005
2010
2015
2017
2020
2000-2005
Revenue
2005-2010
Profits
2010-2015
Return on assets
Adapted from Gartner
Outside-In
© 2013 Tieto Corporation
Evolution of Business Environment
7 Toinen aalto -seminaari 1.10.2013
Evolution of Consumers Evolution of Business
Models
• From Products to
Performance
• Smarter Machines
• Hyper Connected
Environments
• Environmental Expectation
• Make to Me –Economy
• Digital and Demanding
consumers
• Aging experts (In EU/US)
• Digital Engineering
• Boomerang Effect
• Mini-factories, automation,
robotics
• Lot size of one
Evolution of Production
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Optimised operations
We bring transformation experience to our
manufacturing customers, leveraging success
from banking, insurance, telecommunications
and retail sectors, combined with
comprehensive portfolio of services.
Business transformation enabled by technology
Optimised operations 1
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Real time supply chain
Demand-supply chain has evolved into
managing complex value networks,
shortening lead times, minimising inventories,
maximising quality and usability.
Real time supply chain
Orchestrating global networks of physical goods
2
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Industrial services
Data-driven approach creates more value to
customers out of existing install-base with
services and embedded intelligence.
Industrial services
More value from services and digital assets
3
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Industrial Internet Joni Lehtonen
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Industrial Internet Video
© 2014 Tieto Corporation
Industrial revolution towards digitized businesses
Moving into service business
Orchestrating the global networks
of physical goods
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• New Business Models
• Add on Sales
• Improved Profitability
• Stabilized Business
Industrial Services
More value from services and digital assets
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Journey Towards Services Provider
Customer
Services
Asset
Monitoring
Services
Asset
Controlling
Services
Asset
Optimization
Services
Business
Extension
Services
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Tieto’s offering for Industrial Services
Tieto Industrial
services
Social & mobile networks
Real time analytics
Intelligent machines
Back-end integration
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How our Customers are already Benefitting?
© 2013 Tieto Corporation
Driver’s view
18 Toinen aalto -seminaari 1.10.2013
Vehicle control
Real-time speed
Onboard camera Movement detection
Movement history
© 2013 Tieto Corporation
Fleet manager’s view
19 Toinen aalto -seminaari 1.10.2013
Events and alerts Fleet External sources Fleet location
© 2013 Tieto Corporation
Single vehicle view for Fleet manager
20
Events and alerts Proposed actions
Revenue calculation
Usage details
Realtime situation
