Operational excellence

A partner for value creation

EVRY looks back on 2018 as another year in which it made significant operational progress. EVRY implemented organisational changes and adjustments in order to provide customers with the best possible offer, and it positioned the company for new service areas and profitable organic growth.

There are four strategic cornerstones to our ability to deliver the business outcomes desired by our customers: a focus on specific industries, a local presence combined with global capabilities, an ecosystem of partners, and integrated services from EVRY's Consulting Services, Application Services, Digital Platform Services and Fufillment Services units. Combining these elements going forward is the secret recipe for creating real business value for our customers.

EVRY’s order intake during 2018 was significant, with our order backlog totalling NOK 19.4 billion at the end of December 2018, an increase of NOK 1.4 billion from the end of 2017. This was due to some major contracts being signed, but also to a high intake of a balanced mix of smaller and medium-sized contracts and projects.

Important investments

In addition to organisational progress, EVRY invested in a number of exciting initiatives in 2018. EVRY invested heavily in new talent and recruited a range of new employees whose expertise lies in new areas of technology. The internships EVRY offers at its Innovation Hub gave talented young people the chance to try their hand at working on exciting digital questions related to real-life customer challenges. In addition to the completion of specific real-life projects, EVRY’s internship program helped EVRY to recruit new skilled employees. Its Innovation Hub focuses on attracting a diverse and broad range of expertise.

We streamlined our Consulting Services unit in 2018 by consolidating its 64 areas of expertise into seven areas. This has created a much better and more customer-oriented organisation and represents an important step towards becoming a consulting powerhouse that combines business strategy, design thinking and technology expertise.

Preferred provider of core banking and payment solutions

EVRY Financial Services continues to deliver and strengthen its position as the preferred provider of core banking and payment solutions in the Nordics, which it combines with its undisputed position as the market leader for card services. EVRY’s new contract for core banking and payment solutions with Handelsbanken was a breakthrough in Finland, but it is also pleasing to see that we are succeeding in renewing and extending agreements with our existing customers.

The renewed and extended contracts EVRY signed in the mainframe and fraud services areas with DNB, which is Norway’s largest bank, the contracts we secured with Vipps for digital invoices, and with Handelsbanken in Norway for contactless micro bank cards, and the contract renewals that EVRY secured with the SpareBank 1 Alliance and Swedbank in Norway that are more extensive in scope than previous agreements demonstrate our position as the preferred IT services partner for banks in the Nordics. Furthermore, the ATM contracts we signed with Bankomat in Sweden and Geldmaat (former GSN) in the Netherlands show that EVRY is positioned as a full-service provider of banking services and has untapped international potential. In addition to traditional banking services, we are also seeing increased interest in our services from fintechs and new start-ups as well as more demand for services related to open banking, which we expect to leverage further in the years to come.

Market leader in Norway by a good margin

Despite our business in Norway having been repositioned through the implementation of a number of strategic changes over the last few years, it continued to grow and to deliver good margins in 2018, and we retained our position as the market leader in Norway by a good margin. A more vertical industry approach has been implemented to help EVRY adapt to and meet its customers’ needs and requirements, and this has been accompanied by a more streamlined consultancy set-up that provides customers with key capabilities that combine legacy technology with expertise in new digital growth areas like cognitive solutions, artificial intelligence, robotics/automation and advanced analytics. We are continuously moving our services higher up in the value stack, meaning we are focusing more on higher margin business, such as consultancy and application services.

Our infrastructure services are nonetheless still a significant part of our business. EVRY’s position in the insurance industry has been strengthened through new long-term agreements with two leading insurance companies, Gjensidige and Storebrand, and we have leveraged our position in the public and health sectors, with this resulting in strategic achievements with the Southern and Eastern Norway Regional Health Authority and with the Norwegian Tax Administration.

High level of demand for digital expertise and IT consultants

As in Norway, EVRY’s business in Sweden has undergone a huge transformation, and as part of this some challenges have unfortunately presented themselves that have resulted in slower than anticipated progress, which has had an adverse effect on our results in Sweden. EVRY’s position in the public and health sectors in Sweden is very strong, as it is in the industrials segment as well. As this implies, the major challenges we have encountered relate to recruiting and retaining people with the right expertise in order to adapt the organisation to the market changes and trends that we are currently experiencing. The demand for digital expertise and IT consultants is at an all-time high, and the competition from start-ups, fintechs and other companies in the industry has made both retaining our employees and attracting the right mix of people in Sweden challenging. However, EVRY is working in a targeted way to ensure the business is on track to deliver in line with expectations, and we expect our business in Sweden to deliver an improved performance in 2019. The contract awarded by Bankgirot at the end of 2018 shows that EVRY has a strong standing in the Swedish market.

