foresight 2020 - industry trends and scenarios

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Foresight 2020 – industry trends and scenarios

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Page 1: Foresight 2020 - Industry trends and scenarios

Foresight 2020 –industry trends and scenarios

Page 2: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Financial Services trends

2

Digital payment systems

New entrants

Consolidation and Partnerships

Scalable consumerization

Predictive mass-customized

services

Big banks win

Regulation

Digital Banking considered safe

Optimization through IT

Protectionism

Scenarios

Opportunities for Tieto

Digital payments

Cyber security

4

5

• Driven by customer data and analytics.

• Large number of actors.

• Few players, incumbents remain in control.

• Product and service developments handled largely in-house.

Digital payments

Scalableconsumerization

Digital payments

Scalable consumerization

Brings together financial services, telecom operators, retailers and device manu-facturers and will likely be standardised.

Financial services actors are expecting to increase spending on cyber security to reach $ 33 billion by 2020.

Joining forces

• Customer-centric models through alliances with emerging actors and technologies.

Digital payments

Propensity to partner

Segmented trends and factors of influenceProtectionism MeFree trade agreements

Cyber security

Higher frequency of financial crisis

Climate change

Finite natural resources

Generation Y

Rise of the middle c lass

The sharing economy

Increasing threat of terrorism

Digitalization

Cloud

Connectiv ity

Big data and analytics

RegMe RegMe SecMe EcoMe EnvMe EnvMe SocMe SocMe SocMe SecMe TecMe TecMe TecMe Tec

Macroeconomic uncertainty MaCross-industry convergence

Optimization through IT

Stricter regulation

Consumer privacy ris ing

Demand for sustainable products

Eurozone instability

Strong power of consumers

Lifesty le adapted services

Continued adaptation of e-channels and e-servicesStandardization of banking regulations

Consolidation

Factory model transformation

New, agile supply chains

Biometric authentication

E-invoic ing

EcoMa EcoMa Eco

Ma RegMa SocMa EnvMa

Env

Ma EcoMa SocMa SocMa Tec

RegEco

Mi EcoMi TecMi TecMi Env

Reduced paper usage

1

Semantic web Me TecAging population Me SocGloablization Me Soc

Digital banking considered safe

New (digital) payment systems

Mi TecMi Tec

MiMi

Consumerization

Fight for talent

Mi SocMi Soc

Stronger relationship with IT

Increasing number of actors

Mi TecMi Reg

Env

All trends and were segmented and ranked according to level. Macro and micro trends were looked at more closely as they impact the specific industry. (step 1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industriesMicro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-2020

Key industry drivers 2015-20202

3

Page 3: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Manufacturing trends

3

Complete automation

B2B E-commerce

Key areas of change 2015-2020

Key industry drivers 2015-2020

M2M / Industrial Internet

3D Printing

Industry 4.0

On-demand mass-

customizationOn-demand economy

Sustainable production

Optimization

Competition from East

Scenarios

Opportunities for Tieto

Factory of the Future:

Digital Supply Networks:

On-Demand Manufacturing:

Segmented trends and factors of influenceEmerging economies MeMulti-country manufacturing

Cyber security

Rising focus on risk Management

Climate change

Finite natural resources

Generation Y

Rise of the middle c lass

The sharing economy

Socio-demographic change

Digitalization

Cloud

Connectiv ity

Big data

EcoMe EcoMe SecMe SecMe EnvMe EnvMe SocMe SocMe SocMe SocMe TecMe TecMe TecMe Tec

Health & Safety MaCompetition from East

Optimization

Servitization

Cluster manufacturing

Safety of connected production

Sustainable production

On-demand economy

Consumerization

Complete automation

RFID technology

3D Printing

Nano-manufacturing

M2M / Industrial internet

Growing number of distributors

Increasing use of sub-contractors

Next-shoring

B2B E-commerce

RegMa EcoMa EcoMa EcoMa EcoMa SecMa EnvMa EnvMa SocMa SocMa TecMa TecMa TecMa TecMa TecMi EcoMi EcoMi SocMi Tec

Emission regulation

12

3

4

5

MeMaMi

Mega level: Global, long term, affects how the world looks

Macro level: Medium term, affects one or many industries

Micro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

• Driven by increasing global competition and efficiency.

• Emphasis on M2M technology and automation.

