Market disruption provides new future opportunities
The changing behaviour of both consumers and corporate clients accelerate digitalization enabled by new technologies. It is already normal for consumers to have access to everything 24/7, including self-services and personalized digital experiences. This change is gradually hitting all industries and industrial processes. Based on the number of people with access to the internet, the amount of data is increasing exponentially. However, due to disruptive technologies, the availability of capacity and number of connected devices are continuously on the rise. Technologies such as the cloud, big data, Internet of Things and robotics will lead to a new data-centric ecosystem where processes and interaction, often based on connected devices, are predictive and real-time.
Almost every business is affected by digitalization and disruption will accelerate. New opportunities arise not only within industries but also in new ecosystems in the intersection of multiple industries and consequently, traditional industry boundaries will be blurred. Tieto has identified several new domains of disruptive change, including digital payments, on-demand manufacturing, real-time retail, autonomous logistics, digital health management, smart home health and cybersecurity.
In seeking to ensure their market position in the rapidly changing competitive landscape, customers’ focus has been shifting to the digitalization of their businesses. New agile architectures and automated environments are needed to speed up innovation and flexibly develop and release new applications. As user experience becomes an absolute requirement for digital enterprises, the role of IT vendors is becoming more strategic.
For IT service vendors, it is increasingly important to have strong industry and business insight, technology understanding and the ability to orchestrate new digital services for clients. Additionally, co-creation with partners and customers is becoming more important in order to provide customers with best-of-breed technologies. This trend is accelerated by increasing openness as open APIs (application programming interface) and open data make collaborative innovation possible.
In IT spending, emerging services are gaining ground while traditional services, such as infrastructure services, are seen as a source of cost reductions. This trend has been enabled by service delivery standardization and industrialization. Going forward, IT service providers will continue their investments in automation and productivity improvements.