Annual report 2008 | 1 Innehåll
AnnuAl report 2008
the rIght wAy to mAnAge InformAtIon
ECM makes companies and organizations more efficient
optimizing tele2
Platina – the obvious choice
the perfect roAdmAp
for improving customer relations
new orgAnizAtion
aimed at sustainable growth
A smooth upgrAde
when Huddinge Municipality switched to W3D3
enterprIse Content mAnAgement from formpIpe softwAre
intro
02 2008 – in brief
tHE CEo
04 A growing sector
tHiS iS ECM
06 Information management
opErationS
08 A leading market position
oUr ECM oFFErinG
10 Products and partners
MarKEt trEndS
12 The world of ECM
W3d3 / HUddinGE MUniCipaLity
16 “Only positive reactions”
pLatina / tELE2
18 “Platina trumps competition”
LaSErnEt / UniCEF
20 “Simplified procedures”
StaFF
22 “A dynamic workplace”
orGanization
24 Organized for growth
BUSinESS ConCEpt, ViSion and GoaLS
25 A leading ECM developer
SHarE and SHarEHoLdErS
26 Our listed shares
SEnior pErSonnEL
28 Board & Senior Management
KEy ratioS
30 26% operating margin
Stockholm FormPipe Software AB Box 231 31 104 35 Stockholm Address: S:t Eriksgatan 117 Tel: + 46 (0) 8 555 290 60 Fax: + 46 (0) 8 555 290 99 E-mail: info@formpipe.se
Uppsala
FormPipe Software Uppsala AB Box 231 31
104 35 Stockholm Address: Bangårdsgatan 4 C Tel: + 46 (0) 18 100 900 Fax: + 46 (0) 18 100 905 E-mail: info@formpipe.se
Linköping
FormPipe Software Linköping AB Box 231 31
104 35 Stockholm Address: Industrigatan 5 Tel: + 46 (0) 13 35 85 00 Fax: + 46 (0) 13 35 97 00 E-mail: info@formpipe.se
Skellefteå
FormPipe Software Skellefteå AB Box 231 31
104 35 Stockholm Address: Södra Järnvägsg. 51 Tel: + 46 (0) 910 384 10 Fax: + 46 (0) 910 384 19 E-mail: info@formpipe.se
Copenhagen
FormPipe Software Copenhagen EFS Technology A/S Park Alle 290 DK-2605 Brøndby Tel: + 45 (0) 436 602 10 Fax: +45 (0) 436 617 70 E-mail: info@formpipe.se
Content
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22
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Production: Åkesson & Curry Photo: Daniel Månsson/VOL, Scanpix, Henrik Kloch/Unicef Damnmark Illustration: Clara Terne/NU Agency Print: AlfaPrint, Sundbyberg 2009 Translation: Deane Goltermann.
FormPipe Software in brief
Notice of annual general share
holder’s meeting for FormPipe Software AB (publ)
formpipe software AB (publ) is an enterprise content management (ecm) software provider that develops and sells ecm products used by businesses, governmental agencies and other organizations to structure information. our software helps organizations capture, manage and distribute information to set it in productive context. our ecm products bring immediate benefits including productivity gains, improved information structures, reduced costs as well as minimized risk exposure through structured information flows. founded in 2004, formpipe software has offices in stockholm, uppsala, linköping, skellefteå and copenhagen. the company is listed on nAsdAQ omX first north.
shareholders of formpipe software AB (publ) (the company) are hereby notified that the Annual general shareholder’s meeting will be held 3 p.m. on march 12, 2009 in the company premises at
st. eriksgatan 117 in stockholm, sweden.
participation in the Agm
shareholders wishing to exercise their right to vote at the Annual meet- ing must:
» Be recorded in the company stock registry at euroclear sweden AB, (previously known as Vpc AB, the swedish securities registry centre) no later than friday march 6, 2009;
» notify the company of their intention to participate in the Agm no later than 4 p.m. friday march 6 2009, at address formpipe software AB, attention: lisa Kellner, Box 231 31, 104 35 stockholm, fax 08-555 290 99, tel. 08-555 290 84 or via e-mail to stamman@formpipe.se.
notification shall provide name and identification number (personal id or organization id no.) as well as address and telephone number. should the shareholder intend to participate by proxy, then the power of attorney and other documentation should be enclosed with the notification. power of Attorney forms are available at the company’s web site www.formpipe.se. shareholders with one or two assistants at the Agm shall notify the company as above of their attendance. sharehol- ders whose shares are held in trust must temporarily register their shares with euroclear in their own name in order to exercise their right to vote at the Agm. such temporary registration (which can take several days) must be recorded at euroclear no later than friday march 6, 2009. this should be requested well in advance of the deadline.
