NNIT divests infrastructure operations and suspends 2022 guidance
Pressrelease • Jun 22, 2022 06:04 GMT
Today, NNIT has entered into an agreement to divest its Hybrid Cloud Solutions business unit as well as select parts of its Cloud & Digital Solutions business unit (together “the IO business”) to funds advised by Agilitas Private Equity LLP (“Agilitas”).
** This press release is based on excerpts from NNIT’s company announcement no. 09, 2022. Please refer to the full statement here for more details: NNIT A/S: NNIT divests infrastructure operations and suspends 2022 guidance. **
The divestment contemplates a transfer to a newly incorporated Danish company established by NNIT of the IO business comprising all functions, activities, customer contracts, other assets in its Hybrid Cloud Solutions business unit and shares in subsidiaries in China, the Czech Republic and the Philippines as well as select parts of the SAP Basis and Cloud Native Solutions operations of its Cloud & Digital Solutions business unit, and a subsequent sale of all shares in the newly incorporated Danish company to funds advised by Agilitas.
The IO business employs approximately 1,500 staff in Denmark, China, the Czech Republic and the Philippines.
The purchase price for the divested operations amounts to DKK 1,500 million (Enterprise Value on a debt free basis).
The transaction entails a carve-out and separation of the IO business which is expected to take six months. The transaction is subject to the separation and carve-out having in all material respects been completed (including certain key carve-out milestones having been met) without material adverse change on the IO business or the continuing business of NNIT and conditional on the purchase price not falling below DKK 1,000 million after adjustments. The transaction is further subject to regulatory approvals as well as other customary closing conditions.
Pär Fors, CEO of NNIT, comments:
”We are pleased to enter into this agreement to sell our infrastructure outsourcing business to funds advised by Agilitas and establish NNIT as a highly specialized IT services provider focusing exclusively on our core areas within life sciences and cloud and digital solutions. The transaction will enable accelerated investments in services, customer experiences and growth initiatives to build a more focused business with higher margin expectations. The new NNIT will build critical mass and pursue specific business opportunities in our core business areas, while simultaneously launching agile services and entering innovative partnerships to create customer value.”
The divestment will be carried out with a focus on continuing to create customer value and ensuring continuity.
“We are convinced that the infrastructure activities will be better positioned to fulfill service and growth goals and deliver customer value as a specialized, stand-alone infrastructure outsourcing business backed by Agilitas. We have included our largest customer Novo Nordisk in our deliberations, and they have confirmed to continue the IT operations contracts and relationship under the new ownership,” said Pär Fors.
Kevin Iermiin, Partner at Agilitas, who will be joining the board of the IO business following closing of the transaction, commented: “This is a pivotal moment for the IO business, which we believe will flourish from becoming a standalone company with a dedicated management team. It is a business of high quality, which is a testament to the talent of its work force. We look forward to working together with the management team and further investing in the IO business to accelerate growth following closing of the transaction. We will work to ensure continuity while driving innovative new products and services which will ultimately benefit the IO business’ customers. Agilitas has extensive experience of leading investments in Denmark, and a strong enthusiasm for the Danish IT market, having previously backed the buyouts of several Danish companies.”
He continued: “The quality of the services provided by the IO business and the people behind them have impressed incoming CEO of the IO business Henrik Bodskov, who will be leveraging his more than 20 years’ experience in the IT sector, including CEO of IBM Denmark. Henrik will build on the existing platform and bring innovative solutions to help its customers secure and scale their IT infrastructure as they grow.”
Henrik Bodskov will start as CEO of the IO business following closing of the transaction, as he transitions out of his current role at IBM Denmark.
The transaction enables the NNIT Group to center investments, competencies and sales force around the two core business areas, Life Sciences Solutions and Cloud & Digital Solutions, delivering high-quality solutions and services in attractive markets with strong growth prospects. The divestment marks an acceleration of NNIT’s strategy execution with the aim of increasing growth and profitability, while simultaneously enabling greater investment in the continuing business and reducing capital employed.
Following the divestment, NNIT will be organized in two independent business units and have approximately 1,650 employees in Denmark, the Czech Republic, Germany, Switzerland, the UK and Ireland, USA, the Philippines, China and Poland. According to proforma figures, the continuing operations had revenue of approximately DKK 1.5 billion in 2021.
All employees working for the IO business will be transferred to the new entity in their existing roles, with no day-to-day changes for staff or customers of the IO business.
It remains part of NNIT’s strategy to pursue M&A opportunities. The acquisitions of US-based Valiance in 2018, Swiss-based Halfmann Goetsch Partner in 2019, US-based Excellis Health Solutions in 2020, Ireland-based SL Controls in 2021, and most recently German-based prime4services in 2022 have added significant value to the continuing operations in terms of capabilities, services, customers, and growth.
Suspended 2022 guidance
After today’s agreement, the IO business will be reclassified to “discontinued activities” in NNIT’s consolidated financial statements. Due to the contemplated structural change of the Group, NNIT does not consider it prudent to provide 2022 guidance for the continuing activities, hence NNIT temporarily suspends its 2022 outlook (previously: revenue growth of 2-5% with an operating profit before special items of around 5% and special items of up to the same level as in 2021). NNIT will provide updates to the market when NNIT’s visibility on the 2022 guidance for the continuing activities increases and in the second half of the year.
Following closing of the transaction, NNIT will leverage the sharpened focus on the two core business units, Life Sciences Solutions and Cloud & Digital Solutions, with the ambition to significantly strengthen revenue and profitability of the continuing activities from 2023.
The divested business
The IO business constitutes a leading Danish IT infrastructure outsourcing business with long-standing customer relationships with international life sciences companies, including Novo Nordisk, as well as Danish private and public sector customers. The business builds mainly on three state-of-the-art data centers, two of which are fully owned, supported by offshore deliveries. The activities reported proforma revenue of approximately DKK 1.4 billion in 2021, employ approximately 1,500 people and will be headed by Henrik Bodskov who is expected to start as CEO of the IO business following closing of the transaction.
In addition to the Hybrid Cloud Solutions business unit, the agreement also covers select parts of the SAP Basis and Cloud Native Solutions operations of the Cloud & Digital Solutions business unit.
Agilitas believes the IO business will flourish as a standalone company with a dedicated management team. Agilitas is looking forward to working with the management team and employees of the IO business to continue to answer the critical needs of its customers with even more innovative and sustainable solutions. Agilitas is a seasoned backer of businesses with significant experience of leading investments in the Danish IT infrastructure market.
With the signing of the agreement, a transition period of six months will commence before the transaction can close. This period will be dedicated to the detailed planning of the transfer of the IO business into a newly incorporated Danish company established by NNIT in close dialogue with customers and appropriate parties to address all commercial, HR and legal aspects. Special attention will be paid to avoiding any disruption to day-to-day operations and ensuring a high level of customer satisfaction.
Employees will be transferred to the new company in accordance with the Danish Act on Transfer of Undertakings honoring all rights and obligations under individual employment agreements and collective bargaining agreements.
About Agilitas Private Equity LLP – www.agilitaspe.com
Agilitas is a pan-European, mid-market private equity firm founded in 2011. Funds advised by the firm invests in high-quality, defensible businesses with opportunities for significant step changes, creating long-term value. Agilitas Private Equity LLP has a patient, sector-focused approach to investing and a strong track record of growing, improving and strengthening the businesses it backs. Agilitas is experienced at leading investments in the Nordics and Denmark in particular, having led the buy-out of the Reconor Group, Danoffice IT, and Cibicom as well as strategic add-ons for these companies such as Mijodan for the Reconor Group, Datacon and Edgemo for Danoffice IT, and TelPartner for Cibicom.
NNIT and Danmarks Nationalbank sign substantial contract for administrative IT systems and services
Pressrelease • Jun 14, 2022 11:15 GMT
On June 1, NNIT was awarded the contract for delivery of administrative IT systems and services to Danmarks Nationalbank. The contract has an estimated worth of DKK 1 billion and runs for a period of six years with the possibility to extend for another two years.
The standstill period has now come to an end, and the contract has been signed.
Starting today, a period of transition will commence with NNIT preparing for takeover of operations from the current supplier by late November, 2022. NNIT will then assume operations of all administrative IT applications and infrastructure, including maintenance and support.
As part of the contract, NNIT will also be responsible for the ongoing digital transformation and development as laid out in Danmarks Nationalbank’s IT strategy from 2020, delivering on the transformation to a hybrid cloud setup and paying particular attention to providing stable and secure solutions to match the requirements of a central bank.
CEO Pär Fors comments:
”We are absolutely thrilled to have been awarded this very important and substantial contract, which is in a league of its own in the history of NNIT. During the tender process, we were assessed on a number of parameters, in tough competition, not least on quality and sustainability, and we are so very proud to have made it to the finish line after more than a year of preparation and assessments”.
Fors continues: “We are eager and excited to get started on delivering on this contract and to support the development of Denmark’s foremost financial institution. I wish to publicly thank NNIT’s tender team who have performed above and beyond for many months to secure this contract”.
Delivering on quality, security, stability and innovation
NNIT’s background as leading IT supplier to one of the most regulated industries in the world and intense focus on quality is a great fit for the financial sector – and for Danmarks Nationalbank.
With this contract, NNIT is further cementing its reputation for the ability to deliver on quality, security and stability of operations while simultaneously developing and scaling for the future.
Associate Vice President, Sales, Kim Aaen elaborates:
“From the beginning, we were super focused on winning this contract, because it fits so well with who we are. Understandably, the tender criteria were focused more on quality than price, because, for Danmarks Nationalbank, there is no margin for error and no compromise when it comes to security. In NNIT, we are used to working with customers who operate in highly regulated and secured environments; we know how to navigate in this space and how to honor the trust placed in us. We are extremely excited to partner with Danmarks Nationalbank on operations as well as innovative solutions for the future”.
About Danmarks Nationalbank
Danmarks Nationalbank is the central bank of Denmark and is a self-governing, independent institution. The independence of Danmarks Nationalbank is incorporated into the Danmarks Nationalbank Act from 1936, in that the bank's Board of Governors is solely responsible for determining monetary-policy interest rates. Danmarks Nationalbank's three main objectives are to contribute to ensuring stable prices, safe payments and a stable financial system. Read more at nationalbanken.dk
Changing the business through good people management
News • Jun 08, 2022 07:30 GMT
We are all leaders of change. We all lead something or someone, and therefore we are all empowered to make a difference.
So says Camilla G. Møhl whose passion is improving the business through people management, because it is two sides of the same coin:
“Good people management is good for business, it’s that simple. And because I am very focused on contributing to propelling the business forward, I am equally committed to ensuring we all realize our roles as business and people managers – and to making sure we have the right organization and environment in place to allow people to thrive and develop”.
