To ensure high quality in our products and services, and operations as a whole, we simplified and re-launched our business system, Tieto Way, in a new application in 2014. The focus is on our main business processes bringing value to our customers. Every year, we run improvement programs to address feedback from customers and our business operations.
For us, active quality work serves many purposes. It provides business value for our customers, pride to our employees and value to owners and investors. It also provides a continuously improved quality platform for business operations and helps to govern our processes and quality. In addition, it provides corporate-level measurements to facilitate the suggestion of necessary actions with regards to deliveries, and our quality platform. Furthermore, quality focus helps to ensure that we adhere to and comply with regulatory standards, e.g. ISO 9001, ISO 13485 for medical devices.
Our quality focus embraces the whole organization – products and services as well as business operations. Every year, we run quality programs to address specific development needs. In 2014, we close to doubled both services and customers monitored by our real time dashboard monitoring, Tieto Watch. Having the visibility of status drives proactivity and related measures, leading to improved customer experience.
Several initiatives were deployed during the year within proactive risk management in projects to strengthen and support a more predictable delivery performance. Activities included collecting experiences of the sales and delivery process and characteristics. With this information, potential risks can be identified more proactively. The sales process was also further improved through better elaboration of the sales case and its scope.
To improve contract definition and delivery performance, project scope management was improved with a special emphasis on systematic estimation and Earned Value Management (EVM). Improvements included, for instance, EVM adaptation in our project management tool-set and training of stakeholders.
Managing quality in business operations
Tieto Way is our group-wide business system and process library. Tieto Way contains four business processes: Offering Development, Sales and Customer Management, Project Delivery, and Continuous Service Delivery. These form the main vehicle enabling our operating model to realize our chosen strategy, together with roles, tools and competences. Here our staff finds our end-to-end business processes needed for developing, selling and delivering our products and services to customers. In addition, it enables internal knowledge transfer and the reuse of best practices.
Even though Tieto Way is born of many years of experience and accumulated knowledge we have improved it greatly over the last two years. In 2014, we developed and deployed a new Tieto Way application, focusing on our main processes bringing value to our customers. This new version also has a simpler and responsive user interface, making it easier to find where a certain role is responsible, what tools to use and what results to deliver.
In addition to the Tieto Way application and the process improvements in 2014, we initiated activities to gain a holistic view of our business capabilities and enterprise architecture. The scope of our business system was enhanced to cover not only processes and related tools and roles but also competence, information, organization and governance. This work will continue during 2015 based on the business capabilities alignment and support of our strategy as well as operating plans.
The Tieto Way business system is continuously benchmarked, and compliant with international standards and frameworks like ISO 9001 (Quality management system), ISO 27001 (Information security management system), ISO 14001 (Environmental management system), ITIL (IT Service Management), Project Management Book of Knowledge (PMBOK), and Capability Maturity Model Integration (CMMI). Furthermore, the compliance is ensured with selected industry standards, e.g. ISO 13485:2003/AC: 2007 for medical devices.
Tieto Way is developed and managed by a network of process managers and process owners, and governed by the Head of Processes and Quality. To manage the process and quality system, and to make sure it is aligned with the needs of business, there is a corporate-level core team. This team works closely with business units also providing support on performance monitoring and compliance with selected standards. The objective is to be able to maintain, develop and keep up to date the relevant quality tools and processes.
We believe quality in sales and customer deliveries is, and must be, managed close to business. This is supported by Quality Partners in the delivery units. In projects, in sales or delivery, Quality Lead is a role appointed to support and guide the use of processes.
Our Quality Policy applies to all operations and employees, and the purpose is to state what benefits quality has, what the objectives are with quality, and how we understand our customers experiences of our quality.
Our quality journey
Many of our operations are externally certified according to the international standards for management systems, for instance ISO standards. To ensure the compliance of our operations with standards and business processes, we implement an internal audit and external assessment programme.
DNV GL, an accredited certification body, is our external certification partner. At the end of 2014, 65% of our business (in terms of employees) was covered by ISO 9001 certificates, 35% was covered by ISO 27001 certificates and 62% by ISO 14001 certificates. Certifications are mainly driven by customers and business needs.
DNV GL reported no major non-conformities during 2014. In its audits, DNV GL also identified a number of strengths across Tieto, such as improved employee awareness of environmental issues, and high management attention and level of commitment to security. Furthermore, risk management and recovery plans as well as the security forum in our Managed Services globally are working well.