Annual Report 2006
Financial inFormation From ac ando Reporting dates 2007:
•
interim report January-march 26/4•
interim report January-June and Q2 16/8•
interim report January-September and Q3 26/10 Annual General Meeting of Shareholders:•
Salénhuset, norrlandsgatan 15, Stockholm 26/4 Reporting in 2008:•
Year-end report for 2007 Februaryon thursday, 26 April 2007 at Salénhuset, norrlandsgatan 15, Stockholm, Sweden.
Shareholders who wish to attend the meeting must be recorded in the shareholders’
register maintained by Värde
papperscentralen VpC AB (the Swedish Central Securities Depository) not later than 19 April 2007.
Shareholders whose shares are held in trust must ensure that they be temporarily reregistered with VpC well in advance in their own names.
Shareholders must also notify Acando of their intention to attend at the latest by 4pm on 19 April 2007. notifications should indicate the shareholder’s name, personal identification or corpo
rate registration number, address and telephone number.
notifications may be sub
mitted by mail to Acando AB, Jakobsgatan 6, 111 52 Stockholm, Sweden, by phone at
+46 8699 70 00 or online via the Company’s website at www.acando.com.
those attending by way of proxy must submit their proxy statement prior to the meeting.
market 9
Strategies and objectives 10
acando’s offering 12
Employees 22
risks and opportunities 24
Five-year summary 26
Share capital and ownership structure 27
directors’ report 29
income statement 32
Balance sheet 33
Shareholders’ equity 35
cash flow statement 37
accounting principles 38
notes to the accounts 41
auditors’ report 48
corporate governance 49
Board of directors 50
Group executive management 51
Executive management Sweden 52
Executive management Germany 54
addresses 55
2006
•
net sales increased by 73 percent to SEK 1,116m (646).•
operating profit amounted to SEK 83m (48), representing a rise of 73 percent.•
Profit after tax was SEK 84m (54), an increase of 56 percent.•
Earnings per share were SEK 1.01 (0.86), an improvement of 17 percent.•
acquisition of e-motion technology consulting aB strengthens acando’s SaP position.•
merger of acandoFrontec aB and resco aB to create a leading company in northern Europe for management and it consultants.the company’s new name is acando aB.
Significant events further to the end of the year:
•
Establishment of a new subsidiary in denmark to strengthen the offering in the entire Öresund region.•
the acquisition of deva management consulting in Stockholm improves acando’s position within management consulting and Business intelligence.•
the acquisition of iQ consulting ltd in the UK places acando within Europe’s largest market for it services.•
the Board of directors proposes that the annual General meeting of Shareholders adopt of a share split of 2:1 combined with a compulsory redemption procedure. this would imply that each share be divided into one ordinary share and one redemption share. the redemption shares will then be redeemed for SEK 1.30 per share, representing the transfer of approximately SEK 100m to the company’s shareholders.•
the Board of directors has adopted the following dividend policy with effect as of the financial year 2007: ”the objective is that the long-term dividend level shall amount to at least one third (1/3) of the Group’s reported profit after tax pertaining to the Parent company’s shareholders.”Highlights of the year
KEY FiGUrES and ratioS, SEK million 20 0 6 20 05 20 0 4
net sales 1,116 646 608
operating profit 83 48 33
net profit for the year 84 54 36
Earnings per share 1.01 0.86 0,61
cash flow for the year 51 16 –20
cash and cash equivalents at end of year 136 85 69
Equity/assets ratio, % 69 65 59
number of employees at end of year 1,167 683 532
Business concept
acando is a consultancy company that works together with its customers to identify and implement perfor- mance improvements with the help of information technology. measurable improvements are achieved by enhancing processes, organisations and it solutions. our consultants understand and are well-versed in informa- tion technology, while our passion is the improvement of our customers’ operations.
our methodology is driven by a strong focus on results and responsibility for ensuring that customers quickly obtain the outcomes they expect. our customers see acando as the local partner close at hand that can handle both simple and complex assignments. our culture is based on the three core values of team Spirit, Passion and results, which characterise everything we do.
Competence areas
acando has four principal areas of competence:
•
management•
ErP systems•
integration•
Systems development.international presence
acando employs approximately 1,200 people in nine countries:
•
Sweden•
Germany•
Finland•
denmark•
United Kingdom•
Estonia•
lithuania•
romania•
Serbia.Our partners
acando works as partner of the world’s leading software providers:
•
SaP•
microsoft•
iBm.Customers
acando’s offering is designed for both private businesses and public authorities. the company has a very large and well-established customer base. in the private sector, the largest industry segments are manufacturing, telecom and pharmaceuticals.
our principal customers include the following companies:
•
airbus•
astraZeneca•
comdirect Bank•
Ericsson•
Hansabank•
StoraEnso•
teliaSonera•
Vattenfall•
Volkswagen•
Volvo.in the public sector, customers consist mainly of government agencies such as the national tax Board and the Swedish migration Board, in addition to a number of large municipalities and county councils in Sweden.
pär and Christine, Acando.
