Tieto Digitalization Journey. Your journey into the heart of digital

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1 Tieto Digitalization Journey Your journey into the heart of digital

2 Welcome Tieto aims to become customers first choice for business renewal as the leading Nordic software and Services Company. Digitalization is proceeding with accelerating progress in society and we can observe how the rapid pace of technological progress is influencing consumers, and how new behaviors and expectations are taking form. Technologies are affecting society and beginning to disrupt business models that don t live up to the new requirements and they are pushing companies to start looking for new business models that meet the increasing need for efficiency, competitiveness, and flexibility for both short and long-term growth. Tieto s consulting practice aims to help companies that are undergoing a disruption brought by digitalization. We help customers with the transformation, from strategy to implementation. Tieto s way of working is that we staff each assignment with a selection of best consultants with mutually complementary capabilities, we utilize best consulting practices and approaches, and we bridge the gap between business and IT. In the Forest, Retail, Manufacturing, Financial Services, Telecom, and Public Healthcare and Welfare industries, success is built as a result of our industry expertise with IT understanding. If you d like to learn more about what we can do to create value for your business, please feel free to contact me or any of the team. Ari Hirvonen Head of Industry Consulting, Business Development Tieto Finland

3 Introduction Advancing technologies are making it easier and faster for customers to make purchase decisions and choose between competing suppliers. This is leading to the ecosystem economy. Companies need external services and partners who can complement their in-house offering to create added value. Tieto Digitalization Journey is Tieto s approach to design, plan and govern duality of Digital and traditional business and IT. Digital transformation is becoming a need of the hour and the key differentiator for many companies across the globe. Tieto Digitalization Journey is an end-to-end concept to Strategize, Design, Plan and Execute digital transformation. Tieto has extensive methodology, offerings, templates and tools for all levels and phases of the journey. These assets, processes and activities are essential aspects of digital transformations that Tieto possesses along with the capabilities to delivery business results fast. The digitalization journey emphasizes the importance of leveraging on what you have today to build a solid foundation for tomorrow, instead of thinking of creating something new out of thin air.

4 Story Disruption Drives Organizations to Digitalize In this digital age, companies are exposed to the constant pressure of reinventing themselves. Digital transformation is influenced by technology innovation, customer behavior, demand and external factors. Disruptive technologies give early adopters the opportunity to re-innovate products and services, and to redesign value chains and business models. This is the time when business leaders have to reshape organizations to drive change and take advantage of the strategic assets for successful digitalization transformation. The Duality Challenge: leverage the existing to build the future Duality of Digitalization and efficient execution of current business in parallel is the core foundation in Tieto Digitalization Journey. Visualize a modern cityscape presenting this duality (illustrated below): on the left you see the traditional part of the city, with its smokestack industries and conventional infrastructure, while on the right side you find the smart modern city, with its intelligent infrastructure and buildings. When building your future, you need to keep the old part of the city functioning, while at the same time developing the new city across the bridge. You need to run your business in dual mode. Your future digital business needs to be built on your present assets, whether customers, knowledge, or data. The key is making use of what you have today to build a solid foundation for your digital efforts of tomorrow. You will achieve this in three phases: Leverage the existing Run business in dual 1 2 mode 3 Orchestrate the future Harvest the legacy including data and functionality. Modernize and create foundation for the digital. Balance the traditional and new while building digital future. Take up business as digital and digital as business Become ecosystem/partner driven business and technology platform led attractive player

5 Approach How to make the transition with Tieto Digitalization Journey Successful digital transformation works in an iterative approach leading from transitioning to an industrialized delivery to modernizing existing assets and ensuring continuous improvement. The primary focus is on enabling business growth in an agile way while adapting to the ever-changing business landscape. A step-by-step guide Digital mode Disrupt and evolve Technology acceleration Innovations and disruptions Digital strategy Transformation management Digital platform Modernization & asset harvesting Customer Experience Transition to industrialized delivery Service Integration & Management (SIAM) Service governance Continuous improvement Traditional mode Industrialize and optimize

