ANNUAL REPORT 2000/01

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Contents

2000/01 fiscal year 1

President’s review 2

Business objectives, targets

and strategies 4

Market review 6

Competitors 7

Customers 8

Organization 9

Operations 10

Staff 16

Structural capital 19

Five-year summary 20

The Know IT share 22

Directors’ Report 24

Statement of income 26

Balance sheet 28

Cash flow analysis 31

Notes to the financial statements 33

Audit Report 37

Board of Directors 38

Corporate management and

key staff 39

Glossary and definitions 40 Addresses

Cover picture:

Theresa Hirsikoski, consultant Know IT

Know IT Contents

IT is a prerequisite for all business development page 2

Notice of Annual General Meeting Time

The Annual General Meeting will be held on Thursday September 6, 2001 at 5 p.m.

Registration for the Annual General Meeting starts at 4.30 p.m.

Venue

Polstjärnan, Sveavägen 77, Stockholm

Participation

To be entitled to vote at the Annual General Meeting the shareholder must

• be entered in the Register of Shareholders

• have notified the company

Registration in the Register of Shareholders

Shareholders must be entered in the Reg- ister of Shareholders maintained by the Swedish Securities Register Center, VPC, not later than Monday August 27, 2001.

Shareholders whose shares are nominee- registered must re-register their shares temporarily in their own name with VPC.

Shareholders who wish such re-registration must inform the nominee in good time before August 27, 2001.

Notification

Notification of participation must be made to Know IT not later than 4 p.m. on Friday August 31, 2001 at the following address:

Know IT AB (publ) Box 3383

103 68 Stockholm

or by telephone + 46 8 587 68 000 or by e-mail to info@knowit.se.

When notifying the company, shareholders must state their name, address, personal/

corporate identity number and registered shareholding.

Nomination Committee

Shareholders who wish to propose Board Members in advance of the AGM can contact:

Erik Åsbrink, Chairman, erik.asbrink@knowit.se Mats Olsson, Board Member, olsson_mats@telia.com

Anders Wahlström, CMA Europe AB, anders.wahlstrom@cma.se

Facilitating the daily work for 2,500 staff page 13 The customer

creates his own secure area on posten.se page 15

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know it annual report

Know IT’s consultants have, on average, a sector experience of 9.7^years

Read more about Erika Stadling-Holm and some of her colleagues on pages 16–18.

2000 01

Know IT 2000/01 Fiscal Year

• Sales fell by 8.6 percent to SEK 500.6M (547.7), whereas sales for the remaining operations increased by 11.2 percent to SEK 447.0M (402.0)

• Operating result after depreciation amounted to SEK –64.9M (–73.0)

• The current operations generated a positive cash flow of SEK 27.6M (–33.2)

• Ingrid Engström became the new President and CEO from May 1 2000

• As a phase in Know IT’s focusing on IT consulting services, the operation for business systems, the advertising agency, Kentab, and Know IT Retail, which delivered IT solutions for the retail trade, were divested

• CMA Europe became a new major shareholder following a directed new share issue of

800,000 shares, equivalent to 14 percent of the share capital before the new share issue. The issue contributed SEK 25.2M to Know IT.

SEKM

Sales

0 100 200 300 400 500 600

00/01 99/00 98/99 97/98 96/97

SEKM

Operating result before goodwill amortization

–40 –20 0 20 40 60 80

00/01 99/00 98/99 97/98 96/97

SEKM

Cash flow before investments

–40 –20 0 20 40 60 80

00/01 99/00 98/99 97/98 96/97

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know it annual report Regeneration

My first fiscal year was a year full of changes for Know It.

Extensive restructuring work led to a new strategy which we adopted during the autumn. It means that Know IT, with its creative and technical leading edge competence, can strengthen our customers’ competitiveness by developing their business critical IT systems. The outcome of the new strategy is that operations, which either focused on products or on market

communication, no longer fitted into Know IT. During the year, the subsidiaries, Know IT Retail Systems and Kentab Reklam- byrå, were, therefore, divested as was the operation for business systems, ERM.

The company’s management and organization has also changed. Several members of the management were recruited

Know IT operates in a sector which is currently characterized by a weak market with resultant increased competition.

However, I continue to believe strongly in Know IT and the IT sector. This is where new technologies are developed, ideas initiated and opportunities created for the development of companies and their business. In addition, many creative and competent people make their careers in this sector. On Know IT’s part, I can also add developing and loyal customers.

All of this attracted me to the business when I took over as President on May 1, 2000.

during the fiscal year and the Board of Directors was regenerat- ed at the Annual General Meeting in September. The new organization contributes, especially, to increasing our focus on customers and markets, partly because sales to large customer have been merged into one unit. We have reduced the number of subsidiaries and merged the operations into larger units in order to promote collaboration and transfer competence internally and to make it more efficient. In this way we are also better equipped to meet our customers’ needs and expectations.

