Specifically, the company is now focusing on smart, data-led technologies to improve its place in the market and improve its business model transformation and present a brighter outlook for the plant, which will be achieved by pursuing a Smart Marine Ecosystem and a “100% renewable energy future.”
Kumpulainen highlighted that
We need to be able to move the company into new areas. So a major transformation is needed.
The key elements for the company's business transformation are transforming core enterprise systems; growing new areas of opportunity; and scaling and pivoting to deliver lasting, sustainable change. He further highlights that a key challenge the company is facing during the transformation is culture; Wärtsilä should ensure that the employees will remain motivated and engaged as the company shifts its emphasis.
The cultural part is about building a basis for change ... I believe that in terms of technological change — either transforming the core or creating new business models — you won’t be successful in the long term if you don’t build the right culture.
Therefore, the industry should focus from industrial engineering to data-driven technologies that sense, manage and enhance the performance and efficiency of marine and energy hardware.
Following the global competition, the company aims to disrupt its existing business model before it is itself disrupted; In the meantime, environmental factors play a big part in that change, "as the organization would prefer to be famous for applying its deep expertise to making a difference to the future of the planet", as Kumpulainen states.
For example, data enables Wärtsilä to assist its customers make much better decisions about the optimal movement of their ships around the world and the best time for a vessel to enter a port.
Take the example of a cargo ship that’s carrying bananas. We might suggest the vessel takes a slightly longer route to avoid warmer sea areas. That approach can be more cost-efficient as the client can save energy by not having to make extensive use of cooling systems for the fruit.
Moreover, his role in the company, except running the technology, is to ensure that the company has the ideal environment for agility and innovation, for which they are looking for a partner.
Kumpulainen states that the future will include a variety of energy sources, from solar to other renewables, while gasoline and gas will also have its role.
In addition, in November 2019, Wärtsilä signed a global digital workplace and managed infrastructure services agreement with Fujitsu. As well as delivering an innovative, flexible new working environment, the implementation will support Wärtsilä’s digital transformation efforts, drawing on Fujitsu’s expertise in multi-cloud and hybrid IT.
The company's transformation was divided in three phases: bootstrapping, which began in 2016; acceleration; and sustain. Kumpulainen says the bootstrapping phase involved setting up the business conditions for change and a demonstration of why transformation was essential.
The company is now during the third phase — sustain — of its transformation process. While moving through the first two phases, Kumpulainen says he observed a clear preparedness for people across the organisation to think about the potential for technology-enabled change.