growth and internationalisation
the past year was a good and eventful period for acando. our achievements include:
•
an increase in the company’s sales and operating profit by more than 70 percent through a combina- tion of organic growth and acquisitions.•
Earnings per share that are the best in the company’s ten-year history as a listed company.•
Expansion through six offices, acquisitions and organically: Hamburg, düsseldorf, Frankfurt, Bremen, Helsinki and Belgrade.•
customer agreements in Sweden with astraZeneca, teliaSonera, Volvo aB, nordea, the national tax Board, Sca, tibnor, SKF, Fortum, iKEa, Stora Enso, Volvo car corporation, tarkett, Flir and the Fritidsresor Group.•
customer agreements in Germany with the Euro- pean central Bank, Porsche informatik, Siemens ito, messe münchen, iKEa, iKB, daimler chrysler, Vatten- fall Europe, comdirect Bank, Eurocopter, airbus, air liquide and Unilever deutschland.the first months of 2007 have been exciting, and include the following events:
•
Establishment of two further offices in manchester and copenhagen.•
customer agreements with Ericsson, iBm and Vattenfall.•
Successful delivery of a system for the Estonian tax board, enabling citizens to declare their income via the internet.•
acquisition of a specialist company within Business intelligence.•
the company’s strong financial position and im- proved stability have enabled the Board of directors to adopt a dividends policy with effect from 2007, and to propose to the annual General meeting that approximately SEK 100m be distributed among the shareholders.Customers are undergoing change...
acando’s customers consist of major companies and public institutions that are currently undergoing con- siderable change. Globalisation, standardisation and new technology are pushing the speed of change that contains both interesting market opportunities and new business problems.
the solutions to these problems and opportunities are increasingly a question of managing information, in-
formation that enables taking the right decisions as well as information that controls the various processes that these customers perform – such as sales, production, logistics, product development, item and document management.
acando supports its customers during this change process. together, we identify and carry out business improvements through information technology, which are created through more effective organisations and workflows. this rationalisation is usually enabled by better information management, which acando provides through a combination of standard and tailor- made systems and by offering customers both specialist and project groups.
…and have changed their purchasing behaviour…
customers’ behaviour when purchasing consultancy services has changed over recent years. they choose to closely cooperate with fewer consultancy firms, enab- ling them to obtain better conditions through offering higher volume.
in the old industrial logic, authority over it purchases was often with the it department where a personal relationship with suppliers was decisive. this resulted in many suppliers, which was both expensive and inef- fective. in tandem with the consultancy sector maturing and customers becoming more professional, the purchasing department has obtained significantly more influence over the procurement of consultancy services
customers now evaluate consultancy firms’ exper- tise, delivery capacity, quality systems, financial capacity and future in a structured way. the ultimate result is that they enter into a cooperation agreement with just a few consultancy firms, and form a close relationship with selected suppliers.
…which will drive forward a new sector structure…
We believe that two categories of consultancy firms will be created as a consequence of customers’ change in purchasing behaviour. the first category is composed of a small number of consultancies that work in close partnership with their customers, and have a sales model and delivery capacity to be one of a few selected suppliers.
the second category is composed of companies that become sub-consultants of the first category, where we will find small specialised companies with a particular niche as well as broad and extremely cost-effective brokers of consultancy resources.
...that constitutes Acando’s strategy platform...
acando belongs and will continue to belong to the dimi- nishing group of companies that form the first category.
this implies being one of the few selected partners of our customers for the improvement of their operations through information technology. it will require gradually increasing delivery capacity, the internationalisation of operations, the establishment of structure capital and quality-assured deliveries.
…that differentiates the Company...
our strategy is based on three pillars:
•
comprehensive•
close•
industrialisedcomPrEHEnSiVE – there will be greater demands that investments in it provide tangible operational improvements – which we find refreshing. to be able to support our customers to achieve success, we offer business consultants with expertise of the customer’s particular sector as well as within various functional areas (purchasing-Srm, supply chain, sales-crm, controlling, Hr, etc), along with consultants who define and develop systems. acando has in-depth know- ledge of management, ErP systems, integra- tion and tailor-made systems development.
acando’s strategic technology partners, whose products and environments form the basis of the customer delivery, are all internationally leading suppliers. our most important partners are microsoft, SaP and iBm.
We have named this mixture of expertise – both qualitatively and quantitatively and in combination with partnerships with world- leading technology suppliers – as comPrEHEnSiVE. With this holistic offering, we differen- tiate ourselves from most local consultancy firms that may be strong within one or two of these areas, but not in all. it will therefore be more difficult for them to be selected to be closest to the customer when customers choose fewer
lars, Acando.
consultancy providers, and thereby risk becoming under extreme margin pressure as sub-consultant.
cloSE – on the other hand, comprehensiveness does not differentiate us from the major global consultancy firms. it is here that the second pillar of our strategy, proximity, comes into the picture.
close implies that acando shall be more sensitive, more flexible, faster and more cost-effective with regard to the total cost of small and medium-size projects com- pared with what the global consultancy firms can and want to be. in tandem with their growing ambitions to acquire entire it departments and obtain large complex multi-year projects with significant offshore elements, a market window opens for acando’s type of delivery – small and medium-sized projects carried out by local consultants who work close to the end-users, supple- mented by its own near-shore capacity (the Baltic re- gion and Eastern Europe) for systems development. our way of working is characterised by an iterative and fast hypothesis-driven methodology close to the customer’s employees and with focus on our customer’s customer – and to thereby create a high business value at low cost.
Being close, we differentiate ourselves from the global consultancy firms, which is the foundation for acando taking one of the regional places in the customer’s supp- lier portfolio – but where one naturally also needs some of the global players for the international customers.
indUStrialiSEd – We are in the process of industriali- sing our deliveries in order to reduce our customers’ risk level and to offer cost-effective deliveries and specialist assistance. Particularly in the it sector, far too much has been characterised by ”one project at a time with long
analysis cycles and with firm delivery variables late in the projects” – roughly like when cars were produced one- by-one. the car industry has industrialised its processes and now manufactures cars on an assembly line. our skills and structure capital project was started in the au- tumn of 2006. our packaged offerings and methodology for ”location-independent delivery” are also examples of an industrialised working process.