In December, Know IT got a long-term, proactive and sector- knowledgeable partner through a directed new share issue of 800,000 shares to CMA Europe AB. This is equivalent to 14 percent of the share capital before the new share issue. The issue strengthened Know IT’s balance sheet by SEK 25.2M.

Know IT President’s review

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Market

In the first three quarters of the year, we experienced cautious optimism. However, during spring there were warning signals about the declining economic climate with problems within the telecom sector and increased caution when starting new projects.

Thereafter, the market has become increasingly distressing for the entire IT consulting sector. As a result, we have noted increased price pressure on consulting services and that customers are at the same time more frequently asking for consultants with long-term experience. On Know IT’s part, this means an opportunity to strengthen our position as our consultants are very knowledgeable, senior and experienced.

The Swedish Post Office, Posten, is one of the principals with whom we collaborated on the “new” posten.se, a channel in which Posten offers interactive services and on-line tools for their corporate customers. In this work we were responsible for the product management as well as the staffing of important leading edge competencies. On behalf of Enskilda Securities, Know IT has developed a system which enables the company rapidly to collect, re-use and structure the information about the companies which are monitored. The distribution channels were also developed. Enskilda Securities were nominated the best analyst house in 2000 in the Nordic countries by, among others, Reuters.

In January, we received proof of our consultants’ solid competence when the Swedish Motor Vehicle Inspection Company’s, Bilprovningen, external web, in which we had delivered a solution, received the Web Service Award.

These customer projects are described in more detail further on in the Annual Report. All three projects are typical examples of the competence and experience which are Know IT’s strength.

Competence and experience are also qualities which are required to be a successful supplier, especially in the weaker market which we are currently experiencing.

Sales and results

In financial terms, 2000/01 was yet another difficult year for Know It. Net sales amounted to SEK 500.6M (547.7). If we exclude the sales of the divested business systems operation, net sales were SEK 447.0 (402.0), an increase of 11.2 percent compared with the corresponding operations in the previous year. The result before goodwill amortization and net financial income/expense was SEK –3.9M (–36.5). During the year, a one- off write-down of goodwill of SEK 40.6M was made which, together with a capital loss on the sale of the business systems

operation of SEK 15.4M meant that the result after financial income/expense was SEK –89.3M.

Prospects for the future

To revert to the ingress, the entire IT sector is currently in a decline. There is a risk that the market will weaken temporarily with increased competition as the result. However, as I stated initially, IT is now a prerequisite for all business development and, in the long-term, our sector is full of opportunities. With the measures we have implemented during the year, Know IT is in a good starting position when there is an upturn in the market.

June, 2001

Ingrid Engström President and CEO

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Sales by sector

0 10 20 30 40 50

Energy 2%

Pharmaceuticals 8%

Banking, finance, insurance 14%

Public sector 21%

Telecom 41%

Media 3%

Commerce 5%

Industry 6%

Know IT strengthens its customers’ competitiveness by developing with

creativity ^and technical leading edge competence, customer adapted,

business critical IT systems

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Know IT Business objectives, targets and strategies

Business objectives

Know IT strengthens its customers’ competitiveness by developing with creativity and technical leading edge competence, customer-adapted, business critical IT systems. Know IT works mainly with organizations and companies in Sweden which have a need for IT systems with high demands on performance, stability, accessibility, security and which can be accessed from many different interfaces.

Financial targets

Implemented structural changes and a concentration of the operations mean that Know IT now looks quite different. New targets have, therefore, been set for the current operations.

• ^Growth

The average sales growth for the core operation shall amount to at least 15 percent per annum during the five-year period 2001–2005. Growth will mainly be achieved in the existing operations but individual acquisitions are also possible.

• Profit Margin

The long-term profit margin, measured as profit after financial items as a percentage of net sales, should amount to at least eight percent during the five-year period

2001–2005.

• Equity ratio

The equity ratio should exceed 30 percent.

Strategies

Market

Know IT works mainly with customers who require advanced and complex IT solutions. A large proportion of our customers are currently found in the telecom, banking, finance and insurance sectors, as well as the public sector. We see two further interesting sectors, industry and pharmaceuticals, which we are actively working on. A large sector spread in our customer base reduces our vulnerability when there are changes in the economy.

Insight into, and an understanding of, customers’ business operations are a prerequisite for contributing proactively to the customers’ business development with the aid of the latest technology. Know IT, therefore, strives for close and long-term customer relations which focus on customer benefits. Good knowledge about the customers also gives us opportunities to adapt our supply of services and competencies to the market needs.

By investing in three clearly defined focus segments, e-Business, Content Management and Customer Relationship Management (CRM), we are able to utilize efficiently knowledge and experience acquired in previous assignments and projects.

This means that we are continuously able to improve and regenerate our customer offers.

Staff

Know IT is continuously working on increasing the contentment and strengthening the identity in the company, partly through Group-wide social and knowledge developing activities. We want to make possible a flexible way of working and promote both competence development and the transfer of competence. This is partly achieved through competence networks which will facilitate and increase the exchange between the consultants in Know IT.

