TietoEnator outlines new operating model; shakes up management team

Source: TietoEnator

TietoEnator will launch a new operating model and has appointed the new Leadership Team, effective as of 1 January 2009.

The new operating model supports TietoEnator's new strategy, which puts an increasing focus on customers, knowledge assets and the development of our people. With these concrete steps, TietoEnator is strengthening its position as a strong performance driven professional service company, based in Northern Europe and Russia.

A more agile and integrated company

The new model has three building blocks: country operations, industries and service lines. The current structure, which is based on business areas, will cease to exist. Based on these changes, the company is transforming into a horizontally integrated company with fewer organizational units and stronger company-wide operations. For TietoEnator's employees, the new model creates more opportunities for professional development and growth.

While increasing country and customer focus, the new operating model will improve the sharing of knowledge and resources across industries, countries and global competence centres. The new model also results in sharpened roles and responsibilities between sales, delivery and development. These factors altogether will enhance agility and customer value as well as improve efficiency and quality.

Countries drive deep customer centricity and resource optimization
In the new structure, countries will have a stronger role than before. Dedicated country organizations, with a full TietoEnator service mix, will be established in six countries: Finland, Sweden, Norway, Denmark, Germany and Russia. In other TietoEnator countries of operation, the service mix is based on the needs of our strategic industries and customers. The country organizations will have a profit and loss responsibility and they will concentrate on driving customer relationships and capturing local business and growth opportunities. They will also be responsible for resource optimization.

Industry expertise boosting value creation towards customers
TietoEnator will serve custtomers in the following industries: Telecom, Financial services, Forest, Energy, Healthcare & Welfare, Manufacturing, Government, Retail and Media. The industry units will manage global customers together with countries and develop strong industry specific offerings. Industries' role in countries will vary depending on business size and the nature of the customer base. Some industries are looking for growth across main markets. Some industries, such as Government, Retail and Media, are more market specific and will be lead according to the local country strategies. The industry organizations will have a profit and loss responsibility.

Service lines drive competence development and horizontal offerings
TietoEnator will have three service lines - IT, R&D and Digital Transformation and Consulting (DTC). The service lines will be responsible for the delivery of services, horizontal offerings, and the development of company-wide competencies. They will also be responsible for the implementation of TietoEnator's global delivery model. The service lines will operate in a harmonized way across countries.

New Leadership Team appointed
A new leadership team has been appointed to drive TietoEnator's transformation into a high performance company. The composition of the team reflects the new strategy and business structure.

The new Leadership Team, as of 1 January 2009, is the following:
Hannu Syrjälä (born 1966), President and CEO
Hannu Syrjälä started as the President and CEO of the company in February 2008. Hannu's key role in change is to drive the overall business transformation, and continue deep and extensive dialogue with our customers and our people to accelerate the change and business growth.
Eva Gidlöf (born 1957), Executive Vice President, Country head of Sweden
Eva Gidlöf was appointed Executive Vice President of Banking & Insurance business area and member of the Corporate Management Team in July 2008. Eva's key role in change is to substantially increase customer centricity and value creation in particular for Swedish enterprise customers. The key vehicle for this is to introduce and package our world leading knowledge assets regarding information intensive businesses and the latest technology.
Seppo Haapalainen (born 1961), Executive Vice President, Chief Financial Officer (CFO)
Seppo Haapalainen has worked in TietoEnator since 1990 in different positions in the Banking & Insurance business area. Seppo's role in change is to enhance quality and usability of our corporate support and shared services to meet demands of our growing business and personnel. He will be responsible for finance, treasury, corporate ICT, communications and investor relations, mergers & acquisitions (M&A), facilities and corporate planning.
Ari Karppinen (born 1957), Executive Vice President, Country head of Finland
Ari Karppinen has a 20 year career in TietoEnator. Ari's role in change is to drive our customer centricity and value creation for the customers based in Finland. The key vehicle for this is to speed up introduction of new high value added services and competencies. Ari is also acting as business sponsor in corporate wide programme speeding up the implementation of our global delivery model in all businesses and countries.
Bengt Möller (born 1959), Executive Vice President, Head of Telecom and Media industries
Bengt Möller has been working in Enator and TietoEnator since 1996 in demanding positions, and since 2006 he has worked as business unit manager in the Telecom & Media business area. Bengt's task in our change is to lift our largest industry Telecom to be the leader in this segment. In this journey, Bengt's target is to combine TietoEnator's recognized and awarded assets in telecom sector to drive this growth.
Johanna Pyykönen-Walker (born 1966), Executive Vice President, Head of HR
Johanna Pyykönen-Walker was appointed Executive Vice President of HR and member of the Corporate Management Team in August 2008. In TietoEnator's transformation, Johanna's role is to lead the entire human resource practice in TietoEnator and ensure that the company can attract and retain the right talents.
Ari Vanhanen (born 1961), Executive Vice President, Head of industries
Ari Vanhanen has been working in TietoEnator in different demanding leadership positions since 1994. Ari's role in our change is to lead a team creating a strong and tangible value proposition to our customers, based on our industry knowledge assets, built over the past 40 years. On top of this, the following industry teams are reporting to Ari: Forest, Energy, Healthcare & Welfare, Manufacturing, Government and Retail.
Pekka Viljakainen (born 1972), Executive Vice President, Head of International and Head of Customer and Marketing Operations (CMO)
Pekka Viljakainen has joined the company in 2000, and has held various demanding leadership roles. Pekka's role in our change is to lead TietoEnator International, consisting of our business operations outside Finland and Sweden. He will accelerate the growth of our businesses and strengthen our value creation processes in the international arena. He is also the lead of our customer and marketing operations team (CMO) as well as the lead for a team making strategic decisions regarding technologies and alliances.

The other members of the Leadership Team will be the Head of Financial services and the Head of service lines who will be recruited during the coming months.
Legal affairs will report to the President and CEO.
Åke Plyhm, Deputy CEO, who has worked in the company since 1995, has decided to leave the company at the end of 2008.

Deputy CEO Åke Plyhm says: "After 14 years in the company, first as the CEO of Enator and later as the Deputy CEO of TietoEnator, I have decided to continue my career in non-executive tasks outside TietoEnator. The turnaround activities that we launched at the beginning of this year have already proven that the company is on the right track. I have great faith in the new strategy and structure, which addresses all the right issues that will ensure TietoEnator's success in the future."

President and CEO Hannu Syrjälä comments on the management changes: "With the new strategy, operating model and Leadership Team we are taking a huge step in creating the new, more integrated TietoEnator. The Leadership Team that will be on board as of January 2009 will be the driving force behind all changes. At this point, I'd also like to thank Åke Plyhm for his contribution to TietoEnator during the years and for his support in the strategy work during my time in the company. His knowledge and experience are greatly appreciated. I wish him all the best in his new career in non-executive tasks outside TietoEnator."

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