…that have characterised our development since 2003…
in order to be able to offer customers comprehensive- ness, the listed company Frontec, specialised in integra- tion and systems development, acquired acando in early 2003 – a company specialised in management consul- ting and ErP systems. Frontec was unprofitable at the time, but further to a radical improvement program the new company acandoFrontec has become profitable.
the next development stage was defined in the summer of 2005 – where the basis was the concept that a consultancy firm that in five years shall continue to be a close selected principal supplier to major customers needs to have European operations rather than local, and that local systems development must be supple- mented with more cost-effective near-shore operations.
the implementation of this plan has so far implied deve- lopments where the company’s sales have expanded in just eighteen months from operations in one country to nine countries, from four offices to 20, and with a delivery capacity of 20 percent of the total number of consultants in the Baltic region and Eastern Europe.
these developments imply that we can create a better customer offering and make us more attractive as a supplier. our employees have a more stable and
industrialised Close
Comprehensive
Results
Activities within the It sector increased significantly in 2006. the favourable european economic climate has led to companies having the financial scope required for new investments. the future also looks promising.
in a forecast for 2007, the market analysis company Exido believes that the Swedish it market will grow by 5.4 percent, represen- ting an upward adjustment of 1.4 percen- tagepoints. Forrester research also be- lieves in a strong 2007 and anticipates 3.7 percent growth for the European it market.
the primary driving forces are custo- mers’ needs to rationalise and consolidate their systems. acando has noticed strong interest from companies to discuss and ob- tain help from acando with improvement projects that create business value. com- panies have also moved their focus from cost-saving investments to investments that will result in new revenue sources.
acando is established in nine countries.
the Swedish market is the company’s largest, and developed strongly in 2006.
the rising demand within industry in particular has led to an increase in demand for it consultants and holistic solutions.
the strengthening of our sales activities in the third quarter has had a positive effect.
in Finland, acando is focusing on the SaP market. more than 80 percent of the large Finnish companies use SaP and demand continues to be good.
Good economic trends in Germany demand is also good in Germany. acando is established in Hamburg, düsseldorf, Frankfurt and Bremen and is strong in SaP.
the German economy is healthy and is ex- pected to develop positively in the future.
the export industry in particular is going well. Banking, finance, media and industry also have an interesting future. the British market is characterised by a strong eco- nomy and demand is expected to grow in the future.
demand has also been encouraging in Estonia and lithuania where acando ope- rates through the subsidiary Webmedia.
the newly started operations in Serbia and romania have also developed well.
acando’s customer strategy is to have close and in-depth cooperation with a li- mited number of customers. the company often has a partner status and works closely with the customer over a long period of time. acando has a good risk-spread over different sectors, and about 20 percent of sales in Sweden come from the govern- ment, municipalities and county councils.
For a consultancy company such as acando, the prevailing economic climate is always a risk. However, this is balanced to a certain degree by a relatively large propor- tion of sales coming from the public sector, as well as around 20 percent of assignments being carried out by sub-consultants.
Growing market
Anna, Acando.
successful platform for their development. Sharehol- ders have experienced an appreciation in share price of more than 160 percent over the past three years – which together with an optimised capital structure forms the basis for good value-creation.
….that will continue to characterise our further-development.
We will now continue on the established path. We have a first-class customer base with sector-leading players.
many have an annual consultancy budget that could enable each one to purchase the entire acando Group’s delivery capacity without exceeding their budget ceilings. We have an excellent and dominating domestic market in Sweden where we can continue to gain market shares. We have many smaller operations in a number of countries that have a growth agenda.
We have skilful, keen and energetic employees, a number of whom possess exceptional delivery ability and guru status within their specialist area. our core values of team Spirit, Passion and results lead to a closely knit team.
Passion for improvements!
Stockholm, march 2007
lars Wollung President and cEo
Market
Acando shall be one of the leading companies in northern europe within Management and It.
our strategy is to be Comprehensive, Close and Industrialised.
acando’s long-term objective is to be one of the leading management and it consultancy companies in northern Europe by 2008. the overall objective is broken down into the following targets:
•
at least 10 percent operating margin over a business cycle•
at least 10 percent organic growth•
at least 80 percent of the company’s customers to rank acando as number one in terms of business improvements through it•
acando to be ranked by university-college students as one of the three most attractive consultancy com- panies.Customers
in view of that customers are increasingly choosing to work with fewer consultancy companies, an important part of acando’s strategy is to establish strategic part- nerships with all of its key customers. We are also actively working with individually selected customers, known as focus customers. Special teams composed of strategy consultants and sales representatives are developing and creating new business with these focus customers.
information Management – prioritised growth area acando has started to strongly invest in information management, im. our strategy is to first expand with im in the Swedish market, and to then gradually broaden the offering to other markets. information management
is experiencing strong growth due to considerable demand among companies, public authorities and organisations to structure their operational information flows. a well-implemented im solution enables the creation of major rationalisation gains that directly affect customers’ profitability.
Acquisitions
acando will remain active in the consultancy sector’s structural transformation. this means that acando will primarily grow organically, but will also seek out suitable acquisitions – both large or small (companies with 15–30 employees).
Consultancy partners
technical developments are moving fast and are essen- tially driven by the major software suppliers producing new solutions. an important part of acando’s strategy is to maintain close cooperation with the globally leading technology companies – iBm, microsoft and SaP.
Forms of delivery
acando will maintain and further develop its core consultancy business based on specialised exper- tise. this will be done while acando simultaneously increases the proportion of project assignments based on packaged offerings, competence mix and specialist expertise.
Mission
acando is a consultancy company that together with its customers identifies and carries out business improve- ments with the help of information technology. acando offers a balance between high customer satisfaction, short project times and low overall cost.
Acando – leading Management
and It consultants
Vision
acando’s vision is to be northern Europe’s leading regional consultancy company for business improve- ments through information technology.