• Driven by On-demand and sustainable production.

• Breakthrough of 3D printing also on industrial scale.

Complete automation

M2M/ Industrial intternet

B2B E-commerce

3D Printing

Brings together automation, industrial internet, robotics, analytics and 3D printing.

Holistic approach to supply chain with seamless information flow between actors across the value chain.

A power shift in the value chain where either manufacturers, retailers or new actors may emerge as winners

All trends and were segmented and ranked according to level. Macro and micro trends were looked at more closely as they impact the specific industry. (step 1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

Please note that these trends and scenarios apply mainly to discrete industrial manufacturing,

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Page 4: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Forest trends

4

Servitization of manufacturing (e.g. consulting on material application)

Partnering

Key areas of change 2015-2020

Key industry drivers 2015-2020

Interfaces

Value-added bio products

Cutting costs & partnering

Diversified solutions

Structural changes in demand

Increasing consumer influence and power

Subsidies and funding

Scenarios

Opportunities for Tieto

N/A

Segmented trends and factors of influenceEmerging economies MeDeforestation

Aging population

Integration of European market

Climate change

Scarce natural resources

Generation Y

Higher standards of liv ing

Globalisation

Digitalization

Cloud

Big data, analytics

EcoMe EnvMe SocMe SecMe EnvMe EnvMe SocMe SocMe EcoMe TecMe TecMe Tec

Land use, incl wood supply MaIncreasing consumer power

Sustainability

Restructuring, incl. Moving production out of EuropeIncreasing employer attractiveness

Environmental reputation

Bio-economy, incl. Value-added forest products

Automation

Just-in-time (JIT) logistics

Higher supplier dependence

Nano-technology

Structural changes in demand

Traceability

Cost-cutting to drive competitivenessIncreasingly complex supply chains

Consumer-centric approach

Partnering

Governmental and NGO involvement

EnvMa SocMa SocMa EcoMa SocMa SocMa EcoMa TecMa TecMa TecMa SecMa Tec

EcoSocEco

Mi EcoMi SocMi EcoMi Reg

Geographic information systems (GIS)

12

3

4

5

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industriesMicro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

• Cost-cutting drives competitiveness.

• Increased reliance on contractors.

• Servitization leads to new value chains.

• Transition towards bio-economy means higher margin offerings.

No key area of opportunity where the money will be invested, was discovered within the Forest industry.

All trends and were segmented and ranked according to level. Macro and micro trends were looked at more closely as they impact the specific industry. (step 1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

Partnering

Interfaces

Value-added bio products

Servitization

Supplier and customer interfaces Mi Tec

Mobility

M2M

Corporate accountability

Environmental risks

Use of renewable energy

Robotics

Me TecMe TecMe SocMe Sec

Ma RegMa Tec

Government subsides and funding

Servitization of manufacturing

Ma RegMa Eco

MiMiMi

Areas of growth:Forest companies expect, however, to invest further in customer and supplier interfaces, new and ’smart’ machinery with expanded GIS and automation to cut costs further.

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Page 5: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Retail & Wholesale trends

Shortage of digital skills

Resurgence of B2B e-commerce

Evolving role of the store

Blurred distinction between retail, wholesale and manufacturing

Rivalry for personalized

offerings

Insight-based customer

experience Growing importance of customer experience

Knowledge management

New entrants from other industries

Mass-customization

Scenarios

Opportunities for Tieto

Real-time retail:

Digital payments:

4

5

• New non-traditional players compete in the retail market.

• Mass, rather than niche customization.

• Industry is driven by customer experience.

• Retailing is an information-based industry.

Blurred distinction between retail, wholesale and manufacturing

Resurgence of B2B e-commerce

Enables retailers to address the new ways of shopping and the seamless in-store - digital experience by data collected and analyzed.

Brings together financial services, telecom operators, retailers and device manufacturers and will lead to new opportunities for retailers.

