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Data is the new gold
Fredrik Bergström, CEM, Tieto
We are no longer just buying things. What we are looking for is experiences.
Data is the new gold
“Data is the new gold,” declares Fredrik Bergström, a consultant within digital customer experience development at Tieto. We are no longer just buying things. What we are looking for is experiences – and we are paying with the data that we leave behind.
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Digitalisation gives companies and organisations the opportunity to get to know their customers even better through analysing information about their behaviour. But in the quest to design the perfect customer experience, there is a risk that personal integrity is compromised. Tieto’s earlier study “Cool or Creepy” showed that there is a gap between how the company uses the information it has collected and what the customers actually want and are offered.

The boundaries are shifting

“Another such gap is the difference in the perception of personal integrity between different generations, with younger generations being more comfortable with providing information with purchases of different types. We are seeing a continuous shift, when we will see more and more groups who think it is acceptable to provide data, as long as they receive something in return that is perceived as valuable,” says Frederik Bergström.

Necessity buying

The consumption of the future can be divided into “necessity buying” and “buying for pleasure”. Necessity buying is acquiring something we need but don’t actually desire, such as replenishing of milk in the fridge.

“There are plenty of opportunities for change here if the Internet of Things becomes more widespread. The fridge keeps track of how much milk is left, gathers together other items under the heading of necessity buying, and orders a bag of groceries that is delivered to the door later in the evening, or that is put in the trunk of the car when you drive home after work.”

Sales occur in context

“If we then look at buying for pleasure, much of it takes place in context, i.e. the environment in which you experience the urge to buy. In the future, the purchase, or the experience, will continue to take place in a physical environment, although not necessarily in a shop, as is the case today. Think of a sporting event where you suddenly see a pair of cool football boots and you buy them there and then, rather than the day after in a sports shop.”

What about the shops then? Major changes are taking place in this area as well. Today, many people are already thinking of an experience and going to a “social playground” where you have, for example, a café with health drinks in a sports shop. Omni-channel is another powerful trend where the experience for customers between the digital and the physical store is seamless. When a customer has looked at a pair of sports shoes online, the shop assistant knows which shoes the customer has earmarked and has already picked out the right size when the customer walks into the shop.

Towards Facebook

Looking further ahead, retail will become more akin to Facebook, in the sense that the value will be in the network. When retailers have the details of a purchase, these can be shared with other retailers, thus increasing the customer experience.

“Imagine you’re buying ski trousers and a ski jumper. The intelligent network will now work out that you’re probably going on a ski holiday and will link you to promotions and experiences such as air travel, hotels in the mountains, skiing and snowboarding. Here we are back in context again; it becomes all the more important, but at the same time more complex, for retailers to understand and be able to correctly utilise their data in the correct context and constantly see new connections. But this is where the future lies and all this has to happen gradually, without consumers feeling that their personal integrity is being compromised,” concludes Fredrik Bergström.

 
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Fredrik Bergström
Solution Manager, E-Commerce
+46725035110
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Partner story
Up-to-date product information brings a competitive advantage to Oras Group
Oras
Tieto delivered to Oras Group modern and easy-to-use inRiver PIM system.
Up-to-date product information brings a competitive advantage to Oras Group
"We are at an advantage when our product information is complete and up to date in our retailers' systems as our products are more likely to be chosen. Information updates used to be a lot of work, which is why we couldn't perform them too often," says PDM Manager Kari Suojanen from Oras Group.
Oras

Oras, which is known for its washbasin and shower faucets, purchased Germany-based Hansa in 2013, thus establishing Oras Group. In order to create a highly functional Group, the companies' procedures had to be standardised. As part of a larger change initiative, Oras Group has implemented a Product Information Management (PIM) project to combine the product information of the two brands into the same system as well as to harmonise the product information management processes of the two organisations.

Tieto delivered to Oras Group modern and easy-to-use inRiver PIM system, where product information is collected from ERP -system and other basic product information systems.

"The user interface is extremely user-friendly. People working in different countries clearly see product information, language versions and links. You can almost touch the material," says Suojanen.

The new system has impacted the employees' daily work. The amount of manual work decreases, for example, when product lists and selections are updated automatically into the customers' systems. All product information can now be processed in one place following similar procedures, which also benefits marketing.

"We always modify basic product information from the point of view of marketing. New texts, descriptions and videos are automatically updated into all materials containing product information. This increases transparency for our customers and within the company," says Oras Group's Digital Marketing Specialist Samuli Holmala.

A well-managed PIM project where everybody was up to speed

During the PIM project's first phase, which lasted for about six months, Tieto analysed the type and origin of Oras Group's product information and created a product information model for the system based on it. Once the foundation for product information had been established, the next steps were technical implementation and deployment. The project went very well, as testified by high customer satisfaction (3.8/4).