Know IT is continuously involved with recruitment for organic growth. We mainly recruit staff who, in addition to a solid theoretical base, have some years’ relevant, practical business experience. It means that most of our new recruits are graduate engineers, or equivalent, with at least five years’ work experience. Other important parameters are the staff members’

social competence, ability to work together and to perform the consulting role.

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Know IT Market review

For a number of years, the market for IT services was characterized by high growth. However, there was a significant trend break during spring 2000 with ensuing tougher competition, price pressure and eliminations.

IT trend monitors, such as the IDG Executive Report, draw a slightly more positive picture than many others. In issue No 2, 2001, a general growth of 12 percent in the demand for IT services in Western Europe is forecast for this year. Small, medium and large companies are expected to report similar annual growth figures during 2000–2004. Demand for IT services, in total, is expected to grow by an average of 11 percent per annum during this period. In its turn, Sweden is usually above the average value for Western Europe.

Split market scenario

The scenario for the different sub-markets in Sweden is relatively split. The dot.com sector, in which there are many new companies, is highly dependent on the venture capital market, which has changed significantly. Previously, there was an excess of venture capital whereas there is currently a clear shortage within some sectors, especially the Internet sector.

Demand within other sectors has not fallen as much. Many established companies in traditional sectors choose to invest in cost saving and efficiency enhancing IT systems in order to be equipped with increased competitive strength when there is an upturn in the economy. Banking, finance and insurance have constituted solid market segments for many years. Within these segments, IT has been used for rationalizing and offering new and improved services.

In the traditional industry, for example, the Gartner Group considers that there is an extra potential for effectivisation with so-called B2B solutions and closer integration between suppliers and buyers. Investments in B2B are steadily becoming an easier

’cash in’ as the knowledge increases and the technology matures.

The pharmaceutical sector in Sweden has experienced some problems in developing successors for old bestsellers but are, nevertheless, interesting customers as they are frequently IT intensive. A specific sub-sector is genetics in which a need for growth is probable. Thanks to Ericsson, telecom has been regarded as an engine in Swedish industry but the future is now less clear. Ericsson’s importance is enormous, both directly and through their sub-contractors.

Demand from public authorities and administrations remain relatively stable. These are only affected to a limited extent by fluc-

tuations in the economy. What controls it are instead political decisions which demand IT solutions to enable them to be implemented.

Restructuring in a number of sectors, both through acquisition and demergers, contributes to increasing the demand for IT consulting services. Mergers require significant contributions for inte- grating or replacing all IT systems. On their part, demergers have investment needs to acquire independent and freestanding IT systems.

Growth segments

Demand in the future is expected to be high within some segments, which are not sector-related. This includes B2B solutions. In April 2001, 59 percent of the people responsible for B2B sites in the USA stated that they plan an unchanged or increased investment level, according to Forrester Research. They are of the opinion that this shows that the companies still consider technology to be the key for better business.

Another important growth area is customer relationship management (CRM). In the previous year, the world stock market for CRM increased by 76 percent and Gartner Group predicts that the market will be trebled by 2005. Datamonitor makes similar forecasts.

Yet another segment for the future is Content Management, which was discussed as a positive trend at the latest Gartner symposium. Content Management can be described as advanced and structured publication of information, partly on the web.

Although the mobile IT solutions sector has experienced a slow-down as WAP services have not made an especially successful impact, the term covers several parts. As a whole, Gartner Group considered the sector’s potential to be very strong also in this respect. Continued belief in the sector was also expressed at a sector conference arranged by JavaOne in June, which had 20,000 participants.

Know IT’s position

Know IT performs on a base of a strong seniority, competence and quality niche. Our offers are sector independent and the market segmentation is, therefore, not very important for us.

Instead, we can be flexible and offer our services to growing market segments. Our prioritized customer companies are those who use the advances in technology proactively for their business development, companies which have use for compos- ite solutions with high stability and transaction durability. In this segment, Know IT’s knowledge profile is especially good compared with many of our competitors.

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Know IT Competitors

Know IT operates on a broad market, both with regard to competencies and geography.

The competition we are facing is, therefore, highly dependent on the nature of the assignment and, in some cases, on where it is carried out.

Know IT’s competitors can be split into three main groups:

• Small consulting companies which specialize in a specific technology segment or in a local market. These companies seldom consist of more than 10–15 staff and we mainly face them in small, specialist assignments in local markets.

• Medium-size IT consultants with the same, or partly the same, orientation as Know IT. This is the category of competitors that we meet most frequently. Some of the companies have elected to focus on specific customer categories, for example telecom or banking and finance. This group includes Acando, Adcore, Cyber Com and HiQ.

• Multinational or large Nordic IT consulting companies which frequently have a large proportion of other operations such as outsourcing or product sales. In a competitive situation, Know IT faces mainly separate units within the large competitor companies. The companies in this group include Cap Gemini, WM-Data, TietoEnator and also Accenture, which competes with Know IT’s IT strategy operation.

