Solid execution of strategy 2012–2016
Since the time we launched our strategy in 2012, we have been very consistent and solid in execution. We have laid a foundation during the first two years, simplifying the operations, achieving a competitive cost structure, building full-lifecycle IT services capability and focusing on geographies where we can scale and be highly competitive. Our Product Development Services business pursued customer base expansion beyond Nordics. During 2014 we reoriented our agenda towards growth, with accelerated investments into Customer Experience Management, Lifecare solutions, incubating Industrial Internet and cloud services. We developed a mechanism to host incubating businesses as internal start-ups. We continued the efficiency improvement actions through industrialization of our infrastructure and application management services.
We focused on accelerating growth during 2015 and were able to grow organically ~3%, which is above market average in IT services. Our cloud services continued with exponential growth and we enhanced our leadership position in Healthcare and Welfare. Furthermore, we accelerated our investments into offering development. During 2015 we:
- completed three acquisitions that will enhance our industry expertise and differentiating solutions - Norway-based Software Innovation, Swedish Imano AB and Smilehouse in Finland
- entered into new partnerships with Temenos, Workday and Salesforce.com, that will drive industry specific and cloud based solutions
- increased offering development investments by EUR 10 million
- accelerated recruitments ~500 to drive growth and capability renewal
- continued with our internal start-up program preparing Security Services as a new solution to the market.
We believe that we are more focused in our service portfolio and go-to-market, simplified in our operations and better positioned to capture growth opportunities, as we aimed in our strategy.
Opportunities related to market disruption as a basis for our strategy evolution
Increased consumer expectations coupled with technology disruptions is providing huge opportunities to businesses, challenging the incumbent revenue streams and business models. Every business is faced with a dual agenda:
- Run existing businesses efficiently and improve current products/services to preserve cash-flows
- Co-innovate new products and services with the ecosystem, keeping consumer at the center – apply agile development and quick time-to-market methods
Building on our successes gained through our strategy execution, we see a significant opportunity to help our customers through this dual agenda. Our industry insights, competitive service portfolio, growth and industrialization investments during the past few years position us well to capture this opportunity. This will be the cornerstone for any future agenda we seek. We will continue our strategy execution as we evaluate our future strategic ambition and choices during 2016.