Innehåll
AnnuAl RepoRt 2009
pRocessIng InfoRmAtIon
Today’s competitive edge
EffEctivE E-SErvicES
at the Swedish Arts Council with FormPipe W3D3
A Priority invEStmEnt
Focus on document and case management
enteRpRIse content mAnAgement fRom foRmpIpe softwARe
IntRo
We are FormPipe Software
Notice of Annual General Shareholder’s meeting for FormPipe Software AB (publ)
formPipe Software is an Enterprise content management (Ecm) software provider. Ecm is the collective designation of the strategies, technologies and product systems used to systematically capture, process, store, preserve and deliver information in any organization. Public sector, commercial, and other organizations use professional Ecm products to take control of the increasing information flows they generate in today’s world. Selecting and obtaining the right information for the right recipient is increasingly important. organizing information flows increases efficiency and eliminates errors.
the company’s products, formPipe W3D3, formPipe Platina and formPipe Lasernet provide the functionality needed by our customers. our software efficiently captures, structures, and distributes information flows. formPipe Software’s products reduce exposure to risks in information intensive organizations and businesses. this is an important parameter helping ensure a secure and stabile environment for raising profitability.
formPipe Software was organized in its current legal entity in 2005. the company was listed on the nASDAG omX Stockholm Exchange on January 19, 2010, after being listed on the nASDAQ omX first north Exchange since 2005.
Shareholders of formPipe Software AB (publ) (the company) are hereby notified that the Annual General Shareholder’s meeting will be held 3 o’clock p.m. on march 16, 2010 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 meeting 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 10, 2010;
» notify the company of their intention to participate in the AGm no later than 4 o’clock p.m. Wednesday march 10 2010 at address: formPipe Software AB, Årsstämma 2010, Box 23131, 104 35 Stockholm, by fax 08-555 290 99, by telephone 08-555 290 84 or by e-mail at stamman@formpipe.com.
notification shall provide name and identification number (personal iD or organiza- tion iD) as well as address and telephone number. Shareholders intending to participate by proxy should enclose power of attorney and other documentation with the notifica- tion. 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. Shareholders 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.
Agenda
the AGm will determine matters as prescribed by the Swedish companies Act and the company Articles of incorporation to be addressed at the AGm and other matters as published by the company in accordance with applicable laws and regulations as proposed at www.formpipe.se.
the year in short
» Net revenues were SEK 127.6 million (100 million), increasing 27.6 %
» Operating profits were SEK 26.5 million (26.1 million), at an operation margin of 20.8 % (26.1 %)
» Earnings per share were SEK 1.54 (1.81)
» Profit after tax was SEK 18.0 million (18.9 million)
» Cash flows from operations totalled SEK 27.1 million (21.4 million)
» License and other revenues totalled SEK 102.1 million (71.6 million), an increase of 42.6 %
Important dates
» Annual General Meeting march 16, 2010
» Periodical report Q1 – January to march, published April 21, 2010
» Periodical report Q2 – April to June, published July 13 2010
» Periodical report Q3 – July to September, published october 25, 2010
» Preliminary Financial Results for financial 2010, announced January 31, 2011
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, Box 231 31, 104 35 Stockholm and by e-mail at info@formpipe.com For Investor Relations contact
CEO Christian Sundin. Tel: + 46 (0) 8 555 290 84 E-mail: christian.sundin@formpipe.com Distribution policy
The 2009 Annual report is sent to our larger shareholders immediately prior to the AGM. The report is available in PDF format at www.formpipe.se.
*Not according to IFRS
Income statement
mSEK 2009 2008 2007 2006 2005*
net revenues 127,6 100,0 64,8 41,1 20,2
operating expenses -92,4 -67,9 -49,0 -31,4 -18,9
Amortizations -8,8 -6,0 -2,4 -1,1 -1,1
Operating Profits 26,5 26,1 13,5 8,6 0,2
intro
02 2009 in short
FroM tHE CEo
04 ”Strategic choice”
tHiS iS ECM
06 Structure your information flows
MArKEt rEViEW
08 A priority field
MArKKEt oVErViEW
11 Trends and effects
MArKEt PoSition
12 Strong position
EXiDo
13 ”Information as competitive advantage”
oPErAtionS
14 Business concept, vision, and goals
ProDUCtS/ForMPiPE W3D3
16 Effective case management
ProDUCtS/ForMPiPE PLAtinA
18 Easy to Integrate
ProDUCtS/ForMPiPE LASErnEt
20 NetOnNet saves time
ProDUCtS/ForMPiPE onDEMAnD
22 ECM as Cloud Service
BUSinESS MoDEL
23 Our partner strategy
orgAnizAtion
25 High-tech skills
oUr SHArE AnD SHArEHoLDErS
26 Share price
SEnior PErSonnEL
28 Board and Senior Management
KEY rAtioS
30 Strong cash flow
content
13
14
22
16
Design: Sofia Nilsson/Åkesson & Curry Photo: Jimmy Hansen Illustration: Clara Terne/NU Agency Print: Mediagallerian, Bromma 2010 Translation: Deane Goltermann.
