We are aiming for net positive impact and are committed to generating sustainable business and assuring positive social development. Our strategy for 2019–2021 has clear focus on innovation and sustainability.
High growth and good margins
A successful year has come to an end. Demand for Cybercom’s services is high and we are growing in all of our markets. Our positioning in connectivity, IT security and cloud services resulted in organic growth of 14 percent in 2018. Our clients are found in the manufacturing industry, public sector and service industry. We have followed our strategic plan, further developed our services and achieved a shift of our deliveries from IT departments to our clients’ business side. This generated higher profitability and profit before amortisation related to acquisitions amounted to SEK 162 million for the year, which we are proud of. The financial targets in Cybercom’s recently completed three-year plan were annual growth of 5 percent and a margin of 10 percent at the end of the period.
In the new three-year plan, we have set our sights on continued growth and higher profitability, which will be accomplished by means including advisory services and focus on IT security and cloud services. Consequently, Cybercom Secure and CABG (Cybercom AWS Business Group) will become separate business areas as of 2019.
Our business must support Agenda 2030
Makers of Tomorrow is our mission and our identity. We intend to make a sustainable tomorrow and be our clients’ most trusted business partner in the connected world.
We are living in an amazing time – machine learning and AI are gaining serious importance and the 5G networks are poised to future-proof smart social and business critical solutions. The UN Intergovernmental Panel on Climate Change (IPCC) is emphasising the opportunity to take advantage of digitalisation to develop technical innovations, organisations, business models and behaviours, and to reduce global energy requirements. This is an important message, and one that we take to heart in our business and service development. To give one concrete example, right from the quotation stage our sales staff note in the CRM system whether our solution can contribute to attaining the global Sustainable Development Goals and, if so, which ones.
We are firmly rooted in our values of dynamism and insight into the effects of our products and services. We are driven by a passion to change things for the better. We generate trust through honesty and transparency. With strong business insight and innovative solutions, we are encouraging innovative thinking and new business models. This also means that we are continuing to support the UN Global Compact and its ten principles for human rights, labour, environment and anti-corruption.
Digitalisation and sustainability work hand-in-glove
Digitalisation is the strongest social trend of our time and a catalyst for human development. Technology can have positive or negative impact and our role is to guide clients in a positive direction to promote sustainable business and future-proof social development. Digitalisation and global sustainability should work hand-in-glove, and we believe they are a joint driver of innovation and growth. This is what lies behind Cybercom bringing together industry colleagues and leading the work with the digitalisation consultancies roadmap for a fossil free Sweden.
“We are developing operations in the light of the 17 global SDGs. They are our framework for generating business.”
The endless potential of technology
We are convinced that digitalisation can transform traditional industries, which can in turn reduce and ultimately eliminate the use of fossil fuels. At this point, no one knows exactly where the outer limits of technology lie. It is highly likely that technology is going to help us overcome great challenges. But that is also going to require thoughtfulness and rules of ethics and privacy. One example of this is GDPR, implemented in 2018, an area where Cybercom’s IT security experts are helping clients assure compliance.
Cybercom is taking on the skills challenge
Access to the right skills is the greatest challenge facing Cybercom and the entire industry. We need more graduate engineers, systems developers, architects and specialists than are currently available. According to Swedish IT and Telecom Industries, there will be a shortage of 70,000 IT specialists in Sweden – and 750,000 in Europe – by 2022. The competition for skills is increasing and the consequences include a high employee turnover rate. Cybercom is addressing the challenge in several ways, and we reduced our employee turnover rate by 3 percent between 2017 and 2018. We recruit globally and more than 45 nationalities are currently represented among our employees. Inclusion and diversity are important to Cybercom: they create a favourable dynamic for our talents and innovation projects.
Our skills network is large and growing. We collaborate with a large partner network of self-employed consultants. We provided work for 500 consultants in 2018, in addition to our own. We have expanded our internal specialist academies. We are a partner to Hello World!, a successful NGO that offers children and young people opportunities to learn digital creation, aimed at sparking interest in technology and inspiring more young people to apply to technical universities. We are also a proud Founding Partner to Women in Tech, whose mission is to increase interest in technology among women. We are convinced that all of us in the Nordics and the entire EU must collaborate to encourage digital development and skills, and we are going to do our bit.
Strategy for specialisation and business benefit
Our strategy for 2015–2018 delivered the intended impact and brought us closer to our key accounts, with the results of client surveys and recruitment processes.
The time has come for a new plan to guide the development of Cybercom in 2019–2021. We are aiming at more distinct specialisation and centres of excellence in our operations in Sweden, Finland, Denmark, Poland and India. In addition, we will be sharpening our focus on innovation and sustainability in our client offering and employee skills development. We will strengthen our leadership capacity through a corporate leadership training programme. Innovation and sustainability must inform our actions and our day-to-day work. Consequently, all employees will spend more time on innovation work and understanding sustainability. In order to ensure a shift, we are implementing targets and key data for these areas.
Our work with clients will be characterised by a continued climb up the value chain; we will ensure we are working with clients where we can expand our advisory services and contribute measurable business benefit.
In closing, I would like to thank all employees, clients, owners and partners – together, we made 2018 worthwhile! I am looking ahead with new energy, as business development is now at top speed.
President, CEO and Maker of Tomorrow