KMD’s strategic accounts

KMD’s strategic accounts provide insight into how we are performing and where we are heading as a company. The accounts take their starting point in our “strategy house” and centre on our three key markets and our strategic focus areas.

Through the strategic accounts KMD wants to give the outside world insight into the company’s business. The strategic accounts gauge the success of KMD’s strategic objectives and look at what KMD is doing to manage and further develop the business.

Starting point in the strategy house
KMD’s strategy is constructed on the basis of a strategy house that identifies our growth focus and sets out our ambition and direction up to 2010. The philosophy behind KMD’s growth strategy is still that we should focus primarily on the local government IT market and, on the basis of this position, provide established services for new customers and new services for established customers.

The means of implementing the strategy can be seen in the strategy house. The roof of the house consolidates KMD’s overall financial target, namely that revenue should grow to more than DKK 4 billion in 2010. As a sub-target, KMD is aiming to generate DKK 1.5 billion from our growth areas in 2009. Beneath the roof there are also a number of subconsiderations concerning our efforts in the three markets: the local government market, the central government market, and the private market.

The two columns inside the house constitute the focus areas of the business. In order to simplify the illustration, we have decided to divide them into the main groups “KMD Classic” and “KMD New”. Classic covers our ERP concept and services to KMD’s largest market, the local government market, while New concerns the focus on IT outsourcing, Business Process Outsourcing (BPO) and Application Management.

The horizontal bars constitute the foundations of the company; elements that must be in order before KMD can expect to successfully implement the strategy. We need to improve at standardising, and we need to be able to recruit and retain the right employees. We consider the latter as crucial for our success in the coming years.

Structure
We assess the strategy from two different angles. Firstly, we examine the strategy viewed from the three key markets in which we operate. Then we scrutinise a number of sections of KMD’s business, picking up on the strategic focus areas from the strategy house.

For all sections relating to the strategy we have tables detailing the specific objectives for 2008 together with a follow-up on those objectives.

For 2009 we have decided not to draw up tables of detailed objectives. Instead, we focus on KMD in the future under new ownership in a separate section that gives an overview of KMD’s expectations for 2009 and how we intend to work with the strategic areas going forward.

Happy reading!