At a glance
» Net revenues seK 105.9 million (67.6 million), increasing 57%
» Operating profit seK 26.1 million (13.5 million), at an operating margin of 26.1% (20.5%)
» Earnings per share seK 1.81 (0.99)
» Profit after tax seK 18.9 million (9.0 million)
» Cash flow from operations seK 21.4 million (13.5 million)
» License and maintenance revenues seK 71.6 million (43.1 million), an increase of 66.3%
Important dates
» The 2008 Annual General Meeting was held on march 12, 2009
» Periodical report Q1 January 1 to march 31 published April 21, 2009
» Periodical report Q2 1 April 30 to June published July 13, 2009
» Periodical report Q3 July 1 to september 30 published october 23, 2009
» Preliminary Financial Results announced for financial year 2009 January 29 2010
To order financial information
All relevant financial and other information is published on the Company website at www.formpipe.se.
Information can also be ordered from: FormPipe Software AB, attention: Lisa Kellner, Box 231 31, 104 35 Stockholm and by e-mail at info@formpipe.se
Investor Relations contact
CEO Christian Sundin. Tel: + 46 (0) 8 555 290 84 E-mail: christian.sundin@formpipe.se Distribution policy
The 2008 Annual report is sent to our larger shareholders immediately prior to the AGM. The report is available in PDF format at www.formpipe.se. Select Investor Relations and then click Reports.
*Not according to IFRS
Income statement
2008 2007 2006 2005*
net revenues 105,9 67,6 43,6 20,7
operating expenses -73,8 -51,7 -34,0 -19,4
Amortizations -6,0 -2,4 -1,1 -1,1
Operating profits 26,1 13,5 8,6 0,2
4 | Annual report 2008 Annual report 2008 | 5 the Ceo
w
I am fully satisfied with the performance of formpipe software in 2008. net revenues totalled seK 105.9 million and our operating profit amounted to seK 26.1 million.
our operating margin increased to 26.1 per cent. operating cash flow amounted to seK 21.4 million. we have seen no signs of decreased demand for our products. the last quarter in 2008 was our strongest ever – regarding both net revenues and operating results.
Acquiring eBi systems added platina, a powerful user-friendly and flexible ecm product, to our offering. we have already refitted our organization to match the broader offering, fully
products. published forecasts currently indicate that the ecm market as a whole will grow by three to four per cent in 2009.
our customers’ investment considerations naturally affect us. we will likely also see direct effects from the current recession, but we won’t be among those most affected. one reason for this is that much of our revenues derive from repeat sales. our stronger market position is also based on our expanded partner network and the public sector’s leading position in e-administra- tion and document management issues. As well, when the same tough legal requirements for these issues apply to the private sector, we anticipate an even larger market for our products. with our highly competitive, stable softwares we have established a strong position on the swedish public sector market. this provides us with many good reference customers and installations.
strategy and goals
we plan to continue with our current path – to persistently and consistently develop and improve our product offering at the leading edge of our opera- tions. we will maintain our motivation and success in the fields we currently lead. And, we will continue to improve our level of service towards our customers and partners. All these are important components for our operations in the coming year.
As well, we will continue to build our sales organ- ization through our partner network. other important priorities are potential acquisitions that add value to our product offering and recruiting leading skills. for 2009, we will further the strategic process of establishing our presence in the danish market, primarily through intensive sales efforts aimed at the public sector.
therefore, the company agrees with external research in anticipating continued near term growth in the ecm market. the scope and pace for implementing the process es and investment discussed above naturally depends on developments in the business cycle we are experiencing. still, many industries continue to improve, streamline and quality assure there it systems—especially
their document and record management systems. this is clearly exemplified by the finance industry, where short- comings in such controls have been exposed recently.
the industry and media have openly debated issues like security, control and traceability of information and rela- ted flows. proposed legislation and internal demands for management and control of these flows will determine developments and drive future investment in ecm.
our share
we are also continuing the process of preparing our application to list our shares on the nAsdAQ omX nordic exchange. the share price, our size and the general investment climate are all part of our consi- deration in determining the timing of the application.
included in this Annual report is our first report on company governance in accordance with the swedish code of corporate governance. we want to manifest our active stance on these issues and show that the integrating the platina organization into our own. this
was part of our implementation of a function oriented organizational structure that enables future integration of additional products and businesses. the new struc- ture comprehensively supports our business processes and lets us capitalize on potential synergies in skills transfer, recurring sales and cost savings.
ecm magazine is the formpipe software Annual report for 2008. we want to raise awareness and understanding of the ecm market, explain what ecm stands for, let our customers have their say and relate the value and utility of our products. this includes an introduction to our product offering, our partnership strategy and how we view our position in the market.
looking forward
we have successfully created a profitable growth com- pany through fully integrated acquisitions and strong organic growth. A good way to forecast where form- pipe software will be in three years is to look at our development over the last three years. in my opinion we will continue to see similar development.
formpipe software has a strong customer base in the public sector. my assessment is that governmental agencies, municipalities and counties will continue to invest in and upgrade to ecm products. we will also see greater integration between ecm products, service-based infrastructure technologies like software as a service (‘the cloud’) and various storage systems.