Segmented trends and factors of influenceEuropean single market MeCyber security

Globalisation

Emerging markets

Economic conditions

Climate change

Sustainability

Scarce resources

Generation Y

Aging population

Rise of middle c lass

Sharing economy

Consumer power

Big data and analytics

RegMe SecMe EcoMe EcoMe EcoMe EnvMe EnvMe EnvMe SocMe SocMe SocMe SocMe SocMe Tec

Regulation of cross-border e-commerce MaInformation security, data privacyBlurred distinction between retail, wholesale and manufacturing

Wearable technology

RFID

Resurgence of B2B e-commerce

Leasing and sharing business modelsGrowing importance of customer experience

Consumer trust

Transparency and traceability

Click and collect

Price sensitiv ity

Private labels

Dropshipping

Evolv ing role of the store

Omni-channel approach

RegMa SecMa Eco

Ma TecMa TecMa EnvMa

Tec

Ma Env

Ma SocMi RegMi Reg

EcoEco

Mi EcoMi EcoMi EcoMi Eco

Corporate social responsibility

1

Cloud Me TecConnectiv ity Me TecDigitalization Me Tec

Conscious consumers

C2C retail solution

Mi EnvMi Env

MiMi

Mass-customization

Shortage of digital skills

Mi SocMi Soc

New payment systems

Entrants from other industries

Mi TecMi Tec

Env

All

tren

ds a

ndw

ere

segm

ente

d an

d ra

nked

acc

ordi

ng

to le

vel.

Mac

ro a

nd m

icro

tre

nds

wer

e lo

oked

at

mor

e cl

osel

y as

the

y im

pact

the

spe

cific

ind

ustr

y. (

step

1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industries Micro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-2020

Key industry drivers 2015-20202

3

Subscription-based business model Ma Eco

Social media as an e-commerce channel Mi Tec

Knowledge management Ma Tec Social networks in marketing Mi Tec3D printing Ma Tec Digital offerings Mi TecAugmented reality Ma Tec Stronger relationship with IT Mi TecBio-sensory technology Ma Tec

Shortage of digital skills

Evolv ing role of the store

On-demand manufacturing: A power shift in the value chain where either manufacturers, retailers or new actors may emerge as winners

5

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Page 6: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Logistics trends

B2C E-commerce

Omni-channel logistics

Logistics marketplace

Digital supply networks

Next generation retail

Adaptation to On-demand economy

Consolidation and commoditization

Full implementation of M2M / Industrial internet

Scenarios

Opportunities for Tieto

Autonomous logistics:

Digital supply networks:

4

5Transfer and delivery of goods and products to final destination with minimal human intervention.

Holistic approach to supply chain with seamless information flow between across the value chain.

All

tren

ds a

ndw

ere

segm

ente

d an

d ra

nked

acc

ordi

ng

to le

vel.

Mac

ro a

nd m

icro

tr

ends

wer

e lo

oked

at

mor

e cl

osel

y as

the

y im

pact

the

spe

cific

ind

ustr

y. (

step

1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industries Micro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-2020

Key industry drivers 2015-20202

3

On-demand manufacturing:A power shift in the value chain where manufacturers, retailers or logistics companies may emerge as winners.

Commodity logistics

Consumer-centric logistics

• Commoditization and consolidation of the industry drives cost-optimization.

• Investments in autonomous systems.

• Consumer-driven scenario where logistics companies focus on adapting their services to ’new’ retail market and consumers directly.

Logistics marketplace

Un-mannedvehic les

B2C E-commerce

Omni channel logistics

Delivery disrupted

• Shift in demand of logistics services as crowd-solutions and 3D printing reduces the need for traditional logistics services.

B2C E-commerce

Supply networks

Shareconomy & Crowd logistics

3D printing

Un-manned vehicles

Segmented trends and factors of influenceGlobalization Me Eco Augmented reality Ma Tec

1

Free trade Me Eco M2M / Industrial internet Ma TecClimate change Me Env Multi-sourcing IT Ma TecSustainability Me Env Traceability Ma TecUrbanization Me Soc Un-manned Vehicles (UAVs and UGVs) Ma TecGeneration Y Me Soc Autonomous fleets Ma TecAging population Me Soc