Business concept
acando is a consultancy company that together with its customers identifies and carries out business improvements with the help of information technology.
measurable improvements are created by developing processes, organisation and it. We understand and are deeply embodied in information technology, while our passion is the improvement of our customers’
operations.
our methodology is driven by strong focus on results and responsibility that the customer quickly obtains the anticipated effects. our customers see us as the local and close partner in both simple and complex assignments.
Core values
an acando consultant is humble, down-to-earth and reliable – qualities that enable simple and flexible co- operation both internally and externally. our corporate culture is characterised by our core values of team Spirit, Passion and results.
team Spirit
Everything we do is permeated by a genuine desire that others shall succeed. internally, we work in teams where we naturally and as a matter of course play each other for- ward. in coordination with our customers and partners, we perceive ourselves as a proactive player where focus shall always be on the improvements we achieve together.
Passion
Everything we do is permeated by intense commitment.
We act based on a strong conviction to improve and develop – although always with keeping an eye on the customer’s, partner’s or each other’s best. Passion per- meates the organisation in the form of a strong glow that feels distinct in our own development, in each external or internal undertaking, as well as in the desire to always be a better company than our competitors.
Results
customers and partners experience strongly that we never give up until we have created real improvements and tangible values for them. We are sensitive to our custo- mers’ and partners’ requirements and prerequisites, which ultimately lead to improvements for their customers. We are close at hand for customers, partners and each other, simultaneously as we always keep our promises.
Acando is a Management and It consultancy company. We identify and implement business improvements with the help of It in close and longterm cooperation with our customers.
customer satisfaction, short project times and competitive overall cost are the three important components of acando’s offering. acando’s broad and in-depth skills within management, ErP Systems, Systems development and integration imply that the company provides its customers with holistic solutions.
acando’s consultants are results-oriented and work with close proximity to our customers. Proximity to the customer combined with flexible methodology where assignments are based on the speed of the customer’s ability to change contribute to both a high level of customer satisfac- tion and short project times. acando’s
Acando develops its customers’
business operations
PAR tneR AGReeMentS Acando has chosen to closely cooperate with three strategic software suppliers: IBM, SAp and Microsoft.
Mats, Acando.
information Management
Companies, organisations and public authorities have a considerable need to manage and use information in a new way. Information Management (IM) is about developing, rationalising and controlling organisations with the help of the right information going to the right people.
the information spread across a company is, like factories and inventories, worth very large amounts of money. one problem however is that information changes quickly. the speed is a result of new strategies, modified organisational structures and that operations are sold or outsourced. Furthermore, the need for im solutions has accelerated because most business operations are undergoing important changes where synergies, customer focus and coordination are key issues.
the rapid and changing information flow places new and greater demands on access to information so that it may be monitored and controlled. For example, new and exciting opportunities are created via the internet and new informa- tion technology such as Service oriented architecture.
the problem today in many organisa- tions is that they do not have access to cor- rectly structured and current information.
to enable a company to be developed, one must start by elucidating which in- formation is adequate for each respective employee – for the right information to reach the right person.
major rationalisations can be achieved by securing the access of information and to automate information flows in the processes. this requires unambiguous
expressions, harmonisation of data, and clear ownership of strategic joint informa- tion items.
Acando’s iM offering
acando helps companies to understand and map how access to information can be developed in their operations. acando differs from its competitors because we have unique knowledge of operations, information and supporting techno- logy. acando works under the guiding components of comprehensive, close and industrialisation (see page 7 for their definitions).
We have proven ways of working, methods and experience to develop rele- vant operational and it scenarios where information management is the leading principle. Based on the established objectives, acando works together with the customer in order to take small, distinct steps and achieve deliveries as per established targets.
the speed and length of these steps are determined by the customer’s ability and ambitions. Visualising and prototy- ping of the solution are important tools for the customer to participate in the change process. acando’s management consultants are responsible for the overall vision, objective, control and future picture. the information consultants focus on the information structures and that processes be integrated. acando’s it con- sultants ensure that the right information tools be produced, and our architecture consultants ensure that the overall struc- ture be optimal.
all in all, acando’s im solution offers a complete package to effectively ensure in- creased competitiveness for the customer.
development of industrialised working methods ena- bles experience from previous projects to be taken into consideration. the ultimate result is that assignments go faster with a high level of quality.
Management consulting/Business consulting acando’s management consultants work with business improvements both with and without it support. a ma- nagement consultant’s task starts when the company’s overall strategies have been established. acando then ensures that all of the strategies be developed and implemented, and that they permeate the customer’s operations.
eRP Systems
acando is a major player within ErP systems, and holds a strong position with the two largest suppliers – SaP and microsoft – thus offering its customers significant functionality. today’s ErP systems are complex. For customers to maximise their business value, a good understanding of the operations’ requirements is required as well as in-depth knowledge of technical and functional dimensions covered by ErP systems.
Systems Development
Within systems development, acando has extensive experience of developing tailor-made it support in order to develop customers’ business processes.
Solutions produced by acando are based on .net and Java, and cover different areas from portal solutions to specific support for parts of the customer’s operations.
Part-ownership in the Estonian it company Webmedia also enables acando to offer cost-effective development projects.
Business integration
Within business integration, acando offers integration at both strategic and operational levels. the systemisation of experiences from previous projects enables acando to offer high-quality cost-effective solutions.
Gunilla and Kristoffer, Acando.
the offering in Sweden eRP systems
Enterprise (ErP) systems are a central part of a customer’s system portfolio, the reason being that the systems handle large and important flows of money, goods, services and employees.
the previous standardised ErPs primarily contained financial functions. When many companies changed system around the year 2000, the standard packages normally contained finance, orders, inventories, invoi- cing, purchasing and production.
many customers are today facing a major upgrade, due to the lifecycle of ErP systems normally being seven to ten years.
