In the Cross Roads of Development – from “ICT-simple” to “ICT-complex”

eBusiness articles

Helsinki, 18 July, 2005 — In the Cross Roads of Development – from “ICT-simple” to “ICT-complex”

Information society is linked to the 3rd phase of industrial revolution – the service industrial revolution. Digitalization, software, and networks are now in this century the underlying drivers. Increasing share of GNP will be services produced, distributed, and consumed through networks.

ICT’s Main Role Is to Support Processes

Consequently, industries turn from “ICT-simple” to “ICT-complex”. In ICT-complex industries, customers pay for products and services based on software. The ICT value potential, while being not only process related but directly product and service related as well, is essentially infinite. ICT as an asset is absolutely critical. A decisive bottleneck of business development is the management capability of ICT and agility. Core system modernizations represent the ultimate challenge. Generic, horizontal ICT solutions are often inadequate and insufficient. Vertically orientated and customer intimate services are needed.

The focus of TietoEnator’s vertical growth is on the ICT-complex industries with Nordic strength, like telecom and banking. TietoEnator’s value proposition is based on increasing sophistication of service concepts and on vertical solutions. Joinsourcing, Core Application Modernization Partnership, Solution Partnership, and Digitalization Partnership are examples of TietoEnator’s offerings.

Longer Value Chains and Globalization

Digital value chains tend to become longer. ICT-complex businesses not only need sophisticated internal systems but services supporting end-to-end chains crossing company borders. TietoEnator’s core system related services are complemented by those related to business process integration. TietoEnator’s Value Networks together with Digital Innovations provide advanced digitalization offerings for these needs.

Service industrial revolution means also globalization. Developing countries provide growing abundance of high-quality ICT-skills. Improving global network infrastructure enables wide-spread utilization of these assets. This trend started predominantly as cost-reduction-driven. However, the great opportunity is using the unlimited resources for agility - for solving the severe challenge of ICT-complex businesses. For this capability, one needs a fine tuned end-to-end ICT-value chain with industrial process management systems and scale. TietoEnator proactively develops this capability by building a network of global competence centres, own and alliance based, in the Baltic countries, Czech, India, and Russia.

Integration Service Preferred Over Own Investment

Improvement demands for cost, quality, delivery times, and customer service require tighter and more automated business process integration. The business environment is dynamic, which sets special demands for the ICT integration agility. This development has created the need for higher level infrastructure to support digitalization and changed processes between the business partners. Organizations have an increasing interest to get B2B integration as a service, instead of investing in their own infrastructures and competencies.

To connect and adapt business systems and local integration solutions between business partners, banks, and authorities TietoEnator has build B2B integration service offering. Value added network services for end-to-end business process integration support e.g. supply chain management, governmental information exchange, and invoice management. By one million B2B transactions per day TietoEnator’s Value Networks unit is the leading B2B integration service provider in Europe. Its local expertise in Germany, Sweden, and Finland is complemented by a competence unit in Lithuania.

TietoEnator is one of the leading architects in building a more efficient information society and the largest IT services company in the Nordic countries.

Juhani Strömberg, Senior Vice President, Group Development TietoEnator Group Functions

Jyrki Poteri, Vice President, Value Networks
TietoEnator Processing & Network

The article is published in ICT Cluster Finland Review 2005.

More information
ICT Cluster Finland Review 2005