"During the project, Tieto led us where we needed to go. They were always in control of the project and were able to keep up to speed also those of our personnel who are not so well-versed in IT," says Holmala.

In the future, Oras Group will add new modules to the PIM system, for example, to manage product information and price lists on the websites of both brands through the system as well as to schedule marketing campaigns. New product information channels will also be added, which is a critical factor for getting ahead of the competition.

"We save time as we can manage our marketing campaigns better than before. Units in different countries can see the work of other units. Therefore, the information flow no longer requires extensive internal communication," says Holmala

Caption: Samuli Holmala, Kari Suojanen and Mika Malo from Oras Group have been satisfied with the new product information management system, which has boosted work efficiency and increased transparency for customers as well as within the company.


Oras Group
Oras Group is the market leader for domestic sanitary fittings in the Nordic countries and a leading company in continental Europe. The company's mission is to make the use of water easy and sustainable. The Group has two strong brands: Oras and Hansa. Oras Group is owned by Oras Invest, a family company and an industrial owner. http://www.orasgroup.com/

Challenge
Oras Group was established in 2013 with the merger of Oras and Hansa. Oras Group wanted to standardise its procedures and boost work efficiency by combining the product information of the two brands into the same system. Up-to-date product information constitutes a competitive advantage.

Solution
Tieto delivered to Oras Group modern and easy-to-use inRiver PIM system, where product information is collected from ERP -system and other basic product information systems. The project consisted of four phases, analysis, product information model construction, technical implementation and deployment.

Benefits
Thanks to up-to-date product information, customers are more likely to choose Oras' products, which brings a competitive advantage. Shared and automatically updated product information enables Oras Group to save time and money as the amount of manual work decreases and information management is simplified. It is now easier and faster to manage marketing campaigns and enhance basic product information for marketing use.

Marjo Ylitolva
Solution Manager, Team Lead
+358406847509
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Elo creates new digital services promoting well-being at work with Tieto’s XHub
Joni Tikkanen, Elo
Everything is based on trials and receiving immediate feedback. If something doesn’t work, we don’t hesitate to change direction.
Elo creates new digital services promoting well-being at work with Tieto’s XHub
“XHub has helped us face digitalization. The project has made developing digital services and understanding the customer experience more concrete and agile,” says Marketing Director Joni Tikkanen from Elo.
Joni Tikkanen, Elo

Marketing Director Joni Tikkanen develops the Elo brand in bright yellow in social media. Use the hashtag #elokehittää to monitor the progress of XHub and join in on the conversation.

 

Every company is currently thinking about digitalization – what it is and how best to implement it in their field of business. The fast-paced modern world demands new kinds of innovation from companies. There is a constant need to develop digital services that take into account the special needs of customers.

The pension insurance company Elo began to develop digital service models and approaches for well-being at work with the Tieto Experience Hub innovation programme (XHub). XHub is based on fast innovation, the testing of ideas and validation by end-users. “XHub is an interesting programme. It combines two things: solving practical issues and finding a new way of development. At the same time, it allows us to see how we can be agile as an organisation,” Tikkanen describes.

Innovation through networks and open dialogue 

“XHub supports innovation through networks and open interaction with Elo customers. This makes the development more efficient and ensures that the new services meet the needs of the users. Furthermore, we encourage Elo to step outside their comfort zone and recognise new business models from outside their sector as well,” says Business Consultant Fanny Vakkila from Tieto.

The XHub programme stages can include, for example, innovation workshops with new partners, design projects, service design and the discovery of prototypes through hackathons. 

“Everything is based on trials and receiving immediate feedback. If something doesn’t work, we don’t hesitate to change direction. This lets us now early on whether the idea is good and whether there is an actual need for the service,” Tikkanen describes.

Tieto experts have directed the development and the new working method. Furthermore, Tieto has compiled a network of different operators to innovate together with Elo.

“Tieto has managed to find good people with vision both from technology and digital services. Our operation has become faster, as the partners understand our field,” Tikkanen states.

Services promoting well-being at work for entrepreneurs

The development of digital solutions was initially concentrated on well-being at work, and then, as the XHub programme progressed, the focus shifted to Elo’s business customers. In terms of the number of insurance policies, Elo is the largest pension insurer of entrepreneurs in Finland, so this new solution will serve a great number of customers. Digital services help entrepreneurs as they can be used in the evenings or at weekends, when Elo cannot offer personal customer service.

“We have received positive feedback on our personal service, so it is important to figure out how to get our digital services to the same level,” Tikkanen points out.

According to Tikkanen, the participation of end-users, i.e. entrepreneurs, in every stage of the development has been important. Furthermore, XHub has combined different sectors of business within Elo.