Know IT operates

on a broad market

both with regard to

competence

and geography

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Know IT Customers

We create the solutions of the future in a close relationship with our customers. Know IT’s ambition is to be at the forefront of developments, and our understanding of how the latest technology will be utilized for maximum customer benefit means that Know IT’s customers remain customers for a long time. In-depth and long- term customer relations generate added value and guarantee profitability and security, both for the customer and for Know IT.

The rapid developments within the IT sector are partly reflected in our customers’ needs for new data systems which need to be built rapidly and integrated with the existing systems or will enable old systems to be rapidly reconstructed to satisfy new business demands.

The solutions which are requested must be able to cope with:

• Presentation in many modern interfaces

• Complex system connections

• Large transaction volumes and many simultaneous users

• High stability and security demands.

Customer demands place significant demands on us and on our ability to solve problems and to understand complex system connections. We meet these demands and expectations by utilizing and efficiently combining the broad technology and operational knowledge that the company has built up over the years. In this way, a number of additional values are contributed to customers:

• Technology know-how – We always strive to be at the leading edge of technology to enable us to utilize new technology for the customers in their business development process

• Independence – Always to offer the customer the best solution regardless of supplier

• Width and depth – To have leading edge competence and delivery capacity within the segments which are important in current systems development and integration projects

• Completeness – To offer strategic IT counseling, total solutions and expert competence in order to be a complete partner to our customers

• Geographic spread – To be located and operate close to the customers

• Continuity and security – To strive for deep and long-term customer relations.

Customer structure

Know IT’s customers are mainly large and medium-size companies in a number of sectors. The focus is on telecom, public sector and banking, finance and insurance.

We intend to consolidate our strong position within these segments still further whilst striving to increase our involvements with industry, the pharmaceutical sector and the public sector.

We consider that we have sound prerequisites for growing within these sectors as we have considerable experience of carrying out complex assignments in which very large data volumes are handled whilst the demands for integrity and security are very high. During the year, several important agreements were also signed, including agreements with Riksförsäkringsverket, Premiepensionsmyndigheten and Rikspolisstyrelsen.

During the fiscal year, the five largest customers accounted for 43 percent of the sales of the remaining operations. No individual customer accounts for more than 18 percent of the corresponding sales. The five largest customers were Telia, Ericsson, Posten, Riksförsäkringsverket and Trygg-Hansa.

The risks in the customer structure are small as there is little dependency on individual customers. As the customers are found within a number of different sectors, any fluctuations within individual market segments would have only a limited effect on Know IT.

Energy 2%

Media 3%

Commerce 5%

Industry 6%

Pharmaceu- ticals 8%

Telekom 41%

Banking, finance,

insurance 14% Public sector 21%

Sales by sector

0–1 SEKM 8%

1–2 SEKM 13%

2–3 SEKM 11%

3–5 SEKM 18%

5–10 SEKM 18%

>10 SEKM 32%

Annual invoicing to customers

by size The five largest customers Ericsson

Posten

Riksförsäkringsverket Telia

Trygg-Hansa

During the fiscal year, the five largest companies accounted for 43 percent of the sales of the remaining operations. No individual customer accounts for more than 18 percent of the corresponding sales.

All diagrams relate to the remaining operations.

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Know IT Organization

Know IT operates according to a flat and decentralized organization which encourages taking responsibility and continuous learning. During the 2000/01 fiscal year, Know IT implemented extensive restructuring work, which involved a change of both the strategy and the organization.

Know IT is currently represented in Borlänge, Gothenburg, Karlstad, Luleå, Stockholm, Sundsvall, Uddevalla, Umeå, Örebro and Östersund. The operations are divided into two profit regions, Stockholm/Gothenburg and Other Swedish Regions.

These are, in turn, split into smaller units from which the assignments are staffed.

Sales are carried out in different ways for the two profit regions. For the Stockholm/Gothenburg region there is a sales department which works exclusively with sales. For Other Swedish Regions, sales are made locally in each operational unit. The large customers’ sales force, which is located in Stockholm, is responsible for sales to our strategically important customers and support the two profit regions.

Know IT has four group-wide functions. They are small in size and their primary tasks are to contribute to and support the operations. The areas of responsibility are:

• Group Finance & Control

• Information/PR

• Human Resources

• Business development with a focus on both strategic development and technology development.

The Corporate Management consists of the President and CEO, the Heads of the profit areas and the Chief Financial Officer. The President is currently also Head of profit area

Stockholm/Gothenburg.

Organization plan

Number of employees

Consultants Other staff

Stockholm/Gothenburg 194 48

Other Swedish locations 124 23

Group functions 8

Total number of employees 318 79

Know IT has 397 employees of whom 318 are consultants. Other staff work in sales, control, administration and Group-wide functions.

