“We will be developing our expertise and concepts in order to be even more prepared to drive the digital transformation where it belongs - out at our customers’ customers”
Digital business models are creating challenges for many established companies. Value chains are fragmenting, industry definitions are being diluted, and what may appear to be no more than substitutes can quickly become key competitors.
We need to develop and expand our areas of expertise, the range of services we offer and our ability to respond to customer requirements quickly and precisely.
Understanding how digital solutions, new delivery models and network effects can be used to engage with customers and can change behaviours is central to the digital transformation. Customer-centric innovation is therefore at the very core of our strategy for the years ahead. In 2015 we took a range of steps to strengthen our platform for growth, and in 2016 we will be implementing multiple initiatives intended to create fertile ground for progress and greater value for our customers.
Digitalisation and digital transformation are creating an increasing need for change and flexibility in both an organisational and technological sense. Companies that are able to create high-quality dialogue with their customers, to combine and process information, and to tailor their offer and react quickly and agilely can achieve significant competitive advantages. Similarly, public sector organisations that are able to adapt, modernise and improve the efficiency of the services they offer can make significant savings and so free up valuable resources.
Although many public sector organisations and companies know what their ‘dream’ scenario is, they often run into difficulties related to their existing systems when pursuing ambitious plans for modernisation, digitalisation and digital transformation. Legacy systems are not sufficiently flexible and it can be difficult to integrate innovative solutions on top of what is already in place.
In our experience digital business development requires systems that are both technically and financially scalable. This is needed in order to accommodate additional functionality, application development and fluctuations in traffic, including peak periods of heavy traffic. Agility, flexibility and scalability are prerequisites for a digital business.
Changes to meet customer needs
While customer behaviour and the competitive landscape are changing due to digitalisation, challenges are also arising in relation to the operating strategies and requirements associated with IT services and infrastructure. This means that we as a supplier also have to change.
We took a number of big steps in 2015. We simplified our organisational structure and our interface with customers. In Norway we brought together the Industries and Regions business areas into a single Norway business area. In Sweden we decided to simplify the company structure and are achieving significant economies of scale as a result of this. We have also implemented measures to adapt our costs to our market position and rate of growth. We have reduced costs primarily by simplifying internal processes and moving greater decision-making authority and more resources to the interface with our customers. The steps we have taken have also involved changes to the executive management team and the implementation of a new organisational structure and operating model. The cost reduction measures have also included headcount reductions in selected areas. This was a difficult process, but such steps were judged to be absolutely essential to securing EVRY’s profitability as well as its ability to invest in new expertise and growth areas.
Partnership with IBM
We have also carried out other far-reaching structural changes in addition to the organisational changes and cost reduction measures. On 1 October 2015 we announced a partnership with IBM to ensure investment and development for our infrastructure solutions. As part of this partnership EVRY will invest more than NOK 500 million to develop the best cloud-based infrastructure solutions.
The partnership with IBM means EVRY is able to offer a hybrid environment that answers the need many of our customers have for flexible and scalable solutions. It will be a great motor for further development and growth in an area that we expect to grow very strongly in the years ahead. As part of the partnership, IBM took on 440 employees from EVRY’s Nordic organisation and 200 employees from our office in Chandigarh in India.
EVRY took important steps in 2015 to address the digital transformation and our customers’ needs. We can now offer world-class cloud-based infrastructure solutions that provide both flexibility and scalability. Furthermore, we will be offering efficient applications management concepts and developing expert teams in the area of digital service design. We will also be developing our expertise and concepts in order to be even more prepared to drive the digital transformation where it belongs - out at our customers’ customers.
The opportunity space is vast, but drive and the desire to change are needed. 2015 was therefore a year of many changes at EVRY. Changes that we think are necessary for us to be able to deliver on our promise: collaboration that gives our customers a digital advantage.