not unexpectedly, several leading it research firms have published highly pessimistic forecasts for the industry as a whole and for the pace of it investment in general. But formpipe software looks forward to continued growth and strength in the market for ecm
We have created a profitable growth company through successful acquisitions and strong organic growth.
entire company is fully a part of this process, from our Board of directors and senior management, through- out the organization
to conclude my message to our shareholders here, i would like to take this opportunity to explain our decision to withhold dividends this year. first, strong growth in our bottom line now will make our share more attractive and so improve conditions for future dividend payments. the current global recession has also made credit markets less predictable. this combination, along with our recent acquisitions, has lead to the Board’s determination. our report shows the strong liquidity position we have and we expect this will continue. we therefore strongly hope to fulfil our expressed ambition of being able to execute a generous dividend policy in the coming year.
enjoy eCm magazine!
christian sundin, ceo
FOCUSED. We continue to be highly motivated and successful in the fields where we are leaders, says CEo Christian Sundin.
A stable business model in a growing sector
it is not overdoing it to make the point that we, like everybody else, will be affected by the current recession.
But our proven business model showing recurring revenues, a stable customer base and well-established pro- ducts that create a secure base will safely carry us through the downturn and ensure future revenue streams.
Webforms XML, PDF, etc.
Scanning
Other systems/applications (ERP, CRM)
Etc. Etc. XML HTML PDF E-invoices
Mobile devices Internet E-mail Print
Other systems
Fax Etc.
ARCHIVING
XML PDF/A Print
INPUT MANAGEMENT
OUTPUT MANAGEMENT
Content Management Document Managem ent
Collab
ioorat n
cord Re ana s M
ent gem rk Wo
w flo
thIs Is eCm
Information flows have increased significantly in recent years. organizations of all kinds are discover- ing the economic value of efficiently managing their information and documentation structures with as little manual processing as possible.
requirements for greater efficiency in core process- es and greater collaboration between associates, customers and their various it systems makes it neces- sary to structure, manage and deliver the significant information flows.
enterprise content management is the term used for products and processes that can do this with content of all kinds. this can be documents, e-mail,
web-based information and various types of record or project management. ecm provides greater efficiency, accessibility and lower costs by managing information resources to ensure they support organizational needs and strenghten competitiveness.
process description
ecm enables coordinating people, their processes and all necessary information. using ecm helps the entire organization to stay aware of current and critical information, where to find it and how to access it. ecm products help to structure, consolidate and make more effective entire business processes.
Information management – the ECM way
ecm – enterprise content management – is the collective designation of the strategies, technologies and product systems used to systematically capture, process, store, preserve and deliver information in an organization. public sector, commercial and other organizations use professional ecm products to take control of the increasing amount of information generated in today´s business world.
STRUCTURED STORAGE AND ACCESS. Search processes that currently take hours can now be done in seconds. Formpipe Software’s ECM products bring direct benefits in terms of reduced costs, higher productivity, improved organizational structures and reduced risk exposure.
Input/output mAnAgement Organizes, transforms and distributes data from various sources, applications and systems.
DoCument mAnAgement Manages electronic documents with such functions as version management, check in/
check out, linked and combined documents as well as integration with standard tools like MS Office.
CollABorAtIon Tools enabling disparate groups of individuals to work together using the same information in a common environment.
Content mAnAgement Functionality used to manage and publish information and documentation over Internet/ Intranet.
reCorDs mAnAgement Compliance functionality manages and preserves various types of information regulated by law (such as open government requirements or SOX), or by internal governance policies and rules.
workflow Controls workflows for efficient business processes like approval and application processes, or event controlled processes.
8 | Annual report 2008 operAtIons
formpipe software has a strong position in the swedish ecm market. the company’s products for document and case management are market leaders in the public sector.
these products help our customers capture, ma- nage, distribute and place in context their information flows in a logical structure. this automated manage- ment contributes to greater efficiency and productivity, as well as reduced costs and risk exposure—all combin- ing to create a strong base for improved profitability.
Analysis and future considerations current forecasts from research firms like gartner and exido indicate significant long term growth in the ecm market for several years to come. these will likely be ad- justed downward this year due to the current recession.
in its latest report, the radar group forecasts that total it investment will experience zero growth for 2009. however, the same report estimates annual growth of 3 to 4 per cent for ecm products in the same period. this makes our market one of the few that will show real growth this year.
new and more detailed legal and regulatory directives that raise requirements for security, control, traceability and effective information and document management will drive this growth. growth will also be driven by the needs of both commercial and public sectors to improve efficiency in their core processes and increase interaction between their employees. the need to maintain structure and access to operational information is gaining strategic significance in most organizations.
