Nordic Morning creates digital experiences that transform businesses. We drive change for the largest enterprises and brands in the Nordics by building and running their Digital Growth Engines. Our ways of working help companies become truly customer-centric by combining our capabilities within business transformation, service design and development, technology, data-driven marketing and content.
In 2020, digitalization took a leap forward, driven by the global coronavirus pandemic and the need for businesses and societies to find new ways to connect and interact. The transformational shift toward digital has had an impact on how we sharpen our services, partner up with the best-of-breed tech companies and manage our own competence shift. This has made it possible to establish solid relationships with our clients, both existing and new, to manage and leverage the leap in digitalization that they, as well as we, are facing.
During 2020, the internal focus was to further refine our organizational setup, in order to better position the business for future profitable growth. We also carried out significant efforts to further develop a dynamic, collaborative and results-driven organizational culture, where everyone can perform at their best. The long-term target of this work is to enhance self-leadership on all levels.
The pandemic of 2020 and the need to work remotely has in many ways accelerated our cultural change, eliminating silos and boundaries within the organization.
Outlook for 2021
The digital transformation will continue to accelerate in 2021, and as the economy hopefully recovers from the effects of the pandemic, it will act as a catalyst for increased demand for our services. We will keep on driving our own development and continue our efforts to provide superior customer advice in digital transformation from a marketing perspective and continued focus on experience and growth.
The majority of financial institutions forecast a strong economic recovery in the Nordics for Q2 and onwards with a slightly later timeline for the Finnish economy. Nordic Morning is well positioned to benefit from this, having offices in both Sweden and Finland, as well as a client portfolio that spans local, Nordic, European and global companies.
As a consequence of the leap in digitalization and the positive economic outlook, organizations are looking for an advisor to challenge established ways of working, and to partner with them in driving their transformation. This means opportunities for us to build relationships with new clients, but it also brings challenges to our relationships with existing clients, where we need to broaden our position and ensure that they see us as the partner they need going forward.
In 2021, we expect our clients’ business to recover in line with the economy, but the pace of recovery will vary between industries. Given our diversified client portfolio, we have the possibility to reap the full benefit whatever the speed of this recovery.
Edita Publishing provides smart learning and legal information services for its clients. The company serves a wide range of public, private and third sector organizations. It also has a tight partnership and collaboration with the educational, legal and public sectors.
The company continued successful delivery of learning materials and training services for the education sector in Finland during 2020. Nevertheless, the net revenue of learning materials decreased as expected because 2020 was the final year of the national curriculum. Due to the COVID-19 pandemic, most Finnish schools changed to distance learning during the spring. To provide assistance in this difficult situation, Edita Publishing offered schools free use of its digital learning materials. The pandemic strongly impacted the digitalization of education, and during the fall most of the company’s educational training services were offered in a digital format.
Preparation of the new learning materials for the new Finnish education curriculum in upper secondary school, LOPS 2021, was one of the main tasks throughout the year. We have high expectations regarding the sales of these new materials over the coming years.
In the education training offering a new online course, Koulukoulu (https://koulukoulu.fi/ schoolschool in English), was published in cooperation with the Oppiva Network (https://oppivaverkosto.fi/). The course is aimed at all parents of schoolchildren in Finland with the goal being to raise overall knowledge of modern basic education among adults.
The Legal Information business segment provides online legal information services, books and training for lawyers and others who need legal information within their profession. The business segment was able to improve its results in 2020 by focusing on and streamlining its core operations. Interest in the segment's digital products, such as Edilex, grew steadily throughout the year. The potential negative effects of the pandemic on the business were avoided by making rapid changes in some areas. For example, all training sessions were successfully transformed into webinars, and new training sessions on topical themes were added.
During the fall of 2019, the company decided to dissolve the Organizations business segment and to focus on its Education and Legal Information business segments. Dissolving the Organizations segment was completed during 2020, with the final products and training services delivered during the fall.
An in-depth employee engagement survey was conducted in 2020 to help us move forward in our ongoing change journey. Its main goal is to help us focus our development based on input from the employees, leading to collaborative efforts to turn these insights into actions. According to the results, our employees have a high level of enthusiasm, with 75 percent highly motivated and excited about their work.
Outlook for 2021
Digitalization is changing the way people learn and use information both in schools and at work. Learning has become a lifelong journey. Being able to develop in a profession requires continuous training and access to digital training tools with high-quality content. This also creates a lot of new business opportunities that combine educational technology, artificial intelligence and pedagogical skills.
In 2021, there will be high expectations, especially on the new upper secondary school curriculum, LOPS 2021. We will continue initiating new product development efforts both in printed and digital training materials in order to drive growth in our Education business segment.
The Legal Information business segment will continue to focus on its core products and product development to better meet customer needs in a changing business environment, where the rise in professionals working remotely has increased the use of and demand for versatile digital products and services.
Edita Prima provides automated processes for customer-centric communication. We build and run services that enable our clients to increase their earnings by serving their existing customers better and with greater efficiency. Our clients are strong brands in Finland and the Nordic countries operating in industries such as insurance, banking, retail and travel. In addition to private companies, we serve public sector organizations that have a large customer base.
Despite a challenging economic environment, 2020 was in many ways a very successful year for Edita Prima.
The impact of the coronavirus pandemic was felt particularly in the second quarter. However, continuous services, which generate much of our revenue and are typically an integral part of our clients’ business processes, were not affected by the pandemic. Consequently, Edita Prima’s business remained fairly stable.
We achieved growth of more than 10 percent and a turnover of EUR 30 million in 2020. We gained more market share in transactional printing and signed major new and long-term client contracts.
Our client satisfaction survey conducted in November also provided encouraging feedback. The survey showed that we are recognized as experts in our field and regarded as a reliable and credible partner. Our NPS score was 50, and our overall satisfaction rating was 4.3 out of 6. We are honored to work with our excellent clients, and the survey results inspire us even more.
While the pandemic rapidly changed our ways of working in 2020, we were able to clearly see the benefits of the cultural change that had already previously begun within the Nordic Morning Group. For instance, we had been focused on setting clear goals and had adopted various methods to work more efficiently and to improve our self-leadership skills. When we then started working remotely, we immediately increased the level and frequency of our communication and emphasized the importance of collegial support.
According to the personnel surveys conducted in 2020, our employees feel they have been able to perform efficiently and use their professional expertise despite the challenges of COVID-19. Furthermore, our employees have shown great enthusiasm and improved their commitment to our six guiding principles.
As we say in our strategy, we challenge the established thinking and ways of working through people and technology. We have practiced this by investing heavily in training and competence building. In 2020, Edita Prima also made major investments in process automation and production technology.5.0.
Outlook for 2021
In 2020, organizations were forced to take a giant leap in their digital transformation. And the demand for understanding customer behavior and capturing sales opportunities in real time will continue to grow. To be successful, brands need more data-driven and customer-centric capabilities built with technology and process automation. At the same time, many industries are facing ever-increasing competition, which is placing greater demands on efficiency.
With our existing client portfolio and offerings that have a clear market demand, we look forward to taking on 2021.
Corporate governance principles
Board of Directors 31.12.2020
In the Board’s assessment, all members are independent of the company, and all members except Maija Strandberg are independent of the company’s sole shareholder, Finnish state. See the presentations of the Board members on the next page.