The evolution from a leading software integrator to a total technology & service provider
The world is in the midst of the next industrial revolution, driven by technology-based innovations. Innovations that offer opportunities and may radically alter industries, but at the same time add complexity due to the multitude of automated systems that increasingly communicate and exchange more and more data with each other.
ICT is uniquely positioned in the sweet spot of understanding the full range of sensor technology, cloud technology, data analysis and data communications necessary to help customers to seize the opportunities of this technology revolution and to support the digital transformation of its customers.
Technology-based innovations are critical to the competitive edge of ICT’s customers: getting smarter every day in every product, process or application. ICT is able to link people, technology and ideas. Moreover, ICT is able to translate new and innovative technologies into relevant business solutions, and introduce these solutions in the heart of its customers’ operations in a safe and secure manner.
Focus on smart
ICT has made clear choices in terms of the areas in which its unique range of expertise has the highest impact and where its solutions provide the highest added value for its customers. This focus enables ICT to further enhance its technological expertise and its innovative capabilities. ICT focuses on:
1) Smarter Cities – Technologies to enhance the quality and performance of urban services and at the same time reducing costs and resource consumption (sustainability).
2) Smarter Industries – Intelligent manufacturing technologies, both embedded and process automation, supporting the digital transformation and the continued robotisation of industry.
3) Smarter Health – Software solutions to enhance the exchange of data in the healthcare sector, enabling synoptic reporting and faster diagnosis.
Adding value with affordable and proven solutions
Within these focus areas, ICT services multiple industries, with multidisciplinary teams leveraging the knowledge and expertise of individual industries. In doing so, ICT combines the strength of focusing on specific areas with the learning curve in multiple industries. This is also enabling ICT to gain the scale it needs to fuel its R&D platform and stay at the forefront of technological developments. The geographical mix combines creativity in design in ICT’s core market, STRATEGY the Netherlands, and development capabilities in its near-shoring location in Bulgaria. As a result, ICT can offer repeatable and scalable innovative solutions, addressing the growing demand of its customers for affordable and proven solutions.
Mix of solutions and services
As part of its transformation into a total solutions provider, ICT focuses on growth in the total suite of capabilities: from engineering design to the operation and maintenance of delivered systems. This enables ICT to offer a wide variety of one-off products and services specified by the customer, as well as fully in-house developed software as a service, all delivered securely to customers for many years.
To offer customers the highest added value, ICT needs to adapt and respond quickly to the rapidly changing environment. It is no longer possible to innovate solely from the inside; partnering is essential to exponential innovation. In these changing market conditions, ICT collaborates intensively with customers and partners, both reputable globally operating corporations, as well as lean start-up companies embracing leading edge technologies.
Path to growth
ICT pursues growth both organically and through acquisitions. ICT has a buy and build strategy, aimed at expanding its current distinctive niche position. Acquisitions are an integral part of increasing scale or enhancing knowledge in distinctive niche areas. ICT’s growth strategy drives its mission to become the European Technology Solutions and Services provider (TSP) in defined markets, characterized by a drive to innovate and a passion for its customers.
Increasing the offering of innovative, replicable and scalable solutions in which ICT takes full integral project responsibility drives organic growth. ICT’s ability to recruit and retain the right people is critical for organic growth.
Investing in people and knowledge
Retaining and sharing knowledge increases the added value that ICT can offer its customers. That is why ICT invests longterm in the knowledge of its professionals and in their extensive expertise in customers’ operations and industries. ICT’s employees are educated and challenged on a continuous basis, helping to create an energising and inspiring environment. We encourage people to look beyond boundaries, to find new solutions and think outside the box.
Progress in 2016
In 2016, ICT made significant further progress in the execution of its strategic road map. The company completed the transition to a more customer centric business unit structure, which translated into healthy organic growth of 8%.
ICT combined its strong organic development with growth through acquisitions. In early 2016, ICT completed the acquisition of 51% of the shares in BMA, a leading Dutch healthcare software company active in the domain of obstetrics. This transaction further enhanced ICT’s position in the field of Smarter Health. At the end of the first half year of 2016, ICT acquired the water-related activities of Dynniq and in September ICT acquired Nozhup, a company active in process automation in the industry and infrastructure markets. With these acquisitions, ICT is well on track to deliver on its ambition to become one of the largest Industrial Technology players in the Netherlands, serving the global themes Smarter Industries and Smarter Cities.
Initiatives to spark entrepreneurship in the organisation have led to multiple initiatives originated at all levels and business units in the organisation. A number of these have the potential to develop into viable business propositions, such as ICT Mobile, which bundles the latest mobile technologies in the Mobile Enterprise App Platform. ICT’s focus on new business development is also reflected in our commitment to invest 1.5% of turnover in R&D. These investments, geared towards all kind of new technologies in new product market combinations, are vital to the company’s future success.
The change of the statutory name from ICT Automatisering N.V. to ICT Group N.V., was adopted by the AGM in May 2016. The new name better reflects the clear focus and the international character of the company.
Focus in 2017
In 2017, ICT will continue to focus on the further execution of the strategy, aimed at organic growth combined with add-on acquisitions. ICT aims to obtain a leading position in each of its three defined themes. Supported by the recent acquisitions, ICT has achieved a stronger position in Smarter Industries, which now represents roughly 60% of the company’s total revenue.
To support the transition from a leading software integrator to a total technology and service provider, ICT strives to increase its higher value added revenue from projects,as well as from services and licences. The latter also provides ICT with a recurring revenue stream. ICT aims to generate around 30% of its total revenue from both project and services & licences, with another 40% of its revenue from secondment.
Furthermore, ICT’s ambition is to serve its multinational clients, also at locations outside the Netherlands. This is an ambition that ICT will continue to pursue as part of its growth strategy.
The integration of acquisitions is one of ICT’s main priorities for 2017. Bringing all the professionals from the different acquisitions and their ICT colleagues together under one roof will be an element in the integration process. In 2017, the former Dynniq professionals and ICT professionals in the water infrastructure field in Groningen will be relocated to one location. This will also apply to the staff from Nozhup and the ICT professionals in Gorinchem. Raster and BMA will continue to operate under their own label, like Improve, of course in close collaboration with the group. Integration of processes and uniform systems will stimulate this collaboration and will increase efficiency. In terms of R&D and technology, ICT will continue on its path towards the next level of professionalization, focused on digital transformation.