product oriented functional organization formpipe software’s operations had two business areas at the start of 2008—netdesign and netmaker. to meet market demand and more specific requirements for our products, the company has gone over to using a product oriented functional organization. we have now
A strong position in the Swedish ECM market
formpipe software’s market leading ecm products are sold and implemented primarily through our certified partners. the strength of our business model lies in the recurring revenues we earn from annual licensing and maintenance agreements.
completed the structural processes of this change pro- cess and quality assured the results. we implemented this structure internally over the second half of 2008.
our operations are now organized into four product oriented functions:
» marketing & sales
» support
» product
» Administration
this organizational change enables effective and profitable integration of newly acquired businesses or products since we can now quickly place the incoming organization in the company’s structure based on their function. we aim to reduce lead times in all our operat- ing functions. this also allows for greater customer focus in each function so that formpipe software can meet future changes on a stable footing.
Business model
the business model for formpipe software is based on signing long term license and upgrade agreements.
this model guarantees our customers access to the latest technology and enables their active participation in product development. it offers significant scalability benefits where increased sales do not increase costs in direct relation to the sales increase. thus, additional sales will bring higher margins. formpipe software has created a cost efficient operational structure fit for development and sales of its software.
formpipe software’s business model generates revenues from:
» licenses (repeat revenues, limited)
» support and upgrades (repeat revenues)
» Administration (repeat revenues)
» consulting (non-repeat revenues) sIgnIfICAnt eVents
In 2008
Acquisition of EBI Systems Acquisition of EBI Systems and Platina, its leading ECM product, in September.
Framework agreement with public sector in Denmark W3D3 is included in the Danish public sector framework agreement of the SKI – Statens og Kommunernes Indkøbs Service (National and Municipal Purchasing Service) as of July 1, 2008.
Expanded framework agreement for the Swedish public sector
The original 2005 framework agreement with the Swedish national procurement agency, Verva (Verket för förvaltnings- utveckling-National purchasing agency), was updated and supplemented.
Repayment of convertible loan To finance the acquisition of ALP Data i Linköping AB in September 2006, the Company issued convertible debt totalling SEK 5 million and convertible into 416,667 new shares. The loan was paid in full this year, avoiding any dilution effects this would have had on current shareholdings.
Microsoft Gold Certified Partner Microsoft renewed its confidence in FormPipe Software by once again naming the Company a Gold Certified Partner.
Dm Document Management CollAB Collaboration Cm Content Management rm Records Management wf Workflow
whAt Is eCm?
ECM stands for Enterprise Content Management. These are solutions that manage all organizational information, both structured and unstructured, through its complete life cycle. ECM products integrate information management and collaboration so people, processes and information can work together in global operations.
sAles reVenues By funCtIon
repeAt reVenues, rollIng 12 months
mkr
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0
10 20 30 40
20072008
net reVenues AnD profItABIlIty
mkr %
2005 2006 2007
0 20 40 60 80 100 120
0 5 10 15 20 25 30 35
2008 CAPTURE
PRESERVE DM
COllAb
CM
RM WF
DISTRIbUTE
fIVe Components of eCm
FormPipe Software’s business model is based on entering longterm license and maintenence agreements. This model guarantees our customers access to the latest technology and gets them involved in product development.
support and upgrade 32%
Administration 2%
license 38%
consulting and other 28%
net revenues editdA margin, per cent
our eCm offerIng our eCm offerIng
formpipe software’s certified partner network has an important function in the company’s business model. partner collabor- ations are a significant strategic consideration for growth and profitability. our partners already sell and implement a large portion of the company’s sales volume. the value-adding chain is clear and creates opportunities for growth in every stage.
formpipe software’s current partner structure functions well, though we actively work to deve- lop new partnerships and analyze our current ones in both sweden and europe. we work to improve our current partner relationships at all times.
formpipe software’s partner strategy, in
parallel with our operation’s growth, creates significant potential for the success of our part- ners on the ecm market.
our offering to our partners Becoming a certified partner of formpipe soft- ware involves representing several of the most developed, functionally complete and established products on the ecm market. partnership should be a profitable experience for everyone involved and represent an attractive solution for growth together. partners sell, customize, implement, consult, train and provide support to our common customers. ecm systems are usually a significant part of our partners’ operations, creating ideal
conditions to effectively develop our operations together and thereby offer greater customer utility. this helps ensure long term profitability for our partners due to greater customer loyalty.
formpipe software develops and packages our products and contri butes with partner training and sales support.
formpipe software also provides a highly functional and much appreciated Api (Applica- tion programming interface–rule settings for how different software can communicate between themselves). this contributes signif- icantly to facilitating customization of our products.
Cooperating with reliable partners
partner collaboration benefits the entire ecm market. it promotes greater quality and growth for everyone involved – in development, sales, marketing, implementation and support.
Our product portfolio
w3d3, platina, lasernet and netmaker Bgcom form part of formpipe softwares product offering. feel free to browse www.formpipe.se for greater detail about each of these products and how they are used.
w3D3
W3D3 is a powerful product for structured document and case management.
