Markets and Digia’s business operations

The current weak economic prospects have from time to time caused delays in customers’ decision-making and therefore in the start-up of new projects. Additionally, constant cost pressures on customers are reflected in their procurement decisions.

The human resources situation has two quite different aspects. On the one hand, a large number of experts were released onto the job market from various contract engineering projects; on the other, there is a shortage of experienced architecture and business experts, which is causing lengthened recruitment processes and pressure for pay rises.

The company’s new organisation took effect at the beginning of 2012. It proved to be effective and worked according to plan. In some areas, operational efficiency will be enhanced further to improve profitability and develop the service portfolio.

The increased cost pressure on Digia’s customers particularly affected demand for customer-specific solutions and services during the financial year, especially in the private sector.

Demand for ERP systems and other operational systems was fair during the review period, although increased caution was evident in customers’ purchasing behaviour and sales cycles had become longer. The order intake book was still at a normal, healthy level.

The Qt business increased its net sales, with operations progressing according to plan during the period. The high profitability of the business fell towards the end of the review period, as expected, due to the Nokia Qt deal increasing the costs of the business. During the period the company revised some of its previously published plans related to Qt product development and its areas of focus. The new Qt message was positively received by the market and has opened significant new business opportunities, especially in the large customer segment.

In Digia’s Russian unit, the focus of business development was on ERP system solutions for local customers within the retail value chain. Besides offering services locally, the Russian unit also supports the company’s business in Finland by providing near shore services, particularly within ERP system solutions.

The focus of development of the Chinese unit was increasingly on Qt licence and consulting services offered to the local Chinese market. The completed Qt acquisition reinforced the company’s competitiveness in this area.