While Camilla’s entire professional life has been dedicated to HR, she does not see herself as an HR person per say:
“I am business oriented first and foremost; and then I get immense satisfaction from seeing the business develop and improve through people. When I was at business school, a professor of mine really inspired me with how he was able to connect business and organizational theory – and that has stuck with me”.
Improving jobs and customer experience
Camilla is excited about her new job– and she plans to do her research before settling on a plan to further unlock the business and organizational potential of NNIT.
“It’s a team effort, and I look forward to discovering what we can do together to make NNIT a truly great place to work. Together with my team, I want to find new ways to bring out the best in our people, so they can support the business and our customers in the best possible way”.
NNIT is different to the B2C businesses where she was previously employed, and she acknowledges that it will require more time to understand just how the business dynamics work, but it is also precisely “that something new” that motivates her:
“Usually, I am quick to diagnose problems, but I am very humble to the fact that NNIT is a new business for me, and I want to spend some time studying and learning first”.Camilla G. Møhl trying on a Hololens fusing the real world with a virtual world to create a common online experience and collaboration space.
Proud to be part of NNIT
The goal is to make NNIT a great experience for all stakeholders, not least employees, and to make them proud of being part of NNIT. For that to happen, NNIT must become a truly great place to work, Camilla asserts and adds:
“If we achieve that, everything else will follow: Results will improve, and attrition rates will decline. It’s a great professional and personal challenge – leadership is a key driver for creating attractive work places and in my experience, integrating how we lead into everything that we do, will create great results. Again, good people management is good for business, and we need to facilitate that fusion,” Camilla ends.
About Camilla G. Møhl
Education: Master of Business (MSc.) in HR Management.
Professional experience: Senior Vice President, People & Culture (and other leading HR positions), Coloplast (2016-2022); Head of HR, Carlsberg Group (2013-2016)
On a personal note
Married to Esben who is a mechanical engineer and provides counterbalance both from a professional and personal point of view. Mother of three children aged 6, 12 and 15.
Between work and family commitments, Camilla leads a busy life, which is how she likes it. When she does get time off, she enjoys boating, gardening and renovating – mostly things practical. But she is also big on socializing with family and friends, enjoying good food, concerts and everything else life has to offer.
NNIT and Muninn to help protect Danish health data from cyber attacks
Pressrelease • May 30, 2022 07:30 GMT
Together with their business partner Muninn, NNIT has won a new four-year contract with the Danish Health Data Authority for a network detection and response solution to be implemented across the entire Danish healthcare sector.
The contract, including the possibility to extend for an additional four years, has a potential worth of a low three-digit DKK million amount.
This new contract is an initiative and investment emerging from the Danish Healthcare sector’s cyber and information security strategy, which has the robust protection of Danish healthcare sector as its first order.
NNIT CEO Pär Fors comments
“We are delighted to have won this contract along with the chance to significantly contribute to keeping patient data safe. We will significantly expand our footprint within the public healthcare sector and our role in supporting critical infrastructure in Denmark. We are extremely proud of this key role, which we undertake with a great sense of commitment to providing the best possible cyber defense solution to the public healthcare sector and ultimately to the Danish citizens – and hopefully, in time and with a proven track record, to other critical infrastructure sectors in Denmark”.
Delivering a shared platform for the analysis and monitoring of network data
NNIT and Muninn will be delivering a solution to support the analysis and monitoring of network data for anomalies across the entire public healthcare sector, starting with the five regions and progressing to as many entities as possible, including government agencies, municipalities, and general practitioners.
Specifically, Muninn will be supplying appliance boxes with AI detection software to monitor and detect anomalies in network data. NNIT will operate the infrastructure and collaborate with the Danish Health Data Authority in establishing a data analysis center. The goal of the centralized security analysis center is to process, triage and analyze intel, for suspicious cross-sector activity and risk to the Danish Health sector. That information will then be supplied to the operators and essential services in the healthcare sector and their own security operations centers for response and possible counter defense initiatives.
Muninn CEO Andreas Wehowsky comments
“The threat from cyber criminals is more present than ever and the resilience of the systems and data in the public health care sector is a crucial part of the Danish Healthcare sector’s cyber and information security strategy. Therefore, we are extremely proud to have been selected to add to the protection of the Danish public healthcare sector with our cyber security technology. This cements our strong position in Denmark, and we look forward to working with both NNIT and the health authorities to help protect this critical infrastructure.”
The solution is planned to be implemented across all five Danish Regions by the end of 2022. Starting in 2023, the aim is to roll out the detection and response solution as widely as possible across the entire healthcare sector.
Vibeke van der Sprong, Deputy Director General of the Danish Health Data Authority, adds
“We are very happy to begin the collaboration with NNIT and Muninn to further the cybersecurity detection capabilities across the healthcare sector. We look forward to the fulfillment of the initiative and the deployment of the platform”.
NNIT is a long-standing partner and supplier of IT services to critical infrastructure companies and agencies in Denmark, including the Danish healthcare sector.
Muninn brings experience and expertise in developing and implementing AI technologies for nation-state defense organizations as well as cyber security experts with government intelligence backgrounds working with sensor technology for defending critical Danish infrastructure.
About The Danish Health Data Authority
The Danish Health Data Authority works to ensure better health for Danish citizens through the use of data and by creating digital coherence in the healthcare sector. The use of health data is a key element in the Danish healthcare system, and Denmark has some of the most comprehensive health registers in the world. Read more about the Danish Health Data Authority
Denmark-based Muninn builds AI technologies that empower companies to protect their critical digital assets and infrastructures from cyber criminals. Their solutions leverage the latest advances in artificial intelligence to detect and neutralize the full spectrum of potential attacks, including ransomware and data leakage, helping Danish and international clients to stay two steps ahead of the cyber criminals. Read more about Muninn
Digital packaging is key to sustainable growth
News • May 23, 2022 10:00 GMT
According to the respondents in the NNIT Expectation Barometer 2022, a lack of competent resources is one of the primary barriers to growth. This article takes a closer look at how you can use the digital potential of your organization as a springboard for long-term sustainable growth.
In the past few years, we have seen how digitalization has moved into the core of many companies’ business, and the importance of digital sales channels are growing rapidly.
At the same time, a number of companies are in a fundamental state of uncertainty, and, according to Brian Troelsen, Head of Market Intelligence and Partner Management in NNIT, precisely digital solutions can help stabilize and predict otherwise unknown events and threats:
"If you’re equipped with a digital toolbox, you increase your rate of adaptability because you become able to analyze, predict, and, not least, react to the events that occur on an ongoing basis," he says and adds:
"Previously, many companies prepared business strategies and plans in the same way as a marathon runner who trains for a race by running at an even pace over a long distance. A plan is made for the course, and because the marathon runner knows the exact route and final destination, he knows precisely how to use his energy optimally".
Brian Troelsen finds that, as a digital manager, you should instead prepare plans like an orienteering runner, who is more geared towards navigating a state of unpredictability:
"We live in times in which both internal and external events may shake the foundation of the business overnight. Therefore, you should instead strive to prepare strategies and plans as an orienteering runner, who is highly trained in being agile, changing direction and spotting new paths. And here, digitalization plays a crucial role in supporting agile and sustainable business plans".
Rethink user experience in a digital context
Digitalization holds an increasingly important place in the products and services with which we surround ourselves. This is confirmed by the respondents in this year’s Expectation Barometer when they are asked to what extent digitalization is an integral part of their products and services.
Almost 40 percent of the respondents answer that their products or services are very digital.
"It doesn’t surprise me, and we should expect this share to increase in all industries in the coming years," says Brian Troelsen and makes an example from the automotive industry:
"An electric car is increasingly regarded as a computer that provides the driver and passengers with digital and interactive functionalities and which – if used correctly – improves the user experience. At the same time, all the continuous updates of the car take place in the cloud, thereby minimizing visits to the car repair shop".
Another example is banks and fintech services, which increasingly offer financial services in digital packaging:
"Services such as loans and advice are basic services that a bank must be able to provide as a minimum. But the digital solutions in the form of apps and other digital functions in which the services are wrapped are crucial to the customer experience and to whether customers remain with you or switch to the competitor," Brian Troelsen explains.
The respondents’ answers in the Expectation Barometer also show that the companies have great focus on the digital channels. When the respondents are asked how important their organization’s digital channels are relative to the conventional physical channels, almost one in three (29 percent) answer that digital channels are the most important, while one in five (20 percent) believe that the conventional channels are the most important.
The physical channels are thus far from being superfluous, but there is no getting around the fact that the physical purchasing experience must be rethought in a digital context if you are to realize your growth ambitions as a company:
"Even though you visit a physical shop, the purchasing experience may very well be digital, including by means of augmented reality, where, using smart glasses, the customers get a taste of what, for example, a kitchen or a speaker will look like in their own home," says Brian Troelsen.
Utilize your digital appetite
When we can see that digitalization is being woven into more and more products and services, it is crucial that, as a company, you are capable of building up a digital narrative and creating an interesting story around your brand.
A large part of the respondents in this year’s Expectation Barometer recognize this. Here, it becomes clear that just under 40 percent of the respondents rate their organization’s digital narrative to be above average, while 10 percent find that it is excellent. Only 4 percent of the respondents believe their digital narrative is very weak.
According to Brian Troelsen, a digital narrative is important for both the up-and-coming startup and the 100-year-old company:
"You should communicate not just your company’s sustainable ambitions, but also your digital objectives. Maybe you’re an entrepreneur who is revolutionizing an otherwise traditional industry with a digital product. Or perhaps you’re a longstanding company which has made a digital turnaround that combines its existing history and traditions with cutting-edge technology," he says and emphasizes:
"Utilize your digital appetite and tell the outside world how your digital ambitions are improving your services and customer experience".
Digital upskilling is the way to an agile workforce
Although the events of recent years have highlighted new and successful business models, there are still companies that struggle with various growth barriers.
In this year’s Expectation Barometer, more than half of the respondents (52 percent) stated that a lack of competent resources and talent is the biggest barrier to development and growth in the organization, while 38 percent believe that a lack of IT skills among their employees outside the IT department is the biggest obstacle. Here, Brian Troelsen has a clear recommendation:
"Don’t be afraid to hire profiles without IT experience. Instead, focus on upskilling them, so they can combine their industry knowledge and profession with new digital tools. They represent the above-mentioned orienteer runners, who can combine different competences and contribute to realizing your growth ambitions".
Another growth barrier is a lack of support from the senior management, which one fifth (20 percent) of the respondents pinpoint as the biggest obstacle to the company’s development and continued growth.
Especially respondents from the public sector score high on this answer. Brian Troelsen gives his take on what the reason for this may be:
"The public sector has certainly been slower in making their digital transformation. Many of the public systems are customized and can take a long time to get approved and implemented, and the senior management is probably not so IT savvy that they understand all the opportunities and risks connected with the various digital solutions," he says and adds:
"Having said that, the Danish public sector is light years ahead of most European countries, because our digital infrastructure has made it easy and agile to be a Dane and to keep the wheels of society turning despite turbulent circumstances. We can be proud of that".