The FormPipe Software certified partner program enables us to add sales personnel and corresponding delivery capacity to provide the basis for greater, faster growth.
looking forward
We have high hopes that the Ecm market will conti- nue its stead y growth during 2010 and beyond. the most promising trend involves what is now termed
‘the cloud’, where software is procured as a compre- hensive solution that includes operation, support, and upgrades—rather than the current standard of licen- sed distribution where the customer runs everything.
formPipe Software has for several years offered cloud-based services of this kind. We are therefore well placed already to address this market when it expands. We are continually developing our offering in these terms and have recently launched another cloud-based product called formPipe onDemand.
Still, we cannot overstated the significance of the developments in cloud computing. We see this as a slower paradigm shift rather than a revolution. cloud distributed products are indeed another alternative for the customer. the strength of the formPipe Software alternative is that we developed early on developed a competitive product that is ready to take advantage to the full potential offered by this growth alternative. my professional assessment is that the company has invested in gaining an early advantage for this that can lead to our taking market share.
We expect to see a continual increase in demand, even though more standard solutions will remain the largest contributor to our markets.
i also see significant future potential for formPipe Software to expand into new markets, both segments and geographically. We are currently evaluating the opportunities in several European markets and in other interesting countries. in our home markets, we are building on our strong position in the public sector while making further inroads into commercial busines- ses. Greater numbers of businesses understand the advantages of using Ecm solutions. this raises the in- teresting phenomenon, that public sector operations, under legal requirements to have structured informa- tion and case management, are now the leading edge for private businesses in this field.
i am convinced that in ten years, companies and organizations will look back on the past decade and wonder how it was possible to operate businesses using appropriate control without having the necessary automatic processes, permission manage- ment and tracking tools, and structured storage for information. that’s where formPipe Software fills the gap. our role as provider of future information management tools is aimed at creating value and stability in some of the fundamental functions in our society. it feels both exiting and stimulating to have my part in that.
enjoy this year’s ecm magazine christian Sundin, cEo
the ceo
nationally. this partner strategy is also a way for the company to reduce risk exposure, by keeping our total cost structure as low as possible.
the scalability of our operations gives us a strength.
As we increase revenues, our costs will not increase at the same pace. By offering competitive and stabile soft- ware, we have created a strong presence in the Swedish pubic sector giving us many good reference customers.
i usually liken the current Ecm market to the ErP (Enterprise resource Planning) market as it developed over a decade ago. As the market grew significantly in the early 1990s a new generation of customizable standard products were launched. Before that period, most systems were developed in-house, because this was often the only choice available for larger compa- nies and organization. A long period of uninterrupted growth that followed was also a period of sharpening competition and structural change followed.
i think that our own markets in Ecm are currently going through a similar development, and are about 10 years behind. i therefore see the markets experiencing a structural period of stabile growth, which is why we see positive growth even in the current downturn.
We are positioned in a growing market with a strong product offering. this is shown by the findings of analysts Exido that the Ecm market did in fact grow by 1 percent in 2009 despite the weak economy, while total it investment shrank by 3 percent.
formpipe software joins the nAsDAQ omX stockholm stock exchange the previous two years have seen the company act and communicate with our markets like a fully-fled- ged exchange listed company. this has prepared us for the listing of our shares for trade on the nASDAQ omX Stockholm on January 19, 2010.
Listing our shares will increase our visibility as a company, a factor already borne out by the greater interest shown for the formPipe share by investors and analysts. Add to this the greater accessibility to our shares for investors. furthermore, as a listed company, we are better placed to add understanding for and about the Ecm market. the listing can therefore also have a positive effect on demand for our products.
Words from the CEO
2009 held significant events for formPipe Software. We took two strategic steps affecting the company’s future while we experienced continued strong demand and interest in our products. most importantly, we have determi- ned to sharpen our focus on product sales and will therefore successively transfer our consulting operations to our partners. moreover, we applied to list our share on the nASDAQ omX Stockholm Exchange.
formpipe software’s products solve tasks that are increasingly important − helping organizations to organize all their information. We are well placed in a strong position in our markets for Enterprise content management (Ecm) software.
the amounts of information generated and distributed in today’s information society have become enormous, and these are still growing. Selecting and ensuring the right information reaches the right recipient in our daily activities is also becoming more vital.
