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Digitalization and automation crucial for the survival of Scandinavian industries according to new study
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Digitalization and automation crucial for the survival of Scandinavian industries according to new study
There is an urgent need to create a new industrial paradigm in Sweden where not only environmental sustainability is safeguarded, but also new business models that secure long-term competitiveness. That is one of the key findings in the outlook report “The road ahead for Scandinavian industry”, published by Tieto and KTH today.

Digitalization is pressing on, customer demands are more challenging than ever and environmental concerns are calling for a re-organised approach toward industrial production. These challenges are top of the agenda for the Swedish industry today, and getting on-board with the new technology is a matter of survival. According to the new outlook report “The road ahead for Scandinavian industry”, published today by Tieto and KTH, achieving long-term competitiveness is well within the reach of all manufacturers, large and small – provided that action is taken now.

– In terms of digitalization, companies in process and discrete manufacturing need to act quickly to catch up with other business sectors such as telecom and retail. While this can be done in a relatively short time span, the goals and visions must be clearly defined. Replacing legacy systems is not just worthwhile but crucial for survival of the manufacturing industry, says Per Håkansson, Head of Manufacturing industry Sweden at Tieto.

 Nine key trends in Scandinavian industries
In the report, Tieto and KTH identify that there are multiple drivers behind the new potential industrial paradigm, including intelligent products, new ground-breaking materials, the sharing economy and Internet of Things. Together, they lay the ground for nine trends that should lead to the rethinking of business models among Swedish industries:

·
Scalable and mobile operations: New customer demands are steering manufacturers away from conventional high volume products towards scope-oriented products. The move to scalable, cost-effective IT systems and new business approaches does not only make strategic sense, it is a matter of survival. A highly likely consequence of this development is that the primary source of income for manufacturers will also change as they become far more dependent on a range of sub suppliers in different industry segments. In terms of operations at larger companies, having one main production site may well be a thing of the past.   

·
The production shift. In the production systems of the future, machine automation and Plug to Order (PTO) modules will be key components. PTO refers to new ways of managing production without having to purchase equipment which is used and then discarded. Going forward, industrial machines will be leased or hired and will also reconfigure themselves autonomously. When the equipment has become fully outdated and irrelevant, only then will it return to the service provider.

·
The coopetition effect. The principle of “coopetition”, a concept that was launched in the 1990s, is a method for bringing together companies with common interests to cooperate in order to attain a higher-value production. Recently, this method has proven to be very successful in helping to break new ground and to form solid working relationships that help companies to co-evolve in any given market sector. The coopetition effect is coming into full swing.

·
Cloud manufacturing. With the rapid evolution of information technology, ways of thinking and conducting business in manufacturing have changed fundamentally. In order to cope with rising volumes of data and fast-changing customer demands, decision makers need to have constant access to the very latest data and reports from factory floors and other key sources. If applications and communications tools are lacking in any way, business will be affected. Consequently, more and more companies are recognizing the clear advantages of adopting a cloud-based platform as an integrated information portal, accessible at any time, from any location. A recent development in cloud computing is the growing popularity of the pay-as-you-go model.

·
The metrology equation. The most promising research in production metrology is the development of in-line metrology methods and tools that are combined with strategic measurement planning. The latter is a key-factor in order to reduce costs in the assembly process due to poor quality, which may result savings as high as 40 per cent on the total production cost.

·
Adaptive scheduling. “Just in Time” is a manufacturing principle that has been around for many years, but few companies can pride themselves on having realized the concept. A tool that could potentially change all this is the Demand Responsive Planning (DRP) system which provides a fast route to workload control by systemizing the flow of activities.

·
Bridging the gap. Most support systems in industry today are based on PLC (Programmable Logic Controller) – a technology that was developed in the 1960s. Now is the time to invest in a series of steps that will introduce responsive and self-optimizing systems that can adapt to changing product ranges and deliveries.

·
Total connectivity. Creating the conditions for total connectivity – incorporating customer requirements, design, production and distribution – will be a key challenge over the next few years. To make a modern production system work efficiently, all data related to a product needs to be collected and analysed at every step, and then channelled to the right user.

·
The next frontier: additive manufacturing. Minimizing waste in the production cycle makes as much sense for business as it does for the environment. Adopting ecologically-geared processes will become a matter of competitiveness in the years ahead and a wide range of new approaches are now being tested and refined.

Both Sweden and Europe in large are predominantly driven by their industries, and any downturn in this sector influences its welfare society. Manufacturing is a major socioeconomic force and, as such, disregarding its needs would be catastrophic.

