In many cases, industrial plants are easy targets for hackers. Vulnerability management has been largely unknown in this environment, but above all, security awareness is also lacking. Companies therefore put themselves at the greatest risk of falling victim to cyber attacks, to which they are defenseless. Attackers specifically exploit this lack of awareness, as NTT Security's Global Threat Intelligence Report 2018 revealed: In Germany, the manufacturing industry accounted for 36 percent of all cyber attacks. That is, by comparison, significantly more attacks than on other industries - a strong indication that a large proportion targeted production facilities. In Switzerland, too, according to Reports from security experts the IT security of production facilities can be greatly improved.

By following five coordinated steps, manufacturing plant operators can significantly improve security, as recommended by NTT Security, a leading cyber security service provider.

1. Conduct a tool-based inventory of components. A company's production environment often contains thousands of OT (Operational Technology) components such as actuators, engineering workstations, HMIs (Human Machine Interfaces), PLCs (Programmable Logic Controllers), sensors or server-based SCADA systems. The inventory provides transparency and creates the prerequisite for efficient safety measures. It provides answers to the questions: Which OT components are actually present in the production environment? Who communicates with whom via which protocol? Which communication connections to the outside world, for example to the manufacturer, exist? Which of these are not required or not authorized? Are there uncontrolled maintenance channels?
2. Locate the security vulnerabilities of the OT components. The next step following the documentation of the existing OT infrastructure is to detect the existing vulnerabilities of the components - and to do so without disrupting the processes in the production network. Corresponding tools use real-time monitoring and analysis methods, detect deviations from expected behavior and point out security and process problems. This gives companies a good overview of the risk posed by the OT components in use.
3. Improve security with Smart Vulnerability Management. The starting point for vulnerability management is an inventory of the existing OT components. This is supplemented by a risk assessment, since each plant and the entire production environment have an individual risk profile. Companies must determine the existing risk - ideally supported by an external OT security specialist - based on a classification and evaluation of the data and processes that require protection. All further measures within the framework of a comprehensive vulnerability management strategy are then based on this, as is structured planning of the next steps to increase OT security. In doing so, it is important not to be under the illusion that all components can now be patched. Compensatory measures are often the only solution for reducing risks.
4. Deploy endpoint protection software. The use of endpoint protection software on engineering workstations and SCADA servers is recommended as a quick and efficient measure. This allows the systems to be effectively protected against malware of all kinds and cyber attacks. The software monitors all actions running on the computers and prevents potentially dangerous situations. In addition, for example, it can also determine whether there are any abnormal events in the network traffic. Here too, of course, there is a dependency on the manufacturer of the SCADA solution. Often, only approved products can be used.
5. Integrate OT security into an enterprise-wide IT security strategy. Companies need to bridge the security gap between the production world and the traditional IT world, which has extensive experience in implementing IT security. Management is responsible for overall security in the company and can delegate implementation to a Chief Information Security Officer (CISO), for example. Although the technical responsibility for the classic IT and the production systems should continue to lie with the departments, the responsibility for implementing and complying with the holistic security strategy in the company must be centralized.

"Companies are challenged to implement organizational and technical measures to significantly increase the IT security of production facilities. This includes implementing and adhering to a holistic security strategy that encompasses the traditional IT and OT worlds," says Christian Koch, Senior Manager GRC & IoT/OT at NTT Security. "Beyond that, however, manufacturers of components, sensors and machines must also take action. They need to progressively penetration test products already in use to detect vulnerabilities and proactively support customers in eliminating them. When developing new products, manufacturers must follow the security-by-design principle and involve security specialists and computer scientists in the project teams in addition to electrical engineers and engineers. This is the only way to sustainably increase the IT security of OT components in the long term."

More information: www.nttsecurity.com/ch

According to the IV-Stellen-Konferenz (IVSK), the consistently high number of reintegrations is a confirmation of the sustainable work of the IV offices - and also means responsibility and continuous further development. Behind every successful integration there are various players: employers who show openness and offer prospects; people with health restrictions who seize the opportunity offered - and finally integration consultants who mediate between employer and employee. "Our integration specialists play an essential role in the high number of jobs retained and new placements for people with health impairments," emphasizes Monika Dudle-Ammann, President of the IV Conference.

Employment agencies: Integration provides prospects

An interest in people, professional competence, excellent placement skills and a good "connection" with employers - the integration consultants need all these prerequisites for successful work. The number of job placements is collected annually from the 26 cantonal IV offices and published by the IV Office Conference. The 21,156 people who were integrated by the IV offices in 2018 include 11,925 people who were able to keep their jobs, 1,710 people who moved to a new job in the same company, and 6,887 people who found a job in a new company. In addition, 634 people with a current IV pension succeeded in gaining a foothold in the world of work thanks to IV support. This year's motto of the conference of the IV offices is also very much in the spirit of integration work: Integration provides perspectives.

Preserving as many jobs as possible through early intervention

The earlier employees' health problems are identified and the IV office is involved, the better and more quickly it can take the appropriate measures - either to maintain the existing job or to integrate the employee into a new job. The IV's early intervention measures were created for this purpose. The fact that they can often prevent job loss is also shown by the high proportion of people who are able to keep their jobs each year thanks to early intervention.

Source and further information: www.ivsk.ch

The import and export of goods is a complex subject. The Hamburg Chamber of Commerce has therefore made it its business to compile up-to-date information on the import regulations of other countries. The "K und M" is the reference work from practice for practice, which has been used for decades by the export industry, export trade and forwarding agents. It is now available in its 43rd edition. For the new edition, all information has been reviewed, supplemented in many places and changed.