Prior to 2000, there were five global suppliers (JBoPS
= Jd Edwards, Baan, oracle, PeopleSoft and SaP), plus a further three ”i”s from Sweden (iFS, intentia and iBS) in the next segment.
consolidation has now been in progress for seven years. From a global aspect, there are currently three players composed of microsoft, oracle and SaP. on the Swedish market, intentia has become lawson. the other two, iFS and iBS, are moving towards becoming niche players.
When working with an existing ErP system or with the implementation of a new one, questions are basically different compared with seven years ago. today’s systems are much richer functionally, both vertically and horizontally.
With vertical functionality, solutions are considered as being produced for a specific sector or problem. Hori- zontal functionality covers areas that previously normally lied outside the system, such as customer relation ma- nagement (crm), advanced planning and optimisation (aPS), time and project, personnel and payroll systems, service systems, portals, decision support, integration, process management and document management.
on the other hand, the complexity of ErP system investments has increased. to maximise the benefits of each invested krona, one first requires a good understan- ding of the operational requirement. this aspect must then be combined with in-depth knowledge of the many functional and technical dimensions included in today’s ErP systems.
acando provides a broad spectrum of services around ErP systems – from specialist strengthening during the procurement procedure to making a value-
Sandra, Acando.
the Goodyear dunlop nordic tyre manu- facturer has assigned acando to identify improvement areas within the company’s use of its SaP enterprise system. the project has led to new insights and strong underlying data to enable Goodyear to use SaP’s power to the maximum and to subsequently improve productivity, effec- tiveness and the working environment.
”With acando’s help, we have identi- fied a number of problems and solutions that will increase our effectiveness and im- prove our process support. We have seen that we need to improve user-training so as to get more out of the SaP support, and that we must change many of our busi- ness processes,” says Pål Jarness, Finance manager of Goodyear dunlop nordic.
Preliminary study provides quick answers
the SaP ErP system is used to manage finance and business processes in the
Goodyear gets a better grip on SAP after turbo project
entire Goodyear group. the systems support has not functioned satisfactorily in the nordic operations. requirements have not been met in an effective way and users have experienced the situation as being frustrating and restraining. Pål Jarness contacted acando to help define and examine the problems.
”i have worked with acando pre- viously and know that they have long experience of ErP systems and business development. they are able to approach a business from a human angle, define the right priorities and analyse all business processes in an effective way. i am very pleased with acando’s work.”
With the ”Gear Up Your SaP” concept, acando’s consultants analysed in just six weeks all operations, all business pro- cesses and the related support from SaP.
based holistic commitment for international delive- ries. acando has strategic partnerships with SaP and microsoft, which are respectively largest in volume and growth in the global ErP systems market. acando also has a partnership with infor, who own the Baan product and its successor, ErP ln.
the eRP offering in Sweden
•
Requirements analysis and procurement – Business consultants work together with thecustomer to ensure that the organisation, processes, control methods and the new system interact in the best possible way. Based on the requirements, acando helps the customer produce underlying pro- curement documentation and proposed suppliers.
•
implementation project– a team composed of the customer’s and acando’s project members work according to a proven project methodology that steers towards the prioritised requirements. For the project to be successful, the orientation must be clearly defined and the organisation, processes, control models, systems and technology must be correct. considerable focus is also placed on the change process for the people who will partly have to modify their way of working.
•
effectiveness improvements or upgrading of existing system– acando’s operations-related Second Wave metho- dology supports the customer in obtaining higher business value from an investment already made in an ErP system. this includes an analysis of the organisation’s utilisation of the ErP system. concor- dance must be secured between the organisation, business processes and established processes in the system. an evaluation is then performed to de- termine that the basic data and parameters comply with the operation’s prerequisites. acando also evaluates whether existing but unused functionality can further rationalise activities and processes. the possible need for supplementary functionality in additional modules is also analysed.
•
Solution Management– Solution management is acando’s term for all of the support, administration and operations we can offer for ErP solutions in production. customers have access to an expert organisation for quick and professional help with the possibility of adapting the service level to their operations and requirements.
photo: Goodyear
Management
acando is a management and it consultancy company.
the company’s management consultants have broad and in-depth knowledge, and work with business im- provements both with and without it support. acando’s consultants step in when the company’s strategy has been established and ensure that it be realised.
Within management consulting, acando works with management & Business Support, Supply chain management, customer relationship management and Quality & compliance.
management & Business Support focuses on developing the operation’s management and sup- port functions, which include the development of the organisation, department heads and employees. other important areas include operationally adapted control and management support, rationalisation through the establishment and development of Shared Service centre/outsourcing, as well as requirements analysis, procurement support and project management for system investments.
Within Supply chain management, acando’s consultants work with operational development within areas such as purchasing, forecasting and planning of production. customer relationship management
works primarily with companies’ marketing, sales and customer service functions, where acando helps com- panies to increase customer profitability. this takes place through effective customer information, segmenting and interaction so as to provide the right offering to the right customer in the right channel on the right occasion.
Within Quality & compliance, acando helps its custo- mers to secure flexibility and to rationalise working pro- cesses that are governed by internal and external quality and safety requirements. Focus for Quality & compliance lies on the customer with specific legal requirements and companies that are affected by SoX legislation.
acando also works with business development within strategic it, and handles strategic questions within three central areas for modern it operations:
how effective it operations are achieved above and within the value chain of it orderer, it organisation and it supplier, how orientation and improvement of the total it landscape is managed over time, as well as how one achieves internal control and quality assurance of information, systems and projects.
Effective it operations are characterised by good control and management of it, well-adapted organi- sational forms and roles, as well as clear targets and measures in relation to the defined orientation and Anna, Jan and François, Acando.