Ecm can organize these information flows, and so, improve efficiency and reduce the risk of error. our products address these issues, directly helping our customers make the right decisions. our products also reduce risk exposure for our customers, an important parameter in secure, stabile information management that is the founda- tion of effective and profitable operations.
focusing on our products
in recent years we have taken conscious steps to move formPipe Software away from a combined pro- duct and consulting business to becoming a focused product-oriented company. All sales come through our certified partners. my assessment is that over the longer term this new focus will increase the propor- tion of license and maintenance revenues—leading to greater profitability. But in the shorter term, this new focus can negatively effect on revenues and our margins. As our partners take more of our consulting services, we will experience reduced revenues.
A highly relevant comparison can be made to the ErP business administration system market, as well as other segments of the software industry. the most suc- cessful companies of this type are often those that rely on license revenues while focusing on higher volume sales and margin growth. other companies with higher proportion of revenues from consulting services con- sistently show lower growth. this comparison provides the primary consideration for formPipe Software taking its product-oriented strategy based on partner sales.
our strategy to use certified partners enables us to set a foundation for greater growth, enabling us to increase the number of sales personnel and cor- responding delivery capacity. We also increase our reach in the markets, coming closer to customers in new industries, and widening our geographical presence. therefore, we are working to increase the number of our partners and looking for new kinds of collaborative partnerships in Sweden and inter-
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
orioat n
cord Re ana s M
gem ent rk Wo
w flo
Input/output mAnAgement
Organizes, transforms and distributes data from different sources, applications and systems.
Document mAnAgement
Managing electronic documents with such functions as version management, check in/check out, linked and combined docu- ments as well as integration with standard tools like MS Office.
collAboRAtIon
Tools that enable disparate groups to work together using the same informa- tion in a common environment.
content mAnAgement Functionality used to manage and publish information and documentation over Internet/ Intranet
RecoRDs mAnAgement Compliance functionality to manage and preserve various types of information regulated by law (such as governance transparency requirements or SOX), or by internal governance policies and rules.
woRkflow
The many workflows that every organization has, including approval or application processes, or event-driven flows, making business processes more efficient.
ARchIvIng
Long-term storage of legal document/
cases, general documentation/cases, medical information, and more. Func- tions to export, store, and find data in electronic archives in accordance with applicable laws, rules, and standards.
thIs Is ecm
Information flows have grown enormously in today’s information society, and they continue to grow. this increases the need for greater over- view, traceability and reusability of information in all operational processes of any organization. Effective information management gets ever more important for businesses and organizations to ensure that this information is used to directly support operations in order to improve competitiveness. Ecm does all this.
the ecm process
Ecm enables coordinating humans, their processes, and all necessary information. this involves everyth- ing from managing documents, e-mail, web-based information and various types of case management.
Using Ecm helps the entire organization keep track of current and important information, where to find it, how to access it, and who can access it.
With Ecm, you improve control, reduce costs and make your information more accessible.
Structuring
information flows
Ecm – Enterprise content management – is the collective designation of the strategies, technologies and product systems that help organize information throughout its lifecycle in any organization. Ecm products are used to systematically capture, process, store, preserve and deliver information in a structured, controlled and integrated flow.
shoRt hIstoRY of foRmpIpe softwARe 1997 Sign On starts developing the FormPipe platform, and this grows into a separate business.
1998 FormPipe installs a pilot system at the City of Stockholm Municipal Administrative Offices.
2004 Sign On spins off FormPipe, issuing shares to existing shareholders.
2005 Operations in FormPipe AB are transferred to FormPipe Software AB, which 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 Our ECM product, W3D3, scores the highest of more than 60 bids submitted in a competitive procurement process at Verva (Verket för förvaltningsutveckling-National purchasing agency) for document management systems for filings, workflow, documents, and e-storage – headlined
‘Information Supply’.
2006 FormPipe acquires ALP Data, strengthening its position as the leading ECM supplier in Sweden.
2007 FormPipe buys Danish software provider EFS Technology A/S, a profitable group with a strong presence in Input/Output Management and a wide international partner network.
2008 FormPipe Software acquires EBI Systems, gaining access to a network of partners, business contacts, and customers for the highly competitive ECM software Platina.
2010 FormPipe Software lists its shares on the NASDAQ OMX Stockholm Exchange on January 19, 2010.
this scandal resulted in the US congress enacting new corporate governance regula- tion 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.