Strategic acquisitions

In order to complement its existing capabilities and expand its service offerings, EVRY proactively seeks to identify niche players that will be a fit with its business model and strategy, and the company is continuously on the lookout for strategic acquisitions and partnerships. In April, EVRY announced that it had entered into a definitive agreement to acquire Findwise AB, a leading Nordic provider of advanced search, advanced analytics and big data services that improves business outcomes for customers by creating solutions for search-driven and data-driven decisions. In the third quarter, it was announced that EVRY had acquired Exonor, a leading provider of strategic consultancy and support services in relation to implementing clinical IT systems. EVRY has, over the course of several years, built up a strong position in the healthcare sector, and it is continuously strengthening its focus on health technology across the Nordic region. EVRY’s acquisition of Exonor will strengthen its expertise in what is an operationally critical area for Nordic healthcare trusts and will position EVRY to meet the future need for health solutions in the healthcare sector.

Global partnerships

Technology is developing at a fast pace, and this makes in-house development a demanding and risky task. EVRY has therefore adopted a partnership model as its principal strategy in the infrastructure area. The company today has strategic collaboration agreements in cloud services with Microsoft, Google, IBM and Amazon. This means EVRY can offer its customers world-leading technology as well as processes that enable customers to transition to cloud-based solutions on the basis of their own requirements and wishes.

Information security

EVRY works to be at the forefront of developments and to implement preventive measures. In their threat assessments, the Norwegian National Security Authority and the Norwegian Police Security Service have highlighted computer network operations and cyber security threats as areas that could be used to cause significant harm. EVRY plays a significant role in terms of operating systems that are critical for society across all sectors. There is thus a clear expectation that we will deliver secure and stable operations, and EVRY works closely with suppliers and customers. Through systematic information security work EVRY has implemented the measures needed to protect the confidentiality, integrity and accessibility of data. Information security breaches can have significant consequences for both customers and EVRY. We are well-equipped to meet the constantly increasing threat level thanks to the systematic information security work we undertake in relation to customers as well as internally. EVRY recognises the importance of continuing to improve expertise in the information security area.

We have a target of helping to improve expertise both internally and in society in general. To this end, we collaborate with educational institutions and specialist networks. EVRY collaborates extensively on security matters with national and international organisations and authorities in the information security area.

Data Privacy

The EU’s new General Data Protection Regulation (GDPR) came into force in the EU on 25 May 2018 and in Norway on 20 July 2018. For the first time, data processors are subject to specific legal requirements such as record keeping, security measures and reporting.

In order to ensure compliance with the new requirements, EVRY set up a Steering Committee that included members of its management team. All levels of the organization were involved in reviewing the company’s procedures and systems for records of processing activities and accountability. EVRY’s products, software development activities, life cycle management processes and customer systems were reviewed in order to assess and meet the “Privacy by Design” requirements. Close collaboration between customers and EVRY was a key factor in this process. The executive group management team was provided with overall progress reports regarding the project on a regular basis. In the fourth quarter, an internal audit was performed to review the situation with regard to compliance objectives and activities.

EVRY has appointed several Data Protection Coordinators to support its Data Protection Officer. Mandatory GDPR training was provided to all employees and consultants in order to increase data privacy awareness and ensure the proper management of personal data. In its capacity as a as data controller, EVRY established a point of contact and procedures to support data subject requests related to the right of access, rectification and erasure, the right to restrict processing and the right to data portability.

The implementation of GDPR has not fundamentally impacted the overall risk assessment of the security of EVRY’s operations and services. EVRY is ISO27001 certified and a third-party ISAE3402 audit with attestation is performed annually to verify compliance. However, EVRY’s incident process was reviewed to ensure consistent reporting and that its handling of potential breaches is in accordance with the new legal requirements. We established a separate point of contact in addition to the existing incident response team.

EVRY requires all its sub-processors to adhere to EVRY’s Code of Conduct and Supplier Conduct Principles. A supplier qualification process that covers topics such as legal compliance, security and privacy is mandatory for all new suppliers that handle personal data as sub-processors for EVRY.

EVRY’s seven key focus areas with respect to GDPR:

GDPR has also created new business opportunities for EVRY. We assisted customers with the preparatory work needed in order to comply with the new regulation and we continue to provide value-added services. We believe that new opportunities will arise as new digital solutions make it possible for organisations’ data management capabilities to be improved. Better data management capabilities will in turn enhance data governance and data quality while creating value for businesses.

EVRY has seven key focus areas with respect to GDPR: Management and Organisation, Records of processing and Accountability, Individual Rights, Security, Supplier Management, Privacy by Design and Incident and Breach Reporting.

> Developing solutions that simplify, streamline and reduce energy and resource usage, e.g. paper and electricity

> Closing down its old data centres and moving its operations to new data centres that are some of the greenest in the world

> Recycling old computers and other equipment - both equipment that the company has used itself and by collecting other equipment

> Monitoring emissions from its own organisation and working to put in place more environmentally friendly solutions such as electronic meetings so we travel less, and making it easier for employees to take public transport or to cycle to and from work

> Buying carbon credits to offset the emissions we still produce

> Being a member of CDP, which works to give business and industry and the authorities a better overview of their impact on the environment

Climate and environment

In 2018 EVRY Financial Services and EVRY Norway followed EVRY Sweden in obtaining ISO 14001 accreditation for environmental management. This standard provides a high-quality management system with clear targets, prioritised activities and target achievement monitoring, helping EVRY to manage its environmental work in an holistic way and to integrate this as a natural part of the company’s strategic objectives.