When Vattenfall eldistribution restructured its operations from five companies to just one, the It organi
sation faced considerable challenges.
A new organisation was to be built up, It environments be consoli
dated and new strategies designed.
experts from Acando were engaged throughout the process.
”acando has become a strategic partner in the new it organisation. Building up the organisation has gone like clockwork.
acando’s consultants maintain a strong focus on results with a high level of com- petence, and collaborate well with our own staff,” says Elenor Båtsman, Head of it at Vattenfall Eldistribution.
Vattenfall Eldistribution manages the distribution network on behalf of Vat- tenfall in Sweden. the company employs about 800 people with a turnover of approximately SEK 7 billion. in order to be flexible, the it organisation is relatively small with only eight employees and most of the it services are sourced outside the company.
”i have commissioned acando on a range of different projects. initially during the restructuring process, acando acted as project manager for the consolidation of the organisation. it took us six months to create a common structure based on the various companies’ it environments.
energetic partnership with Vattenfall
acando has also helped us design the in- tegration architecture, it plans, it control and budget and various other items.”
cooperation between the companies has developed into a more formalised overall solution where acando staffs cer- tain positions and functions in the new it organisation on an interim basis. acando’s responsibilities will increase within the framework of the overall solution, implying for example that the consultants may initiate to a larger extent their own improvement projects. the assignment also includes transferring knowledge to Vattenfall Eldistribution’s it personnel.
”at present, acando’s consultants provide qualified support in questions re- garding the architecture and integration, as well as it control. they also help us plan the application portfolio and to draw up a strategic it plan for the next three years.”
the consolidation of operations continues. another substantial project is also under way with the introduction of a new invoicing and customer information system. With regard to the allocation of resources in the various projects, Elenor Båtsman is already very pleased.
”acando has certainly managed to place the right consultant in the right place. i also think that the consultants are flexible and easily adapt to new situa- tions and environments, which is clearly demonstrated in our collaboration.”
strategy combined with distinct service management (Sla). Effective it operations also have a well-weighted and used structure capital in the form of methods and tools, as well as adapted and implemented processes, administration models and support systems designed for effective it operations. the operative processes are usually based in itil.
acando also works with the total it landscape’s orientation and improvement, i.e. questions linked to the strategic orientation of the contents of the total it landscape, where the point of departure is that the improvements be based on operational requirements.
the it landscape also contains business and it-related projects where acando helps customers with effective forms to carry out projects and manage the total project portfolio. Strategic areas for the total it landscape in- clude enterprise architecture, Soa, strategic information management, Ecm solutions, and strategic integration questions.
Within the Strategic it area, acando also works with internal control and quality assurance for it operations, which covers continuity planning, disaster planning, risk management with regard to it, information security and the audit of it operations, it environments and projects.
Management offering in Sweden
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Situation and potential analysis•
Business models and functional strategies•
control and management issues•
Process development•
organisation and culture development•
Quality and flexibility of processes and tools•
analysis and setting requirements•
application strategies, procurement and implementation support•
change-process management•
Project managementphoto: Vattenfall
Business integration the objective of acando’s offe- ring within Business integration is to strengthen customers’
competitiveness. their ope- rations become both faster and more flexible through acando’s integration of systems and operations with each other. acando offers cost-effective solutions because we consistently benefit from and systemise knowledge gained in previous projects.
Business integration implies that acando offers integration at both strategic and opera- tional levels.
at the strategic level, acando helps companies and organisations with strategies for integration, as well as the organisation of integration through offering its integra-
Simon, Acando.
Greater efficiency, better coordina
tion and the reutilisation of previous integration processes are some of the important results of SKF’s new integration office that Acando helped to create.
the SKF Group is the world-leading supplier of products, customer-adapted solutions and service within an area that embraces rolling bearings, seals, mechat- ronics, service and grease systems. With 100 manufacturing units in 24 countries, its own sales companies and a network of 15,000 approved dealers and the Endorsia e-commerce network, SKF provides its customers worldwide with products and solutions.
communication between the various systems and units has previously been transmitted via a number of integration solutions with different communications standards. to rationalise the integration process in the it projects, SKF wanted to analyse the possibility of handling all communication and systems integration in one uniform way.
”the new integration office leads to improved cost-effectiveness, faster projects, optimal resource utilisation, and good quality assurance in the projects,”
says mikael lifjorden, manager of SKF’s integration office.
new platform improves SKF’s efficiency
SKF’s objective was to create a joint integration platform for all internal and external electronic communication. the new platform should enable all employees to access all relevant information in real time, irrespective of the system and where in the world one was located. the solution was to produce an integration office.
”acando’s expertise and experience of working with integration solutions in large international organisations were important qualities. the company’s consultants are respectful in face of the difficult task, and very skilful in managing the process to achieve good results in a short period of time,” continues mikael lifjorden.
the integration office has been in ope- ration since 2004 and generates a number of benefits, including greater efficiency, better order and improved quality and cost control.
”Without the framework of the integra- tion office, it would be very difficult to estimate the overall costs of each project.
centralising has enabled better resource utilisation and lower development costs because previous experience and solu- tions are re-utilised to a greater degree.
Furthermore, the joint price model evens out the cost for all projects. For example, the normally high start-up costs become lower,” concludes mikael lifjorden.
tion competence center (icc). icc implies that acando assumes a comprehensive role and effectively uses its management and technical knowledge to coordinate, control and monitor the integration process. acando is market-leader in Sweden within this area.
at the operational level, acando develops and ad- ministers qualitative and effective integration solutions based on market-leading products from suppliers such as microsoft, iBm and SaP.
Service oriented architecture (Soa) and Business Process management (BPm) are two areas with strong growth. acando works in these two areas with strategies to use Soa and BPm in order to create more flexible bu- siness operations. acando also implements integration solutions based on the strategies. acando is one of the largest players on the Swedish market within operational integration.