C2C retail Mi Soc

Sharing economy Me Soc

Omni-channel logistics Mi Eco

Rising consumer power Me Soc

B2C E-commerce Ma Eco

Cyber security Me Sec

Urban logistics Mi Eco

Big data and analytics Me Tec

Logistics marketplace Mi Eco

Cloud Me Tec

Click and collect Mi Eco

Internet of Things Me Tec

Dropshipping Mi Eco

Digitalization Me Tec

Cluster manufacturing Mi Eco

Connectivity and mobility Me Tec

Manufacturers do more (e.g. packaging) Mi EcoReal time services Eco

Value chain dominance Mi EcoNext generation retail Eco

Digital supply networks Mi EcoNear-shoring Eco

Convenience logistics Mi SocAgile supply chains Eco

Logistics as a Service (Laas) Mi TecConsolidation Eco

Anticipatory logistics Mi TecIncreasingly complex supply chains Eco

On-demand SCM Mi TecEco-friendly transportation Env

B2C package content information Mi SecEconomic and geopolitical uncertainty Sec

Crowd sourced logistics Mi SocCommoditization Soc

Shareconomy logistics Mi SocOn-demand economy Soc

Supergrid logistics Mi Tec3D printing Tec

Opening up interfaces Mi TecRobotics and automation Tec

Localization and local intelligence Mi TecWearable technology Tec

MaMaMaMaMaMaMaMaMaMaMaMaMa

Increasing security measures Ma SecEmission regulations Ma Env

EU as a single market Reg

Shortage of talent Ma Soc

Modal shift towards ocean and rail Eco

Me

Ma

6

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Page 7: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Telecommunication trends

Entry to new industries

Value added services

Customer Experience

Value chain integration

Lack of organizational agility

Disruptive competition (OTT)

Increase in data traffic

Regulatory pressures

Scenarios

Opportunities for Tieto

Smart traffic:

Digital payments:

4

5

The combination of sensors, connectivity, cameras enables both drivers and traffic management to make use of real-time traffic information.

Brings together telecom operators, financial services, retailers and device manufacturers

All trends and were segmented and ranked according to level. Macro and micro trends were looked at more closely as they impact the specific industry. (step 1) Through influence analysis key

drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industries Micro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-2020

Key industry drivers 2015-20202

3

Digital identification: A trusted digital domain for identification, relying on network connectivity.

7

Note: Please see the Methodology section for scoring and calculations of trends and scenarios and further methodological explanations.

Customer centric content

& services

Telecoms as business

enablers

• Increase in demand for content and services over the network.

• Customer Experience through personalization.

• Telecoms unable to adapt to challenge new competition.

• M&A and partnerships to secure market shares.

Customer Experience

Value added services

Value chain integration

Customer Experience

Securing positions in

new industries

• Regulatory pressures, increasing competition and lower margins incentivizes telecom actors to pursue growth in new industries.

Entry to new industries

Value added services

Telco enabled ecosystemsMonetization of the customer data, facilitated by advanced analytics and offered through open APIs to enable other industries.

Segmented trends and factors of influenceBig data, analytics MeCloud computing

Connectiv ity

Cyber Security

Digital ecosystems

Digitalization

Emerging markets

Generation Y

Globalization

Increased threat of terrorism

IoT (Internet of Things)

Net neutrality

Customer Experience

Digital identity services

Tec

Me Tec

Me Tec

Me Sec

Me Eco

Me Tec

Me Eco

Me Soc

Me Eco

Me Sec

Me Tec

Me Reg

Ma Soc

Ma Sec

1

Digital payments Ma TecFrequency of network replacements Ma TecGreen Internet Ma EnvIncrease in data traffic MaInformation security and data privacy

M2M / Industrial Internet

Network security

Regulatory pressures

Smart buildings / homes

Talent acquis ition (new expertise)

The rise of social media

Value added services (content/IT)

Wearable technologies

Abolishment of roaming charges

Entry to new industries

Digital trust

Disruptive competition (OTT)

Soc

Ma Sec

Ma Tec

Ma Sec

Ma Reg

Ma Tec

Ma Eco

Ma Soc

Ma Eco

Ma Tec

Mi Reg

Mi Eco

Mi Soc

Mi EcoLack of organizational agility Mi Eco

Reduced margins from traditional services Mi EcoSDN & NFV Mi TecValue chain integration Mi Eco

E-Sim Mi Tec

Mobile Virtual Network Operator Mi Tec

Page 8: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

DIY media creation and distribution

Consolidation

Rise of On-demand

Personalization &Customer Experience

Shared data ecosystems

Growth of OTT Content and Actors

8

Automated production, distribution, marketing

Self-service re-bundling

Increase in visual / video communication

New payment, monetization models

Collaborative Customer

Experience Enhancement

DIY media On demand

Scenarios

Opportunities for Tieto

Virtual Reality:

E-learning:

4

5

• Driven by the industry actors• Shared data ecosystems

increases knowledge of customers and is used for personalization

• Driven by the consumers• Rise of On-demand services and

consumers media producers and distributors.