Parent company

Corporate Management Group Finance & Contro Information/PR Human Resources Strategic matters

Business development Large customer sales Stockholm

Gothenburg

Sweden Other

Know IT’s organization is characterized by decisions which are made close to the market in which each unit operates. Operations include operational business development whose task is to develop services and to support sales. Large customer sales are also centralized. Small Group-wide functions exist to support the operations.

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Know IT Operations

Know IT strengthens its customers’ competitiveness by developing customer-adapted, business-critical IT systems.

We offer the market:

• IT competence within a number of competence segments

• Implementation of projects within selected focus areas in which Know IT assumes a total undertaking

• Strategic IT counseling.

IT consulting

The largest part of Know IT’s operations is IT consulting with a focus on system development services. Know IT has in-depth competence within several segments, many of which are of a technical nature, but there are also areas which are of a more general nature.

Our assignments are usually carried out on the customer’s premises and, most frequently, the customer leads and controls the projects.

We offer competence within the following skill and technology segments:

• IT architecture

• Project management

• Mobile Internet

• Interface design

• Embedded systems

• ^Security

• ^Testing

• Infrastructure

• ^Databases

• ^Java

• ^Microsoft

• SAS Software

• ^IBM/Lotus.

Two skill segments are also crucial for Know IT’s business model. They are IT architecture and project management which often act as the gateway to larger contracts with our customers.

IT architecture

Know IT develops complex IT systems with significant demands on performance, robustness, scaleability, accessibility, flexibility and user-friendliness. To succeed in this work, in-depth competence within IT architecture is required, i.e. knowledge about different technologies and experience of how these can be applied in an IT system.

Our consultants in IT architecture always have a background in system development and have broadened their competence base through their experience of various assignments to comprise a number of different environments and solution alternatives.

Skill segments

• IT Architecture

• Mobile Internet

• Interface design

• Embedded systems

• Security

• Testing

• Infrastructure

• Databases

Technology segments

• Java

• Microsoft

• SAS Software

• IBM/Lotus

Know IT’s customer offer

• IT consulting

• Strategic IT counseling

• e-Business

• Content Management

• Customer Relationship Management

Know IT’s customers

Customers and organizations with a need for business critical IT systems with high demands on performance, robustness, accessibility, security and access from many different interfaces

Know IT’s competencies

The model illustrates Know IT’s customer offers, from the skill and technology competencies to the customer criteria, which form the base for every new transaction. Know IT’s competencies are packaged into tangible customer offers, including e-Business, Content Management and CRM. Know IT also provides IT consulting, project management and strategic IT counseling. Know IT does not focus on individual sectors or market segments but its services are directed at companies and organizations which place high demands on their IT systems.

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posten.se

Case Posten (The Swedish Post Office)

PREVIOUSLY, POSTEN HAD several different websites. Each site described different parts of Posten’s service offerings, which made it difficult for the customer to estab- lish an overall picture. To maintain several websites was also resource intensive.

The solution to the problem was to develop the existing posten.se from an information channel for Posten’s customers, to a purchase and sales channel in which the customer has an opportunity to carry out services and functions on a common site for the entire Posten group.

The “new” posten.se, which was developed in collaboration with Posten’s customers, offers interactive services and on-line tools for marketing services on which the customer is able to create his own marketing, tools to carry out his deliveries and proposals for solutions within the ordering and payment process. In addition, there are tools to create your own e-Business with the aid of posten.se. The customer uses the services on-line.

The customer has the opportunity to create his own secure area on posten.se. On it, the customer will be able to save, for example, his marketing activities and customer selection. In addition, he will have an opportunity to view his agreements, contact information, product baskets, etc. In the long-term, it will be possible to save all the information needed in the contact with Posten on his own site. In order to make clear the benefit of the combined supply on posten.se, an interactive illustration has been created on which the customer will be able to test all posten.se’s services. In the form of a game, the customer can run a store and face problems such as inventory handling, deliveries to the store or to the customer’s home, handling incoming and outgoing invoices, marketing and e-Business.

The customer will be able to test his ability to succeed in business in an enjoyable way.

Know IT was instructed by Posten IT to

contribute the project management of, among other things, security solutions, IT architecture, testing, dialogue tools and the personalization portion. In addition, Know IT contributed with competence strengthening within interface programming, art director, business development, prototyping, system development, design and system development.

DID YOU KNOW THAT:

The Swedish Post Office, Posten, has a vision of a post office in every home, in every company and in every mobile telephone.

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Project management

Know IT has for a long time provided its customers with project managers for customer owned projects. This relates to all aspects from developing new systems to implementing a completely new infrastructure. During the past year, several new assignments were also carried out in which Know IT has taken an overall responsibility for delivering solutions to the customer’s needs. The assignments cover the entire process from analysis to construction, test and delivery.

Know IT has very experienced project managers who operate within several sub-segments such as user interfaces, test, system development, technical infrastructure, quality assurance and investigatory assignments. Know IT’s project managers possess both traditional project manager competence and in-depth technical competence. They are, therefore, highly suitable when in-depth knowledge is required about technology to ensure that the project is successful.