ECM still growing
the turbulence on American markets from the high-profile bankruptcies of Enron and Worldcom brought a turning point for Ecm.
requirements are now stricter in Europe as well.
the latest version of the EU 4th, 7th, and 8th Directi- ves (also called EuroSoX—after the American version) passed in April 2006. member states have had two years to implement legislation at the national level.
this means rules 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. to meet these requirements for traceability, companies need Ecm products.
regulatory requirements in Sweden are an im-
Growth generation in the ECM market for 2009 came largely from new customers, a sign that ECM is a priority.
this caused software market leaders to start developing Ecm products. for instance, microsoft launched their SharePoint product raising private sector awareness for Ecm on the US market. this awareness benefited all Ecm providers, in particular established businesses with acknowledged leading products and services.
mARket RevIew
businesses invest in ecm
Statistics reported by Exido show that growth in the Ecm markets for 2009 was primarily generated from new customers—signalling that Ecm is a priority area. this latest report from Exido, ‘the it market in Sweden for 2010–2011’, estimates continued growth of at least 5 percent for 2010, in spite of continued economic weakness. As much as 40 percent of all Swedish companies with more than 1,000 employees are currently evaluating new investment in Ecm this year. the total Swedish Ecm market is forecasted by the radar Group to reach SEK 1.3 billion for 2010, including SEK 340 million for Ecm software.
global annual growth of 12 to 13 percent American analysts, BizAcumen, estimate the global market for Ecm related products and services will grow by 12 to 13 percent annually to 2015. this growth is compared to developments in the ErP (En- terprise resource Planning) market, which grew signi- ficantly during the 1990s. As with Ecm now, the ErP market was dominated early by in-house software systems that slowly gave way to a new generation of standardised products. this development is being repeated today in Ecm. there are two primary trends driving the market: greater regulation regarding data storage and its traceability over time, and demands for greater productivity and efficiency in businesses, and public sector organizations.
A priority field
the Swedish Ecm market continued to expand in 2009 despite the recession driven by growing requirements for more efficient case and document management processes. Analysts Exido reported that the Ecm market expanded by 1 percent over the year—while total it investment shrank by over 3 percent.
Document management on the rise the rising table below illustrates priority of Ecm func- tions among it investment, comparing the ranking of importance for it investment in the Swedish markets.
this research was conducted by the radar Group of analysts in their report ‘the Ecm market in Sweden 2010”.
All the fields in the Ecm segment (document management, collaborative solutions and information management) have a higher priority than the same measurement in 2008. Document management is ranked second highest of all priority fields, after not even reaching the top ten the year before.
operational focus Ranking 2009 Ranking 2008
E - business 1 8
Document management 2 n/A
Collaborative solutions 3 6
Supply chain 4 10
E - learning 5 7
mobile solutions 6 2
Information management 7 9
Enterprise search 8 14
crm solutions 9 3
Bi solutions 10 4
radar Group – the Swedish Ecm market 2010
pRIoRY AReAs foR futuRe It Investment
mARket RevIew
A significant driving factor for companies and organizations is the need to digitalise more activities and processes in order to enable greater self-service through portals that are independent of user interface towards various information management systems. the travel and Banking industries have advanced the farthest in using Ecm products, and so have achieved the greatest advantages.
companies experience many advantages, especially when working to increase customer
ECM – trends and effects
Governmental agencies, organizations, and businesses are all finding how useful effective information management can be. the attitudes among buyers of Ecm products are now more likely based on answering the question of ‘how’ these products can be used rather than ‘why’
they should be purchased.
» the right person gets the right information through indexing and permissions control
» Accessing and finding the right information enables faster, correct business decision-making—and a defined competitive edge
» Always using the correct document version
» Decisions are documented and traceable.
» intelligent permission control and management
» improved project management and collaboration among co-workers
» case management ensured to follow laws and rules for sensitive information
» Supports iSo certification
» improved reporting, auditing and control ensuring relevant laws and regulations are followed
» integration with other business critical systems (ErP, crm, Bi, and such) for more effective process management
» these products support creating a learning organization with an easy overview of operations.
effective organizations
most organizations now recognize the value of efficient structures for information management, including greater automation with as little manual processing as possible. Still, most information is managed manually. And current information flows in larger corporations are virtually impossible to control without Ecm products. the lack of structured procedures increases the likelihood that the organiza- tion acts on outdated or otherwise erroneous information, unnecessarily increasing costs. this also can lead to the inability to maximize the business utility of acquired information. therefore, greater competition and competitive pricing will require businesses to invest in Ecm products. Structured information, it is both more accessible and more optimized for operational needs, thereby lowering costs and creating value.
satisfaction and customer loyalty. other important advantages include that Ecm enables cost savings and greater sales.
trends
» Laws and regulations covering managing electronic information are becoming stricter and more detai- led – enlarging the Ecm market.