– Digitalization has to be tackled in one way or another. We are in complete agreement with KTH that now is the time to re-evaluate current IT systems. Companies that focus on the advantages of modernization stand a far better chance of surviving the storm, but also of building a prosperous future, says Per Håkansson.

The full report can be downloaded here: http://pages.tieto.com/Tieto-KTH-report.html

For more information, please contact:

Per Håkansson, Head of Manufacturing industry Sweden at Tieto,
tel. +46 (0)10 4810000) per.hakansson[at]tieto.com

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. www.tieto.com

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So far, close to 150 large Nordic enterprises and public sector organisations have chosen us as a partner in their transformation to cloud. Below, they share their stories and lessons learned with you.

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Tieto continues to support Folksam in its IT-infrastructure modernization journey
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Folksam, one of the largest insurance companies in Sweden, has chosen Tieto as its strategic IT and business partner to support the company’s IT-infrastructure modernization journey.
Tieto continues to support Folksam in its IT-infrastructure modernization journey
Folksam, one of the largest insurance companies in Sweden, has chosen Tieto as its strategic IT and business partner to support the company’s IT-infrastructure modernization journey. The extended agreement is valid for three years and covers both application services and modernization of the current IT infrastructure.

Folksam will, together with Tieto, continue their modernization of infrastructure and application operations. Tieto will deliver modern and holistic IT services to create favorable conditions for renewal and implementation of systems, technologies and digital services. The infrastructure will move from a traditional capacity service to cloud services, like Tieto Compliance Cloud, which will enable cost-efficient and standardized solutions.

– The key deciding factors for us was Tieto´s ability to offer a wide range of services that will enable Folksam´s digitalization journey with an infrastructure modernization delivered on a secure and reliable foundation. We are very confident with the choice of Tieto, as they have a deep understanding of our needs and have solutions that add value to our IT-operation, says Gunnar Fröderberg, CIO Folksam.

– We aim to take an active part in our customers’ digital transformation and are very proud of Folksam's continuous trust in us being part of their IT-modernization journey, says Per Johanson, EVP, Head of Financial Services Tieto.

For more information please contact:
Per Johanson, EVP, Head of Financial Services Tieto +46 76 821 20 29  per.johanson@tieto.com

Folksam is a customer-owned company. Folksam offer insurance policies and pension investments. Almost one in two Swedes is insured with Folksam, and we are one of the largest asset managers in Sweden. Our vision is that our customers should feel secure in a sustainable world. Read more at www.folksam.se

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 our customers’ first choice for business renewal. In addition to our expertise in software and professional services, we also take strong advantage of ecosystem and innovation possibilities. www.tieto.com

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Arek selects Tieto to provide its infrastructure services
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Tieto has signed an agreement with Arek, a service provider for pension companies in Finland, to provide infrastructure services for operating systems.
Arek selects Tieto to provide its infrastructure services
Tieto has signed a six-year agreement with Arek, a service provider for pension companies in Finland, to provide infrastructure services for operating systems. The aim is to create a scalable platform for Arek's changing business needs. This agreement will help Arek to increase its cost-efficiency as well as creating favourable conditions for renewing systems and technologies.

Arek maintains and develops shared services of Finnish pension sector. Tieto has a long history of cooperation with Arek on key application development areas. With this new deal, Tieto will also help Arek to modernise and transform its infrastructure services, which have a significant role in enabling high availability for its customers.

- Tieto is a long-term partner that we know well, and they understand the requirements and possibilities linked to our operational environment. The key selection criteria in the tender competition were scalability of the infrastructure for our needs, and value for money. We succeeded to make the common plans which form a good basis for our future wider collaboration, says Satu Koskinen, Chief Technical Officer at Arek.

- We are strongly committed to collaborating with Arek to meet the requirements and high expectations of the industry. Together we will provide application and infrastructure services which will result in more efficiency and flexibility for both Arek and its customers, says Christian Segersven, VP Tieto Financial Services.

For more information, please contact:
Christian Segersven, Vice President Tieto Financial Services
christian.segersven@tieto.com, +358503112486

Satu Koskinen, Chief Technology Officer, Arek,
satu.koskinen@arek.fi, +358407367670

Arek Ltd builds and maintains information systems necessary in pension insurance and offers its customer’s system services that are in the pensions industry’s joint usage. Arek’s owners are authorised pension insurance providers of both the private and public sectors as well as the Finnish Centre for Pensions (ETK).