How do you utilize digital potential to promote your sustainability?
You can still take part in the NNIT Expectation Barometer 2022. When taking the test, you will get your own score on how digitally sustainable your organization is – and the opportunity to benchmark yourself with seven digital leaders from some of Denmark’s largest companies.
How digitally sustainable is your organization? Take the test.
Young NNIT talent receives royal praise for his efforts
News • May 17, 2022 14:27 GMT
On an average day, we're proud of all NNIT colleagues and their dedication to digital transformation. On this not so average day, we were extremely proud to be able to call Frederik Foss Nielsen our colleague as he received a grant for his efforts and was congratulated by HM Queen Margrethe II of Denmark.
Last week, Frederik received the Massmann Grant (Det Massmanske Legat) that is given to "particularly skilled newly trained craftsmen."
You may not think of IT as craftmanship, but in Frederik's case, it really is. Earlier this year, he graduated as a Data Technician, and today, he works fulltime among proud colleagues in NNIT.
"I am humble and happy to receive this grant. I highly appreciate that IT can be recognized as craftmanship, and I think it's important to show that the IT industry offers a wide range of possibilities. I never thought it would give me the possibility to shake the hand of a queen, but IT truly can take you anywhere," Frederik Foss Nielsen says.
Started as an intern, now he’s here
Frederik Foss Nielsen studied to become a Data Technician specializing in Programming at Technical Education Copenhagen (TEC). When he applied for an internship in NNIT, it proved to be an opportunity for a win-win experience, that we had not been aware existed – until Frederik reached out. Today, Frederik works as an Associate Software Developer, has met the Queen of Denmark, and received a grant for his efforts and for being a great colleague.
Frederik Foss Nielsen was offered an internship with the team working on services and solutions for Danmarks Apotekerforening, The Association of Danish Pharmacies.
“It has been a great experience being a trainee in NNIT. I especially liked how my job with the DA team as a developer included visits to different pharmacies in order to understand, not just how to code their application as I would in school, but to see how people actually interact with that application out in the real world. It is one thing to code. But it is an entirely different thing to ensure people use it as intended and are able to see the bigger picture of your application. That was really interesting to witness,” says Frederik Foss Nielsen.
Lisette Godsk was Frederik Foss Nielsen’s manager during his internship. She says:
“It is so difficult finding qualified developers. The job market is still smoking hot, and the developers are in high demand. That is why this internship structure at TEC has a great potential for us in NNIT. We help students get the best possible education and entry to the job market, and in turn we get young developers whom we can help develop to become the best possible candidate for an NNIT position at the end of their studies.”
A role model for others
NNIT is one of the founding partners of Coding Class, an initiative which introduces children to the world of IT and dresses them to navigate in the digital world.
When this year’s program ended in May, 20 sixth graders from a local school were invited on a tour around NNIT’s headquarter and met some of the cool colleagues working with IT. Frederik Foss Nielsen was one of them.
Not only did he impress the children by showing his silver medal from HM The Queen, he also inspired them to choose IT as a career path and highlighted the many possibilities in the industry.
“Meeting a young IT professional like Frederik gives the children an opportunity to experience how their choices and efforts can take them to exciting places. We try to focus on the fact that educations like the one Frederik has from TEC can open doors to many possibilities for young talents, also in the IT industry. We were very happy that Frederik took the time to talk to the children about his way to IT,” says Lars Heldtberg Kari one of the teachers and consultants in Coding Class.
Financial results for Q1 2022 just released: Maintaining full-year outlook
Pressrelease • May 06, 2022 08:11 GMT
In Q1 2022, NNIT saw a decline in revenue and earnings mainly due to a temporary decline in capacity utilization. Positively, a number of significant contracts were signed, and strategic initiatives progressed as planned. Outlook for the full-year is maintained.
Please refer to https://investor.nnit.com for the full company announcement re the financial results for Q1 2022.
CEO Pär Fors comments:
"We continued to make headway with the strategic initiatives to build a stronger NNIT with the introduction of new business units, the acquisition of prime4services and signing of key contracts with new and existing customers in Q1 2022. Our financial results were negatively impacted by a temporary decline in capacity utilization, and we remain confident that we will reach our targets for the full-year".
Group revenue declined by 4.1% (-7.5% organic) to DKK 701 million as expected following a lower contribution from the Global Infrastructure Agreement with Novo Nordisk. The decrease was partly outweighed by growth in Life Sciences Solutions.
The operating result before special items decreased to DKK -9 million from DKK 48 million due to the renegotiation of the Novo Nordisk contract and a temporary decline in capacity utilization after cancellation of a large International Life Sciences Solutions project and customer postponement of a large ERP implementation. The operating profit margin declined to -1.3% compared to 6.6% in Q1 2021.
- NNIT’s external reporting structure has been revised to reflect the three business units – Life Sciences Solutions, Cloud & Digital Solutions and Hybrid Cloud Solutions – ensuring alignment with the Group’s new organizational structure as of January 1, 2022.
Group Financial Review
Selected business highlights
- NNIT completed the acquisition of prime4services, a leading European Manufacturing Execution System implementation consultancy, further strengthening the Group’s capabilities within Life Sciences Production IT.
- Significant new contracts and contract renewals secured across all business units, including a six-year contract with ATP and a five-year contract with Banedanmark in continuation of the signings with e-nettet and the Nordic Regional Security Coordinator in Q4 2021.
- NNIT maintains the 2022 outlook for revenue growth of 2-5% with an operating profit margin before special items of around 5%. The structural transformation of the Group is still expected to lead to special items up to the same level as in 2021.
Outlook for 2022
NNIT maintains the 2022 outlook for revenue growth of 2-5% with an operating profit margin before special items of around 5%. The structural transformation of the Group is still expected to lead to special items up to the same level as in 2021.
NNIT Expectation Barometer: Using IT as a means to meet sustainability goals
News • Apr 27, 2022 07:30 GMT
Every year, NNIT conducts an Expectation Barometer survey among larger companies centered on a theme. This year’s theme is “digital transformation and sustainability,” and the first results, based on answers from close to 500 respondents, are in.
More results will be continuously published on nnit.com, until the final report is released in the fall of 2022 and sent to all respondents.
The initial results show that more than half of the respondents agree that digital solutions are essential to realizing sustainable business goals. But what is good sustainability in practice? And how do you create a well-prepared IT contingency plan that is geared to meet the sustainability goals of both your own company and others?
Initial results for digital transformation and sustainability
- Nearly 2 out of 3 of the respondents (65 percent) agree that sustainability is now high on the company agenda.
- Two-thirds of the respondents (63 percent) either agree or strongly agree that digital solutions are essential for them in realizing their sustainable goals.
- Over half of the respondents (58 percent) have the environment – including climate change and the depletion of resources – as their main sustainability focus.
- More than half of respondents (58 percent) believe that their inability to identify new risks and threats may be a hindrance to the organization
- Around a third (34 percent) are concerned about the company’s current IT and security preparedness, while 28 percent of the respondents see indirect effects of climate change as a significant threat.
Focus on data-driven sustainability
NNIT's Brian Troelsen, Head of Market Intelligence and Partner Management, recommends that companies use valid and verifiable data as a starting point for business initiatives to increase sustainability. He elaborates:
"Among other things, you can collect relevant data in a sustainability dashboard, providing an overview of different data such as power and electricity consumption, tracking the journey of your products through the value chain, the number of travel days, transportation costs, gender balance, sick leave – which are all important elements of running a sustainable business... It’s difficult to improve something you can’t measure. But with data on sustainability, you will be able to assess how far from your sustainability goals you are, and ensure that you can meet all stakeholder requirements for transparency and documentation".
Read the whole article, and get further recommendations on how to use IT to create efficient workflows and reduce travel and how to ensure you have well-prepared IT contingency plans here.
How do you utilize digital potential to promote your sustainability?
You can still take part in the NNIT Expectation Barometer 2022. When taking the test, you will get your own score on how sustainable your organization is from a digital perspective – as well as the opportunity to benchmark yourself with seven digital leaders from some of Denmark’s largest companies.
CEO Pär Fors assumes role as interim Senior Vice President of NNIT Hybrid Cloud Solutions
News • Apr 07, 2022 10:00 GMT
As Niels Svenningsen has decided to leave NNIT for personal reasons, CEO Pär Fors now takes on the role as interim Senior Vice President of NNIT’s infrastructure activities (Hybrid Cloud Solutions).
“Regrettably, Niels Svenningsen has decided to leave NNIT for personal reasons. In a short period of time, the Hybrid Cloud Solutions team has found great footing and secured some important contract wins, and we feel that we have already come a long way towards establishing Hybrid Cloud Solutions as a business unit with great potential to do well in a very competitive market. We thank Niels Svenningsen for his role in getting the team off to such a great start and wish him all the best in the future,” says CEO Pär Fors.
CEO Pär Fors will temporarily be heading up Hybrid Cloud Solutions
The search for a new Senior Vice President has already begun – and in the meantime, Pär Fors will assume the role as interim Senior Vice President of NNIT Hybrid Cloud Solutions with the support of the management team in Hybrid Cloud Solutions.
“As with our other business units, Hybrid Cloud Solutions is characterized by strong management, and I have full confidence in them guiding their teams successfully through the next period and beyond as well as continuing to develop our business,” Pär Fors states.
In the first quarter of 2022, Hybrid Cloud Solutions successfully secured new contracts with Banedanmark, ATP, E-nettet and the Nordic Regional Security Coordinator.
Excellis Health Solutions – An NNIT Group Company
Pressrelease • Mar 04, 2022 08:49 GMT
NNIT has evolved quite dramatically over the years, from a small independent IT consultancy born out of Novo Nordisk to a publicly listed company and now an international group of companies in its own right. This article is the fourth in a series looking at the individual NNIT Group Companies – what they do and how they add value to NNIT’s purpose and aspiration of making a mark in business and society; bringing digital transformation to life.
Flourishing partnership one year into the acquisition
November 2021 marked the one-year anniversary of US-based Excellis Health Solutions joining the NNIT Group. The purpose of the union was to strengthen NNIT’s life sciences end-to-end supply chain consultancy services within the Pharma Supply Chain area with specific focus on the serialization and track & trace efforts globally. A lot has happened since the two companies decided to join forces in late 2020 during the height of the global COVID-19 pandemic, and a little more than a year later - as businesses and societies still face the aftermath of COVID-19 - the partnership between the two companies is starting to flourish.