» As more commercial Ecm alternatives enter the markets, potential customers are exposed to a greater variety of products.
» the term ‘Ecm’ and the various related offerings become more clearly defined as general interest and specific requirements increase.
» more customers consider purchasing Ecm proces- ses as a service (SaaS).
» the Ecm market is currently going through a con- solidation that is expected to continue.
» Greater awareness that using Ecm products can reduce operational costs.
» Greater understanding of the practical function of Ecm products which enable more effective track- ing of events, and eliminating risks.
» companies and organizations gain insight into how Ecm products improve competitiveness, customer loyalty and enable development of new products.
Advantages of greater ecm use Using Ecm products to a greater degree increases understanding of how the can be used even better, leading to greater utility. these advantages are listed below (in no particular order).
» Greater organization of your information flows
» increased productivity and efficiency
» improved risk management
ECM brings other important gains such as increased sales and greater cost savings.
portant driver in this. We see this in the increasing de- mand for our products in larger Swedish companies.
the Swedish public sector has taken significant initial strides in using Ecm products in our assess- ment. And the company has established itself as the market leader in this segment in our home markets.
However, we still see the Ecm segment in Sweden as relatively undeveloped—due to a rather low general awareness and exposure of this market in the media, and where strategic consultants do not prioritize these products.
industry specialist, though, see the situation star- ting to change and that Ecm products will generally come into greater demand in the private sector. We see this trend initially in larger businesses who have identified these needs, but we also see a future demand from smaller companies as they determine the long term benefits that can be obtained from implementing Ecm products.
cloud service
Purchasers in the market evaluating investment in Ecm are also considering obtaining this functiona- lity through a cloud-based service. for some, cloud computing and SaaS (Software as a Service) is an interesting alternative as compared to standard purchase of licensed software. these purchasers are looking to reduce their initial investment costs, as well as pay only for their actual use of the software.
in cloud-based services, the customer purchases a complete solution for the software, including operation, support, and upgrade—instead of paying a license for the software, taking direct delivery and full operative responsibility. Ecm products can also be implemented as a cloud service, which should accelerate the process of customers choosing this alternative due to the lower initial investment costs.
to meet this demand, formPipe Software currently offers its formPipe onDemand as an SaaS.
ecm and the business cycle
Historically, the Ecm market has not been highly sensitive to changes in the business cycle. this is DRIvIng foRces
Significant forces driving the ECM market include:
» The amounts of information that organizations and businesses must take in and process is growing explosively in pace with the development of digital channels and information technology. Products that can organize these information flows can bring significant benefits in efficiency and productivity. These also reduce the risk that important information and other matters are handled incorrectly (or not at all).
» Digitalisation of operations- specific processes and content is continuously becoming more prevalent.
» Paper-based processes currently are standard dominating structures, but these are slow and time consuming.
New and efficient digital structures will soon be necessary for all information received and processed by governmental agencies, organizations and businesses.
» More regional than global providers. Products customized for geographical markets offer greater benefits and low obstacles for implementation.
» The ECM market is currently a fragmented solution-based market.
There are many providers offering a variety of partial solutions. Standards are necessary to enable integration of these various solutions.
primarily due to the legal nature of requirements for the functions provided by Ecm products. As well, the productivity and efficiency benefits obtained from Ecm products lead to added demand in business downturns, when there is also greater need for closer management and internal process controls. We have seen this in several media reports of failures in these issues that have affect several companies and their employees. While we do see that investment in Ecm generally follows the business cycle trends, this is not to the same extent as other it related sectors.
Historically, the ECM market has not been hihgly sensitive to changes in the business cycle.
mARket RevIew
eXIDo
”Information is the sharpest competitive edge of our time”
niklas Zandelin, ceo exido International Ab
tell us about exido and your business.
Exido is an analyst and consulting business that focuses on the Swedish it market. our independence and comprehensive know-how is what makes us unique. in our operations we have created a broad network of thousands of senior managers, who provide us with continuous feedback through our it barometer. in short, you can say we help it companies in their business planning, real world analyses, and trend-spotting.
which markets and industries to you keep continual watch on?
We analyse every segment of the it industry and their markets for our customers. our focus is primarily Sweden, but we also work with customers who are established internatio-
nally. it analyses and commentary to these are often applicable to international conditions. trends in larger parts of the world are similar. in a global comparison, the Swedish it sector is well placed, even if its posi- tion is not as strong any more.
what are the clearest trends in the It industry for 2010-2011?
