|Traded as||OMX: TIE1V|
|Industry||IT services, IT consulting|
|Key people||Markku Pohjola (Chairman), Kimmo Alkio (President and CEO)|
|Services||IT, business consulting and outsourcing services|
|Revenue||€1.825 billion (2012)|
|Operating income||€61.3 million (2012)|
|Profit||€29.4 million (2012)|
|Total assets||€1.185 billion (end 2012)|
|Total equity||€556.3 million (end 2012)|
|Employees||16,537 (FTE, end 2012)|
Tieto Oyj (until April 2009 TietoEnator) is an IT service company providing IT and product engineering services. Active in more than 20 countries with approximately 16,500 employees, Tieto is one of the largest IT service providers in Europe. Tieto is domiciled in Helsinki, Finland, and the company's shares are listed on the NASDAQ OMX Helsinki and Stockholm.
The company provides services to the following sectors: financial services; manufacturing, retail & logistics; public, healthcare & welfare; telecom, media and energy.
The number of full-time employees amounted to 16,537 at the end of December 2012. Of Tieto's personnel, 32% is located in Finland, 18% in Sweden, 12% in Czech Republic, 9% in India, 8% in China, and the rest spread across other countries. As of 2012, 54% of Tieto's shareholders are Finnish and 4% are Swedish. 27% of the 16.500 employees worldwide are women. Net sales by country was Finland 45%, Sweden 32%, and International 23%.
- 1 History
- 2 Corporate culture and work environment
- 3 Corporate responsibility
- 4 Products, services and expertise
- 5 References
- 6 External links
Finland and corporate founding
- For details about the years before 1999 in Finland, see Tietotehdas Oy.
The company started its business operations in Espoo, Finland in 1968 under the name Tietotehdas Oy. During the first years, IT systems were developed and maintained mainly for Union Bank of Finland and its customers, and for a few forest industry companies.
The customer base of the company grew during the 1970s represented several industries and operations were organized according to these verticals. During the 1990s, the company experienced rapid growth through a number of acquisitions, mergers and strategic alliances. The company's name was changed to Tieto in 1998. In 1999, Tieto and the Swedish Enator corporation merged, and TietoEnator was born. On 1 December 2008, the company re-launched the corporate brand and marketing name Tieto (which means knowledge in Finnish). The official registered name is Tieto Corporation, and the corporation is lead from the headquarters at Helsinki. The current President and CEO is Kimmo Alkio, effective from November 2011.
Tieto operates in Norway as the subsidiary Tieto Norway AS. The business in the country was developed by a series of acquisitions, starting in 1989 when Enator AB acquired the Norwegian IT consulting company ISI AS.
Other significant acquisitions were Ementor Financial Systems in February 2002, followed by DaWinci Services AS in December of that year. The latter acquisition gave control over the offshore Personnel Transportation & Tracking Solution giving Tieto Norway a 100% market share on systems for operating the Norwegian Continental Shelf personnel movements.
In 2010, there was a major demerger by a group of employees of Tieto Norway that broke out to form the company Hytracc Consulting. The new company has established partner offices in the vicinity of the Tieto's offices, hence both companies are providing services for shared customers of the Tieto Energy Components system.
Lawsuit claims in Norway 2007
In 2005, Western Norway Regional Health Authority, Norwegian Helse Vest RHF, signed an agreement with TietoEnator Norway for the delivery of a system for Electronic health records. By end of 2007 it was announced that Helse Vest RHF concluded its customer relationship with the company and announced a lawsuit against TietoEnator. They claimed that they had spent time, resources and efforts on the initial project without seeing TietoEnator being able to deliver, and announced that they were going to claim compensation from TietoEnator. - The word disaster is appropriate, Eric Hansen of Helse Vest RHF, expressed to Finansavisen. Likewise, Southern Norway Regional Health Authority, Helse Sør, experienced their frame agreement from 2004 to make no deliveries, and Helse Sør also considered legal action. For the fiscal year 2007, TietoEnator Norway did record a loss of NOK -124,336,000. (net profit/loss of the financial statement, as reported to Brønnøysund Register Centre.)
While TietoEnator Norway employed more than 1000 people in 2002, there was a further decline in the number of employees in Tieto Norway from 669 to 477 employees over the period from 2007 to 2011.
The current activities in Sweden is undertaken by a subsidiary Tieto Sweden AB based on restructure of the former Enator corporation. Enator corporation was formed in 1995 when Celsius AB, a Swedish public company, merged its IT operations that had been acquired between 1991 and 1994. Until 1994, there were IT operations in three separate subsidiaries: Telub, Enator and Dialog. The merger of the three subsidiaries led to a restructuring program in 1997. In spring 1996, the corporation was listed on the Stockholm Stock Exchange under the name of Enator.
During 1998 Enator conducted a series of acquisitions to strengthen the company's exposure to the public sector. The company acquired 51 percent of shares in a Stockholm-based consulting firm Programmera. In addition, the company took over two small IT companies - Kvatro Telecom in Trondheim, Norway, and Soft Project in Hamburg, Germany - and divested operations in Enator Telecom Mechanics. In April 1999 Enator acquired NetDesign in Denmark. After Enator - Tieto merger in July 1999, the Enator brand was discontinued.
