Digital Workforce Services updates its strategy – new platform to accelerate revenue growth
Company announcement | April 4, 2022 at 08:00 EEST
Digital Workforce Services is updating its strategy. According to the vision and strategic goal the company will build a comprehensive business automation platform which is self-deployed. The platform will expand the company’s target customer base to better serve also companies employing 1,000 -10,000 people. With the new platform the company will be able to grow its market share in present markets and accelerate growth in new markets where the company will face little or no competition.
Several market related factors have led to this strategy update.
Firstly, the market opportunity for automation of work is booming as digitalization is impacting all future work. The research firm Forrester states that robotics and automation will transform as much as 80% of all jobs by 2030.1 According to McKinsey Global Institute 50% of today’s work activities could be automated by 2025. 2 The COVID-19 pandemic boosted business automation plans, and Forrester predicts a $22 billion market for software robotics and related services in 2025.3
Secondly, the benefits that companies are striving for through automation, are evolving and acceleration of digitalization, growth of revenue, improved customer experience and competitiveness are overtaking cost savings and labour productivity as the most important goals. Forrester states that the market is transforming from the automation of individual tasks into a market for the automation of broader, holistic business processes, the so-called automation fabric market. Forrester states that services delivering such comprehensive capabilities are not currently available on the market.4 The Digital Workforce Outsmart Platform is the first commercial platform to meet this need.
Finally, we recognize a new growth opportunity in the US mid-market segment with companies employing 1,000 – 10,000 persons where the number of customers is ten times higher compared with the company’s present customer base and where customers are looking for easy-to-deploy, cloud-based services for intelligent automation.3
CEO Mika Vainio-Mattila: “For us our new strategy will mean transformation from expert-driven services to a platform-based business model. We will introduce the Digital Workforce Outsmart Platform to the heart of our service portfolio. Through the platform we will introduce significant additional capabilities for process automation. Ensuring seamless cooperation between software robots and humans is a key element. This will be supported by cooperation with the Swiss software company Flowable AG, whose technology will enable us to orchestrate all the platform technologies as a service. The multi-technology platform is being developed together with our customers in pilot engagements. The Outsmart Platform will deliver technology capabilities and services to ensure business continuity as secure cloud services charged based on consumption, pay-as-you-go. This will enable our customer promise: Outsmart your competition.”
In connection with our IPO listing in December, we stated that a significant share of the net proceeds from the issue will be invested in new technologies to maintain the high quality and the leadership position of our company’s intelligent automation and cloud services. We are delivering on our promises, and with the business automation platform now being announced, we are focusing on new markets, including the vast mid-market segment in the United States where potential customer numbers are tenfold compared with the large enterprise segment. In 2021 continuous services accounted for over 52% of our revenue. With this strategy update we estimate that we will grow the share of recurring continuous revenue to the level of 70% of our total revenue in 2024.
The multi-technology automation platform, the Digital Workforce Outsmart Platform is in the pilot phase and commercial availability is currently planned for the third quarter of 2022.
1 The Future Of Work Starts Now, Forrester 08/2021
2 McKinsey: Effects of technology trends in 2050
3 The RPA Market Will Grow To $22 Billion By 2025, Forrester 02/2022
4 Automation Is The New Fabric For Digital Business, Forrester 06/2021
Flowable is the leading provider of open-source Intelligent Business Automation solutions for global enterprises across various industries. It combines the power of Case, Process, and Decision support into one platform with low-code capabilities to deliver end-to-end automation.
Founded in 2010, Flowable counts over 350 specialists in 11 locations in Europe, North America, and Asia providing impact to organizations worldwide, from startups to global and Fortune 500 businesses.
Mika Vainio-Mattila, CEO
Tel. +358 40 752 0617
Danske Bank, tel. +358 40 841 3052
Invitation to virtual briefing
Digital Workforce Services Holds Virtual Briefing for Analysts and Media Today April 4, 2022 13.00 EEST. CEO Mika Vainio-Mattila presents the updated strategy. The event will be held in English.
Join the briefing here
After the presentation, participants will have the opportunity to ask questions. A recording of the event can be viewed afterwards here