We see two clear trends. it means ‘i’ for informa- tion and ‘t’ for technology. the trends we see are:
t many technical competitive advantages are beco- ming smaller, above all in industrial applications, but also in commercial situations in general. Before, companies could create advantages by improving production through technical innovations. today, this technology is fully developed to the point that production savings that could previously be measu- red in minutes are now measured in time-savings down to the tens of seconds. the potential to create more effective production is getting smaller.
I information is the sharpest competitive edge of our time. organizations with the best and most effective information management are those with the greatest competitive advantage. for example, in every partnership, the partners with the most and best-structured information are the ones that have the best margins and steer the partnership into the future. Before, the best companies had the best production lines, now the best are companies that create growth, competitiveness, productivity and efficiency using information.
what is your view of the ecm market, how long have you been tracking it?
We have been following the Ecm market since 2002. the industry got a big pull when the American SoX regulations were enacted, followed by similar rules in Europe. the potential for Ecm is great. As i said, information and so information management is a clear competitive edge. municipal governments and companies have to become more efficient in relation to their customers – all of us. cases have to be processed quickly and easily, customer service has to work well.
following every transaction – creating traceability – adds efficiency and utility for everyone working with the in- formation and for everyone affected by the information.
what have you found are the clearest ef- fects and gains from implementing ecm products?
the clearest gains from Ecm products involve their capability to create positive reactions from custo- mers and co-workers alike, as well as creating time savings for everyone. matters simply get processed faster, while they are dealt with correctly more often the previously. version management and traceability bring clear quality improvement.
An example is situations where municipal bureau- cracies can handle an issue in real-time when previous- ly the same issue could take three weeks to conclude.
individual workers in municipalities without Ecm have a capacity to handle perhaps 20 cases a year, while those with access to Ecm can handle over 200 similar cases annually. this is only an example, but just think of the positive effects this can have on citizens in the form of faster service and the savings on taxes.
Do you see an ongoing It-fication’ in today’s society?
yes. our view is that eventually, everything that can be processed digitally will be. We see this clearly in the most it intensive markets geographically. the new generation of workers coming into the labour markets have an entirely different view of digital processing and will demand these kinds of solutions to a much greater degree.
individual workers in municipalities without ECM have a capacity to handle perhaps 20 cases a year, while those with access to ECM can handle over 200 similar cases annually.
foRmpIpe softwARe’s mARket posItIon
Strong position in the public sector
formPipe Software has a strong position in the Swedish Ecm market, particularly in leading the public sector segment.
the exido analysts report, ‘the it market in Sweden 2010–2011’, considered the issue
‘Which of the following companies would you have as provider of any kind of case manage- ment application in the coming 12 months?’
the same question was asked two years ago and the findings, illustrated in the circle diagram below, show a clear increase in market awareness about formPipe Software and its product offering.
public sector
the public sector in Sweden has embraced the use of Ecm products. Even so, our assessment is that the need for more efficient administra- tion will force the public sector to utilise more fully the potential of it support systems. Exido estimates that as much as
54 percent of Sweden’s municipalities, 68 percent of national agencies and 31 percent of all county councils will make additional in- vestment in Ecm during 2010. this will offer a significant opportunity for formPipe Software considering the company’s current leading position within this segment.
private sector
in relation to this, private sector use of Ecm products is low. the Exido report (above) indi- cates that 40 percent of all companies invest in some form of information management applications in 2010. We list several industries where Ecm products could bring clear benefits such as greater productivity and efficiency gains, create greater comprehensive oversight and traceability, and automate flows, structure, and accessibility.
» Life Science industry: the Biotechnology and Pharmaceutical industries are examples where regulations place strict, comprehen- sive requirements for storing and tracing information.
» the food processing industry: is covered by similar regulation to Life Sciences.
» construction: the construction industry is characterized by large projects with huge volumes of documents and therefore has significant savings gains possible from struc- turing the information involved.
» finance: the financial sector is another
industry that processes huge amounts of documents that require many different kinds of action, necessitating high traceability.
the private sector is currently a relatively small part of total revenues for formPipe Software.
We are addressing these companies through our partner network, offering industry-specific solutions. As an example, Life Science compa- nies face stiff requirements for digital systems to organize information and maintain traceabi- lity. However, this process requires an under- standing of the value Ecm products create through lower accumulated costs from resource optimization. formPipe Software’s products are developed to optimize processes and workflows. the company’s certified partners ensure that industry-specific know- how is available for each customer contact. our partners also ensure that our products are implemented correctly, and customers receive the training and support they need.