Automated production, distribution, marketing

New payment, monetization models

New payment, monetization models

Self-service re-bundling

Virtual reality brings together media, education, retail, healthcare and manufacturing under one area of technology.

Learning, both academically but also in working life, is expected fast growth through the use of mobile connectivity and greater offering.

Decline of traditional

media actors

• Driven by consolidation of traditional actors in the industry, and the entrance of new players. Traditional industry borders are blurred.

Automated production, distribution, marketing

New payment, monetization models

All

tren

ds a

ndw

ere

segm

ente

d an

d ra

nked

acc

ordi

ng

to le

vel.

Mac

ro a

nd m

icro

tr

ends

wer

e lo

oked

at

mor

e cl

osel

y as

the

y im

pact

the

spe

cific

ind

ustr

y. (

step

1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industriesMicro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-20203

Note: Please see the Methodology section for scoring and calculations of trends and scenarios and further methodological explanations.

Segmented trends and factors of influence1

Growth of messaging / w added features SocMi

Increase in video / visual communication SocMi

Increased usage of suggestions vs. Searches TecMa

Declining ad revenues (digital and ad-blocking) SocMi

Increasing value of personal data SocMa

Internet piracy TecMe

IoT (Internet of Things) TecMe

Media aggregation EcoMiMedia houses moving into new markets EcoMi

Mobile majority SocMa

Net neutrality, Internet governance PolMe

New payment, monetization models TecMi

OTT content and actors EcoMaPersonalization and customer experience EcoMa

Real time content and services TecMi

Reduced paper usage EnvMa

Rise of on-demand SocMa

Rising cost of quality content EcoMa

Self service re-bundling EcoMi

Servitization EcoMa

Applied data science for product development TecMa

Augmented and virtual reality TecMaAutomated, production and marketing TecMa

Big data, analytics TecMe

Cloud computing TecMe

Connectiv ity TecMe

Consolidation EcoMa

Cyber security TecMe

Data traffic crunch TecMa

Declining linear televis ion TecMi

Digital trust SecMa

Digitalization TecMe

DIY media creation and distribution SocMa

Education 2.0 SocMa

Expanded interfaces (TV) TecMa

From commercials to Integrated Points of Sale EcoMi

Generation Y SocMe

Globalization EcoMe

Governance 2.0 RegMaGrowing importance of social media as a channel SocMa

Growth of communities SocMa

Shared data ecosystems SocMa

Sharing economy SocMe

Social media monetization models EcoMa

Wearable technologies TecMa

Key industry drivers 2015-20202

Media trends

Page 9: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Energy & Utilities trends

9

Brokerage for personalized experience

Industry convergence

through domotics

Distributed / Micro generation

Regulation and subsidies

Smart grids

Changing customer demand (control)

Scenarios

Opportunities for Tieto

Distributed generation:

Smart grids:

4

5

• Focus on personalized services enabled by customer data. Through the value of the data, utilities claim customer ownership.

• Distributed generation, new industry entrants and enabling regulation and subsidies centers the industry around home automation.

Personalization & Servitization

Energy data hubs

Domotics / Home automation

Convergence of industries

Distributed generation market size is estimated to be worth USD 180 billion by 2020 and its share of capacity of additions will be 42%.

Global smart grid market size is estimated at USD 120 billion by 2020 with a CAGR of 18% through 2015 – 2020.

Industry disruption postponed

• Easing cost pressure on the industry actors, in combination with slow deployment of smart grids, postpones industry changes.