W3D3 raises awareness throughout the organization about current information, where it can be found, how to access it and who has authority to access it.
W3D3 is currently used for journalising, document management, record and complaint management and e-filing. It is a stable ECM product that emphasises standardized processes. The product includes an offering of a wide range of necessary and functional modules including SharePoint Integration, e-recruiting and agreement management.
W3D3 is used extensively in the public sector for allowance systems of all kinds, legal management and local placement of refugees.
plAtInA
Platina consolidates, structures and increases efficiency in business processes.
The product has functionality for document, case and journal management.
Platina also has built-in functionality that simplifies creating operations-specific customizations. The product’s flexibility enables creating long term solutions making it cost effective for our customers.
Platina can also be used to visualise, automate and analyse processes in a fully integrated environment in a way not possible before. The Platina Process Server facilitates creating professional process views that can then be used to automate these business processes at different levels in the organization.
proformA lICense sAles
The diagram illustrates proforma sales of new license for W3D3, Platina and LaserNet for 2008.
lAsernet
Our LaserNet ECM product organizes, processes and distributes data from various sources, applications and systems. LaserNet is designed with modules that the customer uses to initiate the function they need for processing input and output data for the organization and its business partners.
LaserNet manages incoming and outgoing business documents, such as invoices, order confirmations, reports and statements. La- serNet can be easily integrated with legacy applications smoothing the transfer from labour intensive paper based procedures to electronic processing. LaserNet manages selected data and processes it into more qualitative documents, then forwards these intelligently in a specified format (such as e-mail, fax, PDF, PDF-A, EDI and XML). Over 2,000 companies in a variety of industries use the standard application globally.
netmAker BgCom NetMaker BgCom enables sending and receiving all kind of payments using Bankgirocentralen (BGC). This product is a predecessor to today’s internet banks, but is still highly competitive since it offers significantly better security levels.
NetMaker BgCom is not associated with any particular bank—an independence that brings greater security and flexibility for our customers. FormPipe Software is currently the market leading supplier of software for transferring payment information to and from BGC with whom we are an official partner.
w3d3 51%
platina 23%
lasernet 26%
our pArtner moDel
Communication – needs, trends, laws and regulations.
formpipe software
» software development
» marketing and sales support
» partner training
the combination of formpipe software’s products and the operational skills of our partner network creates a unique platform to realise greater customer utility.
» efficiency
» productivity
» control
» security
» profitability Certified partners
» sales
» customization
» implementation
» operational development
» customer training
» support
TM
LaserNet
end customer – Customer utility
12 | Annual report 2008 Annual report 2008 | 13 mArket trenDs
The world of ECM
regulatory requirements and enabling significant productivity gains are driving the global ecm market. A radar group international survey forecasts 3 to 4 per cent growth in formpipe software’s segment of the swedish ecm market, even as the it market as a whole is expected to slow to zero growth.
the eCm market will continue to expand in the long term. underlying demand is driven by several parallel trends forcing our potential customers to adapt.
in sweden alone, the market for ecm products is worth over seK 3.5 billion. ecm services account for another seK 5 billion. globally, private sector organi- zations and governmental agencies must adapt to two market-driving trends—stricter regulatory require- ments for compliance, receipt, storage and traceability of information and the need to increase productivity and efficiency.
eurosoX ensures and enforces traceability
the enron scandal brought a milestone for the ecm market, creating greater demand for these products.
much of the information that ecm products can ma- nage didn’t exist at enron—directly affecting the wide- ranging ramifications of the case. this scandal resulted in the us congress enacting new corporate governance regulation in the sarbanes-oxley Act (soX). the soX requires companies to maintain significantly greater control of information flows in their organizations—
specifically, it demands much greater traceability. to meet these requirements, any larger business must use ecm products.
requirements are now stricter in europe as well. the latest version of the eu 4th, 7th and 8th directives (also called eurosoX—after the American version) passed in April 2006. member states have had two years to im- plement legislation at the national level. this means ru- les for auditing, documentation and cyber security are stricter and now extend to include all listed companies and all companies in the credit and insurance sectors.
the directive calls for
» stricter requirements for audits and audit committees
» clear responsibility for corporate governance and internal controls
» requirements to preserve and keep traceable all financial information
to meet these requirements for traceability, companies
need ecm products. this is particularly important in the finance industry—the current financial crisis would likely have been less severe in both the us and sweden if financial institutions had been up to scratch on trace- ability in their systems.
efficient organizations
information flows have increased markedly during the past few years and this trend will likely continue long term. most organizations now recognise the value of efficient structures for information management, including greater automation with as little manual processing as possible. still, most information is mana- ged manually. And current information flows in larger corporations are virtually impossible to control without ecm products.
manual information management implies unneces- sarily high costs and an inability to maximize the value of this information. competition will lead companies to invest in ecm products so they can lower costs and increase revenues through structured information that is easily accessible and optimized for the specific needs of the company.
stricter regulation combined with the need for grea- ter efficiency means the ecm market will show con- tinued growth. the market is still early in its develop- ment and demand is primarily from larger businesses.
greater demand from small and mid-sized business and other organizations will contribute to future growth.
the current recession may temporarily limit market growth, as companies postpone investment. But, the ecm market is not as exposed to these business cycle pressures as other it markets are because these products increase productivity and efficiency and due to regula- tory requirements. ecm could even benefit from the financial crisis since regulators may require companies to improve transparency and traceability.
