Sweden’s most profitable consulting company reveals its secrets

Modulai has recently been appointed Sweden’s most profitable consulting company according to Konsultkollen 2024. With a clear hyper-niche in AI and machine learning, short sales processes, and the ability to recruit the sharpest talents, they have managed to build a strong and profitable company.

In an interview with Cinode, CEO Magnus Isenberg discusses the company’s success, their business model, and future AI trends in the consulting industry.

The company had a distinct idea from the beginning – to solve specific business problems and work with organizations where AI/ML is central to how they create value for their customers or drive their operations. Initially, they did not see themselves as a traditional consulting company, but rather as a firm focused on solving practical problems.

– Modulai was founded in 2018, and I became a part of the team in November of that year. Having spent 20 years in the consulting industry (AI, ML, analytics, editor’s note), I have a large network consisting of other founders and CEOs, which is very helpful for collaborations on concrete cases and for advice. There is always more to learn, says Magnus Isenberg, CEO of Modulai.

The client base has evolved from smaller startups to larger companies. Today, the company collaborates with some of the biggest names in industries such as finance, automotive, and technology. Among the clients are AMD, EQT, Catella, Bonnier, the Swedish National Bank, Trustly, Klarna, and Fishbrain.

Sweden’s most profitable consulting company

The consulting industry experienced strong growth during 2021 and 2022. However, 2023 has proven to be a challenging year, reveals this year’s Konsultkollen from Cinode. Despite the tough market situation, some companies have still demonstrated good profitability.

Modulai is one such example and was named Sweden’s most profitable consulting company. According to Magnus Isenberg, their hyper-niche focus is a contributing factor to their success.

– We focus exclusively on AI and machine learning and only take on projects where we can create measurable value for our clients. Our successes are partly due to our focus on extremely specialized services. But above all, it is about operational excellence – building teams with the right skills for the task, careful recruitment, and delivering the highest quality.

Modulai also collaborates with other consulting firms in cases where the scope of projects falls outside their focus. The business model is also based on fixed-price projects, which provides predictability for both the company and its clients.

Another aspect is the company’s short sales processes, where they often begin problem-solving during the sales phase.
– This allows us to get started more quickly and focus on delivering results. The fact that we have a global client base, where Sweden is seen as an affordable market, also contributes to our profitability. However, most of our clients are not based in Sweden, and they work with us because we are hyper-specialized in what we do.

Five to ten AI projects in two years

Recruiting the best talent is undoubtedly a crucial cornerstone in the development of the business. By attracting and retaining skilled employees, they can provide the expertise and creativity needed to meet market demands and drive innovation.
– We attract the best in AI and machine learning from world-leading universities. Many start with us right after graduation or after working as entrepreneurs. Working at our company means you quickly gain experience from multiple projects. Here, a consultant can have participated in between five to ten AI projects within two years, which corresponds to many years of experience in a traditional line organization, says Magnus.

They work in teams of two to four employees and deliver projects that last between six and twelve weeks.
– It’s not just about providing advice or creating POCs (proof-of-concept, editor’s note). We develop AI solutions that are put into production in large-scale environments. Our projects are always about solving concrete problems for our clients, which has been a significant factor in our success.

What trends do you see in AI, and how do they affect the consulting industry?

– AI is not new. However, interest has increased dramatically, while the capacity to deliver at a high level is still limited. We see a clear trend where companies want to use AI to create long-term competitive advantage, not just to experiment with technology. The consulting industry must adapt to this and focus more on applied solutions that can be integrated into large business processes. We see ourselves as a knowledge company that measures our success by our ability to create real new knowledge through AI. That’s why we recruit talent directly from universities.

What is the next step for Modulai? What goals and visions do you have for the future?

– We will continue to create competitive advantages for our clients through applied AI. We are already working with companies where AI is central to their business models, and our ambition is to continue expanding internationally. In 2024, we opened our first office in Basel, Switzerland, and we plan to expand into more markets. Our niche strategy has proven to be successful, and we will continue to adhere to it to maintain our profitability and quality, concludes Magnus.

^{Caption: Mattias Loxi (Cinode), Magnus Isenberg (Modulai), and Tanja Johansson (Cinode).}