IFS gets new CEO; agility and guts help it turn corner

Swedish ERP firm IFS, which until a few years ago was the fastest growing software developer in the business before the stock market bubble burst, has turned the corner on its woes, and appointed a new CEO – from the UK. Alastair Sorbie, who set up IFS in the UK in 1997, and has most recently been in charge of the company’s Europe, Middle East and Africa (EMEA) operations, takes over from Michael Hallén next month. In EMEA, Sorbie, 52, has presided over a string of successes, and has had responsibility for 70% of IFS’ revenues and 40% of its staff, making it the company’s largest division. Sorbie acknowledges that it’s been a roller coaster ride, but insists that seen against the context of IFS’ strategy and the markets, it’s been successful. “In particular, we have grown into markets like defence, for example, which was a UK initiative, and the opportunities there alone are astonishing,” he says. “We’re now the dominant player in the UK MOD and in a good position with the US. In 2006, we’ll have even more to talk about.” He also refers to growth in markets like eastern Europe. “We’re very well placed there: better than the others. We have strength in Russia, Ukraine, Turkey, Libya...” The secret: “You have to be agile,” he says, “to forge joint ventures with the likes of BAE Systems. We gave it board level focus – that’s where we’re strong. We can turn on a sixpence.” For the future, Sorbie says the current restructuring of the UK and EMEA operations, started in 2005, will continue – transferring some responsibilities to other parts of the globe, and readying the company for sustainable growth and support of its customers. He also intimates that business in the US and elsewhere is building. “We increased headcount in 2005 because we took control of subsidiaries in India and increased are presence in Sout Africa,” says Sorbie, “and we still have a strong interest in partnering.” As for technologies and markets, beyond IFS’ existing manufacturing and supply chain management coverage, he indicates upcoming moves into trade and logistics. But he adds: “We are very keen on project-based manufacturing: we are very clear about manufacturers need to move to more project-based operations in their businesses. “IFS Applications 7 will be coming out in April, and will be our single biggest product release yet, covering all areas of business – lean, supply chain, MRO, filling in some of our product gaps.” He is just as bullish over IFS’ financials. Although deferring comment until the company’s report at the end of the month, he says: “It’s ironic that we gave a profits warning of sek93k profit versus sek200k loss last year.”