Presentation by Gudmundur Gudmundsson, CEO at ISS Iceland at the final conference for the Measured and Mangaged Innovation Programme. Venue: Moderna Museet, Stockholm, Sweden

1. ISS Iceland
Presentation at the MMI final
conference in Stockholm
04.12.2012
Gudmundur Gudmundsson
CEO - ISS Iceland
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2. ISS Global Vision
We are going to be the world’s
greatest service organisation
Lead the industry by offering best-in-class single
services and integrated facility services (IFS).
Lead locally with leading positions in all established
markets and the ambition to quickly achieve this
position in new markets.
Lead globally with presence in all main regions and
countries.
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3. ISS World – 53 countries
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4. ISS A/S – The ISS Group
HQ in Denmark
T/O 77,6 bDKK in 2011
Number of employees ca. 535.000
4th largest private employer in the world
Knowledge sharing and technical benchmark
ISS University / ISS Academy

5. ISS Ísland ehf. – Our geographical footprint
ISS Ísland
operates
offices in
Ísafjörður Siglufjörður
Reykjavík and Húsavík
on Akureyri. Dalvík
Blönduós
Akureyri
Sauðárkrókur
Egilsstaðir
Total around Neskaupsstaður
800 Eskifjörður
Stykkishólmur Reyðarfjörður
employees
Borgarnes
Akranes
Höfuðborgarsvæðið Höfn
Reykjanesbær Hella
T/O for 2011 Sandgerði Selfoss Hvolsvöllur ISS Iceland is
3 billion ISK. Þorlákshöfn in 2011 # 128 of the
largest companies in
Vestmannaeyjar Iceland in T/O and
# 34 in employees

6. Our Values and Leadership Principles
Leadership
Each level of our organisation
must fully grasp and embody the
ISS Values in order to pass them
on to the next level
– this will require leadership
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7. Our service model
Improvement in each service area Synergies between service areas
A Efficiency and service excellence B Defining roles and cooperation
Synergies between customers Back Office Synergies
C Know-how and Best Practice D Management and coordinating
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8. Innovation…..
…an evolution of our business model – a revolution in thinking and working
What does innovation means to us and why is it important for ISS ?
• Serving our customers better than our competitors
• To be ahead and to differentiate on the market
• To run a profitable business
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9. Competitive analysis
Main Industry competition dimensions
• Solution
• Customer need
• Process
• Management
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10. ISS Radar Results
Product
(WHAT) Main focus areas
Partnership 7 Platform
• Product
• Solution
5 • Customer need
Channel Solution
• Process
3 • Management
Supply Chain Customer Need
(RELATIONSHIP) (WHO)
3
Customer
Management
Experience
5
Value
7 Communication
Capture
Process
(HOW)
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11. Service area : Property Services
Main takeaways from case exercise in DD session 2. Product chosen: Property services.
Innovation Lesson
Dimension
1) Solution • This product fits very well for many target customers.
• ISS still lacks systematic thinking on how to apply solution concept to market.
• Good discussion on opportunities for augmenting the concept with
complimentary services.
2) Customer • Product fits both existing and new customer.
Need • Market research needs to prioritize customer according to expected contribution
for ISS.
3) Customer • New target group also possible, large companies operating in real estate, often
experience owned by the banks and funds.
• Need new ways in attracking this group of customers.
4) Communi- • Need concept for attention for this product.
cation • Marketing division to come up with a plan.
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12. ISS - Iceland, Property Services – action plan for selected innovation
dimensions. NICE / MMI Project
Selected 1. Innovation vision 2. Goals 3. Milestones 4. Suited Actions 5. Lead manager
Innovation for this dimension or department
Dimension
Solution Total “one stop shopping” To lead the market by 10 new contracts per Sales effort, sales material, Property Service
solution for Real Estate market share and next 12 months and 10 knowledge build-up, educate manager
Owners and investors differentiating by service new customers for the the market, lead the
offering flexible operating offerings next 2 years professional discussion
model and high service level
within the building
Customer need A professional solution to Adjust the solution to Examining customer Meetings with customers and Business Development
operate an investment and customer needs and to needs and implementing potential customers, and Property Service
preserve a short and long get references supporting solutions participating in conferences and manager
term value for the investor the solution seminars
Customer Investment in Facilities Educate the market and In the end of 2012 we Adjust the solution to customer Business Development
experience becomes an option due to a to get customer have a reference which needs and expectations to and Property Service
“hassle free” solution from references supporting the can be used ensure positive experience manager + Marketing
ISS, preserving short and solution Measure the experience
long term value for the
investor
Communication Offer a on-line internal web Implement next 12 After 6 months the Get assistance from ISS Nordic, Business Development
solution for a “real-time” months a ISS solution for system should be in test either or both by getting experts and Property Service
information flow to the both technical and phase over and sending ours abroad manager + Marketing
customer communication system
Use Facebook, Twitter etc.
for individual and group
information sharing and
discussions
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13. Reflections on the MMI programme...
ISS Global sets rules to follow in strategic development, is more oriented on
global and local alignment on service excellence in decided service areas and
not so strong on innovation dimensions as the IR/MMI programme.
The strength of the MMI programme is the quantification of the 12 dimensions
through the Radar, and the concept of developing the action plan.
The IR/MMI concept is a comprehensive system and has helped the
management team to get a holistic view on innovation and understand that
innovation is a part of all dimensions in running the company.
Mapping the competition and analysing it with the tool was very useful
Fits well to use within our current Strategy Process.
Advantage of IR/MMI also that it involves participants “formally” (questions)
and allows them to be anonymous.
Would have liked to move to DD3 (Vision, Goals, Action Plan) immediately
after DD1.
Is an “eye opener” to importance and potential innovation areas
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14. Strategic ambition of ISS Iceland
The strategic ambition of ISS Iceland is to;
Lead FS market locally
Protect the bottom line and
To be alert for new opportunities and innovation to ensure growth.
Single service excellence is priority #1, but ISS Iceland will strive for
further developing its service offerings, aiming at Catering, Property
Service and tailor made solutions for chosen sectors, with profitability
as a guiding light.
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15. Mange tak !