The data center failure in Sweden
On 25 november 2011 there was a hardware failure in one of Tieto's Swedish data center, which affected some 50 of its clients, including Apoteket (national pharmaceuticals retailing; e-prescriptions were out of service), Bilprovningen (Swedish motor vehicle inspection, inspection was done by manual support), SBAB Bank and Stockholm Municipality school web site. Kristina Westerlind, Head of Marketing and Communications at Tieto Sweden, commented on the incident to Dagens Nyheter: - It is a hardware failure that is very difficult to predict at this time how long it takes to restore everything to normal. It can go fast or it could last a long time. On November 30, Tieto services for Apoteket e-prescriptions and SBAB were recovered and operating again. On December 13, all services were virtually back to normal operations. Confidentiality agreements with customers prevented Tieto to tell exactly who was affected by this incident. On February 22, 2012 the Swedish Civil Contingencies Agency published a report on Reflections on community safety and preparedness for serious IT incidents In March 2012, Tieto released a report investigating the incident.
Corporate culture and work environment
Though Tieto claims that working at the company should be enjoyable and rewarding, Tieto scores a grade of 2.8 in the scale from 1 to 5, assessed by their own employees, on the jobs and career community site Glassdoor.com.
Tieto claims a strong commitment to responsible operations, as outlined on its corporate website via their Corporate responsibility reporting in accordance with Global Reporting Initiative guidelines. Their reporting of 2011 has the application level A+. The performance data, disclosures and statements were assured to a moderate level in accordance with the AA1000 Assurance Standard (2008).
- The volume of Tieto's sustainability IT services increased during 2011, and the identified CO2 reductions from customer services (168 481 tons CO2) by far exceed our their own CO2 emissions (45 582 tons CO2).
- In May 2011, a new data centre in Finland won internationally renowned Green Enterprise IT (GEIT) Award. The recognition from the US Uptime Institute came in the Beyond the Data Centre category.
- In June 2011, Tieto was awarded with top marks in TCO Development’s Green IT audit (973 of 1 000).
- In October 2011, the company was included in Carbon Disclosure Project’s (CDP) Carbon Disclosure Leadership Index (96 points) and Carbon Performance Leadership Index (performance band A).
At the end of 2011, a new Supplier Code was created to complement Code of Conduct in use. The Supplier Code aims to sharpen control of suppliers and partners in order to prevent corruption and support human and labour rights. Several social sponsoring activities (both financial and pro-bono) were conducted during the 2011. One of the projects supported is the UNICEF programme “Schools for Africa”. Tieto has also continued to support the Identity Foundation´s mobile learning centres for underprivileged children in Pune, India.
Products, services and expertise
Oil and gas industry
Energy Components (EC) is a Hydrocarbon accounting software product used to allocate units of aliquots of produced hydrocarbons back to its origination based on their current disposition like a temporary storage tank or a sales point. It holds accounts for oil and gas ownership for the hydrocarbons based on the production field equity share of every single partner company. The product monitors hydrocarbons from the start of movements in the production process following the streams through transportation, storages and sales. Benefits of the EC product includes oil and gas production scheduling and petroleum reservoir management, giving transparent and auditable accounts, it reports production data to regulatory authorities and partners, counteracting potential for disputes between partners and with governments. Tieto is providing services for planning, design, customizations and configuration of product installations, and also gives lifecycle support. Customers share their experiences and maintains common interests through EC User Forum. In April 2012, more than 100 customer representatives from more than 20 countries participated in the annual gathering.
The product has origins in the Prosty-system, developed internally at Statoil, which Statoil conveyed to Tieto for commercialization. Competitors include Field Operations & Production Accounting solutions from Merrick Systems, Inc., P2 Energy Solutions and software from WellPoint Systems.
Energy Components (EC) is also the publicly known naming on the Tieto Norway entity that delivers the EC and PTS/DaWinci products and related services in partnership with the breakaway company Hytracc Consulting.
Personnel Transportation & Tracking
Personnel Transportation & Tracking (PTS/DaWinci) is a software product that helps oil companies to schedule, execute and account for the personnel transportations between ports and locations that need mobilized crew in connection with operations in the oil and gas industry. Transportation type may include inter field shuttles. Ports may be land based heliports. Operational locations may be any type of offshore platform, vessel, FPSO, or onshore plant. The product tracks personnel movements and assist platform management at offshore locations in administering the emergency preparedness, the accommodation units and supports the lifeboat allocation and muster drilling.
Benefits of the product includes updated Personnel On Board information, optimized helicopter utilizations, cost allocation between user companies on shared flights, and adherence to regulatory emergency preparedness functions.
The PTS/DaWinci product origins from a system developed as a joint venture between Statoil and Hydro Oil & Gas that Tieto Norway took over in an acquisition of the company DaWinci Services AS in 2002. Competitors include Collabro Personnel-On-Board Management, Asset Integrity Personnel On Board (POB), and the Logistics Management System (LMS).