When joining the NNIT Group in late 2020, Excellis CEO and Founder, Greg Cathcart highlighted that besides the strong cultural match and shared values between the two companies, he believed that by partnering up with NNIT, Excellis would have a greater opportunity to expand their business faster on a global scale
A little more than a year later, Greg is still confident that Excellis found the right match in NNIT: “One of the main reasons behind us joining the NNIT Group was to get a global footprint and help expand our business with a bigger team. By teaming up with NNIT and utilizing its vast portfolio of international customers, we have now been able to establish even stronger connections and attract more business outside the geographies we usually operated in. Also, by partnering up with NNIT, we experience that it is easier to get a seat at the table in big pharma, because many of the large customers already know about NNIT and their strong reputation within the life sciences industry.”
Collaboration between the companies
During the past years, NNIT has considerably grown its portfolio of end-to-end life sciences services organically and through acquisitions. Since 2018, NNIT has acquired five companies operating in the IT for life sciences space with the acquisition of prime4services as the latest addition to the steadily growing group of NNIT companies. From the beginning of joining the NNIT Group, Excellis has benefitted from being part of a diverse group of companies specializing in different areas of the life sciences IT value chain.
“We see synergies between the group companies, and we have joint efforts on different levels already, including combined selling and marketing activities. This is not only related to the other life sciences group companies such as Valiance and SL Controls, but we are also looking into how Excellis can offer our customers the ERP solutions and competencies provided by SCALES, which is another group company focusing on Microsoft solutions. We are stronger together and by combining some of our offerings and by tapping into our different customer portfolios we see a great opportunity to grow further and become more international,” says Greg Cathcart.
From four experts to 1,400 colleagues dedicated to life sciences
Excellis Health Solutions was founded in 2010 in Pennsylvania, USA by Greg Cathcart and three other partners who after many years of working in the life sciences industry decided to join forces after finding an industry sweet spot. Twelve years later, Excellis has grown to more than 80+ experts servicing and advising pharma customers in end-to-end supply chain solutions within serialization and track & trace. The majority of Excellis’ customers come to Excellis when they are in the closing phases of a clinical trial and expect to launch a product to the market within 18 months and need advisory on e.g., product packaging and traceability. It was exactly those sought-after competencies that made NNIT acquire Excellis after a rather fast-tracked process according to Greg Cathcart: “We already knew about NNIT and when we got news that NNIT was interested in us it only took around four months until the deal was signed. After some online talks with NNIT, Rasmus Koch Nelund and Rune Ringsholm Bergendorff from NNIT’s life sciences management team flew over from Denmark to meet us in person during the height of the COVID-19 pandemic in the late summer of 2020. They knew what they wanted, and we knew what we wanted, and luckily the two objectives aligned neatly as we saw a lot of shared values and a joint aspiration to provide better services to our customers.”
Excellis has come a long way since its humble beginnings in 2010 with four employees to now being part of the NNIT Group that employs approx. 1,400 dedicated life sciences experts working to advise and service its more than 120 global life sciences customers.
You can read more about what NNIT is doing to support the global life sciences industry here: https://www.nnit.com/your-industry/life-sciences/
Read more about Excellis here: https://www.excellishealth.com/
NNIT appoints new Senior Vice President of People, Communications & Marketing
Pressrelease • Feb 28, 2022 16:15 GMT
NNIT has appointed Camilla G. Møhl as its new SVP and Chief People, Communications and Marketing Officer. She will join NNIT Group Management on May 1, 2022.
Camilla G. Møhl joins NNIT with more than 20 years of experience working within Human Resources. Currently, she is serving as Senior Vice President, People and Culture and member of the Executive Leadership Team in Coloplast, a leading Danish multinational company that develops products and services for people with various medical conditions.
“We are very pleased to announce that we have been able to attract an HR executive with the extensive experience that Camilla G. Møhl will bring to NNIT from various management roles in several industry-leading companies. Our employees are at the core in everything we do, and we are confident that Camilla is the right person to head up our People, Communications & Marketing team,” says NNIT CEO, Pär Fors.
”I very much look forward to join NNIT. In this age of digital transformation, I find it very interesting and exciting to join a company with a strong aspiration and strategy for bringing digital transformation to life”, says Camilla G. Møhl.
Camilla will replace Brit Kannegaard Johannessen, who is leaving NNIT to become CHRO in Saxo Bank. “I would like to take the opportunity to thank Brit for all her great contributions to the success of NNIT during her time at the company and wish her all the luck for the future,” says Pär Fors.
The NNIT Group acquires prime4services and further boosts its Production IT offering to the life sciences industry
Pressrelease • Feb 25, 2022 08:45 GMT
With the acquisition of prime4services, Europe's leading provider of Manufacturing Execution System services, the NNIT Group further solidifies its position within the international life sciences industry.
prime4services operates solely within the life sciences industry providing supplier-independent consulting and engineering services for digitalization of manufacturing processes, primarily through conception, implementation and validation of Manufacturing Execution Systems (MES): Improving manufacturing excellence through the efficient integration of MES into the existing system landscape is a key focus.
The company employs approximately 60 experts and is headquartered in Karlsruhe, Germany, with subsidiaries in Italy, Spain and Switzerland. In time, prime4services will be fully integrated with NNIT to form a MES Powerhouse, combining the Production IT Excellence capabilities of both companies.
Becoming a global leader within Pharmaceutical Production IT
In acquiring prime4services, the NNIT Group will be adding significant expertise and resources to its collective Production IT offering, which has already been significantly strengthened by the additions of Excellis (2020) and SL Controls (2021).
prime4services is home to one of the largest teams for Pharma MES implementation services in Europe, including its founding management who in combination have more than 100 years of experience within this field.
The Pharmaceutical Production area is one of the fastest growing IT areas within the Life Sciences industry, and with the acquisition of prime4services, NNIT will be well positioned to become a leading global player.
With the acquisition, NNIT’s Production IT offering will cover all aspects of the production value chain and have +350 life sciences experts working in the area.
CEO Pär Fors, NNIT comments:
“We see a strong strategic and cultural fit with excellent potential for making the NNIT Group one of the largest MES implementation services partners within life sciences. In order to maintain our momentum and ensure we can scale with opportunity, we need to accelerate our capabilities within this area. We heartedly welcome prime4services to the NNIT Group and look very much forward to joining our forces in a combined effort to deliver the very best service to our customers.”
Managing Director & Partner Beate Krüger, prime4services comments:
"Jointly, my partners from the initial days Yasmine Peters, Marco Glauner and I identified the opportunity to lift our prime4services business model to a completely different, globally acting, level by merging our methodologies, talents, and capacities with the NNIT Group. Over the past weeks, the open and constructive discussions we have had with the NNIT Life Sciences leadership team has confirmed our common company philosophy and values. As a joint team, we will cater to the demand of the life sciences manufacturing market for top-class Production IT consulting, implementation and operations services at a global scale.”
prime4services is an international consulting and engineering services provider with offices across Europe. Since 2009, the company has successfully supported the life sciences industry on a worldwide basis. The customer list includes numerous Fortune Global 500 pharmaceutical companies. prime4services actively engages with life science customers on their journey towards Industry 4.0. The team consists of 60+ experts specializing primarily in MES, T&T, OEE, LIMS, Quality & e-Compliance areas. Read more at prime4services.com
Banedanmark awards NNIT new full-service contract for their administrative IT systems
Pressrelease • Feb 14, 2022 08:09 GMT
NNIT will be responsible for the operation, service and support of Banedanmark’s administrative IT systems and applications, including service desk and onsite support.
The contract will take effect on February 11, 2022 and runs for five years with the possibility of extending for another two years. The contract is worth a low three-digit DKK million amount.
Pär Fors, CEO, NNIT, comments:
“We are very happy to take on this full-service agreement with Banedanmark, who literally keeps Denmark’s train services on track. For many years, behind the scenes, NNIT has helped ensure critical infrastructure in Denmark. We are absolutely delighted to add Banedanmark to our public customer base, and we look forward to assisting them on their mission to build Denmark’s new green railroad”.
Infrastructure services, Microsoft 365, SAP and service integration
Upon the successful and smooth transition of services from the existing supplier, NNIT will be supplying the full stack of infrastructure services as well as running the operations and support of Microsoft 365, Microsoft BizTalk, various other business applications and SAP Basis, including service desk, desktop management, end-user support services and onsite support. Finally, NNIT will be supplying integration services and cooperating with third party vendors.
Banedanmark creates the foundation for the everyday railroad transport of hundreds of thousands of passengers and thousands of tons of goods in Denmark. They are an entity under the Danish Ministry of Transportation and have more than 2,500 employees. Currently, they are building a new green railroad for modern electric trains while keeping the old railroad going. That is, they are maintaining and upgrading existing rails while building a new train corridor to Europe, rolling out new signals and making the transition to electrically powered trains.
ATP awards NNIT new six-year contract for the operation, support, maintenance, and development of maternity/paternity benefits system
Pressrelease • Feb 02, 2022 11:18 GMT
In August 2022, NNIT will commence work on a new six-year ATP contract, with the possibility of an extension for two periods of 24 months. The contract has a net worth of a lower triple-digit DKK million amount.
The agreement concerns the operation, support, maintenance, and development of Udbetaling Danmark’s maternity/paternity benefits system, developed, and implemented by NNIT under the existing contract with ATP. Udbetaling Danmark is part of the ATP Group.
Digital self-service benefits system for processing and payment
In the current contract period, NNIT has worked to develop, implement, operate, and support the current maternity/paternity benefits solution, in close collaboration with ATP.
The solution is based on Microsoft technology, and NNIT will continue to provide infrastructure, application, support, and maintenance services, ensuring high quality and stability of operations as required of a critical public sector IT system.
Under the new contract, NNIT will also be continuously developing the system to improve efficiency, comply with new legislation, and enhance overall customer experience.
NNIT has a dedicated team of approx. 30 FTEs working to ensure this critical service to the Danish public.
Pär Fors, CEO, NNIT comments:
“We are extremely pleased to have been awarded this contract, which further cements NNIT as an important supplier of critical IT systems to the Danish public sector. Playing a part in upholding and developing case-handling systems is meaningful, and I know our employees feel privileged and proud to help ensure things run smoothly and that welfare payouts are correct and timely for their fellow citizens. We’re excited to start work on the new developments, making it even easier for ATP and citizens to use the system, ultimately further enhancing customer experience”.
Executive Vice President Carsten Bodal, Udbetaling Danmark, ATP, comments:
“During the last years, ATP and NNIT have had a great collaboration, which we are excited to continue. Udbetaling Danmark handle complex administrative tasks for city councils and state authorities, and it is essential for us that citizens receive correct payments and find it simple to interact with us. That is why we demand high standards for quality, security and stability of operations from our suppliers. It helps ensure effective administration, which will ultimately result in more funds for welfare.
Carsten Bodal, Udbetaling Danmark, ATP
About Udbetaling Danmark/ATP’s maternity/paternity system
The maternity/paternity benefits system is a critical system supporting parents' right to absence and maternity benefits in connection with pregnancy, birth, and adoption, including temporary placement. Around 60,000 children are born in Denmark, and around DKK 11 billion is case-handled and paid out every year.
About Udbetaling Danmark and ATP
Udbetaling Danmark is a public authority and is part of the ATP Group – a self-governing institution, established by the Danish Parliament by law in 1964. Today, the ATP Group is Denmark’s largest pension and processing company. It is based in Hilleroed, Denmark, and has around 3,000 employees working across three areas: managing pensions, investment, and administration as well as processing of welfare benefits. Read more at https://www.atp.dk/en
Financial results for Q4 2021 just released: In line with expectations
Pressrelease • Jan 28, 2022 08:19 GMT
In Q4, we saw continued strong growth within the Life Sciences International business while performance within the Private & Public segment remained weak. Once again, our Winning Solutions strategy gained traction, as it now constitutes 55% of NNIT’s revenue compared to 46% in the same period last year.
Please refer to investor.nnit.com for the full company announcement re the financial results for Q4 2021.
CEO Pär Fors comments:
"Q4 performed in line with expectations. International Life Sciences growth continued, and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the public segment. Focus is now on the new organizational structure and leadership to enhance the growth path and profitability. The organization has worked hard throughout the year to set the foundation for the new journey, and we are cautiously optimistic for the year to come".
- Group revenue decreased to DKK 738m, down 1.5% (-6.7% organic) from Q4 2020.
- Life Sciences (excluding Novo Nordisk Group) grew to DKK 262m, up 29% (7% organic).
- Winning Solutions now constitutes 55% of the total revenue (46% in Q4 2020).
- Net result is a profit of DKK 2m, (DKK 18m in Q4 2020).
Selected business highlights
- By the end of 2021, NNIT announced a major organizational change to create three distinct business units: Cloud and Digital Solutions; Life Sciences Solutions; Hybrid Cloud Solutions. The strategic rationale lies both in a diverse development in our customer base requiring a more unique approach in each market segment as well as need to speed up business development further in close alignment with our customer’s needs. This also enables a more transparent view on business unit performance with regards to maximization of revenue potential as well as cost optimization.
- Major wins: Outsourcing contract with the Nordic Regional Security Coordinator to deliver critical IT operation services. The value of the contract is expected to represent a low triple-digit DKK million amount. Outsourcing contract with e-nettet for infrastructure services and support concerning e-nettet’s portfolio of applications. The value of the contract is expected to represent a low triple-digit DKK million amount.
- In Q4, special items was significantly impacted by an DKK 29m impairment of a developed asset and DKK 27m of costs stemming from the continuous efforts related to efficiency improvements. Special items in 2022 are estimated at around DKK 100m related to optimization costs concerning office space as well as offshoring setup.
- End 2021, NNIT was named “Most attractive workplace in Denmark for IT consultants 2021” in the IT-company rank survey performed by the largest Danish publisher of media about technology and science ‘Teknologiens Mediehus’.
Outlook for 2022
Guidance as of January 28:
- Revenue growth of 2-5%
- Operating profit margin before special items of around 5%
- NNIT’s transformation into the new structure mentioned above, will potentially lead to special items up to the same level as in 2021
NNIT recertified as Veeva Premiere Services Partner
News • Jan 26, 2022 14:12 GMT
In 2020, NNIT became one of the first partners to be certified as a Premiere Services Partner for Veeva Development Cloud - the highest partner acknowledgement by Veeva. Now, NNIT has been recertified with the foremost partner accreditation once again.
“I am very proud of our accomplishments, and the recognitions are a testament to the hard work and dedication put in by our amazing team of consultants and our great colleagues across the entire NNIT Group,” says Rune Bergendorff, Vice President, Life Sciences Advisory and Consulting in NNIT.
The acknowledgement is based on a proven track record, including completed projects, customer references, and number certified consultants.
NNIT has more than 150 consultants working with Veeva. Since the start of the partnership, NNIT has been involved in 128 Veeva projects spanning from the US, across Europe to Asia within the areas of RIM, Quality, Clinical and Safety.
NNIT signs new agreement with e-nettet
Pressrelease • Jan 25, 2022 12:11 GMT
With effect from January 2022, NNIT and e-nettet have entered into a five-year agreement for infrastructure services and support concerning e-nettet’s portfolio of applications.
With this new outsourcing agreement, NNIT and e-nettet are building on their previous collaboration (2015-2021) dedicated to running and supporting infrastructure operations in a highly regulated and classified environment as well as supporting e-nettet’s digital transformation project: moving e-nettet’s portfolio of applications from their legacy SPARC, Oracle and current Kubernetes platforms to a new DevOps enabled Kubernetes container platform.
The new agreement comes with the option of extending for two periods of 12 months and has a worth of a low triple-digit DKK million amount.
Supporting e-nettet on their transformational journey
In addition to monitoring e-nettet’s day-to-day IT operations, NNIT will be allocating resources to the project of moving e-nettet’s entire portfolio of applications from legacy systems into the new Kubernetes platform:
The new Kubernetes platform is based on the latest “Red Hat OpenShift” software, ensuring stable and flexible enterprise-wide Kubernetes enablement. DevOps services will ensure fast deployments; and full developer flexibility will be facilitated via GitOps.
In the last year, e-nettet and NNIT have further enriched their cooperation to include agile capabilities and general team skills enhancement within governance, processes, and technologies.
Niels Svenningsen, Senior Vice President, NNIT Hybrid Cloud Solutions comments:
“We provide a host of high-quality IT infrastructure services to e-nettet, and together we have developed a whole new agile way of working focusing, as always, on quality and stability in our deliveries, but also on creating new processes that carry a high degree of control and security. We didn’t have a standard or blueprint to build on, so this new way of working is something we have developed together. We are very happy to continue our very rewarding collaboration and look forward to supporting e-nettet on their digital transformation journey, which is also a great challenge for us as the scale is more or less unprecedented.”
Simon Riemann, CTO, e-nettet comments:
“During the last 6 years, NNIT has been a valuable partner in delivering infrastructure and application management of systemic critical applications and infrastructure. Together, we have matured and improved existing and new platforms and moved gradually into a more agile setup. We are happy to be able to continue this journey with NNIT in a new contract with even more focus on agile deliverables on top of stable operations while enhancing both security and compliance services.”
e-nettet supports the financial sector in Denmark with digital solutions, providing the backbone of the core IT infrastructure needed to facilitate complex processes in interconnected systems, at the same time making them easy and safe to use. This means increased focus on compliance, cybersecurity, and IT service availability to ensure a stable and secure IT platform as thousands of users outside e-nettet are dependent on e-nettet’s IT service delivery.
e-nettet develops unique solutions delivering value to customers, citizens, and society – among other things allowing customers to change banks hassle-free, digitally transfer property and other official registration with a few clicks. In short, e-nettet builds the invisible solutions that makes life easier for everybody. Read more at e-nettet.dk.
NNIT wins outsourcing contract with the Nordic Regional Security Coordinator to deliver critical IT operation services
Pressrelease • Jan 13, 2022 13:01 GMT
NNIT has won a five-year contract to deliver a multitude of IT services, including operations, monitoring and cloud services to the Nordic Regional Security Coordinator (RSC). The value of the contract is expected to represent a low triple-digit DKK million amount – with the possibility of a three-year extension (1+1+1). The contract will commence in January 2022.
The Nordic Regional Security Coordinator is a joint office for the four electricity Transmission System Operators (TSOs) in the Nordic region: Energinet, Statnett, Svenska Kraftnät and Fingrid. The Nordic RSC coordinates the overall Nordic electricity system by supporting the national TSOs in optimizing efficiency and maintaining the operational security of the electricity power systems across Finland, Norway, Sweden, and Denmark.
CIO at Nordic RSC, Bjarne Dahl comments:
“With this agreement, we will ensure continued stable and scalable IT operations and development to support our further journey for the green transition in the Nordic region for the benefit of society. We are eagerly looking forward to starting the collaboration with NNIT and benefiting from their experience from other similar customers.”
The energy sector in Europe is undergoing a dramatic transition towards the fully carbon neutral, sustainable energy system. The Nordic countries have set particularly stretching targets for the transition during this decade. Nordic RSC is an important contributor to the green transition as the provider of regional electricity power system planning data and security analysis to support the national transmission system operators to ensure the efficient operation of the Nordic Power System and high security of power supply at any time.
Senior Vice President of Hybrid Cloud Solutions at NNIT, Niels Svenningsen comments:
“We are extremely pleased to have been awarded this contract, which cements NNIT as an important supplier of critical infrastructure. While it represents great business value to NNIT, we also greatly value the opportunity to contribute to society; and we feel the high demands for quality, compliance and security are fully aligned with NNIT’s DNA and core capabilities.”
SL Controls – An NNIT Group Company
News • Jan 11, 2022 10:23 GMT
NNIT has evolved quite dramatically over the years, from a small independent IT consultancy born out of Novo Nordisk to a publicly listed company and now an international group of companies in its own right. This article is the third in a series looking at the individual NNIT Group Companies – what they do and how they add value to NNIT’s purpose and aspiration of making a mark in business and society; bringing digital transformation to life.
SL Controls, focused on delivering Smart Manufacturing and integration solutions for the life sciences and technology sectors, was acquired by NNIT in July 2021. The strategic rationale was clear on both sides: In joining forces, NNIT and SL Controls would be able to offer their customers the full range of IT services to support the entire pharmaceutical supply chain – from the implementation of a Manufacturing Execution System (MES), over the efficient integration and validation of production equipment systems, and to packaging and delivery.
Shared vision of growing together
By 2020, SL Controls had grown from a small enterprise business to a successful €10 million company, employing 100 people across a number of locations in Ireland and the US, but they were struggling to scale further as they were “too big to be small and too small to be big,” as CEO Keith Moran puts it.
So when, in February 2021, an email arrived from KPMG in Denmark on behalf of a client, Keith Moran decided to take a second look. That second look led to a call and some follow-up emails, one of which contained a nice presentation from NNIT – and that, in turn, led to a first virtual meeting to talk about the possibility of an acquisition. The meeting went well, with both parties feeling like the cultural fit was there.
CEO Keith Moran elaborates: “We get a lot of emails of that sort, and I think what made us proceed was that it was a European/Danish company. I made the link with NNE and Novo Nordisk, and it looked like a company with vision and ambition – and a Group that could provide us with the extra capability we needed to scale. When we met with Rasmus [Nelund] and Thomas [Halfmann], we hit it off. It was informal and relaxed, but serious at the same time, we had good chemistry, and it was obvious that the match was a 2+2 equals 5 kind of thing”.
From initial contact to signed contract, five months passed, which is very quick and a testament to the neat and tidiness of the SL Controls operation. The due diligence phase took less than two months, and because the M&A process did not drag out, SL Controls was able to focus on the business throughout, Keith Moran explains and credits the team with putting in an incredible effort.
Ireland is a global hub for the life science industry
Aside from the fact that SL Controls and NNIT perfectly complement each other on skillsets when it comes to the pharma production process, SL Controls bringing levels 1-2 (plant) and NNIT bringing levels 3-4 (enterprise and cloud), SL Controls’ location in Ireland is key.
Image from www.slcontrols.com
Ireland has emerged as a preferred location for many of the pharma greats with years of work being put into attracting pharma investments, and many of the key engineering staff working globally while being based in Ireland. “The potential Ireland holds for global growth outward in the pharma industry is not to be underestimated,” Keith Moran emphasizes, and points to another reason the marriage between SL Controls and NNIT is an attractive union:
“We share the same vision and ambition for global growth, and I believe we have the right momentum within Manufacturing Execution System integration and migration of data to the cloud at the moment. It’s a great advantage to be able to offer customers the full stack of production IT and supply chain services. Together, we have a unique position and can offer our customers end-to-end services on a global scale”.
Customers want the full stack
Looking into the future, Keith Moran sees fantastic opportunities as part of the NNIT Group to meet customers’ demand for one-stop-shopping when it comes to Production IT for life sciences.
“SL Controls is known and recognized by life sciences and technologies companies as a leader within Manufacturing Execution Systems, systems integration and smart manufacturing consulting. Together with the NNIT Group, we can offer our customers so much more, we’re starting to really see that. We have weekly touchpoints with NNIT’s Production IT solutions team and salesforce, and as COVID-19 hopefully subsides, we’ll be able to get together even more – as well as present a united front to our customers”.
Photo left to right: Partners Darragh McMorrow, Shane Loughlin, Keith Moran, Dermot McMorrow, Mick McHale (behind) and Paul Clarke.
About SL Controls
SL Controls was founded in 2002 in Ireland by Shane Loughlin (SL) and Keith Moran, initially as a small enterprise unit in a small village. Over the years, the company has grown steadily from 25 to 40 and now 100 employees based in Ireland and the US. Offices are located in Sligo, Dublin, Limerick, Galway (IE) and Florida (US). Additional partners are Darragh McMorrow, Paul Clarke, Dermot McMorrow and Mick McHale.
SL Controls helps life sciences and technology customers optimize their manufacturing processes by improving their Overall Equipment Effectiveness (OEE) and productivity, delivering efficiency savings and simplifying compliance. They do this by delivering high-quality integration solutions for equipment systems based on the latest (Industry 4.0) production principles and technologies. Read more at www.slcontrols.com
Most attractive workplace in Denmark for IT consultants 2021
News • Dec 03, 2021 08:00 GMT
We are proud to announce that NNIT has won the Danish “IT Company Rank” 2021 title as most attractive workplace for IT consultants – and that we have a total of three professionals ranked in the IT Talent 2021 top-10 IT consultants category.
Congratulations to 4th place winner Angela Fangmei Du, Senior Operations Consultant, 6th place winner Allan Lindqvist, Senior Operations Architect, and 9th place Bo Faurschou, Principle Solutions Architect.
While the title as most attractive workplace for IT consultants was won in Denmark, credit goes to all NNIT colleagues worldwide, as they all contribute to our international work environment and collaborate across borders and areas of expertise every day.
“We are incredibly proud and honored to be given this title, and the biggest thanks goes to our many consultants who are part of this amazing workplace,” says Kasper Søndergaard Andersen, who heads up Cloud & Digital Solutions in NNIT, home to many of our IT consultants.
Watch Kasper Søndergaard Andersen’s acceptance speech (in Danish)
New organization to enable future profitable growth
Pressrelease • Dec 01, 2021 11:55 GMT
As of January 1, 2022, NNIT will reorganize into three business units: Life Sciences Solutions, Cloud & Digital Solutions and Hybrid Cloud Solutions. The new organization will further strengthen NNIT’s focus on aligning customers and segments closer with preferred solutions and positioning the company for future profitable growth.
The change involves a clear anchoring of customer interface, sales, business development, and solution delivery in all three business units, including individual financial reporting.
To head up the Hybrid Cloud Solutions unit, NNIT has recruited Niels Svenningsen who brings more than 25 years of experience from executive roles in the IT and tech industry.
Until January 1, 2022, Niels Svenningsen will be heading up the existing business units Private & Public and Infrastructure Outsourcing – taking over from Senior Vice President Jacob Hahn Michelsen and Senior Vice President Kristian Lomholt. They will both remain in NNIT until a smooth transition has been ensured.
CEO Pär Fors comments:
“We have decided to reorganize NNIT into three more clearly defined units. The change highlights NNIT’s continued focus on Life Sciences and desire to form even closer alliances with all our customers; to offer them the best sustainable digital transformation solutions based on their needs, market conditions and latest technological developments.
In Niels Svenningsen, I am confident we have found the right profile to head up the new Hybrid Cloud Solutions unit and to further strengthen the NNIT executive management team.
Regrettably, this means we will be parting ways with Senior Vice President Jacob Hahn Michelsen who will be stepping down from his current role. At an earlier time, but unrelated, Senior Vice President Kristian Lomholt resigned from his position to pursue an opportunity outside NNIT. I wish to thank both Jacob Hahn Michelsen and Kristian Lomholt for their significant and valuable contribution to NNIT over the years and wish them every success in their future ventures”.
Senior Vice President, Niels Svenningsen, Hybrid Cloud Solutions, comments:
”I am looking very much forward to returning to IT and in particular to be joining NNIT with its unique history and market position. I am excited to meet my many new colleagues and to lead the Hybrid Cloud Solutions team towards the goal of developing and delivering the very best solutions for our customers wherever they may be in their digital transformation process”.
Photo credit: Mathias Vesthammer, Vesthammer Visuals
NNIT’s new organization in detail
NNIT’s new organization will consist of three business units: Life Sciences Solutions, Cloud & Digital Solutions and Hybrid Cloud Solutions. The new organization will replace the old structure of two customer-facing business units (Life Sciences and Private & Public) and two delivery units (Cloud & Digital Solutions and Infrastructure Outsourcing).
Starting January 1, 2022, each of the three units will be customer-facing, focusing on combining sales, business development and solution delivery. They will have full ownership of pricing, sales and customer experience. The new structure will be reflected in the numbers presented in NNIT’s reporting, starting in Q1 2022, providing full financial transparency.
Life Sciences Solutions – headed by Senior Vice President Ricco Larsen – will continue to focus on developing and delivering the best digital solutions to support the entire life sciences value chain.
Cloud & Digital Solutions – headed by Senior Vice President Kasper Søndergaard Andersen – will focus on enabling business critical applications in the cloud and taking full advantage of the growing Microsoft ecosystem.
Hybrid Cloud Solutions – headed by Senior Vice President Niels Svenningsen – will focus on developing and delivering the best infrastructure and hybrid cloud solutions to our customers.
About Niels Svenningsen
Niels Svenningsen most recently held the role of CEO of audio component production company Sonion A/S (September 2021). He has a strong background in chief executive roles within the branded tech industry, including experience from Schneider Electric, Jabra, Hitachi, Compaq, Hewlett Packard and IBM. He has broad experience working with hardware, software and services as key business enablers in customers’ digital transformation. In his executive roles, he was based in Denmark, Switzerland and Sweden, responsible for both national, Nordic, European and global markets.
NNIT’s data center in Ejby, Denmark, has once again been certified as Tier III Gold for Operations
News • Nov 09, 2021 08:44 GMT
We are proud to announce that our data center in Ejby, Denmark, has been recertified as Tier III Gold for Operations by Uptime Institute®
Once again, NNIT has achieved the final part of the operational certification for Data Center A1, situated in Ejby, Denmark. The data center has previously achieved the rare and prestigious certification for Design and Facility, which is now accompanied by the Operations certification.
The data center achieved Tier III Gold status for the first time in 2018, lasting three years, and this certification has now been renewed for another three years, lasting till 2024.
Uptime Institute's Tier Certification of Operational Sustainability (TCOS) “provides Tier Certified data center owners, operators, and managers with an assessment of the prioritized behaviors and risks intrinsic to data center operations and serves as an essential guide for effective and efficient operations. It helps to assure that a well-designed and constructed data center facility is also being operated in a manner, which will result in the production levels expected”.
The Tier III Gold certification completes a year-long documentation and audit process.
The certification is an extremely important quality stamp for NNIT who delivers the IT backbone to a long list of large organizations and institutions providing critical services to society. Kristian Lomholt, Senior VP of NNIT’s Infrastructure Outsourcing Unit, comments:
“We are very proud of our data centers and the fact that they are certified to the highest industry standards. This recertification is a testimony to our high operations standards and also a recognition of the team of professionals who operate the data center every day”.
Financial results for Q3 2021 just released: Group revenue increase of 6.1% countered by lower profit margin
Pressrelease • Nov 03, 2021 08:32 GMT
In Q3, we saw continued strong growth within the Life Sciences International business, and we strengthened this business further with the addition of SL Controls. Once again, our Winning Solutions strategy gained traction, as it now constitutes 54% of NNIT’s revenue compared to 46% in the same period last year.
Please refer to investor.nnit.com for the full company announcement re the financial results for Q3 2021.
CEO Pär Fors comments:
"Q3 performed below previous quarters, which was in line with expectations and previous years. International Life Sciences continued at high growth rates and is now the largest segment in the Group, and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the infrastructure business and focus is now on separation of the infrastructure operations into a dedicated business unit to enhance efficiencies and reduce costs. We are confident in our strategy and maintain our guidance for the year".
- Group revenue increased to DKK 698m, up 6.1% (-1.5% organic) from Q3 2020.
- Life Sciences (excluding Novo Nordisk Group) grew to DKK 246m, up 36% (13% organic).
- Winning Solutions now constitutes 54% of the total revenue (46% in Q3 2020).
- Net result is a loss of DKK 10m (DKK 9m in Q3 2020), primarily due to a 12.9% decline in revenue from the Novo Nordisk Group, a 1.3% revenue decline in revenue from the Private & Public segment, low profitability within our infrastructure operations and special items costs of DKK 23m.
Selected business highlights
- The organic growth within International Life Sciences is continuously supplemented through acquisitions; on July 5, 2021, NNIT acquired SL Controls. SL Controls is headquartered in Ireland and is internationally recognized as an industry leader in equipment systems integration and system support. The acquisition will expand the NNIT portfolio of services, competences and manpower to the International Life Sciences market, specifically within the strategic production IT Winning Solution. In addition, SL Controls’ production equipment integration services are complementary to NNIT’s offerings, providing a full end-to-end service model.
- Winning Solutions is another area of growth, and it is now at 54% of total revenue, up from 46% in Q3 2020. Tailwind was most notable within the solutions areas Dynamics 365, Hybrid Cloud and Cybersecurity (for Private & Public) and within Veeva Powerhouse and Production IT (for Life Sciences).
- In Q3, NNIT secured a large number of contracts with both new and existing customers. For some time, the market trend has been many, smaller transactions relating to shorter engagements rather than big, lump transactions relating to long-term engagements. And that is very much the case for NNIT’s Q3.
- The improvement of visibility to accelerate tangible cost reductions is key to the business. To facilitate this, the process of gathering all NNIT Infrastructure activities into a dedicated business unit was initiated in July 2021, and execution has started in Q3.
Outlook for 2021
Guidance for 2021 is maintained:
- Revenue growth of 1-4%
- Operating profit margin before special items of around 5%
- Investment level of 5-7% of total revenue excluding acquisitions
Read the full announcement here
Valiance – An NNIT Group Company
News • Sep 29, 2021 09:18 GMT
NNIT has evolved quite dramatically over the years, from a small independent IT consultancy born out of Novo Nordisk to a publicly listed company and now an international group of companies in its own right. This article is the second in a series looking at the individual NNIT Group Companies – what they do and how they add value to NNIT’s purpose and aspiration of making a mark in business and society; bringing digital transformation to life.
Valiance Partners was acquired by NNIT in 2018 and was The NNIT Group’s first international bolt-on acquisition as well as the first acquisition to boost the company focus on international life sciences.
With Valiance as part of the Group, NNIT can also offer specialized services for large data migration projects, often associated with M&A activity, e.g. when moving from one technology platform to another, or migrating data from an old to a new upgraded version.
Valiance is an expert in critical data migrations within the life sciences industry. Or as Tom Witmer, Head of Valiance Business Development, puts it: “If it doesn’t involve complexity, risk, and a significant compliance aspect, we probably don’t get involved”.
From data validation to data migration
Valiance was founded in the US, in 2003, by partners Richard Higger, David Katzoff and Nagesh Sarma, and originally the three of them were involved in data validation consulting work, which evolved into data validation in connection with big data migration projects.
As consultants, they found that most migration issues arose when systems were going live, which would then significantly delay the successful launch of the new platform. So, they realized it would be very useful to develop software to automate testing as opposed to the sample-based, manual testing that was the standard, but cumbersome, error-prone, and time-consuming practice at the time.
Soon, the data validation part of their business was mostly abandoned, as the Valiance team decided to concentrate their efforts and services within migration and migration testing. Eventually, the trademark products TRUarchive™ and TRUconsole™ were developed to support the entire data migration process.
Typical projects include data migration to and from clinical, regulatory and quality systems such as Veeva Vault, Sparta Systems’ TrackWise, OpenText Documentum and LiveLink, Microsoft SharePoint, Argus, ARISg, MasterControl, and QUMAS, to mention a few.
“Our Veeva partnership started in 2012, and Veeva Vault is really taking off, so we’re doing a lot of Veeva migration projects, because we were the first partner to do migrations for them – and the first to become a Veeva Premiere Partner for their clinical, regulatory and quality systems,“ Tom Witmer elaborates and adds:
“We’re so busy, we’re just flying, and we’re expanding both our business and workplace at a rapid pace”.
An interesting first meeting with NNIT
When the Valiance Partners first met with NNIT in late 2017, Valiance was still a small-ish business with just over 50 employees. Today, Valiance employs 135 people and is hiring.
Valiance caught NNIT’s eye when they were just starting to intensify their work with Veeva both in the US and in Europe, and NNIT was contemplating branching out to include data migration. Talks were initiated via LinkedIn, and soon a meeting was set up in the US.
NNIT’s former CEO Per Kogut and M&A responsible Rasmus Nelund wanted to Valiance in the US:
“We weren’t really sure what to expect, or what they wanted to talk to us about; it wasn’t super concrete. But it was a good visit, and we got to know each other quite well during that first day. We got on well, laughed a lot and generally found that we enjoyed each other’s company. But it wasn’t until March 2018 that we started to seriously talk acquisition. Actually, it was a long process for us. As a small company, we were used to executing on ideas much faster,” Tom Witmer explains.
NNIT’s Rasmus Nelund weighs in on the process: “It is important for us to ensure that in addition to a strong business match, it’s also a cultural match. If we’re not a success in the long run, the union is not successful, so we’re happy to take our time”.
On October 9, 2018, NNIT and Valiance could finally announce that they had agreed on a deal to make Valiance part of the NNIT Group, thereby boosting both companies’ capabilities and opportunities for delivery of IT services to the international life sciences industry.
Realizing and accelerating synergies
Leading up to the acquisition, NNIT and Valiance had already started to collaborate on a number of projects, allowing them to test the relationship. For NNIT, the attraction was fast-track access to the fast-growing Veeva solutions market as well as the US market in general; and for Valiance, the attraction was greater access to the European markets as well as NNIT’s strong track record within regulatory management, other technology platforms, and the customers in NNIT’s portfolio.
Valiance co-Founder Dave Katzoff explains, ”prior to the acquisition, Valiance recognized that we needed to offer more business-oriented services to enhance our technical migrations and remain competitive with larger integrators. The NNIT opportunity was intriguing, as it provided an option to build upon an existing company rather than attempting to build those capabilities from scratch.”
Co-Founder Nagesh Sarma finishes:
“Our geographical footprints together with our particular strengths within the data migration and strategic consulting areas have proven to be a winning combination and one that’s gaining more and more traction. Going forward, I think, we’re looking at an even brighter future together, I really do. We’re expanding our services and deepening our expertise, not least within regulatory services, but also the Veeva Powerhouse offering. And we are able to introduce each other to some very big customers. We work well together, and we increasingly find that we think in terms of The NNIT Group before, during and after marketing and sales efforts”.
Valiance Partners is an expert in critical data migrations when compliance and accuracy are at stake. Valiance has managed more than 700 successful migrations for over 160 companies, including the world’s leading pharmaceutical, medical device and biotechnology brands. Their TRUseries™ software provides end-to-end data and content migration and migration testing for IT, quality, validation, and test management.
Life sciences companies need to take further steps to protect themselves against the growing problem of counterfeit drugs
News • Sep 17, 2021 10:57 GMT
When talking about counterfeiting, most of us think about major consumer brands but, unfortunately, counterfeiting is also a major and growing problem within the life sciences industry – and to make matters worse, nobody knows exactly how big the problem is.
One indication is the Havoscope Black Market list, which places the life sciences industry at the very top with an estimated value of US $200 billion – closely followed by prostitution and electronics. Financially, that represents a huge loss of market share and revenue for the pharmaceutical industry, but it also represents a substantial safety risk for patients.
Another indication is the Pharmaceutical Security Institute reporting that, in 2020, “pharmaceuticals in every therapeutic category were targeted by criminals”. This means counterfeiters are not just targeting the popular ‘lifestyle’ drugs like Viagra, they are also copying life-saving therapeutics such as high-cost cancer treatments.
Despite the ongoing global regulatory march toward implementation of serialization and track and trace requirements to help secure the pharmaceutical supply chain, the problem persists and continues to grow, as infringers exploit vulnerabilities in complex global supply chains. And it is a problem.
Excellis’ Sean O’Hearen, who specializes in brand protection for life sciences companies, elaborates:
“The big risk in all of this, aside from the significant potential reputational risk and financial loss for the pharmaceutical companies, is the serious risk to people’s health. Patients potentially get a subpar product that is being traded either outside of, or as part of legitimate pharma supply chains. The consequence being that it is uncontrolled and untraceable and therefore unsafe”.
According to Chirag Shah, Sanofi’s Director of Product & Supply Chain Security, who specializes in the supply chain security aspects of brand protection, effectively managing risks related to counterfeiting and illicit trade requires a strategic, systematic, and multi-layered approach. While he endorses product serialization as an important security layer, he adds:
“The growing problem of counterfeit drugs calls for measures in addition to the regulatory requirements adhered to by life sciences companies. These days, manufacturers need to assess risk holistically, across their value chains, and understand all the points of weakness and how they can address those gaps to enhance supply chain security and patient safety. It’s a choice beyond serialization, which is not enough to stay ahead of the bad actors and protect the products or the patients in today’s risk environment”.
Getting beyond broad estimates
It is difficult to take action to counter a threat when you do not know the exact nature of that threat. And currently, the estimates available are based only on what is intercepted and only for the life sciences industry as a whole, not for an individual company, much less an individual product or brand.
So, how can we know how and where to target our efforts as a company and as an industry?
Sean O’Hearen explains:
“We have a big data problem in the sense that a lot of useful data exists to combat this problem, both company data that is proprietary and confidential and data from third parties and open-source intelligence. The main challenge is that organizations are often reluctant to share that information for obvious reasons. Another challenge is pulling all the useful data together and making sense of it and using it to drive enforcement actions. The Pharmaceutical Security Institute does collect blinded illicit trade incident data from numerous manufacturers, and they share that data with their members, but there remains a need for greater collective industry intelligence and analysis linked to coordinated action against the counterfeit industry. We need to get beyond that before we can start to ensure effective brand protection”.
He points to Excellis’ Brand Protection unit where they are currently piloting a system that can merge customer data with data from relevant networks and advanced analytics to assess and manage risk and prescribe solutions:
“We have an opportunity to design a platform that knits together disparate and numerous data sources to provide actionable intelligence to drive risk-based decisions for Brand Protection, and we are looking forward to working with many more customers on this; because if you cannot accurately assess the problem and the risk as well as gather and analyze all the intelligence, then you cannot come up with a solution to mitigate the problem and monitor its effectiveness”.
The goal – with time – is to build many of these Brand Protection platforms for individual customers and then offer to connect them to a consortium-type platform combining all data from all customers with relevant network data to provide an even clearer picture of the overall problem and risk of counterfeit drugs.
A very complex issue that needs to be addressed systematically
A further complication of the issue is that counterfeiting within the life sciences industry goes far beyond pirate copies of branded products being traded on the black market.
In addition to counterfeiting product concerns, manufacturers must deal with multiple risks, including:
- Counterfeit products being distributed and traded via legitimate supply chains.
- Theft of genuine products that are subsequently distributed outside the regulated and controlled streams.
- Genuine product that is diverted from its intended market or channel and then sold through unauthorized and/or uncontrolled channels.
- Genuine product that is tampered with in an unsafe way, such as over-labeling or modifying an expiration date for the purpose of re-selling the product.
- Or simple expired product that exits the reverse logistics stream and is resold on the internet to an unsuspecting buyer.
As always, the primary motivation behind all of these types of counterfeiting is money – securing profit for illicit traders, or patients looking to save money on an otherwise expensive product.
Of course, the biggest losers in all of this are the patients who unknowingly consume counterfeit products that are inferior or even useless as well as unsafe.
In response, the life sciences industry has long been and is increasingly – as far as possible – taking steps toward ensuring Brand Protection as well as adhering to the many rules and regulations governing the industry. But we need a more systematic approach, yielding more accuracy and clarity as a basis on which to continuously roll out (new) Brand Protection measures.
Post COVID-19, NNIT is an even more Flexible Place to Work
News • Sep 10, 2021 09:31 GMT
NNIT has always been a flexible employer seeking to strike a great balance between company, team and individual needs. However, following the global pandemic and several lockdowns forcing us to work from home for long periods of time, it soon became evident that post-COVID times would mean a whole new take on the way we work.
The COVID-19 pandemic became a worldwide test of our ability to work remotely – rather than coming into the office – and previous concerns about productivity were put to shame. In NNIT, throughout the pandemic, we were able to perform to our usual high standards, just as we were able to help a lot of our customers accelerate their digital transformation, so they could stay in business and maintain operations.
And so, post COVID-19, the question was not can it be done, it was how will we perform our daily work going forward, and what are the main considerations?
As restrictions began to subside all over the world in the second half of 2021, the need for new global guidelines for remote work presented itself. It was obvious that we would not be going back to the standard practice of coming into work every day, but needed to provide a framework to guide units and employees across our international organization:
Senior Vice President Brit Kannegaard Johannesen, People, Communications & Marketing and Quality
“At NNIT, we have different operations with very different ways of working and demands for physical presence. For some employees, it is simply not possible to work from home. That’s one consideration when rethinking the way that we work together. Another very important one is that we have a very strong culture that we wish to preserve, and we believe that requires us to meet and mingle at the office on a regular basis. So, post COVID-19, our starting point was increased flexibility considering our business, our employees and our customers,” says Brit Kannegaard-Johannesen, Senior Vice President, People, Communications & Marketing and Quality
Effective September 2021, the following overarching principle now guides the NNIT remote work policy: “In NNIT, we embrace a flexible way of working and allow employees to work from home to an extent found appropriate by each unit”.
Prioritizing our Customers and our Culture
At the same time, due consideration must be made to accommodate our customers’ needs and to protect the unique NNIT culture.
We are mindful of the fact that our customers are at the center of all our operations and that many of our consultants work side by side with our customers, at their sites.
Going forward, this means that, while we offer and support flexibility, we must seek to find the right balance between working remotely, working at the customer site and/or at the NNIT office. It also means we will follow customer guidelines for remote work if the main place of work is a customer site.
“In principle, some employees could work 100% remotely, however, we will continue to encourage colleagues to come into the office regularly, so they may benefit from our NNIT culture, social connectivity, and employee engagement,” Brit Kannegaard Johannesen elaborates.
Rethinking our Facility Space
As a natural consequence of more people working from home on a regular basis, during the spring and summer, a lot of thought was put into rethinking our facility space.
“We are embracing the new hybrid ways of working, meaning that the need for a fixed workstation for all employees at any given office simply isn’t there anymore. For now, we have sublet part of our surplus space at our headquarters, but we will continually assess our need for office space as our new ways of working kick in,” says Brit Kannegaard Johannesen.
Expectedly, NNIT’s office environments will change quite a bit in the future, not least as a result of the need for more meeting rooms equipped to handle hybrid meetings in a highly functional and professional way.
“As leaders in digital transformation, we need to be a showcase for great digital and hybrid ways of working, but without neglecting the unique bonuses of meeting in person,” Brit Kannegaard Johannesen finishes.
SCALES – An NNIT Group Company
News • Aug 24, 2021 10:00 GMT
NNIT has evolved quite dramatically over the years, from a small independent IT consultancy born out of Novo Nordisk to a publicly listed company and now an international group of companies in its own right. This article is the first in a series looking at the individual NNIT Group Companies – what they do and how they add value to NNIT’s purpose and aspiration of making a mark in business and society; bringing digital transformation to life.
SCALES was named Microsoft ERP partner of the year for the fourth time in 2021
”Microsoft ERP [Enterprise Resource Planning] is all we’ve ever done,” says Jesper Outze who met his managing partner Hasse Bergman in high school back in 1986. Approximately ten years later, they started working together for the first time; since then, they have successfully started and sold two Microsoft ERP consultancies. Their latest and present collaboration, SCALES, which employs more than 150 people, was sold to NNIT in 2017.
SCALES is Jesper’s and Hasse’s life’s work and the result of equal parts experience, learning and focus on working with Microsoft ERP solutions. We met them earlier this year to talk about their mission and vision – as well as their cooperation with NNIT.
”There is a straight line to the company we run and the product we offer today,” Hasse Bergman explains and elaborates: ”After our first ERP consultancy firm, which offered a good product, but was challenged in terms of growing with the market, we rethought the whole concept with SCALES. Even though we started out small, we thought of ourselves as a big company from the get-go – this time, we built scalability into our organization and mindset to enable the company to grow.”
Even the logo with the steppingstones was designed with scalability in mind. And the breakthrough came as soon as 2012 and 2013 when SCALES succeeded in landing LM Wind Power and Alfa Laval as their first big customers. ”That really made a difference,” Jesper Outze recalls.
Ever since, SCALES has gone from success to success, which is also a testament to the fact that the Microsoft Dynamics market is so hot at the moment that demand has now overtaken supply.
A rock-solid company with a giant potential for growth
SCALES has made a mark as leading Microsoft ERP partner in Denmark. ”We have a great position in the market,” Jesper Outze says: ”We are close to a 100% level of awareness among both potential customers and employees, and we’ve been nominated for Microsoft ERP partner of the year every year since 2013”.
The numbers for the last five years are also clear, showing a growth of 187 and 437 % on top and bottom line, respectively, putting SCALES in a league of their own.
”We like to say that SCALES is a ’safe bet’ if you’re looking at implementing Dynamics. We’ve been doing this for many years for a lot of different customers, so we know what we’re talking about. We are the safe and solid choice, and we can deliver on time and on budget. We know that it’s business critical for a company to change ERP platforms, and we have a great deal of respect for that,” he elaborates.
SCALES has clearly found their niche in the Danish market as experts in Microsoft ERP solutions.
”We have no plans to expand to other countries, and we don’t want to expand our portfolio of products either. For us, it’s important to keep the focus. We have chosen to play a small field that we know and play well. We understand the needs of our customers and how to match them with the right ERP solutions. Microsoft is all we have ever worked with, from XAL over Axapta and to Dynamics 365 Finance & Operations. We’ve been on that journey always, so we have history, experience and a giant network. That, among other things, is the expertise we’re selling to our customers,” says Hasse Bergman.Jesper Outze and Hasse Bergman, co-founders and managing directors of SCALES Group
NNIT and SCALES make each other stronger
The Dynamics 365 market is so hot it makes sense to find partners with whom to form an alliance. And that is how the relationship between NNIT and SCALES came about.
”The marriage with NNIT came about via a gradual engagement, which began back in 2013. Through a series of collaborations, we were able to get to know each other and test the relationship before signing the contract in 2017, and we have no regrets,” Hasse Bergman tells.
”There are more enterprise customers in the market now compared to just five years ago, so it works out very well to be able to go to market with more muscle. NNIT has an international setup, which extends to us. So, together we have the size and guise to deliver 24/7 support once the solutions have been implemented – and that’s a great advantage,” Hasse Bergman elaborates.
”We have long since found each other, and we have a continuous and very close dialogue about our common projects and deliveries – about who delivers what in the ERP value chain, and how we present the strongest front in the market. When we bid on a project together, SCALES usually handles the advisory and build parts while NNIT – depending on the setup – handles the operation and support parts. It’s very close to a perfect business match,” Jesper Outze finishes.
From fun to success
Jesper Outze and Hasse Bergman met each other in high school in 1986 where, among other things, they played volleyball together. That was the beginning of a business adventure that is still growing today.
- 1997: Jesper was employed at Delfin Software where Hasse is also employed.
- 1998: Hasse and Jesper start the company HOB Business Solutions together with a third partner.
- 2007: HOB is sold to Avanade.
- 2011: Hasse and Jesper leave HOB/Avanade and take a six month hiatus before starting SCALES together with two other partners.
- 2017: SCALES is sold to NNIT.
Financial results for Q2 2021 just released: Group revenue up 1.3%
Pressrelease • Aug 12, 2021 07:44 GMT
In Q2, we saw continued strong growth within the Life Sciences International business, and we strengthened this business further with the addition of SL Controls. Once again, our Winning Solutions strategy gained traction, as it now constitutes 52% of NNIT’s revenue compared to 44% in the same period last year.
Please refer to investor.nnit.com for the full company announcement re the financial results for Q2 2021.
CEO Pär Fors comments:
“In Q2, we experienced continued strong growth within the Life Sciences International business, further highlighted by the subsequent acquisition of SL Controls in July. In addition, we announced the extension of the Novo Nordisk Infrastructure agreement – an important win for NNIT despite lower margins. While our Private & Public business was impacted by the competitive environment within the infrastructure business, resulting in margin pressure, positively our Winning Solutions now constitute 52% of NNIT’s total revenue. I am excited to head up NNIT in the pursuit of further value creation”.
- Group revenue increased to DKK 710m, up 1.3% (-1.8% organic) from Q2 2020.
- Life Sciences (excluding Novo Nordisk Group) grew to DKK 234m, up 35% (22% organic). This increase was related to the continued significant growth of the Life Sciences International business, where revenues increased by 56% (36% organic) to DKK 165m, while revenue from Life Sciences Denmark increased by 1.5% to DKK 69m.
- Winning Solutions now constitutes 52% of total revenue (44% in Q2 2020).
Selected business highlights
- On June 14, 2021, Pär Fors took office as new CEO of NNIT.
- On June 29, 2021, NNIT renewed a global IT infrastructure agreement with the Novo Nordisk Group, thereby securing substantial infrastructure business with Novo Nordisk for another five years. The contract represents a value of a mid-triple digit DKK million amount.
- Within Life Sciences International, NNIT extended a significant Compliance-as-a-Service engagement with an existing customer for an additional three years. The contract value represents a midrange double-digit DKK million amount.
- A new IDMP (Identification of Medical Products) compliance and Data Governance advisory engagement with a major International pharmaceutical company was agreed. The program will be carried out throughout 2021 and into 2022 and represents a lower double-digit DKK million amount.
- To further improve visibility and accelerate cost reductions, a process of extracting and gathering infrastructure operations into a dedicated business unit was initiated in June. This work will continue through the second half of 2021.
Outlook for 2021
Guidance for 2021 is maintained, following the separately announced adjustment on June 29, 2021:
- Revenue growth of 1-4%
- Operating profit margin before special items of around 5%
- Investment level of 5-7% of total revenue excluding acquisitions