According to Tieto’s recent study on the future of business transformation, technology trends such as mobile, social media, M2M, big data and cloud are rapidly changing the ways in which we do business. A full third of respondents expect their industries to completely transform by 2020. Among the CEOs interviewed, 42% say that the industry in which their organization operates will in six years’ time bear little resemblance to how it looks today. This transformation is caused by technology trends, such as mobile, social media, M2M, big data and cloud. At the moment, social and mobile are the most evident trends, as 54–55% of respondents call them “already crucial” for their business. About the study In fall 2013, Tieto conducted a study together with Kairos Future on the future of business transformation, based on qualitative and quantitative research. The study included an online survey, distributed to executives in Sweden, Norway and Finland, with 500 respondents. A majority of the respondents were members of the C-suite or business unit directors. The survey was supplemented by industry executive roundtable discussions, held in Stockholm, Oslo and Helsinki. To download the full study please visit: bit.ly/1mR3Mqa

1. ©TietoCorporation
A nordic research
about business
transformation
The Future of Business Transformation Research,
Kairos Future together with Tieto

2. © Tieto Corporation
Background to research and report
• Technology is the most significant driver
of change in most industries
• Business transformation is the most
significant opportunity to operational
efficiency and innovation
• All industries are becoming digitalized,
digital technology is moving to the
becoming at core of business
Business transformation at the
core of Tieto’s focus
The quest for the report
• How is new technology and
technological change interpreted
in different industries and
functions?
• What are the perceived key
drivers and barriers?
• Desk research, expert interviews
• Survey among 500+ executives
• C-level roundtables
• Sweden, Norway and Finland

3. © Tieto Corporation
Business transformation
• Business transformation (BT) is about making fundamental
changes in how business is conducted in order to help cope
with a shift in market environment. (Wikipedia)
• Consequences are always irreversible, often disruptive
and never incremental

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Table of contents
1. Business transformation
2. C-level survey findings
3. C-level roundtables
4

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Business
transformation

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Transformation is innovation
Business transformation is
about making fundamental
changes in how business is
conducted in order to help
cope with a shift in market
environment.
Wikipedia

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The dilemma
”The problem is not that we do
not have money to invest. The
problem is that we do not know
what we should invest in.”
C-level director, Banking,
Roundtable October 2013

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Customers want more
”The demands from the end
users on availability and
simplicity is ahead of what the
company systems can provide.”
C-level director, Energy,
Roundtable October 2013

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IT must understand business
”The focus of IT must be to
understand and involve
customers in the new
business models.”
C-level director, Manufacturing,
Roundtable October 2013

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C-level survey
500 respondents in Finland,
Norway, Sweden

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Impact of mega trends
0% 20% 40% 60% 80% 100%
Big Data
Cloud computing
Mobility
Social media
Internet of Things/M2M
Small impact Some impact Large impact

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Third wave of automation
33% says automation of
knowledge work will have a
major impact on how their
industry operates.
The Future of Business Transformation Research,
Kairos Future together with Tieto

13. © Tieto Corporation
Forces driving transformation
0% 20% 40% 60%
Need to increase growth
Innovation (new
products/processes/business
models)
Need to improve customer
experiences/satisfaction
Need to increase efficiency/lower
costs
What would you say are the main driversbehind the needfor transformationin
your organization today?
In 5 years
Today

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Most significant
barriers/success factors
42%
45%
26%
18%
9%
31%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Cultural Leadership Processes Technological Proactivity Competence
In general, what would you describe as the most important barriers or success factors when
it comes to technology enabled business transformation?
CMO +13 IT +18CEO +13

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Technology trends:
Impact
20%
23%
12%
18%
16%
30%
33%
22%
28%
33%
50%
44%
66%
54%
51%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Big Data
Cloud computing
Mobility
Social media
Internet of Things/M2M
Over the nextdecades,whatimpact will the following technologiesor
technology-relatedtrendshave on how businessesin your industry operate?
(businessmodels,operations etc)
Small impact Some impact Large impact

