Acquisition Integration - TE Way Jaakko Parkkinen , Vice President TietoEnator The First Baltic IT Cruise November 21-23,2004
Created in 1999 by a merger of Tieto and Enator
Annual net sales exceeding EUR 1,3 billion
Close to 14.000 employees in more than 20 countries
Strong Nordic platform
Global solutions spearheads
Listed on Helsinki and Stockholm Exchanges
TietoEnator acquisitions during 1-9/2004
Name Country Type BA Net sales MEUR
Ki Consulting Sweden Acquisition T&M 90.0
Inveos Germany Acquisition B&I 17.5
Jons-Medical Finland Acquisition P&H 0.4
Octel Finland Outsourcing P&N 20.0
Respons Norway Acquisition P&H 3.1
TE Support Estonia JV/outsourcing P&N NA
Doctorex Finland Acquisition P&H 1.3
Ilmarinen Finland JV/outsourcing B&I for TE 14.0
Tekla Finland Acquisition P&L 8.8
TietoEnator acquisitions in Baltic counties
TIETO CORPORATION STOCK EXCHANGE RELEASE 15 JUNE 1998 13.00 PM 1 (1)
Tieto acquires Latvia's largest financial software company
Tieto Corporation has acquired a majority holding in KONTS SIA, a high-technology company in Latvia specializing in payment card systems. The company holds a leading position in the Latvian market for payment card systems as well as 60 customers in eight countries in the former Soviet Union. Konts was set up in 1992 and it operates in the capital Riga. Its net sales in 1997 totalled FIM 6.6 million and it has 62 employees. In the first stage 51.6 % of the shares of Konts will be transferred to Tieto, which will acquire the remainder in the next three years. The sellers are ….
TIETOENATOR CORPORATION PRESS RELEASE 20 MARCH 2002 12.30 PM 1(1)
TietoEnator buys Estonian Softshark AS
TietoEnator has acquired the entire stock of Softshark AS. Softshark, totally owned by its founders, is one of the leading software suppliers to the Estonian banking and finance market. The acquisition strengthens TietoEnator's position as the largest information technology partner of the Baltic banking and finance business.
Softshark employs 13 people and …
Question to be answered
Define: What is the ambition level of integration ?
What is TE Way?
The TE Way represents the minimum level of consistency and common guidelines within TietoEnator: our common way of doing business.
Even though there are different prerequisites within various competence and focus areas in the organisation, the TE Way identifies the common Guidelines and the lowest common denominators we have within the entire corporation.
It is important that every part of the organisation has the best-suited business models, relevant competence etc to reach its specific goals.
However, to reach our common goals we need to have a certain amount of consistency within the organisation .
This minimum level of consistency and our common Guidelines to reach those goals is represented in the TE Way.
The TE Way constitutes of the Guiding Principles, Policies, Guidelines, Forums and Business System.
In order to make the TE Way clearer and easier to access we have gathered all policies, guidelines and forums into one common structure.
The purpose is to make it possible for you to quickly find the policies and guidelines you need - or through checking the different Group Forums see whom to contact in, your own Business Area representative, or maybe someone at Group Functions.
The TE Way areas are:
Group Governance Policy defines the overall principles of role allocation between the Group and BA's, and related principles.
Strategic Management Terminology Policy manifests the harmonization of key strategic terminology within TietoEnator Group.
Group Knowledge Management Guideline defines the values and principles of managing organizational knowledge in TietoEnator.
Operational security aims at business continuity in all circumstances
The TE Way areas are:
By the word "risk" we mean uncertainty about the future performance. The uncertainty arises from external forces, accidental events or internal decision-making. A risk is not automatically a negative one, since the outcome can also be positive
Finance & Treasury
Each company is required by the law to have a proper management of finances. The monetary processes always reflect the real processes of the company. This management is not just a mandatory must, it should also been seen as a function which assists the organization to meet its targets
The TE Way areas are:
TietoEnator is a global group of companies acting in several jurisdictions and in many continents. Monitoring and protecting TietoEnator's legal interest plays an important part in the daily business of the TietoEnator Group.
Human Resources Management
The policies describe a consistent view on managing HR in TietoEnator. The guidelines are strong recommendations on how to act in order to reach the ambition level in the specific areas of the guideline.
Information/knowledge sharing and development of ICT Infra
The TE Way areas are:
Communications & IR
Communication is an important - in fact critical - tool for reaching our objective - to become the world-leading provider of high-value-added IT-services in selected customer industries. Without a clear, consistent and structured communication with our target groups - our customers, our employees, our shareholders and the media and society at large through different channels, ranging from the Focus intranet to how we use our logotype, we will never reach our goal.
Mergers & Acquisition
Acquisitions have been and continue to be one way for us to grow and to implement our strategy. We aim at strengthening the market position, our capabilities and our offerings. The present TietoEnator is the outcome of many acquisitions or similar kind of transactions, and our procedures and experiences definitely are an asset.
Overall intentions and directions of mandatory character, expressed by the top management of the Group
Supervised by GF
BA Policies - Overall intentions and directions of mandatory character, expressed by the top management of each BA - Not in contradiction with Group Policies
Policies - examples:
Annual Decision-Making in Subsidiaries
Strategic Management Terminology
Decision Making Policy
Recommendations strongly backed by the top management of the Group
Fabric of Group Knowledge Management (KM) - Good / best practice catalyzing, creation, sharing - Top-down, bottom-up, learning-loops - Process development
BA Guidelines - Recommendations backed by the top management of each BA
Guidelines - examples:
Press & stock-release Guideline
Transfer Pricing Guideline
Acquisition Tax Checklist, Guideline
Profit Distribution Guideline
Internal institutions of various disciplines and processes for
assisting Group Policy enforcement
assisting awareness creation & dissemination of Group Guidelines