A short hIstory of formpIpe softwAre 1997 Sign On starts developing the FormPipe platform which grows into a separate business over several years.
1998 FormPipe installs a pilot system at the City of Stockholm Municipal Administrative Offices.
2001 The Stockholm City municipal administration agrees to buy FormPipe’s NotaryServer.
2004 Sign On spins off FormPipe, issuing shares to existing shareholders.
2004 FormPipe Software restructures for greater profitability and faster growth.
2005 FormPipe Software is listed on the Nya Marknaden stock exchange, now part of NASDAQ OMX First North.
2005 FormPipe Software buys Digital Diary, a leading developer and provider of document management systems.
The acquisition strengthens FormPipe’s position in electronic information systems.
2005 W3D3 receives the highest score out of more than 60 bids submitted in Verva’s purchase of document management systems for filings, workflow, documents and e-storage.
2006 FormPipe Software acquires ALP Data, strengthening its position as the leading ECM supplier in Sweden.
2007 FormPipe Software buys Danish software provider EFS Technology A/S, a profitable group with a strong presence in Input/Output Management.
2008 FormPipe Software acquires EBI Systems, gaining access to a network of partners, business contacts and customers for highly competitive Platina ECM software.
gloBAl trenDs
stronger market position with acquisitions
formpipe software bought the danish company efs technology in 2007 and then acquired its swedish competitor eBi systems last year. these acquisitions have strengthened the position on the ecm market, in sweden and internationally. Acquiring efs technology gave formpipe software access to a strategic partner network, business contacts and customer agreements for lasernet. in acquiring eBi system and its platina software, formpipe software reinforced its position as the number one provider of ecm products to the public sector in sweden.
An important aspect of the company’s acquisition strategy is its new network of strategic partners in eur- ope, which will boost international expansion by making it easier to efficiently establish a presence abroad.
the ecm market is growing rapidly and changing continuously. formpipe software continues its strategic and tactical effort to create leading edge products that can effectively capture growing demand in the field.
also attract the attention of smaller and mid-sized com- panies looking to automate information flows.
formpipe software is actively working to raise awareness of ecm solutions through its partner network and by offering industry specific solutions.
one example is the construction industry, where strict quality assurance requirements necessitate systems that maintain high quality throughout entire construction or property administration cycles.
this process requires an understanding of the capacity ecm products have to optimize the value of resources and so create opportunities for running more projects at lower costs. formpipe software’s products are developed to optimize process and work flows.
certified partners make sure that industry specific know-how is available to each customer, ensuring that the appropriate ecm products are properly implemen- ted. they also provide training and support for the software.
life science
Biotech and pharmaceuticals are both examples of industries with strict regulatory control and tough requirements for preserving and tracing information.
regulations on pharmaceutical research and produc- tion in the eu are very similar to those of the American food and drug Administration (fdA). fdA cfr 21 part 11 regulates the use of electronic signatures and how to store information in the pharmaceutical industry.
formpipe software cooperates with a number of partners that focus on the Biotech and life science industry. formpipe software’s platina software has attracted significant interest from the industry. this software is validated against the high demands for security placed on con fidential documents and tracea- bility in the system.
Taking control of ever-increasing flows of information
formpipe software is strongly positioned in the swedish ecm market. it is currently the leading provider of ecm products to the public sector. through recent acquisitions, the company has laid the foundation for a wider european expansion.
bUSINESS CRITICAl. the ECM market meets strategic demands for preserving, managing and controlling information flows.
with nearly 60 per cent of the swedish public sector market, formpipe software leads the market for ecm products. in a country long committed to open and trans- parent government, public sector customers were early adopters of ecm products. formpipe software is therefore a driver in the development of new, efficient software.
solutions—significantly expanding the e-administration services market and formpipe software aims to take a large share of this market.
expanding markets
the private sector portion of the ecm products market is still undeveloped—consisting primarily of large corp- orations that use ecm products for greater efficiency.
But the productivity gains these products bring should
eCm solutIons InCreAse proDuCtIVIty It is an important challenge to handle the steadily increasing flow of information and still maintain traceability and efficiency. Analysts at the Gartner Group did an experiment in which they searched for documents in a digital archive and an analogue one. The archives each contained 10 000 invoices and the criteria included a search phrase and a date interval.