Specific expertise areas offered to customer services are within Banking and insurance; Telecom, automotive and media; Healthcare & welfare; Forest, Energy, Manufacturing; Retail and logistics; Public; ICT operation management.
- "Annual Report 2012". Tieto. Retrieved 16 March 2013.
- "History - Tieto". Retrieved 2013-03-15.
- Tieto.no website Om Tieto Våre kontorer retrieved 11 March 2013 (Norwegian)
- Dagens Næringsliv Morgen ISI til Sverige February 8, 1989 p. 20, retrieved 11 March 2013 (Norwegian)(login required)
- Dagens Næringsliv Morgen TietoEnator øker i Norge etter oppkjøp 26 July 2002 p. 20, retrieved 11 March 2013 (Norwegian)(login required)
- TietoEnator Press release TietoEnator acquires the oil & gas industry solution DaWinci December 19, 2002, retrieved 11 March 2013
- Tieto.com website product presentation Multi-Company Personnel Transportation & Tracking Solution (PTS MC) Retrieved 11 March 2013
- Brønnøysund Register Centre Nøkkelopplysninger fra Enhetsregisteret for entity 995108771, reference for the creation, retrieved 11 March 2013 (Norwegian)
- Hytracc Consulting on Linkedin reference for the transfer of personnel (login required)
- Hytracc.com netsite Hytrac mission presentation Retrieved 11 March 2013
- digi.no article Helse Vest til søksmål mot TietoEnator Retrieved 11 March 2013 (Norwegian)
- idg.no article Kaster ut Tietoenator Retrieved 11 March 2013 (Norwegian)
- Financial statement of 2008, "Årsregnskap regnskapsåret 2008 for 821530792", (Financial statement of 2008) available from Brønnøysund Register Centre. Retrieved 11 March 2013 (Norwegian)
- Financial statement of 2011 "Årsregnskap regnskapsåret 2011 for 821530792" available from Brønnøysund Register Centre. Retrieved 11 March 2013 (Norwegian)
- Tieto Sweden home page contact
- Enators historia, retrieved 15 March 2013 (Swedish)
- idg.se Disk-problem bakom Tieto-haveri Retrieved 15 February 2013 (Swedish)
- DN.se - datahaveri påverkar verksamheter i hela landet Retrieved February 15, 2013 (Swedish)
- nutopia.se - sänker Apoteket, Bilprovningen, SBAB Bank med flera Retrieved 15 February 2013 (Swedish)
- mynewsdesk.se - Nu kan Apotekets kunder återigen hämta ut receptläkemedel på samtliga apotek Retrieved 15 February 2013 (Swedish)
- Tieto Press release - Driftstörning i Tietos datacenter november 2011 Retrieved 15 February 2013 (Swedish)
- Tieto Press release December 13, 2011 - I stort sett alla tjänster åter i drift – Tieto utreder den bakomliggande orsaken Retrieved 15 February 2013 (Swedish)
- sydsvenskan.se - IT-haveri stör hela Sverige Retrieved 15 February 2013 (Swedish)
- affarsvarlden.se- Stort mörkertal när Tieto havererar Retrieved 15 February 2013 (Swedish)
- MSB - kring samhällets skydd och beredskap vid allvarliga it-incidenter ISBN 978-91-7383-209-0 Retrieved 15 February 2013 (Swedish)
- Tieto Press release Mars 15, 2012 - Tieto: Slutsatser och lärdomar efter driftstörningen den 25 november 2011 Retrieved 15 February 2013 (Swedish)
- tieto.com - Social responsibility Retrieved 15 February 2013
- Glassdoor.com - Tieto Reviews Retrieved 15 February 2013
- "Corporate Responsibility Reporting". Retrieved 2013-03-16.
- "New IDC Energy Insights Research Reveals Industry Short List for Hydrocarbon Accounting". WTMnews.gr. Retrieved 2013-03-15.
- "Energy Components User Forum 2012 - Tieto". Retrieved 2013-03-15.
- Morten Østbø Anvendelse av UML til dokumentering av generiske systemer Thesis abstracts. Retrieved 14 March 2013 (Norwegian)
- "Vacancy - Kloke ledervalg - Visindi". Retrieved 2013-03-15. Sample recruitment ad for this entity (Norwegian)
- "heliport.no flight schedules". Retrieved 2013-03-15.
- "Selvbetjent innsjekk på helikopter fra Bergen". Retrieved 2013-03-15. (Norwegian)
- "Smartkort fjerner køer på Flesland - Bergens Tidende - Morgen - Nyhetsklipp 21.09.2003 - Retriever". Retrieved 2013-03-15. (Norwegian)(login required)
- "Personnel-On-Board Management - Vantage POB - Collabro Limited". Retrieved 2013-03-15.
- "Personnel on board (POB)". Retrieved 2013-03-15.
- "Logistics Management System - Logistics Software for Offshore Oil and Gas Operations". Retrieved 2013-03-15.