Disruption caused by new technologies takes incumbents by surprise
TIETO CORPORATION PRESS RELEASE 13 June 2014 at 9.00 EET
Agility, transformation and innovation are a must for survival and thrival of companies, presents Ahmad Qureshi, Head of Technology and Foresight at Tieto today at Future Infinite conference at Wanha Satama, Helsinki.
We have quickly moved from the information society into a real-time society, where everything is connected and interacting with each other. The global digital output is growing over ten times every year. It is expected that there will be 25 billion devices connected to the internet by 2015 and 50 billion by 2020. These trends bring sheer growth, which will be enabled by emerging technologies and new business models – causing a huge disruption in the IT market.
“No industry will be immune to disruption– the change is led by the consumer centric industries, such as retail and banking, but the trend is quickly flowing into B2B services as well. The changes around us are going to enable much better customer solutions than today. This puts customer at the centre of the change,” Ahmad Qureshi, Head of Technology and Foresight at Tieto, explains about the implications of the disruption.
Agile innovators survive in the midst of the disruption
The real-time society has given birth to a new knowledge economy – where “the fast eat the slow”. To win, the agile innovators build on emerging technologies to maximize consumer experience. This disruption causes a new paradigm to be born.
“In business, a well-known concept is the “innovator’s dilemma”*: a situation of disruption, in which the established incumbents in a specific market are toppled by new entrants, as the incumbents keep on investing in incremental improvements to existing services or products. Usually, they are doing that to support their customers’ current needs, whereas the new entrants can bring something to the market that the customers will want in the future. There are recent examples to prove this point, like start-ups for example,” continues Ahmad Qureshi.
Business transformation is not an option – but an obligation
In times of disruption, a bi-focal approach is needed to keep the traditional business as cost effective, efficient and productive as possible, while building capabilities in the new paradigm through unbiased investigation employing a start-up mind-set. This will require incumbents to rigidly drive innovations in their businesses and have right transformation and execution capabilities – both to renew themselves as well as their customers.
“History has shown that not every incumbent will be able to pull this off. This requires a lot of organisational maturity. Tieto is committed and is successfully bringing our clients to the new age through world-class innovations and business transformation,” Ahmad Qureshi concludes.
Tieto is a sponsor of the Future Infinite Conference (www.futureinfinite.fi) held in Helsinki on 11–13 June 2014. Tieto’s Head of Technology and Foresight, Ahmad Qureshi is a speaker at this conference. The title of the talk is “Anatomy of disruption – survival & thrival in changing futures”.
Download the study of future of business transformation:
http://www.tieto.com/tieto-concepts/business-it-transformation/transformation-research
About the study
In fall 2013, Tieto conducted a study on the future of business transformation, based on qualitative and quantitative research. The study included an online survey, distributed to executives in Sweden, Norway and Finland, with 500 respondents. A majority of the respondent were members of the C-suite or business unit directors. The survey was supplemented by interviews with experts from Tieto and industry executive roundtable discussions, held in Stockholm, Oslo and Helsinki.
For further information, please contact:
Ahmad Qureshi, Head of Technology and Foresight, Tieto Plc, ahmad.qureshi[at]tieto.com,
+358 40 1845162
TIETO CORPORATION
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Tieto is the largest Nordic IT services company providing full life-cycle services for both the private and public sectors and product development services in the field of communications and embedded technologies. The company has global presence through its product development business and global delivery centres. Tieto is committed to developing enterprises and society through IT by realizing new opportunities in customers’ business transformation. At Tieto, we believe in professional development and results.
Founded 1968, headquartered in Helsinki, Finland and with approximately 14 000 experts, the company operates in over 20 countries with net sales of approximately EUR 1.6 billion. Tieto’s shares are listed on NASDAQ OMX in Helsinki and Stockholm. Please visit www.tieto.com for more information.
* Term presented in Clayton Chrisensen’s book “The Innovator’s Dilemma”
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