» The paper archive search took 67 hours to locate 15 documents matching the search criteria.
» The digital search took 4.5 seconds to find the same documents.
Five additional matching invoices were found in the digital search—
clearly showing greater traceability.
Source: Nätverk & kommunikation
puBlIC seCtor It InVestment
process oriented record and case management is anticipated to be one of the fastest growing ecm mar- kets. the swedish government wants to make sweden a global leader in e-administration by 2010. to achieve this, the entire public sector will have to implement it
The productivity gains these products bring should also attract the attention of smaller and midsized companies looking to automate information flows.
national 19%
county 30%
municipal 51%
16 | Annual report 2008 Annual report 2008 | 17 w3D3 / huDDInge munICIpAlIty
huddinge municipality replaced its legacy system for managing files, records and documents with w3d3 in november 2008. And the results have exceeded all expectations.
with a population of over 100,000, huddinge is sweden’s 16th largest municipal district.
it is at the forefront of investing in information technology and it security—so record and document management are a priority. the municipality had its first document management system early in the decade.
By spring 2008 they needed to upgrade the entire system and for this, they chose w3d3.
– our requirements specification was compre- hensive, but also considered that several other munici- palities similar in size had already opted for w3d3. we have strict organizational requirements for managing our records. our analysis showed that w3d3 was the best fit for our needs, relates Kerstin z Johansson, manager of the office of the municipal council exe cutive committee in huddinge.
november last year was a busy time for both Kerstin and eva dahlgren. Kerstin had overall responsibility for implementing w3d3 at the office, which has executive responsibility for running the local municipal govern- ment. eva was in charge of setting the guidelines for the system and ensuring these were followed.
the old system was taken offline november 19th 2008 and within a week, on november 26th, eva and Kerstin pushed the button to put w3d3 in use.
– At that point, we waited for everyone to have problems and start asking questions. But nothing hap- pened. it was simply fantastic, notes eva.
– we have gotten nothing but positive reactions from our associates in the office. i haven’t heard anyone complain about w3d3, adds Kerstin.
Broad support important
implementing w3d3 started in summer 2008. hud- dinge municipal district hired an external project manager to work alongside eva. there are several reasons for the project’s success. first, w3d3 is a stable system that is easy to customize to the needs of every customer. And, everyone agrees it was important to prepare properly informing the entire organization to build support from top to bottom.
– we made sure that everyone understood the usefulness of the new system. we gained support from managers and those working with the system daily.
we had an implementation committee that included directors and board members before the project was launched and the committee kept in charge through- out. they were responsible for setting the requirements and evaluating all proposals. the efforts of the project managers were also important, she adds.
– eva did an amazing job. it has been extremely valuable to maintain a good dialogue with formpipe software. they have helped us clarify what we did and didn’t need.
huddinge plans to keep adding w3d3 users. By 2010 there will be over 1,500 users of the system at the municipality. over time, w3d3 will be integrated with claims management and link to other case and record management systems so that every process has a single workflow.
reCommenDAtIons for A suCCessful proJeCt according to Kerstin Z Johansson and Eva Dahlgren
1. Preparation
Prepare thoroughly. Build support for the project throughout the organization. Clearly describe the purpose of the project.
2. Process mapping A process map is a must to define the activities that W3D3 will support.
This then forms the basis for the requirements specification.
3. Follow-up
All stages in the project should be followed up, both internally within the organization and externally with the provider. Internal follow up determines whether the project has created value as expected. External control will verify that delivery was made as agreed.
“The response has been overwhelmingly positive”
kerstin Z Johansson, manager of the office for huddinge municipal Council executive Committee and eva Dahlgren, formpipe software’s w3D3 project manager in huddinge municipality
By 2010, over 1 500 people at Huddinge municipality will be using the system. Over time, W3D3 will be integrated with claims management and link to case and record management systems so that every process has a single workflow.
EVERYTHING IN ITS PlACE . When Huddinge munici
pality invested in a record and document management system, they had very high demands on keeping order and access
ibility. their analysis determined that W3d3 was the best fit for their needs.
plAtInA / tele2
tele2, one of sweden’s largest telecom providers, handles hundreds of thousands of documents every day. to control this flow of information, tele2 uses formpipe software’s platina software. the system keeps costs low, while still maintaining full trace- ability. tele2 chose platina over competing systems in a tough bidding process. And imple-
mentation started in January 2006. now, more than 2000 employees at tele2 and its suppliers use platina worldwide.
A leading european telecoms provider, tele2 does a lot of building. radio towers, antennae and cables all need to be put in place—in sweden and every other country where the company operates. this process generates thousands of documents and orders.
platina significantly reduced the number of errors and problems generated.
– we’re fully satisfied with the results. we’ve ex- perienced considerable savings in construction alone.
we minimized the number of errors and improved efficiency in our processes. now that our contractors work with platina, their work is also more efficient. this let us reduce their reimbursement rates, says lars Beck, senior business analyst at tele2.