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. www.tieto.com

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Google Tools Enable Cooperation at Power Plant Construction Site
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Kilpilahti Power Plant is a joint effort of many companies and Tieto supports the project.
Google Tools Enable Cooperation at Power Plant Construction Site
Kilpilahti Power Plant in Porvoo is a joint effort of many companies. The power plant relies on circular economy. Tieto supports the project by offering Google services and support for users.
Kilpilahden voimalaitoksen työmaa

Kari Kolsi, CEO of Kilpilahti Power Plant, knows oil refinery inside out: he has three decades of experience on the industry, and now he is overseeing the construction process of a power plant. The power plant construction site is a huge project and it requires seamless collaboration between different construction partners, sticking to tight time schedules and thoroughly considering safety aspects.

- Prioritizing, accuracy and careful documentation are in the heart of our working culture. Safety is a top priority, and with Google for Work tools all the relevant information is available for everyone in the project team. Working together also improves safety, Kolsi says.

Going Google was a leap to unknown for Kilpilahti Power Plant, and Kolsi emphasizes the importance of learning new tools because change is always a challenge for the organization. Learning new is often all about finding new ways of working, and that takes time. Kolsi also sees the importance of Tieto as Google partner: adapting new ways of working requires training, local presence and support. All this is provided by Tieto.

Administrator Henni Nikkilä joined the Kilpilahti project team recently, and she agrees with Kolsi about the importance of working together. She sees that to cultivate a culture of collaboration the proper tools must be in place. The team needs the possibilities to work on documents together and see how others contribute in real-time.

Kilpilahden rakennustyömaa

Nikkilä has also experimented other Google products and she has mastered AODocs which is a document management program running on Google Drive. She says that has furthermore streamlined their working processes. - Obviously you could google information online but then you couldn’t prioritize your own work. That’s what a Google partner is needed for - to ask questions and get answers quickly, Nikkilä says.

The power plant will be ready during 2018. The steam generation capacity is 450 MW and the electricity generation capacity is 30 MW which would be for example enough to provide electricity for 13,000 houses for a year.  

Read more about Tieto’s Google services>>

 

 
Anni Myyrä
Anni Myyrä
Change Management Lead, Google
+358 40 8260 894
Jussi Takala
Sales Lead, Google
+358 40 5597 566
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Future of cloud

The future of cloud is in Industry Clouds. They are cloud services fulfilling needs specific to an industry with common concerns and challenges, adopted to suit industry regulations and processes. Within and across these Industry Clouds new business models and revenue streams will evolve. Read more below about the future of cloud.

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Tieto launches OneCloud – new solution allowing customers to efficiently manage multiple cloud services through one platform
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Tieto launches OneCloud – new solution allowing customers to efficiently manage multiple cloud services through one platform

Handling multiple cloud providers and cloud ecosystems is a growing everyday challenge for many organizations. To enable customers to combine all their cloud services, including public and private clouds, into one centrally managed platform, Tieto is launching OneCloud - a new multi-cloud management solution helping organizations to manage their cloud services in a simple and efficient way.

As the data-driven world advances, businesses continuously find new and innovative ways to leverage cloud technology. To maximize benefits of different types of cloud services and minimize dependence on any one single technology and vendor, organizations are increasingly choosing to work with multiple cloud providers. Research conducted by analyst company IDC on behalf of (https://www.tieto.com/news/nordic-organizations-lack-a-coordinated-overv...) Tieto shows that more than a third (37 %) of large enterprises and organizations in the Nordics have more than 10 IT services suppliers. Managing a rising number of vendors and cloud based services in a simple and efficient way is a challenge for many businesses.

Tieto OneCloud combines private cloud services from Tieto’s Nordic local data centres in Sweden, Finland and Norway with public cloud solutions from leading global suppliers such as Amazon Web Services and Azure. With Tieto OneCloud customers can access all the leading cloud services and ecosystem independent cloud capabilities without technology lock-in.

- With Tieto OneCloud, we help our customers to get a consolidated overview of their cloud services and an easy way to manage their multi-cloud ecosystem through one solution. Hence, Tieto OneCloud allows enterprises to easily meet new business and innovation needs by enabling efficient hybrid and multi-cloud environments. As a result, customers can shift focus and resources towards innovating new services, says Erwin de Bont, Vice President, Infrastructure and Platform Services, Tieto.

