Digitalization of energy market and energy business

Kimmo Alkio

CEO, Tieto

@kalkio

© Tieto Corporation

Tieto Smart Utility

Tieto in the energy market – an overview

#1 – in CRM and Billing for

utilities in the Nordics with

5,3 million points of delivery

40% – More than every 3rd

customer in the Nordics is

managed via a Tieto

application

E.ON

Eidsiva

Ellevio

Energi Steinmark

Fortum

Göteborg Energi

Hafslund

Helsingin Energia

Selected customers

JE-Siirto

Järvi-Suomen Energia

Kuopion Energia

Kymenlaakson Sähkö

Latvenergo

Nordic Green Energy

PKS Sähkönsiirto

Savon Voima Verkko

1.000.000 – We contributed

to the roll-out of >1 million

Smart Meters

3.500.000 – We enable

efficiency and automation to

3.5 million metering points

Skagerak

Suur-Savon Sähkö

Turku Energia

Vattenfall

130.000.000 – Utility EDI

transaction messages

delivered per year

Infastructureand application management

DistributionRetail

Dynamic digitalization

Globalisation Regulation Price competitiveness Consumerization Population growth

Aging population Urbanisation Resource nexus

Customerexpectations

Innovationsand disruptions

Technologyacceleration

World of

ecosystems

Everything

as a service

Internet of

Everything

Customer expectations fuel the disruptionCustomers demand new services faster and faster

Ubiquitous 24/7

Self-service

Trust

Decentralization

Personalized

Experiences

© Tieto Corporation

Key drivers and disruptive technologies

SDN

OpenDaylight

OpenStack

Docker Blockchain

REST

Spark

NoSQL

Cost of Processing

60xOver last 10 years

Cost of Bandwidth

40xOver last 10 years

Cost of Sensors

50%

Cost of Data

3D printing Biometrics Nanotechnology Cryptography

Technology evolution

More devices

More storage

More network bandwidth

More computing powerOver last 10 years Over last 10 years

1000x

Hadoop

Digitalization technology trends

Technology

evolution

Faster

Smaller

Cheaper

Smarter

Realtime

Networked

Data centric

PredictiveRobotics

© Tieto Corporation

Inte

rnal

E-Learning

Virtual Reality

Real time Retail

Smart health monitoring homes

Ecosystems driving competitivenessIndustries are merging

Media

Personalization & Customer Experience

Rise of On Demand

Energy utilities

Distributed Generation

Regulation & subsidies

Smart Grids Changing

customer demand (control)

Telecoms Smart HomeSmart Traffic

Domotics / Home Automation

Customer Experience

Entry to new industries

Next generation

retail

Value added services

Digital health management

On demand manufacturing

Digital supply networks

Digital public services

FinancialServices

Digital trust

Optimization through IT

Retail &Wholesale

New entrants

Growing importance of

customer experience

Knowledge management

Masscustomization

Manufac-turing

On demandeconomy

(incl. 3D printing)

Sustainable production

Factory of the future

Optimization

M2M /Industrialinternet

Competition from East

Forest

Structural changes in

demand

Digital payments

Cyber security

Increasingconsumerinfluence

3D printing

On demand economy

Autonomous logistics

Consolidationand optimization

Informed patient

customers

Healthcare & Welfare

Aging population

Internet ofeverything

Publicsector

Stronger citizen influence

Open public data uptake

Digitalidentification

Shrinking tax payer base

Logistics

Industry

Industry driver

Key opportunity

© Tieto Corporation

Tieto – Value for Life in Energy

8

Cross Nordic systems running in three

different countries in Scandinavia for

retailers and DSOs

Enter the Hub Era

• Data Hub compliant

• Regulatory guaranteed

• Pay per usage

Supplier Centric

Model

Deep understanding of

the energy value chain

Explore New Opportunities

• Micro production billing

• Smart Office and Smart House concepts

• Predictive analytics

Domotics and

Microproduction

Customer Experience Management

(CEM) competence center

Customer Journey

• Full lifecycle management of digital

customership

• Wide range of consumer services

• Mobility

• Security

Customer

Centricity

© Tieto Corporation

Leaders as transformation drivers

9

Recognize the

change potential

Future-oriented mindset

and vision

Facilitate digital transformation

– even proof of concept

Leverage technology to

enhance customer-first mindset

Strive for partnerships and

collaborations in ecosystems

Seek completely new business

opportunities while constantly securing

customer service satisfaction and efficiency of

the operations e.g. via automation

Inte

rnal