Sustainability at Bittium

Bittium is a global technology company and responsibility covers its products and services as well as its way of creating value for the surrounding society.

Sustainability at Bittium

Bittium is a global technology company and responsibility covers its products and services as well as its way of creating value for the surrounding society.

Our sustainability is based on the company´s strategy and values. We pay actively attention to our focus areas that are important for us. These focus areas are:

  • innovative and developing people;
  • confidential customer relationships and secure products; and
  • corporate citizenship and responsible business practices.

Our most important assets are our talented people, diverse and non-discriminatory working community as well as our personnel´s well-being and competence.

We offer our employees challenging and motivating tasks. We are committed to support their development and invest in their well-being. We cherish open company culture and good working atmosphere.

We are reliable and trustworthy partner for all our stakeholders. Company´s ethical principles and Code of Conduct guide our operations with all stakeholders. In customer relationships the responsibility is captured in the way we work and in the quality of our products, as well as in the confidentiality in the relationship. One of the key cornerstones of our company is trust.

Responsibility is the basis of our operations. It supports us in the risk management, and is an important value and competitive advantage for us. Sustainability follows us through long-term value creation.

Value Creation Model

 

Megatrends that Affect Our Operations

A megatrend that has a huge effect on our operations is digitalization, whose different manifestations create both business threats and business opportunities.

Connectivity as an enabler of digitalization

The rise of merged software, complex system management and the fast development of the 5G technology create opportunities for us to provide added value to our customers. To maintain our competitive edge, we need to keep intensifying our own technological development. 

Internet of Things (IoT)

The growing importance of the IoT means that operational processes and the IoT need to be integrated to ensure efficiency. We utilize robotic process automation to develop our own operations. For our customers, we develop challenging IoT-related solutions that require specific data security. 

Digitalization and aging population

As the population is getting older and the global population is mushrooming, the digitalization of health care plays an important role for the ability to maintain the productivity and coverage of services. Remote monitoring, wireless solutions, new home care methods and faster and more efficient health data analyses are amongst the technological solutions we have developed to benefit our customers. 

Information security

As digitalization and technologies develop, the challenges of data security also become more prominent. This has made cyber security one of the major concerns. Tighter data security and regulatory requirements are reflected on the operations of our customers as well as Bittium. The requirements will also extend to new sectors and applications and, at the same time, the importance of data security certification will increase. We are familiar with these fast-increasing, sector-specific requirements and stay ahead of the curve in implementing them in our product development.

Financial Influence

For Bittium, financial influence means securing the profitability of operations for the long term. This way, we will be able to add value to our different stakeholders as well as the society around us. Profitable operations benefit shareholders, employees, partners, subcontractors, retailers, customers, municipalities and the state alike.

Conforming with legal requirements is the basic premise of financial responsibility. However, in many regards, sustainability and influence exceed the legal requirements.

Ensuring Added Value to Stakeholders

When it comes to Bittium´s financial influence, the local scope is the one that matters most. Local added value is generated especially via direct and indirect effects on employment. In addition to the local effects, our influence extends via tax payments, dividend payments and business effects from the national level to the countries in which we operate around the world.

Bittium operates in Europe, the Americas and Asia. Nonetheless, the majority of our employees work in Finland, more than half of them in the city of Oulu.

Still, ensuring added value means securing long-term growth and financial stability, comprehensive risk management and a long-standing commitment to the development of society and the local community. In addition to financial risks, risk management should take into consideration other risks concerning the valuation of the company, such as reputational risks.

Our business operations should react to the changes in the operating environment to maintain profitability and competitiveness in the future. The technological revolution and the resulting technological solutions create both opportunities and threats – changes that we should take into account already during the product development stage.

We already utilize robotics in-house, for instance, for financial administration tasks. As robotics and AI become more routine, they will have a greater effect on the development of our operations down the line. This also includes a change in job descriptions; what kind of skilled persons we will require and how we will recruit top talent in the future.

Tax Footprint

In Bittium, taxes are part of our business process and tax management supports our company strategy. Bittium operates in six different countries. In line with this, our business profits and the resulting taxes occur locally.

Bittium´s tax strategy is to support business decisions and ensure their proper implementation also from the point of view of taxation. Tax planning supports business efficiency and productivity creating added value to the owners and ensuring compliance with the established regulations. Our tax planning is not aggressive and it is not based on artificial arrangements. It is always based on our actual business needs.

Our tax strategy is aimed at making sure that we calculate, report and pay our taxes correctly to the authorities, conforming to the established regulations. Bittium is committed to complying with the laws of our operating countries as well as lesser regulations, such as the transfer price instructions of the OECD. Good corporate citizenship is part of Bittium´s values. Accordingly, the quality of our tax processes is an important cornerstone of Bittium´s tax strategy. Our philosophy is to be open and transparent towards the tax authorities in all of the countries in which we operate. For its part, Bittium seeks to influence the development of tax systems to make them clearer, fairer and more consistent.

In Finland, Bittium works in close cooperation with the Finnish Tax Administration.

 

Investments in R&D

We operate in a sector that creates products and services for the future through continuous development, innovations and cross-sector cooperation. We are strongly involved as the spearhead of technological development, and active cooperation with academic researchers increases our understanding of significant new technologies and promotes the digitalization of society.  Bittium has a long strong cooperation relationship with the University of Oulu.

In 2018, we took part in several national projects financed by Business Finland as investors and research partners. Europe-wide, our cooperation covered, for instance, the H2020, ITEA and EIT cooperation projects. The focus areas of these cooperation projects included technologies that are critical for Bittium´s future product and service business, such as authoritative communications solutions, data security, machine learning and software design methods based on the LTE and 5G technologies.

Our product development investments continued to rise from the 2017 level to 34.4 percent of our revenue. The R&D investments were mainly focused on extending the defence product portfolio in tactical communications and in the development of terminals and software for the authorities and special purposes. Furthermore, we continued to develop our secure smartphones and their related security software. We also continued our investments in the further development of health technology products.