Convergence of industries

Energy data hubs

Segmented trends and factors of influenceAutomation MeBig data, analytics

Connectiv ity

Digitalization

Finite natural resources

Globalization

Increased threat of terrorism

IoT (Internet of Things)

Sustainability

Urbanization

Automatic reading, monitoring and control

Convergence of industries

Customer centric ity

Cyber security

TecMe TecMe TecMe TecMe EnvMe EcoMe SecMe TexMe SocMe SocMa TecMa EcoMa EcoMa Sec

Environmental reputation Ma

Geopolitical tensions

M2M / Industrial Internet

Personalization & Servitization

Renewable energy

Rise of unconventional energy sources

Smart c ities

Smart grids

Changing customer demand (control)

Cost pressures

Distributed / Micro generation

Domotics / Home automation

Energy data hubs

Grid scale storage

Soc

Ma SecMa TecMa EnvMa

Soc

Ma TecMa EcoMa SocMa Tec

SocEco

Mi TecMi TecMi TecMi Tec

Regulation and subsidies

1

Electric vehic les Ma TecEmissions and air pollution Ma SocEnergy effic iency Ma Eco

New business models (brokerage)

New entrants

Mi EcoMi Eco

MiMi

New pric ing models

Supplier centric model

Mi EcoMi Soc

Transactive energy Mi Eco

Reg

All trends and were segmented and ranked according to level. Macro and micro trends were looked at more closely as they impact the specific industry. (step 1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industriesMicro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-2020

Key industry drivers 2015-20202

3

Note: Please see the Methodology section for scoring and calculations of trends and scenarios and further methodological explanations.

Convergence of industries

Energy data hubs

Domotics / Home automation

New business models (brokerage)Personalization & Servitization

Cost pressures

New businessmodels

Page 10: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Healthcare & Welfare trends

10

Wearable technology

Home care services

Personalized co-solution approach

Prevention & early detection

Remote health management

Pre-emptive personalized

healthcareInformed patient-customers

Cost pressures

Internet of Everything

Aging population

Scenarios

Opportunities for Tieto

Digital health management

Smart health monitoring homes

4

5

• Driven by cost pressure and preference for home care.

• Interconnectivity of people and devices an imperative.

• Driven by aware, informed and demanding patients-customers.

• Reciprocal relationships between patient-customers and professionals.

Wearable technology

Home care services

Personalized co-solution approach

Prevention & early detection

Brings together technology such as wearables and bio-sensing, Internet of Everything as well as aware and informed patient-customers.

Predictive and automated home bundles up remote control of utilities, remote monitoring of people and automation enabling assisted living.

Segmented trends and factors of influenceEU Regulation MeCyber security

Expansion of outsourcing at the state and local level

Sustainability

Aging population

Rise of the middle c lass

Generation Y

Cloud

Internet of Everything

Big data

Digitalization

Standardization of healthcare servicesInformation security and data privacy

Public-private collaboration

Reg

Me Sec

Me Eco

Me Env

Me Soc

Me Soc

Me Soc

Me Tec

Me Tec

Me Tec

Me Tec

Ma Reg

Ma Sec

Ma Eco

Informed patient-customers

Preference for home care

Data storage technology

Documentation requirements

Cost pressure

Home care services

From paper to electronic medical recordsPersonalized co-solution approach

Engagement through social media

Online patient communities

Willingness to share personal data

Unified patient databases

Prevention & early detection

Ma Soc

Ma SocMa Env

Tec

Mi Reg

Mi Eco

Mi Eco

Mi Env

Soc

Soc

Mi Soc

Mi SocMi

TecMi

Tec

Wearable technology

1

Consolidation Ma EcoIncreasing demand for sustainable products Ma Env

Growing customer expectations Ma Soc

mHealth

Mi

Tec

MiMi

Tec

All trends and were segmented and ranked according to level. Macro and micro trends were looked at more closely as they impact the specific industry. (step 1)

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industries Micro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

Key areas of change 2015-2020

Key industry drivers 2015-20202

3

Mi

Ma

Ma

Personalized medicine Soc

Mi

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Page 11: Foresight 2020 - Industry trends and scenarios

© Tieto Corporation

Public sector trends

11

Digital public services

Outsourcing government functions

Key areas of change 2015-2020

Key industry drivers 2015-2020

Digital signage and smart urban screens

Public sector optimization and

outsourcing

Citizen-enabled smart public

services

Scenarios

Opportunities for Tieto

Digital public services:(incl. open public data and digital ID as enblers.

2

3

4

5

MeMaMi

Mega level: Global, long term, affects how the world looksMacro level: Medium term, affects one or many industriesMicro level: Shorter term, changes industry dynamics

Reg

Eco

Sec

Regulatory

Economic

Risk, Security

Env

Soc

Tec

Environmental

Societal

Technological

LEGEND: DriversFactors and trends that have high influence and low dependence towards other trends..