Projects with an overall undertaking

Know IT also undertakes an overall responsibility for delivering solutions in accordance with the customer’s requirements. It means that, in these assignments, Know IT takes responsibility for implementing whole projects, from requirement definition and solution proposals to implementation and testing, to the right quality at the right time. These projects are staffed and supervised in their entirety by Know IT’s consultants. Know IT delivers projects within, especially, the below focus segments.

These are continuously being evaluated to secure a prominent position for Know IT in attractive and developing markets.

Content Management

Know IT ensures that its customers are able to provide the right user with the right information at the right time. Within Content Management we offer our customers systems for maintenance and publication of information via web technology on public

websites, extranets and intranets or other channels. Based on the customer’s needs, the most suitable technical solution is chosen. Updating systems, which are easy to handle and accessible, for example, via mobile solutions, make it easy for the customer to update and change the contents on the website.

Competence relating to, and experience of, graphic design and usefulness ensures that the solution we deliver is suitable for the intended target group.

Our Content Management solutions enable our customers to improve their competitiveness as they can themselves easily keep the contents on their websites and intranets relevant and updated, adapt the contents for local markets and deliver a high quality-personified content.

Customer Relationship Management (CRM)

Within Customer Relationship Management, CRM, we offer our customers tailor-made systems which support the work with customer relations and analyses to maximize the customer’s life cycle value.

CRM comprises data warehouse, analysis, packaging and use:

Data warehouse – The foundation pillar of every CRM activity is accessible and analyzable information about the customer.

Know IT offers database and warehouse solutions for collecting and storing different types of customer-related data. This could relate to purchase history, demographic or geographic information and also to behavioral data.

Analysis – Within Know IT there is statistics competence which, in combination with system development, provides the customer with real analysis-based CRM solutions. Know IT analyses statistics and, in so doing, transforms customer data to customer information by, for example, combining visitor statistics with background data from customer registers and demography data.

In this way, added value can be created in the form of cross sales and identification of profitable customer segments.

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25000

Case Bilprovningen

(The Swedish Motor Vehicle Inspection Company)

DID YOU KNOW THAT:

The Swedish Motor Vehicle Inspection Company, Bilprovningen, carries out 5,500,000 obligatory vehicle inspections every year. It means approximately 25,000 visitors per day at Bilprovningen’s 175 centers all over Sweden.

BILPROVNINGEN NEEDED TO DEVELOP its website and its intranet. Some of its demands were that it should itself be able to handle, update and maintain both the website and the intranet. The system should be fast, able to handle large volumes of data and facilitate the daily work for Bilprovningen’s 2,500 staff in 175 locations. In addition, the responsibility for updating the intranet should be delegated to around 150 staff with no knowledge of HTML programming.

The selected solution was Know IT’s InfoVision WebSolution, the Lotus Domino-based solution to support simple handling and publication on the web whilst having full control over administration. In that way, not only were the updating problems solved but, in addition, the external website and the intranet became faster and more dynamic. The brand new inspection systems, which Know IT developed and implemented, currently handle 25,000 inspections per day. A mobile version of the system is used by the police when inspecting vehicles on the roads.

A new interactive intranet makes it possible to adapt information to different users. By providing every internal user with personalized information, the intranet becomes an important tool in the daily work.

Bilprovningen’s home page was awarded first prize in Web Service Award 2000 in January 2001, an award for which the users/visitors vote for the best site. The citation stated that the site prepares users in a simple way ahead of the inspection of their vehicle.

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Packaging – Know It has a broad portfolio of tools, statistical methods, etc. for packaging analysis routines into tailor-made solutions which help marketing and sales departments continuously to utilize and refine customer information in databases and warehouse.

Use – Know IT ensures that CRM can really be used as practical support in customer relations, regardless of communication channels. Examples of applied operational CRM are campaign optimization, customer segmentation, cross sales, support systems for customer service and person-adapted websites.

e-Business

e-Business concerns refining our customers’ business processes and making them more efficient. Within this segment Know IT offers a wide range of services, ranging from tailor-made systems and mobile solutions to strategic counseling.

We do, of course, also apply our CRM methods within e-Business. Web-mining and click-stream-analyzer are examples of methods we use to predict and analyze customer behavior.

Know IT’s solid IT knowledge, combined with sound knowledge about our customers’ operations, enable us to offer a customer-adapted technical process support which improves business opportunities within e-Business.

Strategic IT counseling

With a high technology competence as the base, Know IT offers strategic IT counseling to corporate management. The counseling assignments mainly concern strategy and technology investigations as well as quality and security matters.

The services we offer within the respective segments include:

Strategy and technology investigations:

• Counseling and IT strategy

We help customers develop an IT strategy and IT vision which support the business targets of the operation. There- after, we frequently meet the management on a regular basis for monitoring and evaluation.

• Technology driven business development

We help customers to combine technology and business knowledge in the business development process.