Systems Development
the development of tailor-made it support for custo- mers’ business processes is an important part of Systems development. acando has broad and in-depth expertise of systems development, and is active within the fol- lowing sub-areas: project management, methodology, requirements, testing and verification, development, and administration.
acando’s project management is characterised by high quality and cost-effectiveness. Within project ma- nagement, acando works either with the ProPS model, which most consultants have trained in, or applies the customer’s model.
For methodology in the development process, acando uses either rUP or so-called agile methods.
Within testing and verification, acando has well-esta- blished in-house concepts and supporting methodo- logy. acando also often uses software from mercury in order to automate and rationalise the process.
the solutions created by acando are primarily based on .net and Java. the solutions produced cover many different areas – from portal solutions to specific support for parts of operations.
developments are also going towards a greater proportion of solutions based on concepts within social engineering with elements of both technology and ideas from Web 2.0.
photo: SKF
Anders, Acando.
the offering in Germany
in Germany, acando operates under the resco name where the business concept is based on addressing both today’s and tomorrow’s market demands – which implies uniform and integrated advisory solutions at customer conditions. resco’s highly qualified advisors analyse the project organisation and business processes of each customer and design an individual solution from a holistic perspective.
the solutions are based on modern but nonetheless proven it technology – and resco accompanies the customer during the entire
Acando is an external Service provider to Airbus since october 2000, and prime Con
tractor to the company since January 2005.
acando is also partner of the consortium known as ”Sc2r – Sopra Group, capgemini, cSSi, acando”
which won the international airbus call for tender for customer Back office (cBo). cBo embraces the operational responsibility for all it systems for back office functions, as well as new projects for airbus’ customer Services department (e.g.
technical data, customer Service management, marketing, Spares).
acando’s expertise is based on its in-depth knowledge of airbus’ processes for the autho- risation, approval and publication of technical manuals for maintenance and repairs of all types of aircraft, especially the a380, including the in- tegration of technical data applications in airbus’
general technical data platform. Furthermore, acando has main expertise of logistics in the supply chain for spare parts and kits for airbus aircraft.
acando’s technical solutions are based on SaP consultancy (mm, aPo, Sd, BW, Pm), SaP technology (netweaver, Xi, Workbench), and SaP Portals, in combination with software (SUn, J2EE, microsoft .nEt, iBm mainframe). acando also provides archiving solutions (iXoS, imagemaster) and document management Systems (dmS), such as Sigma link.
today acando is one of the foremost it Service Providers to airbus in the field of application development and integration at the German airbus national company (natco), including airbus Spares.
Cooperation between Airbus and Acando
Airbus is one of the world’s leading and best-known manufacturers of aircraft for more than 100 passengers.
project lifecycle so as to create a rapid and financial added-value that enables customers to manage their operations effectively and profitably.
resco works in Germany within the following areas:
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the Business consulting business area with customers’ special processes where resco analyses requirements and produces suitable solutions based on its overall experience and knowledge.•
the it consulting business area provides advice within architecture, development and integration – from operations to the optimisation of business processes.•
the SaP consulting business area provides advisory services upon the implementation of individual and integrated solutions based on standard SaP software.resco is one of northern Europe’s most experienced SaP consultants.
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Within the application management business area, resco takes over, manages and optimises customers’operations. a holistic solution is created where resco is present with the customer during the entire project lifecycle.
the offering in Finland and the Baltic Region in Finland, acando’s offering consists of services and products from the enterprise systems supplier, SaP.
in the Baltic region and Eastern Europe, acando’s offering is primarily composed of systems development in tailor-made solutions and software systems deve- lopment. most of the assignments are carried out with overall responsibility and on a fixed-price basis. the number of assignments within near-shoring increased significantly in the latter part of 2006, particularly to Swedish companies.
© Airbus S.A.S. 2007
Highcalibre consultants
Acando offers leadingedge expertise within management and It. to recruit and retain skilful employees is therefore an important competition factor for Acando. our human resources policy shall lead to us being the most attractive employer in the sector.
acando offers its customers operational improvements via it. our consultants are skilful management consul- tants and expert technical consultants. through the combination of management and it, we provide opera- tional improvements with it as the principal tool.
our human resources policy is based on various components in the form of core values, ethical and moral positions, corporate culture, and salaries and benefits.
another important area is that each employee shall have the opportunity to develop both as a person and in their professional role.
the objective of the human resources policy is to effectively contribute to acando achieving its strategic goals of high growth with profitability, a strong brand, and a company with a common set of values. We have formulated the following long-term targets:
•
10 percent organic growth per year.•
acando shall be perceived as one of the three most interesting management and it consultancy companies.•
an Employee Satisfaction index that exceeds 105 (further details below).How Acando will achieve its strategic goals the foundation of acando’s human resources policy is our employee concept, as illustrated in the diagram below. in order to realise our employee concept, we place considerable emphasis on our employee offering that consists of core values and ethics, corporate culture, financial remuneration, benefits, as well as skills enhan- cement and self-fulfilment.
acando’s core values and value-base may be taken as a guide as to how acando’s employees are to be
perceived and act in different contexts. the corporate culture shows how each individual employee shall transform the core values and value-base into practice.
team spirit, passion and results are important aspects that our customers and partners shall clearly feel when working with us.
our employees’ financial incentive consists of a salary, and for our more experienced consultants a supple- mentary part based on individual results. managers and salespeople, on whom acando places extraordinary demands with regard to results and responsibility, have access to a bonus program. to create commitment, parti- cipation and incentive for acando’s long-term develop- ment, all employees are offered to recurrently take part in the company’s ownership program.