Areas of change

Trends that have high impact but lower influence score and higher dependence score.

• Driven by a smaller tax-payer base and the need for a more efficient public sector.

• Investments in DIY services and oursourcing of non-core functions.

• Empowered citizens demand better access and customization of services.

• Digital identification systems enable citizens to receive personalized public services.

Through influence analysis key drivers and key areas of change were identified. (step 2 and 3)

The drivers were combined in different constellations to create different scenarios with different impact on key areas of change. The scenarios with most likelihood, most impact on industry and most impact on IT by 2020, were selected for scenario development. (step 4)

Key opportunities for Tieto were identified within scenarios and trends and highlighted in the report. (step 5)

Digital public servicesOutsourcing of government functions

Digital signage and smart urban screens

Open data applications

The public sector still primarily operates with paper processes. Some have been digitally enhanced, but are not digital in their foundation.

Strong uptake and use of open public data

Increasing usage of digital identification

Shrinking workforce, less government funding

Strong citizen influence

Open data applications

With an estimated market value of € 32 billion in the EU alone, open public data offers significant benefits to both public and private sector.

Digital identification fully unlocks digital public services and enables citizen self-service, which is beneficial to both governments and citizens.

All

tren

ds a

ndw

ere

segm

ente

d an

d ra

nked

acc

ordi

ng

to le

vel.

Mac

ro a

nd m

icro

tr

ends

wer

e lo

oked

at

mor

e cl

osel

y as

the

y im

pact

the

spe

cific

ind

ustr

y. (

step

1)

Segmented trends and factors of influenceMe Reg

Increasing digital identification Ma Tec

1

Increasing global competition Me Eco

Intelligent Transport Systems Ma Tec

Terrorism Me Sec

Un-manned vehicles / transport Ma Tec

National security Me Sec

Urban noise reduction measurements Mi Reg

Climate change Me Env

Smart homes / buildings Mi Reg

Finite natural resources Me Env

Collaborative IT systems Mi Eco

Aging population Me Soc Public Private Partnerships (PPP) Mi EcoGeneration Y Me Soc Prevention of grey economy Mi EcoImmigration / Migration Me Soc

Nordic housing bubble Mi Eco

Urbanization Me SocSpecialization of knowledge intensive growth sectors Mi Eco

E-citizens Me SocIncreasing R&D funding Mi Eco

Cloud Me TecCrisis response systems (apps SoMe) Mi Sec

Digitalization Me TecDigital video monitoring Mi SecElectrification of transport Mi Env

EU regulation Ma Reg Increased use of hybrid vehicles Mi Eco

Customer-centric approach EcoIncreased use of sustainable biofuels Mi Eco

Household debt EcoSmart grids and energy monitoring Mi Eco

Rising unemployment EcoCity hubs Mi Soc

Increasing cyber security needs SecConcerns over immigration policies Mi Soc

Sustainable cities EnvFlipped classroom Mi Soc

Blended learning SocGrowing knowledge Mi Soc

Consolidation of public actors EcoCommuter parking Mi Soc

Digitalization of cultural content SocLocal communities Mi Soc

Educational shift SocOnline degrees and open courses Mi Soc

Shrinking workforce, less gov. funding SocPersonalized learning Mi Soc

Social exclusion and segregation SocAdvanced ticketing systems Mi Tec

Open public data TecDigital payment systems Mi Tec

Digital government platforms Tec

MaMaMaMaMaMaMaMaMaMaMaMaMa

Improved funding for start-ups Mi EcoOutsourcing government functions Mi Eco

Centralization Eco

Increased surveillance Ma TecDigital public services Tec

Ma

Ma

Empowered citizens Ma SocGrowing knowledge and wealth gap Ma Soc

Free trade agreements

E-learning Mi TecHybrid library Mi TecOpen data applications Mi TecInvestment in smart digital infrastructure Mi TecSmart waste management Mi TecDigital urban smart screens Mi TecDigital signage (real time information) Mi TecOn-demand transit services Mi TecIntelligent traffic systems Mi Tec

Big data analytics Me Tec

Digital trust Ma Sec

Note: Please see the Methodology section, delivered separately, for scoring and calculations of trends and scenarios and further methodological explanations.

Page 12: Foresight 2020 - Industry trends and scenarios