Innofactor starts co-operation negotiations based on its updated strategy and related to the development of its organization
08.10.2018 09:35 EEST (UTC +3)
Innofactor Plc Stock Exchange Release October 8, 2018, at 9:35 Finnish time
Today Innofactor published its strategy, according to which our new mission is "Driving the #ModernDigitalOrganization". In connection with this, the focus of our strategy in the Nordic level will be even more strongly in our five solution areas (Journeys) and selected industries. In order to speed up the implementation of the strategy, the plan is to set up a new position of Chief Technology Officer (CTO), who would report to CEO Sami Ensio and be a member of the Executive Board. Executive Vice President Janne Heikkinen, who has previously taken care of the CTOs tasks in addition to his own tasks would in that case continue in his main task as the leader of the Nordic Products and Services unit and as a member of the Executive Board.
According to our new strategy, the Group's Nordic Products and Services unit will from now on focus more strongly on products and services we want to sell in the Nordic market. In the future, products targeted for a single country market will be the responsibility of the relevant country unit. This will move the decision-making closer to the customers with lighter product management.
Our central goal in the updated strategy is to improve the operation of our organization by making it more streamlined. Our goal is to implement self-organized teams, centralize superiors' tasks and decrease organizational levels. The reform is planned to be implemented in the largest delivery unit in Finland, SI Finland. The plan is to move from the current approximately 50 superiors, most of whom are acting as superiors in addition to their primary tasks, to approximately 15 full-time superiors and line managers. This means that a significant part of current superiors will have much more time for sales and customer work. We believe that the planned change will improve the quality of both people management and customer work, make the organization's decision-making clearer and faster, improve communication, promote more flexible use of personnel resources in the entire organization, improve cost-effectiveness, and improve personnel satisfaction.
In order to reach the above-mentioned goals, Innofactor will start co-operation negotiations on production-related and financial grounds in its Finnish companies: Innofactor Plc, Innofactor Software Ltd, Innofactor Business Solutions Ltd and Innofactor CS Ltd. The co-operation negotiations are targeted at superiors of the SI Finland delivery unit in the said companies, plus a small group of separately defined other roles. As regards the end result of the co-operation negotiations, the need for personnel reduction is under ten persons in each company. The negotiations will be called to start on October 15, 2018, and the minimum negotiation period is two weeks.
Our goal in the co-operation negotiations is to achieve through reorganization of tasks an annual positive effect of EUR 2.0 million in Innofactor's operating margin starting from 2019. The reorganization is estimated to result in extra costs in the last quarter of 2018.
Espoo, October 8, 2018
INNOFACTOR PLC
Board of Directors
Additional information:
Sami Ensio, CEO
Innofactor Plc
Tel: +358 50 584 2029
Distribution:
NASDAQ Helsinki
Main media
www.innofactor.com
Innofactor
Innofactor is the leading driver of the modern digital organization in the Nordic Countries for its over 1,500 customers in commercial, public and third sector. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordics. Innofactor has approximately 600 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. In 2013–2017, the annual growth of Innofactor's net sales has been approximately over 20%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Oy. www.innofactor.com #ModernDigitalOrganization