Taking into account the global ecological and social challenges, including armed conflicts in Europe and Asia, and the trade relations of superpowers that has also affected Europe, it becomes clear that 2023 was a highly specific and challenging year for business around the world. The global economy has been faced with strong geopolitical tensions, and attempts to curb inflation by raising interest rates and restricting energy prices. However, despite the challenges, the technological supply chains for IT technology were stabilised.
The trends of digital transformation and green transition of business continued, though at a reduced intensity, and continued to have a strong positive impact on IT spending. Investment priorities in technology have shifted towards increasing efficacy and improving business efficiency. IT companies active on the US market slowed or reduced intensity on this market that is increasingly relying on its own IT companies and resources.
Croatia is among the EU leaders in use of the funds in the National Recovery and Resilience Plan (NRRP) and other EU sources of financing, and this has had a positive impact on IT spending. Technological solutions based on artificial intelligence (AI) and machine learning (ML) are experiencing a boom, led by ChatGPT. Most industries are exploiting or experimenting with the possibilities and scopes of AI and ML, taking advantage of expanding data sets, training algorithms and computer capacities. The increase in cyber threats and attacks has also spurred a wave of investments in cybernetic security and preparations for implementation of the NIS2 Directive.
KING ICT is bringing this year to a close with an estimated increase in revenue of approximately 10%, retained profitability, and a total of 770 employees. These figures exceed the market indicators for medium and large companies in the IT sector and are therefore encouraging. We have shown stability, resilience, the ability to adapt and the correct strategy for a large system integrator, reliable provider of a broad spectrum of IT services, solutions and products on the domestic, regional and Western European markets. Investments in long-term customer relations have brought multi-year business deals that have made it possible for the company to overcome market disturbances.
HIGHLIGHTED PROJECTS
This year, KING ICT continued expanding its business, with the opening of a new KING ICT Belgium branch office in Brussels. In early 2023, NATO selected KING ICT as one of two key cyber security partners for its operations worldwide, meaning that in 2023 and 2024 KING ICT is responsible for high priority tasks and the implementation of cutting-edge cyber security solutions for the NATO Agency.
In Split, we are currently implementing an intelligent transport system (ITS), one of the most modern in Europe, while similar ITSs have already been installed in Zadar and Šibenik, where they have proven to raise the traffic participant experience to a higher level. These projects are part of the “smart city” concept and include smart traffic lights, video surveillance, traffic reports, giving priority to public transport and emergency services, weather conditions monitoring system, and equipping the Traffic Control and Surveillance Centre.
In the retail segment, a project to implement a wireless network solution was completed for the company Studenac. This included adequate signal coverage and quality in retail locations and key business support. In cooperation with the company Končar Digital, a project to consolidate and modernise the overall ICT infrastructure of the group in ongoing for the client, Končar d.d..
Implementation of a SAP ERP solution was also successfully completed for Hrvatske šume (Croatian Forests), representing one of the largest SAP implementations in Croatia this year.
Among the many other projects carried out this year, one to highlight is the project of the company Smart Energy for Podravka. This is currently the largest investment in integrated power plants in Croatia. The project includes construction of photovoltaic plants that will secure the investor with significant savings in electricity costs while reducing greenhouse gas emissions. The project includes five photovoltaic plants one over 40 rooves.
MERGER OF THE COMPANY ALTER INFO AND INTERNAL INITIATIVES
After Omega Software, the company Alter Info also joined the KING ICT Group this year, thereby expanding the spectrum of products and services in the field of cybernetics and information security that are key for the contemporary world and business. Alter Info brings with it new consulting and programming competencies, new clients that are currently existing users of the products and services of Alter Info, and takeover of the software solution AlterRisk.
Partnership relations continued with large global corporations such as Cisco, Dell Technologies, SAP, VMware, Lenovo and Oracle, and many of these partnerships have been celebrated with awards, new recognitions, and the attainment of new competencies.
Among internal initiatives, in addition to the traditional KING ICT Academy, this year a new initiative was introduced called “KING ICT Weekend Workshops”. In this series, KING experts held free workshops on business analysis, quality assurance and programming. In a sea of corporate social responsibility activities and support for numerous educational institutions, clubs and associations, it is worthwhile mentioning how KING ICT held a teambuilding activity that resulted in the complete renovation of a classroom of the Maria Martinolića Primary School in Mali Lošinj, including a donation of 24 laptop computers and an interactive board.
Satisfied with the success of these initiatives, the growth in the number of employees, growth in revenues, and strengthening of partnerships, we are pleased to end another successful business year. Aware of the great challenges ahead, and motivated by the excellent results we have achieved, we are ready for the New Year 2024.
