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Wärtsilä: A global leader in a changing world

PMI Finland Chapter ConferenceMay 10th, 2017Jaakko Eskola, President & CEO Wärtsilä Corporation

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THIS IS WÄRTSILÄ

A global leader in advancedtechnologies and completelifecycle solutions for themarine and energy markets

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Our vision, mission and values

THIS IS WÄRTSILÄ

VISIONWe will be our customers’ most valued business partner. Energy

Excellence

Excitement

MISSIONWe shape the marine and energy

markets with advanced techno-

logies and focus on lifecycle

performance, to enhance our

customers’ business and benefit the environment.

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Our business areas

THIS IS WÄRTSILÄ

ENERGY SOLUTIONS

MARINE SOLUTIONS

SERVICES

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What we bring to the market

THIS IS WÄRTSILÄ

EFFICIENCY ENVIRONMENTAL SOLUTIONS FUEL FLEXIBILITY

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MARINE SOLUTIONS THE MOST COMPLETE MARINE OFFERING ON EARTH

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Offering

ENERGY SOLUTIONS

• Flexible baseload power plants

• Capacity for grid stability, peaking and load-following

generation, and back-up power for integrating wind

and solar energy

• Utility-scale solar PV power plants and solar-engine hybrid solutions

• Multi-fuel solutions enabling use of any gas or

liquid fuels

• LNG terminals and distribution systems

• Project development and EPC capability

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A broad range of expertise and services

SERVICES

LIFECYCLE SOLUTIONS INCL.WÄRTSILÄ GENIUS SERVICES

SERVICE PROJECTS

TRAINING SERVICES

ENGINE SERVICES

PROPULSIONSERVICES

SEALS & BEARINGSSERVICES

HYDRO & INDUSTRIAL SERVICES

TURBOCHARGER SERVICES

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SERVICE PROJECTS FOCUS AREAS

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WÄRTSILÄ PROJECTS TODAY

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SERVICES

ENERGY SOLUTIONS

MARINE SOLUTIONS

Customer Delivery Projects (CD)

Product and Solution Development Projects (PSD)

Operational Development Projects (OD)

KEY FIGURES : > Projects >50% of Wärtsilä business

> 3,000 projects under execution

> 2,000 people involved in project management

> 1,800 PMIS / PM Tool users

> 350 certified project management

professionals

= Net Sales

3 Billion EUR/year

= 160+ MEUR/yr = 40 MEUR /year

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WÄRTSILÄ PROJECT DEFINITION

Projects shall be managed according to the Wärtsilä Project Procedures.

Also tasks/other work can be run as projects if so decided in the respective organisation.

This principle applies across all businesses, each business if needed defines in further detail.

Project is NOT

✓ routine operations

✓ standard equipment delivery

✓ a task

Project has always

✓defined beginning and end points

✓specific goals

✓a unique end-product

Project is a temporary set of activities undertaken to create a unique product, service, or result

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Global PM Competence Area L&D solutions (Portfolio)Selected, formal learning opportunities

Project Management

Fundamentals

Project Management process, methodology and tools

•Site Management training• Managing Customer

Relationships during Project Lifecycle

• Stakeholder Relationship Skills for Project Managers

ProgramManagement

Program Management Professional

(PgMP)

External Certification Program

Project

Portfolio

Management

Project Management Professional(PMP)

External Certification Program

PM@WärtsiläInternal Certification Program

Technical/Administrative

Executive

Bus/Tech Leadership

Team/Tech

Leadership

Professional Expertise

Leading by Projects

Please note: Business Specific PM trainings and PM Tools

specific are not included in this overview

Link to Compass for more info.

Being proactive and taking responsibility- Everyone creates his/her own Project

Management career, roadmap and future.

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Digitalisation and Disruption

• Digitalisation affecting all industries with more focus on software development

• New competences needed: ’Agile development’, Lean Service Creation, etc etc

• But most of all a culture change

• Increasign the velocity in the Wärtsilä

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To transform Wärtsilä into an “as-a-Service” company for the Marine and Energy sectors

The strategy is based on 5 “digital promises” aimed at helping the organisation understand, unite and drive our digital transformation. It is a strategy designed to drive digital competence pervasively across the business rather than create a separate digital silo:

Easy to Do Business With – Agile, Seamless integrations, Partnerships, Transparent data, Customer Value focused

One Wärtsilä – Digital culture, new ways of working, different organisational models, true to our competencies but different in how they are used

Digitize the Core – Increased efficiency & productivity, enable the growth and shift from “Hardware to Software”, leverage Operational Excellence

Digital First - Drive new business models, new digital revenues. Data and Analytics led, Design thinking enabled & a new approach to “venturing”

Quality and Security – New approach to all software development, product design and solutions. Cyber Security becomes a new competence

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OUR GROUP AND DIGITAL STRATEGY

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IGNITE YOUR DIGITAL HEART

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GROWING THROUGH M&A

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WHAT CHANGE DOES THE DIGITAL TRANSFORMATION DELIVER?

Silo’d organisation

Disparate platforms

HW Engineering

Digital Initiatives

Inconsistent UX

Slow, Reactive,

Expensive

Finnish Centric

Customer Focused

Engines first

Transactional

TODAY

Collaborative

Ecosystem

SW Engineering

Product Portfolio

Consistent UX

Fast, Agile, Valued

Global/Local

Customer Centric

Digital first

Value/Lifecycle

TRANSFORMED

Culture change, Ways of Working, Shared KPIs

Re-engineering core platforms, Digital Architecture

Product Development, Design Thinking, Innovation

Dev Ops, SW Dev Lifecycle, Governance, Strategy

Design Thinking, UX/HMI Capabilities, Governance

Capabilities, Ways of Working, Shared KPIs, Technology

Digital Hubs, Customer Proximity, Local empowerment

CRM, Analytics, Design Thinking, Customer Proximity

Examples of Key Digital Enablers

Strategy, Digital Architecture, New business models

Organisation, Digital KPIs, Strategy, Commercial Models

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What do I expect as CEO

• Increase our velocity – “Change the Clockspeed of Wartsila”

• Development and Project management: fail fast, learn and optimise

• Creating a culture of Service Design - from the customer need back

• Think about the user experience, ease of use right at the start of a project

• Cyber security as an integral part of everything we offer

• An open, agile and empowered culture - Wartsila as the company of choice for talent.

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THANK YOU!

@jaakko_eskola

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