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Technology impact:
CXO comparisons
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Big Data
Cloud computing
Mobility
Social media
Internet of Things/M2M
Over the nextdecades,whatimpact will the following technologiesor
technology-relatedtrendshave on how businessesin your industry operate?
(businessmodels,operations etc)
CIO CMO CEO Nordic Average

17. © Tieto Corporation
Technology trends:
When will it be crucial?
25%
31%
54%
55%
24%
62%
52%
35%
35%
57%
7%
7%
4%
5%
11%
6%
10%
7%
5%
7%
0% 20% 40% 60% 80% 100%
Big Data
Cloud computing
Mobility
Social media
Internet of Things/M2M
When do you expectthe following technologiesor technology-relatedtrendsto
be crucialto how businessesin your industry operate?
Already is 1-5 years 6 - 10 years More than 10 years from now

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Barriers and success factors
42%
43%
26%
19%
10%
29%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Cultural
Leadership
Processes
Technological
Proactivity
Competence
In general,whatwould you describeas the most importantbarriersor success factors
when it comes to technologyenabledbusinesstransformation? Selectup to two.

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Challenges ahead
63% says it will be impossible
to stay competitive without
being a quick adopter to new
technology
The Future of Business Transformation Research,
Kairos Future together with Tieto

20. © Tieto Corporation
Company's posture
to new technology
0%
10%
20%
30%
40%
50%
Pioneer Early adopter Early majority Late majority Late follower Skeptic
Poly. (IT director/CIO) Poly. (CEO or equivalent) Poly. (Other function/position, namely:)
Source: The Future of Business Transformation Research, Kairos Future together with Tieto

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C-level perspectives
0% 20% 40% 60% 80% 100%
(CLAIM) I believe that new technologies and not business needs will
dictate the future direction of my company and how it will be managed.
(CLAIM) The industry in which my organization operates will bear little
resemblance in 2020 to how it looks today.
(CLAIM) Most categories of technology will become so commoditized
so that they will no longer be a source for competitive advantage
(CLAIM) In 2020, employees will conduct all their communication and
electronic work using just one device
(CLAIM) In 2020, most employees will interact more with people
outside the organization than with colleagues inside the organization
(CLAIM) I worry that my organization will not be able to keep up with
technology change and will lose its competitive edge.
(CLAIM) In my opinion, the gap between what the organization
demands in terms of technology enabled transformation and what the…
(CLAIM) Without being a quick adopter of new technology it will be
impossible to stay competitive in the future
(CLAIM) In 2020, project teams will typically include members from
outside the organization (eg, customers, partners, communities).
To what extent do you agree with the following propositions?
CIO CMO CEO Nordic Average

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C-level
roundtables
Finland, Norway and Sweden

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Extracts from roundtables
of respondents thought that companies in their
industry underestimate the power of
technological changes.
53%
of respondents thought that in 2020,
customers will be the main source of
product and service ideas in their industry.
73%
of respondents thought that over the next 5-10
years, technology will be a much stronger
driver of change than it has been historically.
80%

24. © Tieto Corporation
Extracts from roundtables
Helsinki
Customerswantmore
“The demands from the users
on availability and simplicity is
ahead of what the company
systems can provide.”
IT mustunderstand business
“The focus of IT must be to
understand and involve
customers in the new business
models.”
Oslo
The dilemma
”The problem is not that we
do not have money to invest.
The problem is that we do
not know what we should
invest in.”
Need for long-term focus
“The more complexthe world
becomes,the more important
to have a long-term focus.”
Stockholm
Blinded by possibilities
”Sometimeswe are so
fascinated of what we can do
that we forgetwhat we
should do.”
Walk the talk
"IT cannot sit and wait forthe
perfectorder,but must take
a more active role in the
business process.”

25. ©TietoCorporation
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