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1 S W E D E N S I T N E W S PA P E R S I N C E , GREATEST COMPANIES IN SWEDEN LISTED THE SWEDISH 2006 IT INDUSTRY GUIDE SWEDEN S GREATEST GUIDE TO THE IT AND TELECOM BUSINESS pa rt n e r s : p u b l i s h e d b y c o m p u t e r s w e d e n, t h e l e a d i n g h i g h t e c h p u b l i c a t i o n o f s w e d e n

2 2 THE SWEDISH IT INDUSTRY GUIDE THE SWEDISH IT INDUSTRY GUIDE 2006 ME Data Revenue: N/A 1 employee Mindbite AB Revenue: 1 MSEK 2 employees Netcliq AB Revenue: 7 MSEK 8 employees Netgiro Systems AB Revenue: 70 MSEK 40 employees Netset AB Revenue: N/A N/A employees NPC System Revenue: 17 MSEK 13 employees Operax AB QoS Control and Bandwidth Management The Swedish IT Industry Guide 2006 includes 1,402 companies, big and small. The list includes a wide range of businesses, from computer hardware and telecom equipment, to Address: Tegeluddsvägen 92, Stockholm Tel: Fax: Founded: 2000 Public Company: no Revenue: 16 MSEK Employees: 50 Category: Infrastructure/Internet, Telecommunication/Carriers Operax provides carrier grade solutions for QoS Control in Multi Service Networks where resource and policy based admission control (RACS) is required. With the Operax Bandwidth Manager, service providers and network operators can create new services rapidly and realize new revenue streams, reduce capital expenditures and increase operational efficiency. CEO, Anders Lindén I am proud to say that our customers consider Operax to be the leading vendor of solutions for QoS Control and Bandwidth Management in Multi Service Networks. Panagora Room AB Revenue: N/A 4 employees PCNET Sverige AB Revenue: 10 MSEK 3 employees pi.se AB Revenue: 55 MSEK 30 employees Port80 AB Revenue: 10 MSEK 7 employees Prosilient Technologies AB Revenue: 11 MSEK 8 employees QD System AB Revenue: 220 MSEK 61 employees QPC Svenska AB Revenue: 15 MSEK 12 employees Razor Media Revenue: 0 MSEK 0 employees RBS Comtech AB Revenue: 3 MSEK 2 employees Regit.nu / FL-Net AB Revenue: 10 MSEK 9 employees Repeatit AB Wireless Access Address: Vretenvägen 10, Solna Tel: Fax: Founded: 2001 Public Company: no Revenue: 10 MSEK Employees: 10 Category: Infrastructure/Internet REPEATIT RS/3 SYSTEM. Repeatit develops solutions for Fixed Wireless Access. The customers are network operators on local, regional and national level. RS/3 consists of three parts; the base station, the wireless modem, and the software for the radio control, network maintenance and end-user management. RS/3 is developed to meet the operators demands on reliability, optimized radiotransmission, and minimum support towards end-users. The Repeatit RS/3 system is today used by several commercial network owners in Scandinavia, Baltic, Italy, UK and Ireland. CEO, Kurt Lindström The market for wireless access networks are growing rapidly. Repeatit is the supplier in several international projects and we will together with our partners strengthen our position in the Fixed Wireless Market during Sajtkonsulterna JS AB Revenue: 2 MSEK 2 employees SBBS AB Revenue: 6 MSEK 7 employees Serenad Invest AB Revenue: N/A N/A employees SharpSMS to SMS Gateway Revenue: 2 MSEK 3 employees Shop-in-a-box sweden AB Revenue: 6 MSEK 10 employees Slash x AB Revenue: 6 MSEK 7 employees Song Networks Revenue: MSEK 800 employees Step Nordic AB Revenue: N/A 3 employees Stokab AB Address: Box 6813, Stockholm Tel: Fax: Founded: 1994 Public Company: no Revenue: 407 MSEK Employees: 138 Category: Infrastructure/Internet Provides operator-neutral IT-infrastructure The purpose of Stokab s operations and the infrastructure provided by the company is to promote economic growth and thereby stimulate the telecom market and IT development in Stockholm. Stokab has developed a fiber optic communication network within the City of Stockholm and in the Stockholm-Mälaren region. The company is competition-neutral and provides a network that is open to all operations on equal terms. Stokab is owned by the City of Stockholm. computersweden.se/itguide CEO, Staffan Lundgren Our vision is that Stokab should be a driving force for Stockholm to create an information society for all. Sun Microsystems AB Revenue: 650 MSEK 259 employees Suspiria AB Revenue: 1 MSEK 4 employees Swe.Net AB swe.net Revenue: N/A N/A employees Swedia Networks AB Revenue: MSEK employees Swedish Connection Revenue: 17 MSEK 17 employees 1,402 companies in Sydkraft Bredband AB Revenue: 121 MSEK 66 employees Syscom Sverige AB Revenue: 25 MSEK 25 employees thirteen categories carriers and web hosts, to software and game developers, to consultancies, and more. Some are small startups, others are global players Expanding, Exciting, and Extraordinary The Swedish IT business is doing very well indeed. In fact it s doing so well that some people claim we re back in the bubble days: that the IT-business is showing numbers so good that it must be heading for a crash. Like it did when the stock market collapsed five years ago. I don t agree at all. Yes, the Swedish IT and telecom market is doing very well indeed. Companies like Telia, Ericsson and WM-data are back on track, but this is in no way the same as the situation we had five years ago, in the heyday of the dotcom era. When a promise was the same as deliverance, and when the losses of today were promises of the profits of tomorrow. Today we see healthy companies doing healthy business helping their customers make money. There is one really good thing about this comparison, it shows how well the business is doing. AT COMPUTER SWEDEN, something we can see from one week to the next, is the growth of the recruitment market. And that s a very clear sign. Companies are investing in infrastructure, employing new staff and keen on new business. Experts say this situation is going to last for at least a year or two, making 2006 and 2007 good years for the Swedish high tech market. There are no signs whatsoever that they re wrong. LAST YEAR WHEN I WROTE this column, I was talking about a bright future. After the troubles in the market a few years back, business was taking off in a very nice way. One year ago we proudly listed 1,190 companies in our IT Guide. That was 309 more than the year before. This time, we have an even more impressive list: 1,402 Swedish IT and telecom companies in the listing. 212 more companies than last year. I will see you again a year from now and I m willing to bet that the number will increase even further. A VERY WARM WELCOME to the third edition of The Swedish IT Industry Guide. Lars Dahmén Editor-in-chief If you have any suggestions or comments on this guide, please send me an . The New Swedish ICT-Boom 4 5 From Swedish telecoms giant Ericsson to startup miracle Skype, from software to mobility services, Swedish ICT industries are stronger than ever. Swedish ICT management leaders offer their insights, together with industry analysis. A Well-Connected Society 6 Widespread IT infrastructure, advanced e-services and low prices for broadband access. These are some reasons why Sweden has become one of the most connected societies in the world. An introduction to the Swedish CEO 8 9 There are a few good things to know in advance when doing business with the Swedish ICT industries. We offer you an introductory guide to the Swedish CEO, making contacts and doing negotiations in Sweden. Kista Science City Stronger than Ever 12 Kista Science City is ranked second in the world of technology clusters, just after Silicon Valley. What makes a northern technology cluster work? Read and find out. Zennström a Swedish entrepreneur 14 Niklas Zennström created the ip telephony company Skype. It is based in the United Kingdom, yet he lauds the Swedish entrepreneurial spirit. Ericsson Force a Swedish Success Håkan Eriksson, CTO and Head of Research & Development at Ericsson, talks about why Sweden is an attractive location for R&D. ComputerSweden The Swedish IT Industry Guide 2006 is published by Computer Sweden IDG Sweden, Stockholm Sweden Editor-in-chief: Lars Dahmén, Project manager / Advertising: Annika Svanström, Marketing Manager: Stefan Andersson, Layout & Production: Olle Stockman, Ola Fors Copy Editor: Alannah Eames CEO IDG: Lars Dahmén Print: Scanweb, Finland

