How Nordomatic consolidated its business operations using Dynamics 365

Nordomatic is a leading provider of building automation solutions in the Nordic region, specializing in intelligent building management systems (BMS) that enhance energy efficiency, comfort and safety in commercial and residential properties. With a strong focus on innovation, technology and sustainability, the company has established itself as a key player in the smart buildings industry, offering a comprehensive range of services that include design, installation and maintenance of advanced control systems.

Over the years, the company has grown significantly through a series of acquisitions, orchestrated by three different private equity owners. The first owner consolidated numerous Swedish companies, establishing Nordomatic as the largest player in Sweden. The subsequent owner expanded the company’s reach into Denmark and Norway, while the latest owner continued this growth trajectory by acquiring businesses in the UK and Benelux, further solidifying its status as a significant BMS player.

This rapid expansion through multiple acquisitions brought about a major business problem: a lack of integration among the acquired entities. They faced the challenge of consolidating multiple disparate enterprise resource planning (ERP) systems, inconsistent ways of working and varied reporting standards. Many of the acquired companies were small family-owned businesses that excelled in their trade but lacked a corporate structure and business acumen. A sustainable digital transformation was thus necessary to sustain further innovation and streamline operations.

In an effort to rectify these issues, Nordomatic reached out to the EY technology consulting teams, after several unsuccessful attempts with other consultants. The goal was to develop a solution that Nordomatic truly needed, even if it meant challenging the existing methods and steering them away from outdated or non-scalable solutions.

The collaboration with the EY teams began in early 2023, and by September, Nordomatic was able to successfully launch the first version of its integrated solution, a technology platform powered by Microsoft, in Sweden. Included in the platform were products such as Microsoft Dynamics 365, Microsoft Fabric and Azure Integration Services. This initial rollout was a significant achievement, enabling the company to handle all invoicing from day one. The success continued with the implementation of the next minimum viable product (MVP) in Denmark and Norway, which went live in March 2024.

Nordomatic is now in the process of finalizing the core solution for the UK and Benelux markets. This will complete the establishment of a robust core system, allowing Nordomatic to be more agile and responsive at the local level.

When Nordomatic recognized the need for a comprehensive solution to integrate their disparate systems and consolidate their operations, they initiated the search for a consultancy that could meet their specific requirements. They reached out to various industry professionals to identify a partner capable of addressing their challenges on a multinational scale.

The criteria for selecting a technology consultancy were clear: The firm needed to have a significant presence to support Nordomatic’s operations across all their countries, a track record of successfully managing similar projects, and a deep understanding of their business needs. The goal was to find a partner that could provide more than just temporary fixes; Nordomatic was looking for a long-term relationship with a consultancy that could deliver strategic and sustainable technology solutions.

The EY teams responded swiftly to Nordomatic’s request for an initial assessment. Within a short span of four to five days, they conducted a thorough review of the organization through quick interviews and evaluations. This rapid response allowed the consultants to gain a solid understanding of the situation, the challenges and the potential path forward.

The main drivers for this digital transformation project were as follows:

• A global template supporting the buy-and-build strategy
• The need to achieve economies of scale through harmonized processes

Though the initial scope from the previous advisors was to implement a new enterprise resource planning (ERP) platform all at once in the three markets, the EY teams recommended sticking to an MVP approach, with a focus on Sweden first. Their proposal and approach resonated with Nordomatic, not only because of the EY teams’ quick grasp of the issues at hand but also due to their extensive experience in the field. It was a collaborative effort, with EY strategy and transaction, and technology delivery models merging to provide an efficient solution powered by Microsoft Dynamics 365.

The credibility and trust they inspired in Nordomatic were instrumental in establishing the foundation for a collaboration. Throughout this transformative journey, the EY teams played a crucial role in not just executing tasks but also providing strategic guidance to navigate through the challenges and achieve Nordomatic’s integration goals.

The sustainable technology solution unlocked tremendous benefits for the client as they scaled through several mergers and acquisitions.

Nordomatic's journey through digital transformation was not without its challenges. The ambitious project had to be stalled in its initial phases, unable to move past the user acceptance testing (UAT) phase. It was then that the EY technology consulting teams were called upon to steer the project back on course. They had to first rebuild trust within an organization weary from past setbacks. By positioning themselves as trusted advisors rather than mere consultants, the EY professionals were able to establish a foundation of trust that would be instrumental in the project’s success.

The EY teams worked closely with Nordomatic to help ensure knowledge retention and continuity. This collaboration was key to maintaining momentum throughout the project lifecycle. The EY teams’ understanding of Nordomatic’s business environment, including its growth through acquisitions and the need for a sustainable technology solution, set them apart. They applied Nordomatic's approach of balancing stability with adaptability, ensuring a strong foundation while remaining open to change. By creating harmonized processes and shared IT services through similar ERP transformations, the EY technology consulting teams can help achieve growth for other private equity portfolio companies as well.

The outcomes of the EY teams’ intervention were significant. Processes were harmonized and consolidated, manual transactions were reduced, and financial transparency was enhanced, help enabling better decision-making:

• Harmonized processes: The implementation of Microsoft Dynamics 365 allowed for streamlined management and clearer visibility into all entities, leading to better decision-making and increased value-creation.
• Improved efficiency and productivity: Employees are now able to focus on more value-added tasks rather than spending time on repetitive and time-consuming activities.
• Improved data management: Nordomatic is now able to organize and maintain all its core business data, thereby ensuring consistency, accuracy and usability across the group.
• Scalability for growth: As the business expands further, Microsoft Dynamics 365 will also be able to accommodate increased transaction volumes, additional users as well as extended functionality.

The EY technology consulting teams’ success with Nordomatic showcases the power of a strategic, phased approach, the importance of building trust and the need to tailor solutions to meet specific client needs. This led to not only a successful ERP implementation but also a stronger, more resilient Nordomatic poised for future growth.

The company recently took a significant leap forward by acquiring AME Inc., a well-established entity with a strong foothold in the US and Indian markets. This move is a clear indicator of Nordomatic’s strategic ambition to broaden its horizons and enhance its position in the global marketplace. As trusted collaborators, the EY teams look forward to contributing to Nordomatic's continued success in the near future and extending its collaboration for their digital transformation in the upcoming markets.

Johan from Nordomatic says “This implementation has laid the foundation for scalable growth. With Dynamics 365, we now have real-time access to critical data, enabling faster and more informed decision-making. This more efficient way of working has directly benefiting our customers with better service-delivery and precence. For our employees, the new systems reduce manual tasks and provide tools that make their work more efficient and they get to spend more time on the core-business and our customers.“

Learn more about Nordomatic