Oracle
Guide
IBM FormPipe Software Microsoft
Others 2 %
3 % 8 %
19 %
52 % 26 %
0 % 20 % 40 % 60 %
2010 2008
Software Innovation Guide
Sigma FormPipe Software Open Text (First Class) Microsoft
Others
0 % 10 % 20 % 30 % 40 % 50 % 9 %
9 % 10 %
40 % 33 % 7 %
7 %
* Many of the smaller municipalities have still not invested in standardised ECM products.
formpipe software has 26% of the swedish municipalities* as customers
formpipe software has 60% of the swedish county councils as customers
selectIng ecm pRoDuct pRovIDeRs
Oversubscribed incentive program
The 2009 AGM determined to issue 490,000 share options to FormPipe Software employees. One option entitles the holder to subscribe to one new issued share. The programme was significantly oversubscribed.
Noark 5 Certification, Norway FormPipe W3D3 became the first product Noark 5 certified in Norway. No product has previously met the requirements for certification. FormPipe Software is therefore the only provider offering a certified product on that market.
Order for FormPipe OnDemand (SaaS)
Eight municipalities in Värmland County have signed an agreement to subscribe to FormPipe OnDemand for document and case management and e-services.
Order from Swedish Transport Agency
The Swedish Transport Agency signed to purchase FormPipe W3D3 for case and document management. The order is valued at SEK 7.5 million. Partner Lemontree is managing delivery.
Listing on the NASDAQ OMX Stockholm Exchange January 19, 2010
The formal application for listing the FormPipe Software share on the NASDAQ OMX Stockholm was made in 2009, and carried out as of January 19, 2010.
Breakthrough order of public sector in Denmark
FormPipe Software signed with the Copenhagen Municipal District for the purchase of FormPipe Platina. Partner ConsignIT is managing installation customisations.
Order Länsstyrelserna (County Administrative Board Association)
Länsstyrelserna signed for FormPipe Platina for case and document management. The order is valued at SEK 7.9 million for license and upgrade revenues alone.
The FormPipe Software share is listed on the NASDAQ OMX Stockholm
Exchange on January 19, 2010.
net Revenues AnD pRofItAbIlItY
Mkr
Net Revenues
%
2006
2005 2007 2008 EBITDA margin, percent
0 20 40 60 80 100 120 140
0 5 10 15 20 25 30 35
2009
RepeAt Revenues, RollIng 12 months
Mkr
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0
10 20 30 40 50 60
20082009
sAles Revenues bY functIon
Support and upgrade License
Consulting and other 37%
43%
20%
opeRAtIons opeRAtIons
Business concept, vision and goals
busIness concept
formPipe Software develops and provides soft- ware products to capture, structure, and distribu- te information flows to increase effectiveness in organizations. We focus onEcm products used for secure document and record management as well as input and output data processing.
formPipe Software develops Ecm products based on our customers’ current and future needs. We continuously develop our offering towards the market, considering requirements, legislation and regulation, and future efficiency targets. We also continuously develop our part- nership model as an important consideration for future growth.
vIsIon
”To be perceived as ECM. And the benchmark.”
formPipe Software shall be synonymous with Ecm and set the norm for structured informa- tion management.
goAls
operational goals
formPipe Software shall be the leading deve- loper of Ecm products. our primary goal is to focus on developing Ecm products for secure document and case management, and input and output data processing. Sales and imple- mentation of our products is done through our formPipe Software certified partners. our Ecm products shall always lead technology develop- ment and usability to increase satisfaction for our customers and partners, creating greater loyalty through adding value throughout the entire product chain.
financial goals
formPipe Software will experience growth that exceeds the market average for Ecm products in which the company competes, while main- taining satisfactory profitability.
organizational goals
formPipe Software shall be an attractive work- place with a cohesive organization and well fun- ctioning managerial processes. moreover, form- Pipe Software shall be an attractive employer for advanced software developers interested in
working with high quality projects that involve market leading and innovative products.
stRAtegIes
product and sales strategy the formPipe Software product strategy is to continually offer the best Ecm products available. With their high quality and stability, these products shall quickly generate cost and efficiency gains for our customers. Product development is driven by our customers and by market needs based on current and future requirements. Sales, implementation and distribution of these products shall primarily be
done through the formPipe Software network of certified partners.
growth strategy
company growth shall be through organic increases in sales to current and new markets, and through acquisition of competing or com- plimenting operations.
Acquisition strategy
formPipe Software shall actively evaluate and carry out strategic acquisitions, which shall have a product offering that strengthens formPipe Software and its products in Ecm.
organising information flows increases efficiency, makes orga- nizations more productive and eliminates risks.
the council previously used a custom solution for case and journal administration. When the system no longer served the council’s purposes, open bids were taken for a replacement in 2004.
effective management
the Arts council chose to invest in the formPipe W3D3 case manage- ment system. this helped establish a common interface for all depart- ments, as well as bring greater efficiency to their case management.