3 Sweden is a small country. With countless business opportunities. The Swedish Trade Council forms a resource for all Swedish companies who wish to boost their business development. There are 400 of us working for Sweden and Swedish business in more than 40 countries, and our burning ambition is to achieve one thing to help Swedish companies succeed in foreign markets. You can find us at 49 offi ces around the world or visit Exportrådet PO Box 240, Stockholm World Trade Center, Klarabergsviadukten 70 Tel

4 4 THE SWEDISH IT INDUSTRY GUIDE 2006 IS THERE A NEW IC The Swedish IT industry is in better shape than it has been for many years Last year continued fast on the heels of 2004 as the performance of the Swedish ICT industries maintained an impressive pace. At the start of 2006, the 12-month performance of Swedish ICT stocks demonstrated a solid performance. Record profit gains were reported across sectors. Increased investments in ICT in 2005, focused largely on infrastructure, integration and outsourcing, were being driven by global trends of increasing efficiency and productivity. In contrast to the IT boom of the late 1990s, profits more than growth stood at the center of business models. Higher demand was met by a leaner and more agile Swedish IT industry and continued market share growth and innovation by both established Swedish IT leaders and new trailblazers. A domino effect from hardware to consulting to software was helped along in part by Swedish telecom giant Ericsson, one of the main engines for Swedish ICT, powerfully completing its turnaround with record quarterly profits in both 2004 and Europe s fastest growers Sweden s IT industry earned more notices in 2005, with 48 Swedish firms among Europe s 500 fastest growers in Deloitte s Technology European Fast 500. Fastest expanding was advanced network equipment provider Switchcore, whose turnover increased by 9,706 per cent over five years, rising to fifth place on the European list. The news was also good for Swedish phenomenon Skype, whose Voice-Over-IP services attracted 54 million users in 225 countries in only two years, then attracted a successful acquisition by Ebay for between 2.6 and 4.1 billion US dollars, its co-founder Niklas Zennström joining Ebay s senior executive team. Today the IT industry is in much better shape than for many years. We see that at all levels turnover, profits, the stock market, recruiting demand, says Pelle Hallberg, Managing Director of IDC Nordic. Wireless and mobility-oriented sectors have the highest longterm momentum, Hallberg notes, while Ericsson s performance has industry wide importance: In a number of years everything will be wireless. 12-month growth of Swedish ICT stocks at start of 2006 All IT sectors 52% IT and Internet consulting 58% Software 42% Hardware and Resellers 63% All Telecom sectors 20% Tele- and data-communication 29% That s also the thinking at Ericsson, where 2005 showed a 35 percent global market share in GSM/ WCDMA technology path and a pre-tax profit of 33.3 billion Swedish kronor (SEK). Henry Sténson, Senior Vice President for Communications at Ericsson, makes it clear how much focusing the company has done in the four years since Ericsson struggled to respond to the IT bubble burst. We came into the burst of the bubble having grown 20 to 50 percent almost every year for 10 years. We were a company geared to 300 billion SEK with everything that comes with that. The focus was very much about creating market share. Operators were rewarded only for investing, and this affected the way they treated vendors. We could not see that there would be a 60 to 70 percent decline in two years. Ericsson s secret strategy Ericsson focused on two strategies. We cut 500 million SEK per week over 100 weeks. You have to focus on areas where you know you ll be alive when you come out of the tunnel. Focusing meant an intensive campaign within Ericsson to create a culture consistent with the new strategic initiatives. If there is a conflict between culture and strategy, culture wins. We must create a culture that is a driving force in the same direction as the strategy. One thousand people knowing 10 key figures is better than ten people knowing 1000 key figures. The culture change at Ericsson, Sténson points out, included re-connecting with roots going back 140 years to founder LM Ericsson. He understood that communication is a basic human need. Along with education, these are the basic tools for creating prosperity and growth. Two competitors. Intentia s CEO Bertrand Sciard, CEO and CEO of IBS, Magnus Wastenson. The company s 56,000 plus employees are extraordinarily well versed on the key pillars of the company s strategic direction. Sténson points out the results: In the last three years, we created cash flows that exceeded all 10 years before the bubble burst. Moving Eastwards Ericsson s drive for operational excellence is representative of a global trend within and outside the IT industry for faster, stronger and more effective operations. Hallberg points to a wave starting in 2002 of outsourcing of both business processes and IT services. We see a much more aggressive approach, Sténson explains. The effects have been felt among business system providers including Swedish internationals IBS and Intentia, and IT consulting firms like Tietoenator and WMdata, all reporting strong performances through Magnus Wastenson, CEO of IBS, one of the world s leaders in supply chain management (SCM) solutions, comments on a strong We see that the big volume manufacturing is moving more and more to Asia, at the same time that distribution demands are getting higher. Another big change is that a lot of top management are more involved in IT decisions, whereas it used to be more specialist driven. He continues: If you want an ROI and the right link to your strategy, then top management needs to be involved. In SCM there are big improvements to be gained through integration better customer service, better purchasing and procurement, warehousing management. The fact that companies can improve profits and reduce costs is driving a lot of investments. Not every manager has fully understood this yet, but organizations are learning fast. Increasing market demand Intentia, the mid-market enterprise resource planning (ERP) specialist, also saw a return to profitability during 2004 and In June 2005 the company announced its intention to merge with Lawson Software in the US. Intentia s CEO Bertrand Sciard notes that the company s strong industry focus, early investment in Java, and commitment to open standards are starting to pay off. He sees a steadily increasing demand on the market. We are not sure that this is a cycle, but a recent analyst survey revealed that 50 percent of mid-market companies in the US still have in-house products, 30 percent have best-of-breed applications, and only 20 percent an integrated ERP system. This is a huge number of companies facing the challenge that their software does not meet their future needs. Wireless revolution The wireless revolution made more headway thanks to Vodafone Sweden, the first in the world to offer a completely wireless office solution, with its first customer Ericsson in It made Sweden into Vodafone s global center of excellence for the mobile office, and this led to the 2005 acquisition of the Swedish division by Norwegian Telenor for 994 million SEK. Johan Svensson, Vodafone Sweden s Head of Future Product Unit, explains that when the company first began as Europolitan there were only two other operators, Tele2 and Telia. We didn t own a fixed network, we just had to take this route. We d never be here unless we had tried it. Today 20 percent of Vodafone s corporate customers are completely wireless without a fixed telephony extension, and demand for the mobile office solution is being driven by customers throughout Europe. Aaron Thomas Check out Swedish companies at the Stock Exchange Kista Science Tower northwest of Stockholm. The area is often called Silicon Valley of the North. PÄR RITTSEL


