Outotec’s strategy is to provide customers with the best tools for improving their productivity, by using our leading technologies combined with life-cycle services that enhance the performance of our customers’ plants and processes.
With our mission aiming for the ‘sustainable use of Earth’s natural resources’ we strive to meet our customers’ needs and priorities. While safety has long been a top priority for our industry, environmental performance and social license to operate are also increasingly at the forefront of our customers’ minds, not least because of tightening regulation.
Going into the next cycle, we have five strategic focus areas
Due to increased competition, we need to act in a customer-centric way to differentiate. This requires developing our own competences to even better understand our customers’ needs, by ensuring that we measure and actively manage customer satisfaction. It also means improving our responsiveness and focusing on businesses, specific projects and geographies where we can really make a difference for our customers.
Reigniting the growth of our service business is the key to achieving profitability over the cycle. Our services are based on our technological knowledge. They span from spare parts and technical maintenance services through to plant shutdowns and full scale modernizations. Our newly established Services business unit, operational as of April 1, 2017, is focuing on developing our service offering and delivering the growth necessary to improve our profitability and customer intimacy.
Competitiveness of our products
With fewer opportunities in the market, competition is fierce. We have two primary methods of improving our competitiveness:
a) further differentiation through digitalization and improvements in energy and environmental performance with a specific focus on carbon emissions, for instance;
b) reductions in product costs, which can be achieved by redesigning products specifically to reduce sourcing costs, by changing components without compromising on quality, and by searching for lower cost supply alternatives.
We have taken stringent action in recent years to improve our fixed cost efficiency, leading to significant improvements. We now aim to continue spreading a cost conscious attitude within our company, so as to limit fixed cost increases as much as possible as volumes start to grow.
Since we are an expertise-based company, people are our most valuable asset. In recent years we have unfortunately seen a dip in our employee satisfaction and engagement. We are working to fix this firstly by creating a clearer organization to enable people to work more effectively. We are also examining our leadership culture. This involves stepping up internal job rotation further and promoting more open and transparent decision-making.