Quality and security matters:

• Quality assurance of critical projects

We make an analysis of on-going development projects and provide customers with an independent third party view on the status in the project.

• Strategic IT security

We help customers to produce information security policies, management of security work, catastrophe and continuity planning.

• Technology evaluation

We help customers to analyze and ’consequence-evaluate’

alternative technical solutions.

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Case Enskilda Securities

Enskilda

BJÖRN JANSSON, ANALYSIS MANAGER of Enskilda Securities which, among other things, analyses Nordic stock corporations, says that an important factor of being a top ranked analyst house is to have short lead times. To achieve this, it is vital to have good IT support which enables you to reach customers quickly with new analyst reports and new messages from the brokers.

Enskilda Securities saw a need for improving its quality and productivity by making the process for production and distribution of analysis and reports more efficient. There was also a strong need to increase the level of service to customers and to spread information internally in an efficient way.

By utilizing modern technology to make the operational processes more efficient and provide a web solution which gives customers and internal users access to a large volume of relevant information, Enskilda Securities has gone a long way towards achieving its objective.

Based on Enskilda Securities’

vision and Know IT’s knowledge about technology, Know IT has developed a component-based solution which covers all aspects from infrastructure and databases to user interfaces in different distribution channels.

Information about companies which are monitored is collected in databases which makes it accessible for customers and analysts. Through templates which control the design, the analyses and the reports are given the same format and content structure. The distribution channels have also been developed and currently comprise WAP telephones, palmtop computers and web in addition to e-mail and printed reports.

The system is built as a multi-layered Microsoft solution, with an SQL Server database for information storage and an Internet information server as the

web server. The system’s components are written in Visual Basic. Word and Excel with links to the database are used for the analysis process.

In 2001, Enskilda Securities was ranked the best Nordic analyst house both by Reuters and the highly regarded American magazine, Institutional Investors.

DID YOU KNOW THAT:

Enskilda Securities’ database comprises approximately 10,000 reports about 600 companies in 30 different sectors.

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Theresa Hirsikoski, 27, interface designer, bachelor of science, systems science

After graduating at the University of Stockholm, I spent one year at Vattenfall and then joined Know IT as an interface designer. My intention has always been that I should develop towards more advanced technology and I am now becoming deeply involved with Java programming. I enjoy my work in Know IT because it is natural that you should advance and develop all the time. What struck me when I started was that we have consultants with very solid technical competence. The environment means that it is always an obvious thing to want to become more proficient.

Know IT Staff

Johan Alm, 36, senior consultant within system development, bachelor of science, computer science

After completing my studies at the Linköping Institute of Technology, I started work in Programatic which was later acquired by Ericsson.

After six years at Ericsson, I joined Know IT in Karlstad as I wanted to work in a consulting organization which had short decision-making routes. Know IT is characterized by flexibility and quick action in the decision-making process. This is something that I highly appreciate.

Know IT has also always shown a respect for the individual and I am able to participate in and influence the assignments I will be involved with. That is an important quality for me.

Know IT’s staff are crucial for the company. The competence, capacity, method of working, motivation and loyalty of the staff are the company’s business critical assets. It is, therefore, extremely important for Know IT to attract and keep competent staff.

An average of 9.7 years’ experience

Know IT’s consultants have solid technical knowledge and a long experience of the IT sector. Our consultants have, on average, 9.7 years of relevant sector experience and 83 percent have university or other post high school education. At the end of the fiscal year, the distribution between men and women among the staff was 78 percent men and 22 percent women.

We mainly recruit consultants with university education and relevant sector experience. In general, this means that most of our newly recruited staff are postgraduate engineers, or the equivalent, and have at least five years’ experience.

Efficient transfer of competence

The consultants work actively to enhance their own and Know IT’s long-term competence development. Know IT’s basic view is that at least five percent of working hours should be dedicated to some form of training.

Efficient transfer of competence is crucial for Know IT as a learning organization. The ability to create systems for the transfer of knowledge and the regeneration of knowledge is just as important as the ability to attract new staff and improving staff competence. The competence of the individual should be transformed into collective knowledge.

Several networks

Via our intranet, competence and experience is packaged to be easily available for all staff. Every staff member should have immediate access to Know IT’s overall competence and experience. This is crucial when solutions for customers must be produced rapidly with the aid of the best competence.

Know IT also works proactively with competence networks, including .Net, Java, project management and IT architecture.

The aim of the competence networks is to expand the knowledge within specific subject areas and expand the social network within Know IT. The competence networks are developed on the initiative of the consultants.

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Björn Tennander, 41, it architect, graduate engineer, aeronautics

Before I joined Know IT I worked as a programmer in development projects and in technical sales support at Digital in Stockholm for eight and a half years.

I have worked in Know IT since 1993 and I am currently an IT architect in development projects.

At the present time, I am involved with a new stock-trading platform with a web interface.