A flexible and scalable cloud management solution

Tieto OneCloud empowers IT, business owners and developers to better meet demands for faster innovation and business growth. Tieto OneCloud can be connected with customer’s legacy infrastructure. Open API’s will help organizations to speed up adoption of new cloud technologies.

- In today’s fast-paced digital business environment, organizations need solutions that offer them the scale and continuity they need for efficient operations. Tieto OneCloud will strengthen and enhance Tieto’s capabilities to support our customers’ business renewal as well as our ability to deliver hybrid IT services to customers across the Nordics, says Erwin de Bont.

Supporting resources:
Read more about Tieto OneCloud: www.tieto.com/onecloud  
Whitepaper: http://pages.tieto.com/LP-GL-XI-OneCloudmulti-cloudenviroment_LP.Downloa...

For additional information, please contact

Erwin de Bont, Vice President, Infrastructure and Platform Services, Tieto
phone: +358406612366, e-mail: Erwin.DeBont[at]tieto.com
Kia Haring, Head of Global communications, Tieto
phone: +358 40 765 3700, e-mail: kia.haring[at]tieto.com

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. www.tieto.com

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Tieto moves ICS into the finance cloud
Cloud
Demand for industry-specific cloud solutions is growing in Europe.
Tieto moves ICS into the finance cloud
Demand for industry-specific cloud solutions is growing in Europe

Tieto has signed a new agreement with International Card Services (ICS), the largest credit card issuing business in the Netherlands, to deliver an end-to-end industry-specific cloud-based IT solution. The new, private cloud solution is developed with focus on the financial industry, meeting the high security and regulatory demands of businesses.

The solution includes tools and applications for handling payments, transactions and analysis of customer data provided as a pay per use model. This gives ICS a scalable and cost-efficient end-to-end solution, compliant to the regulatory requirements (PCI DSS) of the financial industry. This means that ICS can scale-up its usage during peak times and utilise their resources more efficiently.

- The key deciding factors for us was Tieto´s unique cloud solution, tailored to the needs and demands of the industry in combination with Tieto´s highly secured datacentres in the Nordics. The solution will make ICS more cost-efficient and give us the ability to respond faster to changing customer needs says Nico Lodewijk, Chief Operating Officer at ICS.

Tieto and ICS have worked together within the card business area since the year 2000. The new solution (Tieto Compliance Cloud - TiCC) is part of Tieto’s private finance cloud offering, which is tailored to the needs of the financial industry. By utilising the cloud, ICS can reduce capital expenditure by not having to maintain its own servers and IT infrastructure. This will also streamline their business processes, as all IT applications and systems are delivered by a single provider.

- We see that demand for industry-specific cloud solutions is growing within the financial sector in Europe. This helps companies focus on their core business and reallocate resources towards innovation and development. It also promotes “green IT” by eliminating the need for over-capacity and reducing energy consumption says Vahid Zohali, Vice President, Banking Sector, Tieto.

  For further information, please contact:

Vahid Zohali, Vice President Banking Sector, Tieto Sweden AB
phone: + 46 (0) 73 725 22 00, e-mail: vahid.zohali[at]tieto.com

Thomas Bergström, Customer Executive, Tieto Sweden AB,
phone: +46 (0)709 790 822, e-mail: thomas.bergstrom[at]tieto.com

Nico Lodewijk Chief Operating Officer, ICS
phone: +31(0) 20 660 05 93, email: nlodewijk[at]icscards.nl

Tieto is the largest IT services company in the Nordics providing full lifecycle IT services. We also provide global product development services for companies in the communications and embedded technologies arena. Through industry insight, technology vision, and innovative thinking, Tieto proactively strives to inspire and engage our customers in finding new ways of accelerating their business.

Building on a strong Nordic heritage, Tieto combines global capabilities with local presence. Headquartered in Helsinki, Finland, Tieto has over 13 000 experts in more than 20 countries. Turnover is approximately €1.5 billion. Tieto’s shares are listed on Nasdaq in Helsinki and Stockholm. www.tieto.com

International Card Services BV (ICS) is the leading credit card specialist and largest credit card provider in The Netherlands. ICS has more than 25 years of experience in issuing, promoting, managing and processing Visa and MasterCard transactions. The credit cards issued by ICS are the most accepted cards worldwide with millions of acceptance locations around the world in every currency. There are currently 3.5 million customers in the Benelux who use a credit card issued by ICS. ICS is an independent subsidiary of ABN AMRO Bank (Netherlands) NV and has offices in The Netherlands and Germany. www.icscards.nl 

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