Skills enhancement and self-fulfilment are important to create motivation among our employees. in addition to training, arcando actively offers interesting and varied tasks.
integration process
the merger of acandoFrontec, e-motion and resco dominated in 2006. a due diligence process was carried out prior to the merger where cultural differences and similarities were analysed. the review demonstrated cer- tain differences, but primarily similarities with regard to core values and value-base. Similarities and differences formed the foundation for the joint integration process.
in addition to acando acquiring new employees as a consequence of the merger, the company experienced strong organic growth during the year. the recruitment of skilled employees is a very important question, and the positioning of acando as the sector’s most attractive workplace is continuously in progress.
Focus on recruitment
the recruitment of new employees is combined with image activities in the form of advertising and attending labour market days. two introduction programs for young professionals (with one to three years’ professi- onal experience) were held during the year. the program AC AnDO’S eMPlOYee
COnCePt
Acando shall offer all employees stimulating, personal and professional development in combination with a strong corporate culture based on distinct core values, with remuneration conditions and benefits in line with the sector in general.
Core values and ethics team spirit, passion, results, code of conduct, environment policy.
Corporate culture behaviour based on core values, code of conduct.
Financial remuneration salary, bonus, retirement pension, convertibles, warrants.
Benefits health promotion, cultural activities, conferences, car account, insurance.
Skills enhancement customer assignments, internal assignments, training, recognition, selffulfilment.
Apparently you have a World Cup medal.
How did you win it?
”I have always skied and love it. My competitive career was somewhat unfocused, but I have competed in all kinds of events from slalom to extreme skiing. However, I won the gold medal when I worked as ski instructor in the American resort of Vail where I took part in the Ski Instruc
tors World Cup in formation skiing. today I ski mostly in Åre and up by the norwegian border, and last year I even took part in the classic Vasa
loppet crosscountry race.”
Describe your work as management consultant
”It’s both interesting and fun. Varied and stimulating assignments are important for me.
I’m an economist and previously worked with market communication, but I felt that I wanted to broaden my field and work as a consultant – and my choice fell on Acando.”
What do your tasks include?
”I’m part of the CRM group and work with all kinds of CRMrelated assignments. We help our customers obtain more satisfied clients along with greater income and/or lower costs.
this implies, for example, helping with CRM strategies, CRM implementations and customer segmenting.”
Management consultant Malin Ortbrink loves to ski, both downhill and cross-country. She took part in the classic long-distance Vasaloppet race last year.
At Acando she works within the CRM group.
MAlin OR tBRinK
How did you get to start at Acando?
”In 2005 I applied for and entered what was then called the trainee program in Gothenburg, during which I saw and did many interesting things. today I work as a hybrid between Management and It consultant, which is very exciting. I often work with purchasing processes and how they can be rationalised with the help of business intelligence.”
Are you happy at Acando?
”It’s a good company where one can move forward. If you take own initiatives, you will quickly be given significant responsibility. For example, I’ve been in charge of the Young pro
fessionals program in Gothenburg for two years now because I suggested how our introductory program for new graduates could be improved.
It’s both fun and encouraging that managers at Acando listen to our viewpoints.”
What are your plans for the future?
”At home, the greatest challenge will be our first child. We are preparing as much as possible. At work, I would like to continue to furtherdevelop my skills, and in leisure time my goal is for the Gårda BK football team to step up to the fourth division.”
Oscar Arnesson, a powerful centre-forward in the old- established Gårda BK football club. At home, he and his wife are expecting their first child.
OSC AR ARneSSOn
enables the participants, in parallel with customer and internal assignments, to develop their skills within fields such as group interaction, presentation techniques and sales.
acando’s annual employee survey has become more substantial. improvement proposals have become an integrated part of the business plans and budget, thus enabling the proposals to be handled in the best way.
acando’s Employee Satisfaction index is based on the measurement of security and well-being, professional motivation and development potential. in the autumn, the index was just over 100 (which is the norm value), but the long-term goal is for the index to be at least 105.
the internationalisation that acando has expe- rienced during the year implies that our employees are now offered even greater opportunities than before to work and grow in an international business environment.
nuMBeR OF Men AnD WOMen
Sweden Webmedia Germany Finland total
Women 197 43 16 4 260
men 524 206 165 12 907
721 249 181 16 1,167
Ye ARS OF eMPlOYMent
Sweden Webmedia Germany Finland total
0–2 years 334 193 108 7 642
3–5 years 96 41 39 9 185
6–10 years 202 15 34 – 251
11–20 years 55 – – – 55
21– years 34 – – – 34
721 249 181 16 1,167
AGe DiStRiButiOn
Sweden Webmedia Germany Finland total
–25 years 12 131 1 2 146
26–29 years 61 76 13 7 157
30–39 years 326 40 85 7 458
40–49 years 220 1 58 – 279
50–59 years 87 1 23 – 111
60– years 15 – 1 – 16
721 249 181 16 1,167
economic factors
customer demand is strongly related to their confidence in the future and willingness to invest, and can therefore change at short notice. a weaker economic climate could negatively affect acando’s future prospects. the level of demand was good in 2006 and is expected to continue to be favourable in 2007.
Stabilised price level
together with the utilisation ratio and payroll costs, the price level is critical for acando’s earning capacity. in 2005 price levels remained stable or slightly positive, and this trend continued in 2006. the likelihood of improved price levels in the future is greater than the likelihood of lower prices. For the portion of sales from customers with general agreements, changes in prices depend on
this provides opportunities for growth, but also implies greater competition in the sector. customers choose fewer suppliers, which so far has meant good demand volumes for the suppliers who have been selected, but also strong pressure on prices. acando has succeeded well in procurements in 2006, leading to good volume growth.
John, Acando.