What I like in Know IT is that there are exciting assignments in which I get an opportunity to work with new technologies. As a consultant, I can frequently change environment and technologies. This is attractive and it was a main reason why I joined Know IT. The competence networks contribute to increasing my knowledge about new technology and provide me with a large contact network within the company.

Karin Olsson, 37, project manager and analyst, bachelor of science, system science

Know IT was a fairly small company when I joined it in Stockholm in 1996. I had previously worked both in consulting companies and on the order side. What was attractive with Know IT was that I could be involved in influencing the company. It is the small thing in a big entity that is important – I have always had the feeling that I can be involved with and influence my unit. This is one of the main reasons why I enjoy my work, even if I am not a real super engineer like many of my colleagues. I very much enjoy working in a company like Know IT. Another important aspect is that Know IT has career opportunities other than becoming a manager. You are able to develop in the company by becoming a specialist and to develop in the role of consultant.

High school level 17%

Other specialist education 13%

Graduate engineer 18%

Master of Business Administration 8%

System scientist 19%

Other university education 25%

Education levels, consultants

High school level 48%

Graduate engineer 10%

Master of Business Administration 8%

System scientist 3%

Other specialist education 16%

Education levels, other staff

Other university education 15%

Men Women Number of staff

<25 26–30 31–35 36–40 41–45 45–50 51–55 55+

Age structure

0 20 40 60 80 100

83 percent of Know IT’s consultants have post high school education and 70 percent have university education. Among the consultants, system science and graduate engineering training are the most common university degrees.

52 percent of Know IT’s other staff, which comprises sales, control, administration and group functions, have post high school education. Here, the most common university degrees are as a graduate engineer and Master of Business Administration.

77 percent of Know IT’s staff are over 30.

78 percent of the staff are men and 22 percent are women.

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Erika Stadling Holm, 32, analyst, project manager, bachelor of science, system science

I worked in a small consulting company after graduating at the University of Stockholm and then moved home to Sundsvall. For five years, I worked as a system developer before I took the step to join Know IT. As an analyst and project manager, I am now participating in development and procurement projects relating to support systems in Telia Mobile. I have been given excel- lent opportunities to develop within Know IT and I think the company is characterized by an entrepreneurial spirit. By that I mean that every unit can take decisions close to its own operation which provides for a small-scale culture in the large entity. You are always close to the management and the managers and, as a consultant, I feel I am participating in the company’s operation.

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Mats Johnson, 46, technical project manager,

university studies in computer science

I was involved in starting Know IT’s operation in Sundsvall-Umeå in order to get better opportunities to influence my work situation. I had previously worked in a large IT company which tended to become increasingly centrally controlled.

Although Know IT is now a fairly large company, I feel we have managed to create a small company feeling. We have a great deal of freedom and individual initiatives are encouraged. Large investments are made in the staff, both profes-

sionally and socially, partly through training programs and joint activities.

I have worked within the telecom sector for a number of years and there has been and continues to be a rapid and exciting technology development which offers many new challenges and opportunities for further development.

Parallel career routes

Within Know IT there are currently several parallel career routes.

As a consultant, one is able to develop further within several segments: IT architecture, project management, leadership, strategic IT counseling, sales, or specialization within one or several technology segments. Different career routes are evaluated and rewarded in accordance with similar principles.

Corporate culture

Know IT works to ensure that the result becomes the best possible for the customer, for the staff and for the company, Know IT.

The culture within Know IT is characterized by knowledge, pro- fessionalism and businesslike character.

A component of the corporate culture is that sales staff and consultants work closely together in order to staff the projects with the best-suited competence and individuals. In this way a culture is created in which the consultants can develop through interesting assignments and in which our customers achieve the best possible staffing in their projects. This is extensively possible as our sales staff frequently have technical training and previous experience as consultants.

In all roles and at all levels, our corporate culture is

characterized by sound judgment and respect for our customers and colleagues.

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Know IT Structural capital

The structural capital in Know IT is capital which enables us to carry out our operations efficiently, deliver added value and quality to our customers and create a developing working environment for our staff.

During the year, Know IT started a number of internal competence networks. The aim of these is to spread knowledge and experience within specific segments to our staff. Members of the competence networks meet on a regular basis and their seminars and lectures are documented and published on Know IT’s intranet.

In order to spread general knowledge about developments in the sector, and within our interesting technology segments, Tech-Edge seminars for our consultants are held on a regular basis. Several seminars were arranged during the year. The seminars had between 30 and 40 participants. They are also documented on Know IT’s intranet.

A common project control model, PEJL, was launched during the year. PEJL is a Swedish model which emanates from the company with the same name. The model involves a uniform way of working whilst the quality and monitoring work in the projects is facilitated thanks to structured templates and checklists.

Know IT’s own ’mini-method’, which is a development model for small projects, has also been developed further and is now increasingly applied in different projects. The mini-method has been developed to suit small assignments in which the project is carried out by only a few individuals.

During the year, Know IT

started several

competence networks