EVRY is contributing to the creation of a low-carbon society both by cutting its own emissions and by developing solutions that reduce the impact its customers have on the environment. The climate and environment play a central role in EVRY’s Code of Conduct. The company is committed to continuously reducing its impact on the environment, and is at the forefront of developing and promoting environmentally friendly technology.

Materially lower greenhouse gas emissions

In the 2011-2016 period, EVRY reduced its greenhouse gas emissions by 50 percent. We are working in a systematic and long-term way on reducing our impact on the environment to an absolute minimum. The most important measures we take internally are energy efficiency measures, digital collaboration solutions, reducing business travel and rigorous procurement policies, as well as waste management with a high level of reuse and recycling. By developing and implementing smart IT solutions at its customers, EVRY helps to reduce the impact on the environment in a range of sectors. Good examples of this are e-prescriptions and the agreement EVRY has with Vipps that enables EVRY’s customers to distribute their invoices digitally using Vipps, which will cut the number of paper invoices by nearly 60 million in future. EVRY was also tasked by Yara (the world’s leading fertilizer company) with building a system for loading and unloading an autonomous ship. Yara chose EVRY as one of their partners for its project to create the world's first fully electric and autonomous container ship (“Yara Birkeland”), which will help cut NOx and CO2 emissions by reducing diesel-powered truck transport by around 40 000 journeys per year.

Moreover, EVRY has been chosen as a digital partner by the City of Gothenburg, as which it will work to drive forward innovation and digitalisation and will help the city communicate with its citizens in a more environmentally friendly way.

Closure of EVRY’s Data centre in Skøyen

EVRY is now at the end of the largest transition and transformation project that has ever been undertaken in the Nordic region. The project involved moving more than 5 000 servers, 3 000 very complex networks and almost 2 000 customers from old, obsolete data centres to one of the greenest, most modern data centres in the world, which is located just outside Oslo. This complex transformation process was completed without any major incidents, with EVRY maintaining operational excellence throughout the journey.

EVRY’s data centre in Skøyen was closed in 2018. Transitioning customer solutions to EVRY’s data centre in Fet and removing all the installed equipment was a major operation. EVRY has, in collaboration with Norsirk, ensured that more than 150 tonnes of lead acid batteries from EVRY’s data halls have been collected and recycled. These batteries are being disposed of environmentally and converted into lead bars and sold as a new raw material.

“Over the last couple of years we have consolidated our data centre operations and today have the market’s most environmentally friendly IT infrastructure. This has helped us to materially reduce our carbon footprint, but we want to take further steps and to become a climate-neutral company in 2019”

Per Hove

CEO

The UN’s Sustainable development Goals

The UN has established 17 sustainable development goals and EVRY is committed in its work to helping achieve these goals. EVRY is working in a targeted way on goal 13, which is about stopping climate change, and on goal 17, which is about collaborating to achieve the goals. The UN Intergovernmental Panel on Climate Change has created a scenario (RCP 2.6) in which the overall level of greenhouse gas emissions decreases by 72 percent by 2050 from 2010 levels. This is necessary to prevent global temperatures increasing by more than 2°C. EVRY is working towards a target of 1.5°C as set out in the Paris Agreement. It is therefore working to reduce its greenhouse gas emissions by 75 percent through to 2030 and by 90 percent through to 2050.

Rated “A” by the Carbon Disclosure Project

EVRY has produced and submitted climate reports to the Carbon Disclosure Project (CDP) since 2011. The CDP is an independent, non-commercial organisation that has the world’s largest database of how businesses manage, measure and report their greenhouse gas emissions. Achieving a high score from the CDP means that a company is measuring, verifying and managing its carbon emissions, for example by achieving emissions reductions by implementing programs to reduce emissions in both its direct operations and its supply chain.

In 2018 EVRY received an “A” rating for its work on reducing its own greenhouse gas emissions from the CDP. EVRY is the only IT company in the Nordic region to have been awarded this top rating in 2016, 2017 and 2018. However, the CDP rating does not take into account the additional impact that EVRY’s digital solutions and services have on society’s overall emissions. This is where EVRY can really make a difference: solutions such as e-prescriptions, digital invoices and communication, and other eco-initiatives are examples of solutions that help reduce transport and paper usage – and therefore reduce energy consumption.

Our environmental performance

Year  2018  2017  2016  2015  2014  2013  2012 
CDP scores*  A-  97  91  89  78 

*Carbon Disclosure Project (CDP) scores, which indicate companies' environmental performance.