6 6 THE SWEDISH IT INDUSTRY GUIDE 2006 A Well-Connected Society A sophisticated nation where four out of five homes have Internet By almost any measure Sweden is a world-leader in ICT adoption, access, and use. Sweden ranks first on Internet in IDC s Information Society Index of 53 countries, and second overall including computer and telecom infrastructure and use, and social factors. 83 percent of the Swedish population uses Internet, and has one or more computers at home, 78 percent have Internet at home, and two-thirds of these used e-commerce in 2005, all rapidly rising figures year-on-year. In another measure of connectivity, some 40 percent of households in Sweden could connect to broadband in 2004, up from 30 percent in Households with at least two Mbitps nearly tripled during 2004, according to the most recent report of the Swedish National Post and Telecom Agency. Crucial to this has been upgrading copper nets to different xdsl technologies, along with increases in fiber infrastructures and radio networks. Huge investments from both public and private sources have been critical to establish both IT infrastructure and markets that effectively utilize them. According to a report in 2004 by IT consultancy Quantum Web, Sweden had the lowest prices for broadband access in Europe. IT usage accelerates. We are focused on many strategies and smaller initiatives, says Maria Häll, a member of the government s IT strategy group. Market shares for various broadband access forms LAN and other fixed access Cable-TV xdsl 100 % hour e-government Sweden is also a European leader in fiber connections to the home. The spread of open access networks starting with the success of Västerås, whose local broadband network was cited as the largest and most advanced open fiber-based network in the world, in winning the US Cornerstone Award in The Västerås model has been adopted by Swedish cities representing more than one-sixth of the entire population. Sweden s e-government services are the best in Europe according to the European Commission in 2005, citing the availability of services such as tax filing, VAT registration, job seeking, and new company registration. All part of Sweden s drive to provide government services 24/7 around the clock and calendar. In 2005 the Swedish government announced a new integrated approach to IT, more holistic and aware of both the implications and the drivers of an IT Society: from environmental sustainability to the effects on children, ensuring inclusiveness in society, and the potential for tomorrow s education and healthcare. Sweden s most recent IT Bill in parliament was co-authored by every single government ministry. Combining strategies We are focused on many different strategies and smaller initiatives working together to increase the use of IT infrastructure, says Maria Häll, a member of the Swedish government s IT Policy Strategy Group. All of the initiatives share the guiding principles of increasing IT infrastructure s availability, reachability and mobility (or transparency) across technology platforms, and the prioritization of the user perspective. Number of private customers in Number of private customers in Sweden with broadband Internet Number of private Share of customers households % Source: PTS ROGER WIKSTRÖM The Swedish government s policy seeks, for example, to support an available and accessible infrastructure for all Internet and service operators. Not just the copper net but also optical fiber networks must be open for competition. Seeing it from the user s perspective, Häll believes that it clarifies the need to stimulate the services, including government and public services, that will help to create higher demand for infrastructure. A key strategy is supporting common standards for municipalities and agencies to use in procuring IT systems, reducing costs and increasing effectiveness of public e-services, she explains. A new government authority, called Verva the Swedish Administrative Development Agency has been created during 2005 specifically for this purpose. Deregulation takes off Deregulated markets with multiple providers and increased diversity of technologies are proving to be highly successful in pushing forward increased IT infrastructure development and usage. This is the Swedish government s policy principle, and it is the experience of the Västerås model of competition-neutral and operator-independent urban networks. In 2000, the publicly owned city energy supplier Mälarenergi formed Sweden s first company to build and operate an open access network. Robert Kjellberg, managing director of the Mälarenergi network, explains how a lot of focus went into communicating the case to individuals and businesses across the city. Our idea was that open access networks would be very successful for two reasons. First, operators then had a powerful position in the market. Customers could not choose between services. They had no control over price, capacity, or quality, and they were tied into long contracts. Second, we saw that an open access network would be like a common airport, much more efficient. We wanted to build a common road or market square, Kjellberg emphasizes. The Västerås model Residents and businesses in Västerås have increasingly taken the time and the investment to hook up to the city network. There are 15 Internet services and up to nine Internet Service Providers competing, with prices for a 10 Mbit connection around half that for an ADSL connection anywhere else. A new influx of services from IP telephony and television to intelligent home applications has also been attracted to this enticing market of 30,000 people with 100 Mbits in two directions and low barriers to access the market. E-government and e-democracy thrive in these conditions, with many more next-generation services, in education, healthcare, media and interactivity rapidly approaching. Even mobile broadband, itself partly dependent on fiber connections between base stations, is enhanced. Aaron Thomas

7 Work Work with with the the world world leaders Developing Developing world world leading leading technologies technologies and solutions and solutions requires requires world world leading leading talent. talent. The Swedish The Swedish IT and IT telecom and telecom industry industry is the is world the world leader leader in terms in terms of technology of technology and market and market driven driven innovation. innovation. Contact Contact Invest Invest in Sweden in Sweden Agency s Agency s IT and IT telecom and telecom experts experts to ensure to ensure professional professional guidance guidance for successful for successful business business launches launches in Sweden. in Sweden. (Some* (Some* say that say Invest that Invest in Sweden in Sweden Agency Agency is the is world s the world s leading leading national national inward inward promotion promotion agency.) agency.) Amsterdam Amsterdam Beijing Beijing Copenhagen Copenhagen Düsseldorf Düsseldorf Guangzhou Guangzhou Helsinki Helsinki London London Los Angeles Los Angeles New York New York Reykjavik Reykjavik Seoul Seoul Shanghai Shanghai Stockholm Stockholm Taipei Taipei Tokyo Tokyo * According * According to a 2005 to a study 2005 by study MIGA, by a MIGA, division a division of the World of the Bank, World and Bank, GDP and Global GDP Development. Global Development.

8 8 THE SWEDISH IT INDUSTRY GUIDE 2006 An Introduction to the Anne-Charlotte Sukhia, intercultural expert explains how to do business with the Swedes Swedish business culture is frequently described with the same terms: non-hierarchical and informal, oriented to consensus and cooperation, well informed and highly productive, respectful and diplomatic. The Swedish CEO culture, it turns out, is very much consistent with this characterization. In an interview, Anne-Charlotte Sukhia, a seminar leader in intercultural communication with extensive work experience for Swedish multinationals like Ericsson, Volvo, ABB, Electrolux and Alfa Laval, offers some important aspects to keep in mind when making contacts and doing negotiations in Sweden. A reflection of an egalitarian society The CEO will reflect what the rest of the company are like, as Sweden is an egalitarian society at all levels. A CEO will not be showing off, and will usually be keeping a low profile. They also sit in their working groups and are taking decisions together. And their group will include not just people in the level next to them, but people from many levels in the company who have important knowledge to offer. They are more or less finding solutions together as a team. To be successful, a CEO has to connect to people in that way. They gain credibility through their knowledge of the company and their ability to make everyone feel included and go along with company decisions. Anyone who tried to steer from the top would find they get a reaction. What they re looking for and evaluating at meetings What CEOs will look for is what they are valued on knowledge, technical information, quality, the innovativeness and solidity of the offering, and delivery dates of course. And they will look at the background of the company they are meeting, be interested in other customers experiences with that company, and they will follow that up. The Swedes are not the kind of people who like to go first, but instead prefer to wait and see. However, when the Swedish companies realize that something is good, then they will all go for it. The importance of the safety net Looking for safety is a very important tendency to look for others and see if they are successful, and then go in. They want to feel safe. And they will check with others. This is not a fast moving entrepreneurial society, Swedes put a lot of time and thought into their decisions. One reason for this is that this is a country with a small population but with many huge multinational companies. These companies are not new, they have been around for 100 years at least. And so there were a lot of employees, not entrepreneurs, and people s parents were not entrepreneurs; when you are an employee, then you go for safety. So the entrepreneurial culture has not been here for such a long time. Yet Swedes are very advanced in new technology, and the IT sector includes new generations that are more entrepreneurial, but their CEOs might be older. The problem of expecting a fast decision People plan in other cultures too, but the way people plan here, it is extreme the way people organize their coming months. Therefore they can find it difficult to take quick decisions, because they work in such a planned way. If something comes up very quickly, they will find it difficult to respond quickly because they cannot so easily re-arrange their work, which they would see as unprofessional. Instead they would prefer to postpone decision making. One cannot expect a quick answer. This also has to do with the importance to the CEO of meetings and consensus. They might want more information, and come back again with questions. But occasionally CEOs might come back quicker to you of course. Delays and Swedish understatement Swedes aren t so good at replying if they don t feel they have anything concrete to say. They wait until they have information to give. This is important to remember in communicating during a decision making process. In this respect Swedes are very similar to the Japanese. You might think they are not interested but there is a lot of talking going on. Keep reminding them, perhaps with a question like, Is there anything we could talk about? Also, one has to keep in mind the Swedish practice of understatement. Often when something is put one way it can mean just the opposite. Even if they are very positive about something, they might say, Well, that looks interesting. Communicating through English It is important to remember that English is not usually their mother-tongue. Swedes are translating all the time. One should allow time and space for that. Swedes will also use English in a Swedish manner, and can come across as a little abrupt, or not very communicative. That is especially so when giving a negative answer. Watch out for a potential minefield If there is one minefield it is male chauvinism. Anything to do with male chauvinism would create total mistrust with female staff or bosses, and among men it might create shock or a little amusement because they know it is forbidden. Cutting across reporting lines Because of the way Swede take decisions, once it has been taken and the process gets going, things move very fast with a lot of delegating and entrusting of responsibilities to colleagues and subordinates. It goes very rapidly from the top level down. That is why Swedes when they are working with an international partner or customer can often find that they have cut across reporting lines, whereas here they don t think like that, but in a more practical way. They don t realize that they shouldn t have done that. It is much less formal here. Interpreting Swedish indirectness Criticism is not given directly. The indirect method is used, not straightforward comments. People will be indirect or just quiet. And in responding to direct confrontations, if anything is embarrassing, their first reaction is silence. That is a way of communicating. But silence doesn t mean this all the time: it may be in order to think something over, or they want to ponder over how to say something. They need time to think how this will affect everyone else. Negotiating with a Swede In negotiations Swedes are carrying with them the requirements for consensus and agreement in their organization. So they may well ask for adjournment and go and talk it over with themselves, often, again and again. This can make many people frustrated. But once they have gone through all that, the implementation is fast, because everyone has discussed it and is on board. Group dynamics: non-autocratic Swedish managers generally do not abuse their power. Instead he or she would try to anchor the idea into the group, and that means a lot of talking. This is the least autocratic society in the world, and even more nonhierarchical in the IT sector. Aaron Thomas

9 THE SWEDISH IT INDUSTRY GUIDE CEO Key points to keep in mind Knowledge, deliberation and careful planning are among the most valued aspects from the CEO perspective. The tendency to seek safety is strong, a lot of checking is done. Swedish CEOs prefer a modest, low-profile. Fast decisions, premature promises and overstatement shouldn t be expected. Criticism is basically never given directly. Swedish leadership skills in action on the football pitch. The football coach Lars Lagerbäck with Henrik Larsson, professional player in Barcelona. Lagerbäck has often been stereotyped as an example of the typical Swedish leader. PRESSENS BILD/MARK EARTHY

10 10 THE SWEDISH IT INDUSTRY GUIDE 2006 The Exotic Lure of the Far East Swedish universities head eastwards to market courses and research activities in China Last year marked what may be a special milestone in the long history of science and technology research cooperation between Sweden and China. Three of Sweden s most prestigious research universities, the Royal Institute of Technology (KTH), Chalmers University of Technology, and the Karolinska Institute jointly launched offices in China: at Peking University in Beijing and Fudan University in Shanghai. Their purpose: to support a long-term intensification of Sino- Swedish research ties by creating a platform for marketing the Swedish universities courses and research activities in China, boosting undergraduate and postgraduate exchanges between the two countries, as well as for the commercialization of scientific data in China and the Asian region. Historical ties continue The new increase in research and educational cooperation builds on an array of already on-going jointresearch projects between Sweden and China, with KTH numbering at least six major projects. In a recent interview, Professor Anders Flodström, the President of KTH, tells the story from its earliest days. The origin of this is due to the fact that very early on, a fair number of Chinese PhD students came to Sweden. The two main universities for this type of exchange were Karolinska and KTH. It was an early tradition compared with other European countries. In China, if you look at our centers for joint research with Chinese universities, there is always a champion promoting it. Very often it is former PhD students, who stayed behind in Sweden and got their associate professorship or full professorship in Sweden. New initiatives underway One of the major IT research projects established with KTH in recent years is the Joint Research Center for Photonics with Zhejiang University, the second largest technical university in China. The project employs around 25 people. It is quite interesting because this is a sort of way to keep a research effort going. Ericsson left this area but now they are back because they see that it can be the backbone for the mobile or seamless future, Flodström remarks. Another is the Fudan-KTH Joint Research Center on Micro/Nanoelectronics focusing on a system on a chip. Started in 2004, it is partly based at a new campus that Fudan University built in China, similar to the KTH campus in the Kista technology cluster just outside Stockholm. Both centers cover joint MSc and PhD programs in addition to the joint research programs. In answer to the question of why Sweden s science and technology education, as represented by KTH, is so highly competitive internationally, Flodström first notes the increasingly strong wave of global orientation. I would say that science and technology is an area realized by the conditions of globalization. By that I mean that we are moving away from looking at our task as enrolling the best Swedish students, and instead we are attracting European or global students. PÄR RITTSEL Royal Institute of Technology (KTH) joint-research centers with Chinese universities: Chinese University partner Research focus Zhejiang University Photonics Fudan University & Zhejiang University Micro/Nanoelectronics Systemon-a-chip Shandong University & Southeast University Sustainable Technology and Sustainable Architecture Dalian University of Technolgy Molecular Devices Tsinghua University and Zhejiang University New Energy and Nuclear power safety University of Science & Technology of China Bio and Nano-Materials Non-hierarchical. Every foreign student I meet asks how could it happen that we work in such a flat organization, says Anders Flodström. Natural born organizers Another advantage area is the Swedish talent for organization. Of course we ve always been well organized. Courses, content, the way we can put it out, it s a machine. We can use this machine in different areas quite easily. English is another reason. If you take away the US, the UK, and Australia, New Zealand and the natural English-speaking countries, Sweden is as close as you can come to this market, Flodström points out. The outcome from these various factors is that the research base in Sweden is much stronger. If I just look to KTH or academic IT research, it gives us a much stronger platform, a much stronger base, explains Flodström. Ideal for development Every foreign student I meet here on campus asks how could it happen that we work in such a flat organization with such fast communication of ideas and research. Our lack of hierarchy is possibly special, along with certain ideas of respect and responsibility. That type of working mode must be ideal for certain types of development. If you think for example of the issue of speed in that kind of environment you might be able to perform complex product development faster, concludes Flodström. Aaron Thomas


12 12 THE SWEDISH IT INDUSTRY GUIDE 2006 A bird s eye view from the top. You know how they say that when you love someone, you call them by many names, says Magdalena Bosson who prefers to avoid nicknames for Kista Science City. She sticks to its official name. Kista Science City is Stronger than Ever Magdalena Bosson: There is a great and strong technology industry here KRISTINA SAHLÉN Kista Science City Also called: Silicon Valley of the North, Wireless Valley, Mobile Valley Large ICT companies: Ericsson, Nokia, Microsoft, Sun Microsystems, Intel, Oracle, ZTE, Huawei, TietoEnator, Sony Ericsson, HP Total number of ICT companies: 350 (approx.) Research institutes: Royal Institute of Technology (KTH), IT University, Swedish Institute of Computer Science, Swedish Defence Research Agency Location: 15 minutes from Stockholm Central Station on the underground railway 15 minutes from the main Stockholm airport at Arlanda. In 2000, Sweden s Kista technology cluster ranked second in the world in a Wired Magazine survey of technology clusters, missing a tie with Silicon Valley at the top by only 1 of 16 points. Even as the global IT industry contracted after 2000, Kista s dynamism kept up an impressive pace, with employment in ICT steadily growing to a new record in 2005, propelled also by the location in 2003 of Ericsson s global headquarters to Kista. Climate breeds innovation In 2002, the Stockholm region including Kista was rated Europe s most dynamic region among 214 regions in a survey by Empirica Delasasse, and in 2003, Sweden was judged to have the best innovation climate in a survey of Europe and the US conducted by Fondazione Rosselli. Kista is now where half of Sweden s IT professionals work, and it is the Swedish home for IBM, Microsoft, Sun Microsystems, and Oracle among a growing community of more than 350 ICT companies. Here too is the IT University of Stockholm University and Sweden s Royal Institute of Technology, and one of the world s foremost computer science research institutes, the Swedish Institute of Computer Science (SICS). Kista is often referred to as the Silicon Valley of the North, Mobile Valley or Wireless Valley, yet its official name, Kista Science City, is the one that Magdalena Bosson, CEO of the triple-helix growth organization by the same name, likes. You know how they say that when you love someone, you call them by many names. Still I would say I prefer just plain Kista Science City because that is what it is: it is a science area and it is a city, not a park. It is not just for Stockholm but for all of Sweden, and beyond too, with a lot of people who come here from abroad. Of course, when they call us the Silicon Valley of the North, that is a standard that people can understand. Networking hotspot Identifying many different engines of Kista Science City s growth and dynamism, Bosson begins by emphasizing the strength of the ICT industrial community and an environment that facilitates meetings and networks. I think one of the main things that is responsible for this performance is that Kista Science City is driven by the industry. It was not born out of the university. There is a great and strong technology industry here that is very important to Kista, to the base of the economy, to development. If you compare with other technology clusters, for example Sofia Antipolis in Nice, Kista has a different kind of structure. People go out in the street, you don t have to go by car, it is very easy to meet. There are many hotspots for networking, Bosson comments. Ericsson arrival in Kista The 2003 arrival of Ericsson s global headquarters had a powerful reinforcing effect. Ericsson s presence here is very important. They are a magnet for smaller companies and also for research and universities, Bosson explains, noting also the increased internationalism of Kista. When you go out in Kista, you see Swedish and international company leaders who are working in or visiting the science city, along with government people, and students, adding a lot to both interaction and an interesting environment. Kista s historical development into a technology cluster began with the move in the 1970s of two Ericsson companies to the area. Ericsson was rapidly joined by IBM, and the clustering had begun. On the road to fame Today there is a range of formal and informal networks, focused on particular sectors and goals, that support the close collaboration of industry, academic and research institutions, and local government authorities. We have very special working methods, not just with regard to industrial development but also housing, infrastructure, and even how the signs should look. Everything is important and each organization is working on the shared goal that Kista is going to be one of the world s most famous clusters. We have worked successfully with networks, identifying more things to do to connect people, to connect functions in different organizations and companies, and getting them to work together to develop this cluster. Aaron Thomas

13 THE SWEDISH IT INDUSTRY GUIDE Technology and Innovation Clusters in Sweden Decentralization is key to country s success Kista Stockholm Stockholm is the principle center of business in Sweden so it s natural that Kista (pronounced she-sta ), Sweden s largest technology center, is located here. Just fifteen minutes north of the city center and accessible via the subway, Kista was the epicenter of Sweden s Internet boom during the late 1990s. Available office space is being filled up here once again, a positive sign for the Swedish economy. Kista is home to the Swedish headquarters of Microsoft, Oracle, Nokia, IBM, Sun, HP and Apple among some 400 other IT companies. Ericsson s international headquarters are here along with many of its R&D facilities. Overall, more than 18,000 people are employed in IT and telecom companies in Kista. Bright young minds from the Royal Institute of Technology (KTH) and Stockholm University make up the IT University here. Less than an hour away is Sweden s oldest university in Uppsala. Telematics Valley Gothenburg In terms of automotive technology and telematics (application of IT to vehicles), Gothenburg takes center stage. The region is home to major players like Volvo Cars, Saab, Daimlerchrysler, SKF, and Mitsubishi. Companies of many sizes that are focused on supplying the automotive industry are also present. Brain power and young talent are supplied by the newly formed IT University, Chalmers University of Technology, and Gothenburg University. Additionally, telematics research is being conducted all over the country. Microwave Road Gothenburg The stretch of road on Riksväg 40, from Gothenburg to Borås and Jönköping has been dubbed Microwave Road. A regional platform to develop microwave technology has been created which emphasizes collaboration between technology firms, public organizations, research groups, and universities. More than 25 companies work within the platform including Saab Ericsson Space AB. Ideon Lund Lund University in southern Sweden is one of Sweden s two major universities. Around this knowledge center, Ideon was founded in 1983 and is partly owned by the university. This is the oldest research center in Scandinavia and home to around 165 companies. The Lund Institute of Technology nearby boasts around 6,000 students. Companies located at Ideon include Ericsson Mobile Communications, TietoEnator R&D Services, Axis, Qliktech, and Framfab. The Danish and Swedish governments are actively cooperating at both regional and national levels to promote the Øresund Region, making up southern Sweden and Eastern Denmark. The Øresund IT Academy, supported by the region s fourteen universities, is an independent membership organization and part of the Øresund Science Region. Telecom City Karlskrona Located in the Karlskrona and Ronneby region in southeast Sweden, Swedish Industrial Design Foundation The Swedish Industrial Design Foundation, SVID, aims to improve the awareness within the private and public sectors of the importance of design as a competitive tool. Gothenburg Malmö Borås Jönköping Lund Växjö Ronneby Örebro Linköping Karlskrona Telecom City is an environment that supports new companies that work with the converging fields of telecommunications, mobility, and the Internet. Shifting from heavy industry to high tech, the region has created more than 3,000 new IT jobs in five years and around 20 percent of the workforce is currently employed in the IT and telecommunications industry. Companies active in the region include Ericsson, Sun, Flextronics, HP, and Europolitan. The Blenkinge Institute of Technology boasts some 5,000 students whose main campus is part of Ronneby s Softcenter tech park. Mjärdevi Science Park Linköping The Mjärdevi Science Park in the city of Linköping (pronounced lin-shugh-ping ) consists of more than 180 companies and 4,000 Härnösand Gävle Umeå employees with a focus in telecommunications, software and systems development, electronics, Kista/ Stockholm home communication, and vehicle safety. Stressing its location in central Sweden, in between Stockholm, Gothenburg, and Copenhagen, the park offers a Soft Landing Program to attract foreign companies and help them do business in Sweden successfully. Internet Bay Umeå/Luleå Just as with Denmark in the south, Sweden is cooperating with Finland in the north to promote technology development. The area extends from Umeå and Luleå in Sweden to Oulu and Vaasa in Finland and surprisingly encompasses more than a million inhabitants, seven institutions of higher learning, and 70,000 students. The Bothnian Arc Initiative unites seven Swedish municipalities and five Finnish ones. Gävleborg Region Luleå Tech Parks Design Centers Gävle The county of Gävleborg has a cluster that is doing work in mobile base station development and manufacturing. Ericsson and other tech leaders perform R&D and testing here in radio technology and fiber optics. Brandon Wick Grow your business with Anoto functionality Our mission is to drive the revolution in the capture and processing of text and images. We will enable our partners to market and develop intuitive and personal products & services that unite analog and digital functionality. Public Company: The Anoto share is traded on the Attract 40-list of the Stockholm Stock Exchange (SAX) under the ticker ANOT. Revenue: 113 M SEK (2005) No of employees: Approx. 110 CEO: Örjan Johansson Anoto Group AB is a Swedish hi-tech company with unique solutions for transmission of handwritten text from paper to digital media and scanning of printed text. The Anoto Group has offices in Lund (HQ), Stockholm, Boston, Oakland and Tokyo. Emdalavägen 18, SE LUND Tel: Fax:

14 14 THE SWEDISH IT INDUSTRY GUIDE 2006 How to turn ideas inside out Chalmers is one of Europe's leading universities of technology. We combine a passion for research with an ability to transform concept into commerce. Sound ethics, creative science and a burning desire to contribute to a sustainable society all add up to good business. Is there a better incentive to bring innovations to market? Let everyone know your company is a vital part of the Swedish IT industry. Sign up right now for your contribution to next year s issue of The Swedish IT Industry Guide. computersweden.se/itguide Niklas Zennström Home-Grown Entrepreneur He wants to turn Skype into the world s largest internet company Probably no Swedish entrepreneur has been the object of more publicity recently than Niklas Zennström. Using his proprietary protocol, he created the ip telephony company Skype. His company is based in the United Kingdom, yet he lauds the Swedish entrepreneurial spirit. Here we meet him for an interview. What s your take on the Swedish entrepreneurial spirit? Swedish entrepreneurs work hard and are very committed. They are known for successful commercialization of innovative technology, not least in IT and mobile technology. Sweden being a small country, a global mindframe is a requirement if you want to be successful. Is the entrepreneurial spirit on the rise after the low years in the early 2000 s? Yes, there is a rising trend, and that s very encouraging. What s defining it? The global success of both big and small Swedish companies from Ikea and H&M to Tradedoubler and Packetfront. How about the Swedish venture capital market? The Swedish venture capital market is much like the traditional European venture capital market. In what fields is Sweden ahead and where is the country lagging behind? Sweden is very far ahead in broadband technology, both in availability and in actual usage. Why did you choose to run your business from England? Currently, we re operating in England, Luxembourg and Estonia. Our sales and marketing department is based in England, our finance department in Luxembourg and our technology department in Estonia. We also have several sales offices in Europe, including Sweden, Germany and France. What makes Skype such a successful solution for telephony? The two main reasons are that it s very easy to use and it s free. We ve had good timing and are currently the leader in free internet telephony. What makes peer-to-peer technology efficient for this purpose? Skype s peer-to-peer technology for internet telephony is more efficient than the technology of traditional telecom and voip providers A new wave of optimism. Niklas Zennström believes that the entrepreneurial spirit in Sweden is rising once again. Developed Skype with a Danish partner because Skype technology does not require extensive maintenance of central servers. Our marginal cost is zero for each phonecall and the cost for each added user is less than 10 Swedish öre (one Euro cent). Now that the company s been acquired by Ebay, what s the next step? We re continuing to develop services and entering into new partnerships. We re simply working as usual. What Skype-related innovations can we expect? We re continously launching new innovations and partnerships. The latest service is Skype s video function. During the last few weeks, we ve also launched a partnership Skype is an internet telephony application, which Niklas Zennström developed with his Danish partner Janus Friis. It quickly became the most common application for computer-tocomputer voice calls. Last fall, Ebay acquired the company at the awesome price of 2.6 billion dollars. And if certain financial goals are met, Ebay will pay up to another 1.4 billion dollars. with Netgear to make Skype calls mobile in wireless networks, such as hotspots. Also, we ve recently started collaborating with 3. Any other plans? The plan right now is to keep running Skype and developing it. Our vision is to turn Skype into the world s largest internet company. But we re also entrepreneurs, and I m sure we ll build new companies in the future. Will there be more new technologies based on peer-to-peer? Peer-to-peer technology can be used for many technologies, not just free telephony, and I m sure the future will bring more innovative developments. Translated by Anders Lotsson ROGER VIKSTRÖM

15 THE SWEDISH IT INDUSTRY GUIDE Key terms SICS: Swedish Institute of Computer Science. Grid computing: A software architecture and security framework to enable virtualization and sharing of resources and information across organizations. SOA: A set of principles for providing software and information as loosely coupled services with standardized interfaces. P2P (or peer-topeer): A technology that enables building very large-scale, fault-tolerant, and selfmanaging distributed applications, running on heterogeneous nodes. Working together. Carlo Pompili at the Swedish Institute of Computer Science hopes to bring together Service Oriented Architectures, grid computing and peer-to-peer technology. GL BAL PÄR RITTSEL Computing Takes Off Research groups and industry share their know-how in Kista Imagine any computing resource of any type or scale processing power, storage capacity, software applications, information, etc. being available to you on a global grid, the way electricity or telephony is available to you today: just plug-in and begin. This is called global computing, and it is the working vision of a new research center launched in Sweden in 2005, by world-leading academic and industry partners including Sweden s Royal Institute of Technology, Sun Microsystems, and Microsoft. All about teamwork The Global Computing Center based in Kista, brings together some four computer science research groups and a growing list of companies that also includes Nordic telecom giant Teliasonera. One of the foremost pioneers of Grid computing, Ian Foster of the Argonne National Laboratory in Illinois US, also works with the team. Their focus is on the convergence of several major computer science technology fields, all revolutionary in themselves, into a new paradigm that should revolutionize how we see and use computing. Three fields turn into one There is a new and exciting vision for the convergence of Service Oriented Architectures (SOA), grid computing and peer-to-peer, fields which eventually most people in the industry realize are closely related. We want to take the best of these fields and put them together, explains Carlo Pompili of the Swedish Institute of Computer Science (SICS), one of the key partners in the new center. In our view, these fields have strong connections and all will cobenefit the technology vision. Ten years from now this may be one and the same area. Global computing seeks to leverage the strengths in one technology area to overcome the weaknesses of another. This means combining the interoperability benefits of SOA (web services are the best known form of SOA), the resource sharing and security models from Grid computing (or cluster computing), and the scalability, fault-tolerance and self-management features of P2P architectures (examples being Skype or Gnutella). You can see this already starting to happen today, Pompili notes. In particular, Grid computing and web services are starting to converge, with standards for web services already being adopted in Grid and vice versa. Aiming for integrated systems The goal of global computing is to provide flexible resource aggregation, where organizations can integrate systems and information internally and externally with lower cost and effort. Companies will be able to cut costs through more efficient resource usage, and value chains could be organized with greater flexibility and efficiency, further propelling the current outsourcing trend. Two major sets of opportunities identified by the Global Computing Center are the formations and management of collaborations spanning the globe, and the expansion of services to empower the mobile user by quickly and easily assembling computation resources in or close to access points. New horizons loom ahead Yet just as the Internet has enabled innovations difficult to predict beforehand, so global computing looks forward to opening a horizon that is anyone s to imagine. We are taking the initiative to actively realise this vision, says Pompili. The uniqueness of the center also relates, Pompili notes, to being the first to gather industry and academia together to realize the common vision for the convergence of these areas. Working together with industry, the focus is not just on theoretical examples but also on solving real world problems. Aaron Thomas


17 THE SWEDISH IT INDUSTRY GUIDE CSSON FORCE A Swedish Success PÄR RITTSEL The main factor for basing R&D in Sweden is efficiency Ericsson builds its success on technology leadership, and nearly one-third of its 50,000- plus employees work in research and development. In total, Ericsson employs around 16,500 R&D personnel in 16 countries worldwide, including China, Japan, Canada, Germany, and the US. Of these, around 60 percent some 10,000 Ericsson R&D personnel are based in Sweden, figures that change only slightly with the recent acquisition of Marconi in the UK. Ericsson s R&D budget is similarly weighted at 60 percent in Sweden. Why does Ericsson find Sweden so attractive as a base for most of its R&D activities? Håkan Eriksson, CTO and Head of Research & Development at Ericsson, offers a thoroughly considered case for the decision to maintain most of the company s R&D in Sweden: There are several parameters to consider. Many people think its only about choosing the lowest costs, and the lowest costs win, he admits. Finding the market There is actually much more to this issue than a one-factor analysis, based simply on cost, can reveal. Looking at the whole equation of gains as well as costs, including factors of locations of markets, subsidies, availability of competence, security issues, regulatory frameworks, and the vital issue of operational effectiveness and time to market, can lead to a much better decision on where to locate R&D. Where is the market? There is always pressure from customers to locate some R&D there, Håkan Eriksson explains. But that is not a reason for Sweden, where Ericsson has three percent of its market. Then comes the relative issue of politics and subsidies. For example Canada and Brazil are very good at offering subsidies, Sweden not so much. On the factor of cost, the analysis of Sweden yields a fairly positive picture. In fact, Sweden is not all that Comparing advantages. Sweden is not that bad, is Håkan Eriksson s summary of the country s global competitiveness. 10,000 R&D personnel in Sweden Ericsson R&D personnel: 16,500 In Sweden: 10,000. Main sites in Sweden: Stockholm/ Kista, Gothenburg, Linköping. Ericsson granted patents: 20,000. Measures of patent leadership: bad. It is somewhere in the middle. Then you must look at the issue of competence Sweden has a good availability of competence. But that is not unique. In China they have competence too. All companies in the industry need a patent license agreement with Ericsson; clear leadership in GSM, GPRS, EDGE, WCDMA, IMS; very strong position in CDMA, WiMAX, OFDM, WLAN, and more. Considered a safe haven On security aspects, Sweden scores highly. Security is important, when it comes to IPR, or the risk of losing key people in projects. Sweden ranks high on this. Another point is the regulatory parameter why you have to do certain things in certain places. That is not a big issue in this decision, Eriksson notes. The major factor in favor of Sweden, it turns out, is based on the gains for Ericsson in the speed to market. Being a Swedish company, the main factor for basing R&D in Sweden is efficiency. We are here. We have much of our product development management, product management, and business management in Sweden. It is the shortest distance, for continuously monitoring projects or being able to change direction. The distance from decision to product-out is shorter. With a three to four month lead in product release you can get a better price. And in the end it s the margin that makes the case. The Ericsson case The case is illustrated by Eriksson using rounded numbers for Ericsson in 2004: We were about 130 billion Swedish krowns (SEK) in sales. Of that, 30 billion SEK was operating profit. 100 billion SEK was cost. Now, 70 percent of that was to buy stuff like electronics inputs for example That leaves 30 billion SEK in salaries. Of that, 50 percent is sales forces, and that will be true regardless of where you have your R&D. So now 15 billion SEK is left. If you could move it all to a low cost country, you could save half. That saves 7 billion SEK. But that is only five percent of what you started with. You might be able to get five percent back on margin with arriving early or first with your product. PÄR RITTSEL All main areas of Ericsson s R&D are represented in Sweden, although radio technologies are more concentrated in the country, while core network development is globally spread across the different research centers. In Sweden, Ericsson R&D is concentrated in the Stockholm, Gothenburg and Linköping regions, and as in other countries, Ericsson R&D is very connected to the universities, Eriksson notes. Plugged in to local system A good example is the location of a branch of the Royal Institute of Technology to Kista, just outside Stockholm. Connection to universities is an overall strategy for Ericsson, not just in Sweden. Where we have R&D we will seek to have collaboration with universities, customers, society and government. The idea is to be plugged into the local system, rather than to be isolated, Eriksson explains. Along with close ties to the Royal Institute of Technology (KTH) in Stockholm and the Chalmers University of Technology in Gothenburg, the Linköping University telecoms cluster, a rapid commute south of Stockholm, has developed closely alongside Ericsson s R&D operations. When asked about the primary goals for Ericsson R&D in and outside of Sweden, Håkan Eriksson is direct: Mobile broadband is the major focus. We have taken the first steps in 3G and increasingly the outlook is wireless in a fully fledged paradigm. The Ericsson R&D for this is happening in Sweden. We are in the lead when it comes to developing mobile broadband. We are pushing the long term evolution, targeting 100 megabits, versus today s 1 2 megabits. A lot of this, in fact it is almost only happening in Sweden, concludes Eriksson proudly. Aaron Thomas Read more about Ericsson s goal, mobile broadband: computersweden.se/c/305

18 18 THE SWEDISH IT INDUSTRY GUIDE 2006 Increased safety BodyKom from the patient, health consumer perspective: increased individual mobility in out-patient care improved methods for individual diagnoses increased safety for the patient and relatives with realtime monitoring outdoor and indoor positioning and fall detection means even higher safety based on the patient decision if he/she wants to be monitored possibility to directly transfer the information to the individual EHCR (electronic health care record) ROGER WIKSTRÖM Feeling good. Anders Björlin uses BodyKom on his own heart. A new Swedish medical technology innovation launched in 2005 will enable doctors and nurses to remotely access and monitor patients health conditions in real time, from the hospital or clinic to wherever a person is. The system, called BodyKom Series, works by providing an intelligent communications link between the medical sensors used by a patient through to the monitoring and diagnostic systems in used healthcare processes. The implications for people s quality of life, healthcare systems and budgets, are potentially enormous. Saving hospital space The BodyKom system today is primarily being applied to the care process for heart conditions, blood pressure, and diabetes, three categories that can account for 60 percent of healthcare budgets. Research on the possible impact of BodyKom projected that the new approach could save more than half of those expenses, freeing up resources and hospital beds as well as Intelligent Health IT Taking World by Storm BodyKom s medical sensors take health monitoring to yet another higher level people who would otherwise need to be regularly monitored in a hospital for days. Researchers at Karolinska University Hospital, who set up the first test groups, will follow this development in detail and report progresses. Anders Björlin, the co-founder of Stockholm-based Kiwok AB that developed BodyKom. He also points out the combination of today s trends that as populations are getting older, they are also getting healthier, with people having less need or acceptance to be in hospital care. From a patient perspective and on quality of life, one can continue to be active and in a better way take care of one s health condition. And it lowers the out pay in insurance, because a person can be at work and living a normal life, he explains. A positive future The potential benefits for healthcare processes and medical research look to be significant along many lines. The new monitoring possibilities will provide immediate and better information to nurses and doctors in cases of health emergencies, seeing information from the moment of, or even before, an event. BodyKom will also enable earlier and long-term observation of a patient s condition, crucial to establishing the correct diagnoses and medications. Researchers at Uppsala University Hospital and Karolinska-Huddinge University Hospital have also identified exciting possibilities to conduct large-scale studies of previously under-studied groups. In particular, there is a strong interest in a study on women in relation to heart failure, and to gather more exact and standardized information on conditions that have so far been difficult to observe. The whole world is watching BodyKom was developed in close partnerships with HP and its Non- Stop Server Systems, Nordic telecoms Teliasonera, the two research hospitals of Karolinska University Hospital and Uppsala Academic Hospital, and many other organizations both within and outside the world-leading Stockholm-Uppsala life sciences region. Already BodyKom is attracting attention from all over the world. The global interest is absolutely fantastic. HP has already demonstrated the system in 14 countries in Europe, Björlin notes, also describing intense activity in contacts with meditech suppliers around the world. The BodyKom solution already includes meditech parts from Germany and Australia. My partner and co-founder Björn Söderberg, CEO of Kiwok, are working on the Asian side, and we are looking forward to opening an office in Australia in the near future. Plans are also underway for early phases of implementations of BodyKom into healthcare systems in all county councils in Sweden, Finland, the UK, Germany, Spain, the US, and Canada within the next eighteen months, with more rollouts in Asia high on the agenda as well. Aaron Thomas

19 THE SWEDISH IT INDUSTRY GUIDE Pay station. Multi Lane Free Flow installation in Santiago, Chile. Leading the World on MICROWAVE ROAD Kapsch leads the development of road-tolls across the globe Halfway between Gothenburg s Telematics Valley on the West Coast and Wireless Valley in Stockholm, along the socalled Microwave Road leading through Jönköping, is where to locate the world-leading company in advanced road-toll technology Electronic Fee Collection (EFC) systems. A rapidly growing segment of the broader Intelligent Transport Systems (ITS) industry. Kapsch Traffic Com AB, part of Austrian Kapsch AG, has 70 percent of the global market share for roadside equipment and 60 percent in transponders, in markets using the only widely accepted and nonproprietary standard, CEN. Among the installations using the latest EFC systems technology, so-called Multi-Lane Free-Flow systems, with a total of 15 worldwide, Kapsch has eight of them, from Santiago, Chile to Melbourne in Australia. Early forerunner How did Kapsch Traffic Com develop its international position? Göran Nylén, Marketing & Sales Director, points to several factors and strategies, from being an early forerunner and advocate of open standards and a multi-vendor marketplace, to the strength of Swedish Göran Nylén. industries in transportation, defense and wireless. The factors most directly related to its market position are Kapsch technology performance and innovation. The most outstanding performance factor is the safety and security of EFC transactions. You want to be as sure as possible about catching violators and not making wrong fee assessment decisions. And you must provide secure revenue collection for the customer and for the payee, he explains. Here Kapsch fields uniquely robust microwave and video technologies for vehicle detection and classification (VDC), transponder identification, and vehicle registration (VR), offering highly advanced single-unit systems more compact and reliable than alternatives that need independent sensors. Enhance traffic safety Kapsch also provides comprehensive operational services for EFC systems, and is rapidly innovating new business models for customers that leverage the enormous potential of ITS. We re beginning to see now that with the amount of data and information carried in the system backbone, that this can be used for traffic safety, speed enforcement, or shared with other service providers for route planning on mobile platforms, Nylén confirms. Kapsch can provide a solution with tracking, registration, detection, and charging of vehicles. What customers need help in doing is developing the added value Secure fee collection Definitions: Multi Lane Free Flow (MLFF) EFC system enabling secure fee collection without imposing physical constraints on the road. Kapsch Traffic Com AB facts: Company established in 1991 under SAAB Combitech Group. Acquired by Kapsch in Annual turnover 60 mill EUR. Number of employees: 110. More than 7 million vehicles and 7,000 lanes of road equipped with Kapsch Traffic Com AB technology in more than 23 countries worldwide. Subsidiaries: Kapsch Traffic Com Australia. Kapsch Traffic Com Chile. Kapsch Traffic Com Malaysia. Sales office in South Africa. for citizens, to expand the benefits beyond just enjoying a better traffic solution. These could be smart Park and Ride, integration with common ticketing systems for public transportation, or using transponders for small amount purchases at other vending points such as gas stations and drive-through restaurants. Three major trends Increasing international demand for EFC systems is being propelled by three major trends, Nylén explains: the urgent infrastructure needs in many regions, the development and success of new public infrastructure financing models, and congestion charging. Massively improved infrastructure in Asia, Latin America, and Africa is seen as necessary for the growth of economies, with traditional road tolling projects generating badly needed revenues for the new infrastructure. Covering what s on the road Meanwhile in the US some 20 billion dollars of new public infrastructure projects were proposed in the past year alone, Nylén notes. The result of investment banks finding returns in this area relatively more attractive in a period of low yields on government bonds. The third trend, related more to political than financial needs, is the response to urban mobility problems, air pollution and quality of life issues, by instituting congestion charging, as is being done by an increasing number of cities worldwide. Sweden early established a leading position in ITS, based on the ATC systems for railroads in the 1980s, industrial automization and defense technologies. More relevant today is the strength of Swedish industries in the converging area of ITS, telematics and mobile applications. There is a very strong combination of companies like Saab, Scania, Volvo, Ericsson, and Telia, along with application developers like Kapsch. Together we cover what s on the road, beside the road, and in the air between. Aaron Thomas

20 20 THE SWEDISH IT INDUSTRY GUIDE ,402 great companies categorized Categories: computersweden.se/itguide Business Software/ERP Developers and providers of applications for the integration and efficient use of business information. Consulting Services Provide specialists for other companies for specific projects and other tasks on a non-permanent basis. Distributor/Reseller Distributors provide resellers with products; resellers sell them to customers. Entertainment/Games Develop and market software, web pages and devices for computer games and other forms of entertainment. Hardware Companies that develop and market hardware. Healthcare Companies with focus on the healthcare industry. Infrastructure/Internet Builders, developers and operators of networks, Internet service providers. Outsourcing/Hosting Companies that run IT operations for other companies; or host computer operations for others. Security Providers of products, services and analysis in the area of IT security and related fields Software Companies that develop and market applications for computers, handheld devices or mobile phones. Telecommunications/Carriers Provide telephone and data communications for organizations and individuals; provide telecom operators with backbone network capacity. Training Providers of training in computer-related fields for computer professionals and other staff. Wireless Companies developing wireless technologies such as mobile phones, wireless LANs and personal area networks. BUSINESS SOFTWARE/ERP 3L System AB Revenue: 42 MSEK 51 employees 3pm it AB Revenue: 3 MSEK 5 employees 5D Systemkonsult AB Revenue: 15 MSEK 15 employees Abaris AB Revenue: 80 MSEK 80 employees Accessor AB Revenue: 10 MSEK 5 employees AC-System, AnalysConsult KB Revenue: 5 MSEK 3 employees Addsystems International AB Revenue: 5 MSEK 12 employees Adfero AB Revenue: N/A 7 employees Admeta AB Revenue: 7 MSEK 12 employees Agile IT Sverige AB Revenue: 2 MSEK 3 employees Agresso AB Revenue: 300 MSEK 275 employees AILabs HB Revenue: N/A 5 employees Algori AB Revenue: 4 MSEK 5 employees AnalysConsult, AC-System Revenue: 5 MSEK 3 employees Argentum Group Revenue: 85 MSEK 100 employees Arkub AB Revenue: 6 MSEK 11 employees Ascade AB Revenue: N/A 75 employees Axadana Executive Search Revenue: N/A 10 employees Axido Consulting Revenue: 8 MSEK 7 employees Banqsoft Revenue: 90 MSEK 94 employees baxels Revenue: 2 MSEK 3 employees BI-Systems of Sweden Revenue: N/A N/A employees BM Interactive AB Revenue: 2 MSEK 3 employees Brimstone AB Revenue: 10 MSEK 9 employees Canea Consulting Group Revenue: 25 MSEK 25 employees Capitex AB Revenue: 60 MSEK 82 employees Catrel AB Revenue: 5 MSEK 5 employees ClearIT AB Address: Smidesvägen 7, Solna Tel: +46-(0) Fax: +46-(0) Founded: 2000 Public Company: no Revenue: 37 MSEK Employees: 28 Category: Business Software/ERP, Software Nordic leader in contact center software Develops and markets the Nordic s leading suite of software products for optimising interactions in contact centres. The product suite is used in customer service units and support centres handling thousands of customer interactions every day via phone, , Internet, SMS etc. The product queues, prioritises and distributes all inbound and outbound contacts in realtime. It optimises the use of personal and automated resources, and also enables the business to provide customer friendly, firstclass service. CEO, Anders Ödman Our product has a strong positive influence on cost effectiveness and customer satisfaction. Empowered customers include GE, Vodafone, E-ON, Redcats

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