– Handling all the funding applications and other matters can be extensive. Each application has some 10 to 20 pages of documentation as well as continuing correspondence, cia relates.
Always correct information
our processing is now decentralised and effective. We manage a total of 7,500 matters annually, of which some 6,500 are funding applications.
We have nearly 5,000 web-based applications that get automatically re- gistered with added metadata and are immediately available for review.
this process used to include manual registration, which was then repor- ted to an administrator. Written documents are scanned into the system for automatic processing. case managers can access all documentation electronically.
significant time savings using e-service
– Web applicants are assigned a case number they receive via e-mail so they can follow their application over the Web. this greatly reduces the number of phone inquiries. managers can keep a journal of all e-mail communications directly from the e-mail client with a simple click, explains cia.
time savings are significant from the automated processes. the quality of the applications is greatly improved, not least through the e-service where applicants receive instructions for mandatory fields and information.
overview and traceability
our employees have a much easier time searching through each case, as well as in comparing information in different cases.
pRoDucts
– case managers can get a simple overview of each matter and we can quickly produce complete reports for our board and department heads, continues cia.
As well, all information is preserved for the future.
– formPipe W3D3 can be integrated with other sys- tems, so a likely next step is to connect it to Share Point to fill out the workspace our case managers can use.
Administration and maintenance
in may 2007, the Arts council outsourced administra- tion and maintenance of formPipe W3D3 to Know it, who importantly, are a formPipe Software certified partner allowed to develop in the system. this inclu- des administration, integration, customisation and system documentation, support and managing test environments for development.
– this administration works very well for us with people we have confidence in, concludes cia.
Development opportunities
formPipe W3D3 will be the hub in future develop- ment, and can be integrated with other systems used at the Arts council, such as their financial manage- ment system Agresso. recently, another system for online application and reporting was integrated in W3D3, while now, the publishing solution EPiServer is being integrated for feedback and reports.
– our requirements for the system change continu- ously as developments occur in the world. our close collaboration in administering the system enables us to identify these changes early so the new functionality can be planned and delivered in time, relates chatarina Svensson, senior consultant at Know it.
Effective case management at the Swedish Arts Council using FormPipe W3D3
Kulturrådet, the Swedish Arts council, is the national agency that implements national culture policy as set by the Parliament and government. this includes disbursing funds to support cultural activities like dance, literature, music and theatre. A total of nearly SEK 1.7 billion is paid out each year. formPipe Software met cia Jarehov, co-ordinator and deputy department manager at the council.
pRoDucts
Our personnel have a significantly easier time searching in their cases and comparing them.
FormPipe W3D3
formPipe W3D3 is a fully developed, powerful Ecm product for information management and effective e-services. the product enables the entire customer organization to acquire necessary current information, find where it is, how to get it and who can access it.
formpipe w3D3 is currently used in journal, case, and document management as well as e-archiving. it’s a stabile Ecm product that helps standardize work processes. the product encompasses a wide spectrum of necessary and functional modules like SharePoint integration, feed- back management, agreements processing and e-recruiting.
formpipe w3D3 can help with:
» Increased service with fewer resources. investing in automated case management solutions can bring more effective service for custo- mers and citizens, thus better utilising the limited resources available with more efficient work processes.
» Traceability. Documentation and information to a much greater de- gree must be available for review and audit to ensure compliance with applicable laws and regulations. Well-structured and electronically traceable information along with structured work processes form the basis of legal and fair treatment of all matters. traceability increases confidence in the organization where legal disputes can arise by keep- ing all documentation well-organized.
» E-services and demands for availability. formPipe W3D3 provides digital support for the identified requirements within the government’s mandate in regard to e-administration: to increase usability and accessibility of the services offered by the Swedish public sector, to improve efficiency in case management and inter- nal administration, and provide operative support for all employees.
With its easily integrable structure, formPipe W3D3 can be used as the basis for creating e-services. Examples of these e-services include application processes, contract management, e-recruiting and journal publication.
» Archiving. regulations for classifying and storing e-mail, and paper or electronic documents in a common electronic archive are coming into force. formPipe W3D3 can be used for the undeletable electronic storage of information and documentation. Abstracts can be made for stable electronic storage to meet standards set by the riksarkivet (national Archives).
customers currently using formPipe W3D3 include Huddinge municipal District, Lund University and the Swedish transport Agency.
Cia Jarehov, coordinator and Deputy Department Manager at Swedish Arts Council.