6 1. Transition to industrialized delivery Modernized and digitalize existing processes and infrastructure Maximize cost-benefit ratio 2. Formulate a digital strategy Modernized and digitalize existing processes and infrastructure Maximize cost-benefit ratio 3. Run and modernize in parallel through transformation management Integrated approach to execution of the digital roadmap. 4. Handle the entire service ecosystem - Service integration and management Disruptive innovation is a joint effort, includes combining external services and ideas with your own offerings Service Integration and Management (SIAM) enables value creation in an ecosystem for both traditional and digital business. 5. Build a digital platform for the future By iteratively modernizing your current IT and connecting it with new digital services we create a foundation for your digital platform. 6. Focus service governance on value creation Service governance is an asset that supports your customer value perspective 7. Modernize your existing assets to boost digitalization Handle process modernization, application modernization, and infrastructure modernization simultaneously, while also enabling ecosystem collaboration. 8. Ensure continuous improvement Continuous improvement ensures improved efficiency and productivity, plus waste elimination. On the new smart/ecosystem-driven side, it means improved delivery quality and innovation.

7 Toolbox Tieto Digitalization Journey Transformation Management Office Digital Strategy, IT Strategy Digital Start-up Tieto Digitalization Journey Consulting Solutions Portfolio Assessment Data Harvesting, legacy decommissioning, data migration Process Digitalization Architecture Management Office Change Management Office Digitalization Reference Architecture SIAM, ATOM etc. Mainframe Modernization Tieto Consulting Toolbox Tieto Digitalization Journey is an end-to-end concept to strategize, design, plan and execute digital transformation. Tieto has extensive methodology, offerings, templates and tools for all levels and phases of the journey. With these assets in combination with one of the largest digitalization and IT modernization consulting capability in the Nordic, Tieto is capable to delivery business results fast and reliably. With successful value delivery Tieto is the leading partner and advisor among Nordic customers in their digitalization journeys.

8 Key Solutions 1. Digital Strategy Tieto as a Digital partner, helps in building and executing the customers Digital Strategy. Digital Strategy building is a four step process, starting with defining a digital vision, moving to the key focus areas, building a roadmap, and making business case. Key Features Strategy emphasizes on a. Value in process b. Value in results c. Value in execution Key Benefits Enables customers to transform their capability to gain competitive advantage Clear recommendation for strategic decision making and maximizes customer value creation 2. Transformation Management Office is the management and governance engine for Tieto Digitalization Journey. It helps to manage and governs the analysis, planning and execution of transformation. Key Features Digital tools for structured and transparent transformation ensuring customer engagement Real-time analytics tools for decision making and follow up on change readiness Key Benefits Experienced consultants, architects and experts Transformation toolbox that ensures continuous results, mitigates risks 3. IT Strategy In the rapidly changing technology world, an IT strategy is typically a long term action plan that covers all facets of technology management. An IT strategy precedes the Digital strategy. It is an iterative process which is aimed at aligning IT capabilities to the organization s business strategy and requirement. Key Features Harmonized with the business strategy Strategy sets future direction for IT functions in the organization Key Benefits Assists businesses to be proactive to changes in the marketplace. Helps avoid wastage through right choices in technology

9 Why Tieto Tieto is the largest company in the Nordics that provides full lifecycle services in IT, as well as product development, for private and public organizations. Founded in 1968 Headquarter in Helsinki, Finland experts Operates in 20 countries Net sales 1.5 billion EUR #1 in IT services in Finland #7 in IT services in Norway #1 in telecom R&D in Europe #2 in IT services in Sweden

10 Standardized services & predictable quality Both Change-IT & Run-IT experience Customer network to share experiences Pragmatic approach: Agile, rapid, innovations, co-creations Customer & Industry Knowledge Practice proven methodologies and tools 400+ Digital Experts Nordic and Central Europe Focus Strong local presence in the Nordics Best fit solutions through technology alliances End to End Services We are your partner, transforming People, Process, and Technology to create sustainable business success and enhanced Customer Experience.

11 How do I get started? The future of business, regardless of industry, is digital. You need to leverage your existing assets while simultaneously building the foundation for new innovation. When you face the need to move your business into the digital age, don t worry if it at first seems a complex exercise. We at Tieto have helped a large number of businesses, small and large, to leap into the modern way of achieving success in highly competitive markets. Read more on our web page tieto.com/digitalize and blogs perspectives.tieto.com Follow Us Want to know more! Ari Hirvonen Head of Industry Consulting, Business Development Telephone: ari.p.hirvonen@tieto.com

12 Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems.