KMD in the local government market

The local government market continues to be KMD's core market. In 2008 KMD generated around two thirds of its revenue in this market.

The creation of the future SAP-based business system KMD Opus has been well received by customers. This is a comprehensive renewal project in which KMD's solutions are successively being converted into a new, modern ERP platform.

The project to convert the local government IT solutions to the future SAP-based business platform KMD Opus proved to be more extensive than first assumed. This meant that the first KMD Opus customers experienced a number of problems and delays. In 2008 the focus was therefore on stabilising and future-proofing the product. With the initiatives taken in 2008, we expect future implementations to proceed to schedule.

In 2008 KMD continued implementing the new IT solutions for the social area called 4S, which comprises four IT solutions: KMD Social Pension, KMD Maintenance, KMD Family Income Support and KMD Housing Benefit. Among other things, the systems offer greater possibilities of completing the case-handling with front-office execution rather than sending it to the back-office. The latest user satisfaction survey shows that between 86% and 97% of customers are satisfied with the new IT solutions.

In January KMD won an EU tender to provide IT for the employment area in the City of Copenhagen, with the IT solution for supporting procedures in job centres, KMD Opera, being chosen. As in previous years, a number of other local governments also chose the system. KMD is very pleased that user satisfaction with the latest versions of KMD Opera has increased significantly and that the customers’ perception of KMD Opera is now very positive.

In spite of challenges in individual areas, customer satisfaction with KMD in general is still high and on a par with 2007. For example, 89% of local government decision-makers are satisfied with their cooperation with KMD.

However, customers indicate that they would like KMD to work on being more efficient in the development and updating of IT solutions, and to be more sympathetic to their needs. In keeping with these wishes, in 2008 KMD introduced four Advisory Boards covering the focus areas of Strategic Control, Administrative Control, IT Governance, and Citizen and Business Contact. Within these boards, the customers and KMD discuss the customers’ strategic challenges and development needs. At the same time, the customers are able to play a central role as an important sounding board in relation to KMD's business development.

In the last two years KMD has also implemented a new Go-to-Market model that will help enhance the customers’ perception of KMD as a professional IT supplier and IT partner.