– Keeping costs down was only one important goal with platina. Another was to get the right information to the right people at the right time. not too much information and not too little. platina gives us precise control over who has access to what. we can also see who has viewed the information and who has made changes to any document, continues lars.
requirements for documentation and traceability have increased dramatically over the past few years, partly as a result of the enron scandal. Among other things, it was the lack of traceability that led to the new regulatory framework, sarbanes-oxley (soX). in eu- rope, the equivalent regulation is often called eurosoX.
tele2 held a competitive bidding process involving several providers. they demanded that the system they chose fully supported the soX and itgc processes (it governance)—and platina won.
– the system was easy to form for our specific situation. that’s why it trumped the competition, com- mented lars.
tele2 uses platina to manage work orders, technical documentation, project documents, user manuals, financial reports, invoice archives and contracts. platina came into full operation in June 2008 and today there are over 600,000 documents in the system. platina replaced several separate systems for document and invoice processing. implementing the new system demanded a lot of work, but the process went smoothly. A consultant helped drive the project from start to finish.
“Platina’s competitors look pale in comparison”
lars Beck, senior Business Analyst, tele2
tele2 uses plAtInA for:
» Work order management
» User manuals
» Financial reports
» Project documentation
» Billing
» Technical documentation
» Contracts
The system currently manages more
than 600,000 documents.
Getting the right information to
the right person is important. They should not get too much, but not too little information either.
EFFECiEnt and EFFECtiVE. platina replaced a number of disparate sys
tems for processing documents and billing at tele2. ‘despite the exten
sive scope of the implemen tation, the process has been smooth. a consultant helped drive the project from start to finish’, says Lars Beck, Senior Business analyst at tele2.
SMartEr WitH pLatina. More than 2,000 tele2 employees use platina, as do the company’s suppliers in large parts of the world. tele2 has experienced significant savings – minimising errors and streamlining processes.
20 | Annual report 2008 Annual report 2008 | 21 lAsernet / unICef
lasernet was the obvious solution for unicef denmark. the system simplifies managing outbound do- cuments, helping the organization save time and money.
unicef’s it consultant in denmark, datacon As, is also formpipe software’s partner there. datacon has worked with unicef for several years and has intimate knowledge of their organization. when unicef needed to change systems, datacon recommended lasernet.
datacon also provided advice and support during the implementation process.
– using lasernet brings several advantages. we have gotten a stable, efficient system for document management. Before, we relied on a special printer for the many different documents—for instance, for our invoices to businesses and individuals. now lasernet is integrated into our financial system, greatly simpli- fying processing of our business transactions, says thomas Andersen, Administrative executive at unicef denmark.
– we also saved significant time and resources since we already had a good partner for the project. we could start working right away with datacon instead of needing a protracted bidding process, he continues.
lasernet
Another advantage is that lasernet makes it easy to change the design of documents such as invoices and orders, where text or format can be changed directly from the financial reporting system.
− in addition, we save paper because several docu- ments can be printed on the same page, instead of on individual pages as previously. we have also invested in a new financial reporting system, dynamics AX.
thanks to lasernet, we could make sure no informa- tion was lost in the new epr system, thomas explains.
future plans
unicef denmark already has ideas for how to use laser net to improve service levels for the companies and organizations buying from them.
− one thing we will continue to improve after implementing dynamics AX is enabling our customers to receive shipping confirmation in a text message or email, whether they have shopped with us online or by mail order. the new system will enable us to provide better service, he says.
unicef will also provide a track & trace number from post denmark, letting customers follow their shipment through the entire transaction process. customers can then see when their shipments arrive and alert them to delays or out of stock items. this service is technically already available for online customers, but lasernet enables the system to provide the same service for all its customers.
the short and long term goal is to create a system where business procedures won’t change when unicef denmark changes system.
− lasernet meets all our requirements. looking back at the process, lasernet has provided the perfect support system for unicef. during transition, none of our customers noticed we shifted from a legacy system to lasernet. everything went according to plan.
i’m convinced that this solution will be attractive to other unicef committees around the world, he concludes.
“We have simplified our
procedures with LaserNet”
thomas Andersen, Administrative executive, unicef Denmark
unICef DAnmArk
Unicef Denmark is one of 37 national committees in the international organization working to improve conditions for children around the world by broadcasting their needs and with volunteer help and fundraising. The organization runs long term development projects and provides aid to poor and needy children in more than 150 countries. Unicef finances its work through contributions from governments, private foundations and charity collections. Unicef Denmark has 34 associates and collected a total of DK 109.6 million in 2007.
FOR THE WORlD’S CHIlDREN. Everything went according to plan when Unicef denmark changed it systems. “i’m convinced this solution will be attractive to other Unicef committees around the world as well”, says thomas andersen, administrative executive at Unicef denmark.