“Within the company, XHub has been a valuable project. It passes through the entire organisation and combines well-being experts, IT and business development. Everyone has been excited about the new approach and learned a lot,” Tikkanen explains.

“It has been a treat to follow Elo’s journey in the XHub programme. Their courage and enthusiasm to try out new working methods has been an inspiration to the entire XHub team,” Vakkila says happily.


Mutual Pension Insurance Company Elo

Owned by its customers, Elo is a pension insurance company that takes care of the statutory pension insurances of its customer company employees and entrepreneurs. Elo is the largest pension insurance company in Finland: a third of all Finnish companies and over 40% of entrepreneurs have chosen Elo to manage their pension insurances. Elo is responsible for the future pensions of around 500,000 employees and entrepreneurs, and takes care of 210,000 pensioners and around €20 billion worth of investments.

Challenge

The modern world demands Elo to provide digital services that benefit customers. The development of these services has traditionally required a great deal of time and effort. There was a need to develop a faster working method.

Solution

The Tieto Experience Hub innovation programme discovers, tests and validates new ideas and solutions together with business partners and end-users. Within the programme, Elo began to develop digital well-being at work services for its business customers.

Benefit

Assuming a new and more agile working method helps Elo to develop concrete digital services for its customers. Fast innovation and testing of ideas with end-users weeds out bad ideas and supports the establishment of a positive customer experience.

Fanny Vakkila
Business consultant
+358401525777
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Fazer and Tieto pilot innovative feedback solution following successful hackathon
Fazer feedback solution pilot
Specifically, wireless smart buttons will be set up at key touchpoints around the venues so that visitors can leave contextual feedback
Fazer and Tieto pilot innovative feedback solution following successful hackathon
Just two months after the concept winning joint hackathon, Fazer Food Services and Tieto have started a pilot of an innovative restaurant feedback solution in a real-world setting.
Fazer Tieto

Pasi Laine, Eija Andström-Saarinen, Ksenia Avetisova,
Simon Panelius, Mikko Leinonen and Sami Sivonen

Starting from Monday 11 March 2016 visitors to two of Fazer Food Services' Amica restaurants have had a unique and engaging new way to leave feedback on the quality of their customer experience.

Specifically, wireless smart buttons will be set up at key touchpoints around the venues so that visitors can leave contextual feedback, sharing their thoughts and feelings on each stage of the customer journey, in real time and based on their immediate context

"Smooth and spontaneous dialogue and a sense of community between our quests and our employees is important for our restaurant success and development. Based on the early trials and testing our solution is addressing this in a nice way. Solution has been easy to use and the tailored questions with smart buttons has created a new fresh way for giving and gathering feedback. It’s not only what we want to ask from our guests, it’s giving possibilty for our quests to share their thoughts and experiences", comments Eija Andström-Saarinen, Senior Manager, Digital Solutions Development, Fazer Food Services.

Feedback solution

The innovative feedback solution was developed in just 48 hours as part of Fazer Food Services' and Tieto joint hackathon, CXHack Fazer, in February. Two months later, the winning concept is now undergoing its first real-world pilot for 3 months. 

Created by Rahul Abhisek and Laura Leppälä, both students at Aalto University, and Ann Plough, author of the Eat Simply Eat Well blog, the concept was rewarded by Mikko Leinonen, Head of Tieto's Customer Experience Management startup, as having a direct impact on improving the lunch experience at Amica restaurants.

Simon Panelius, Vice President of Operational Development at Fazer Food Services, said of the solution: "Contract catering is all about making a lot of different people happy, but traditionally we've only been able to gather feedback through intermittent questionnaires and focus groups. Having this high quality data available in real time could make a genuine difference to how we manage our customers' experience."

The solution further extends the Tieto Retail Experience portfolio and Tieto's Adaptive Store concept, which combines an interactive customer experience with real-time data so that staff can serve those customers better.

Sami Sivonen, Solution Manager at Tieto, said: "We've now taken the first steps to test the concept in a real-world setting by adapting it to our cloud-based solution accelerator framework. "We believe in an agile and field-proven approach to innovation, and trust that this web-based contextual feedback solution will further enhance Fazer Food Services' lunch experience", says Ksenia Avetisova, Lead CX Consultant at Tieto.

“The launch today demonstrates common commitment and truly agility way of working - taking the raw idea, which was not part of any earlier roadmaps, and defining it in business context and current tech landscape over a very short period of time”, Ksenia continues.

"By putting real customers at the heart of our development process, and by bringing new solutions directly to their business environments, we gain an unprecedented opportunity to create value and accelerate innovation and growth", adds Mikko Leinonen.

For more information on CXHack Fazer and the winning concept, click here.

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