Business concept, objectives and strategies

From a shareholder's perspective, Cybercom's main task is to form the foundation for value development in the company; from here, the company's business concept, vision, objectives, and strategies are formulated.

Business concept

With customers and partners, Cybercom creates businesses on the leading edge of technology.

Vision

By being the natural, obvious choice for deliveries of business-critical solutions within telecom and leading technologies, Cybercom will take market shares in other sectors.

General, overall objectives

Cybercom's long-term operational objectives are to:

• Hold a leading telecom market position and to be one of the three top-of-mind choices among customers on those markets in which Cybercom chose to concentrate
• Hold an established position as a leading cross-industry supplier of selected, cutting-edge skills and technologies; consequently Cybercom's business will spread to sectors outside telecom
• Be an established offshore supplier, with 15-20% of sales from such contracts
• Have a larger internationalised operation, particularly in the Nordics and the UK, via locally established operations
• Have a recognised brand among customers, employees, and the labour market - as a top-notch company - thanks to the Driven by sense communications/message platform

Financial objective

• Cybercom's long-term financial objective is to report a 15% operating margin.

Objective fulfilment in 2006

In 2006, Cybercom established a joint venture with Datamatics in Mumbai, India. This is aligned with the company's objective to become an established offshore supplier.

Acquisition of Varchar, an IT consultancy in the Öresund region, gave Cybercom valuable .Net expertise and several new customer contacts in the region.

Cybercom delivers turnkey projects and consulting services. The percentage of turnkey projects reached 46% of sales and provided a stable revenue stream.

Cybercom reached its projected 10% operating margin, which was aligned with its objectives.

Strategies

Cybercom will achieve its objectives by working from strategies that are focused on technologies, growth, and telecom. The strategies also cover expanded services to several market segments and geographic areas. Cybercom will be managed in alignment with these main strategies:

• Strong positioning via expanded customer bases outside telecom and inside areas in which synergies exist with telecom deals, e.g., portals and embedded systems
• Expanded telecom deals - so that Cybercom can differentiate itself from other, mid-sized IT service providers that operate on the same market
• Extension of the service portfolio with at least one new customer proposition - either via development of cutting-edge competence or via acquisitions of companies with complementary service portfolios
• Enhanced profile and attractive to customers, employees, and the labour market - via brand-strengthening activities
• Strengthened delivery capabilities via development of Cybercom's offshore joint venture with Datamatics, its partner in India
• Create conditions for deliveries of customer propositions in several of our core areas within all prioritised regions: Stockholm, Malmö, Copenhagen, London, and Mumbai
• Fewer operations in regions that do not provide critical mass

Cybercom's strategic position

The model shows that the company can earn money by either dominating a sector, i.e., positions itself to the right of the curve - or by specialising in a limited niche - a position to the left of the curve.

The dangerous position, in which margins are often narrower, is when the company is a well-established niche player but is too small to be a sector leader. Today, Cybercom's core area positions the company either as a sector leader or as a strong niche player.