Users will find a separate section for each country. This explains which accompanying documents are generally required for import into the respective country. The special features that need to be taken into account when drafting the documents are also explained. The authors have carefully researched this information, which is not always easy. Therefore, even the reference work cannot always guarantee that the information is complete. Nevertheless, "K und M" remains as up-to-date as possible: The reference work is updated by at least five regular supplements during its two-year run. In addition, the editorial team of "K und M" publishes daily updated information on the Internet. After all, only up-to-date information ensures export security.

For the new edition, the association Swiss Export has a Introductory offer:

• Book edition "K and M", 43rd edition, CHF 130.00 instead of CHF 155.00, including 5 supplements
• CD-ROM "K and M", 43rd edition, CHF 150.00 instead of 175.00, including 5 updates

Global M&A activity developed positively in 2018 with a year-on-year increase in value of 20%, while the number of transactions declined by 10% over the same period. Indecision characterized the macroeconomic and geopolitical environment in the second half of 2018, with multilateralism increasingly questioned, U.S. protectionism intensifying, and uncertainties around Brexit increasing. This macroeconomic uncertainty continues to prevail in 2019. Even though the economic situation in Switzerland remains positive, the tide can turn quickly here as well.

Increasing hesitation and procrastination in Switzerland as well

According to Deloitte's latest survey of Swiss CFOs, the Swiss economic outlook is less optimistic for the first time in over three years. This trend is confirmed in Deloitte's latest survey of Swiss boards of directors: Since summer 2018, the number of positive assessments of the economy has fallen by practically half.
M&A activity among Swiss SMEs remained stable overall in 2018 (see chart). In the second half of the year, however, the aforementioned uncertainties at both international and national level - Switzerland's relations with the EU or a possible renewed appreciation of the Swiss franc - led to a noticeable decline in transactions.

Swiss SMEs are coveted takeover targets for PE funds

This optimism is due not least to the growing interest of private equity funds in Swiss SMEs. In 2018, domestic and foreign private equity funds acquired 32 Swiss SMEs. This compares with 28 in the previous year and only 18 in 2015. After years of stability, the growing activity of Swiss funds is striking: while they were only responsible for around one-third of acquisitions of Swiss SMEs in 2017, their share already reached 44% last year. "Thanks to low interest rates and growing investment capital, private equity funds bought more small and medium-sized companies in 2018. With interest rates expected to remain low and financing conditions still favorable for funds, we expect this trend to continue in 2019," said Stephan Brücher, Partner Financial Advisory and Private Equity Leader at Deloitte Switzerland.

Preferred destinations thanks to good reputation

Swiss SMEs also stand for trust, know-how and reliability on an international level. Switzerland remains a pioneer in the development of many new technologies and Swiss SMEs are internationally recognized for their expertise in micro and medical technology, watchmaking or robotics. As in the previous year, buyers in 2018 again favored Swiss SMEs operating in the industrial sector (27 transactions), closely followed by companies in the technology, media and telecom sectors (25 transactions).

"The outlook for M&A activities of Swiss SMEs is positive overall for 2019. However, the number of transactions could decline slightly due to geopolitical tensions worldwide as well as in Europe. Swiss SMEs are valued not only for their niche expertise, but also for their great adaptability to the specifics of their home market. Despite a possible decline in M&A activity this year, SMEs, for their part, should continue to make acquisitions abroad in order to diversify their activities or strengthen their geographical presence. European companies, especially in neighboring countries and in the industrial sector, have been attractive targets for years," says Jean-François Lagassé, Partner Financial Advisory.

Source: www.deloitte.ch

One would like to assume that the term "digitalization" has actually already passed the zenith of hype. However, the 10th Unternehmensspiegel Ostschweiz, held on March 13, 2019 at the Pfalzkeller in St.Gallen, showed that digitalization will not be a change process that is ever completed. Digitization can also be understood as an umbrella term for new tools or to put it as a comparison: Digitization is the machine, and while it used to be powered by steam, innovations have led to fuel or electric drives that generate energy from diesel or the sun. Even if the machines have changed, they are still present and the process of change of the machines will probably never really be over.

Networked mousetraps

The new tools that are available, which in turn mean new ways of working or new business and customer benefits, were demonstrated by Prof. Dr. Rigo Tietz, Head of the Competence Center Strategy & Management at the Institute for Corporate Management at the University of Applied Sciences St.Gallen (IFU-FHS), using a variety of local examples: Among them were Parametric's mousetraps: companies in the food industry have strict hygiene regulations. At the same time, animal welfare regulations specify how mice must be caught and how long they may remain in the trap. Parametric's mousetraps are an Internet of Things product that detects when a mouse has been caught and only requests processing for those traps with confirmed catches. This eliminates a potentially significant number of labor hours: Even with only 3 minutes of work per mouse trap, an annual effort of several hundred hours of work time and several thousand francs of costs is incurred for 10 traps.

Something additional to something existing

In the 2017 SME Mirror of the IFU-FHS, 43% of the respondents identified digitization as an opportunity in the development and implementation of new business concepts. This is often something additional to something existing: There is a product (car) that is networked (the car can be rented via an Internet solution). The data generated through use enables optimization (the car transmits travel routes, which can be used to anticipate how many cars are needed where), and finally a business concept is enabled that is integrated into a smart, connected ecosystem (the card used to unlock the cars can also store tickets or ski tickets). This cascade shows the opportunities inherent in a digital business concept (data evaluation, mediation of supply and demand), although Rigo Tietz listed others, such as the fact that digital technologies can reduce activities and routine tasks and thus save effort and costs.

Advertising space "customized

While data security is probably not yet an issue with the aforementioned mousetraps, the monitoring of travel routes or the example of Advertima showed that there is also something unpleasant about digitization: Using visual sensors, the product looks at people in a shopping mall, for example, recognizes the person's gender and age by means of an algorithm, and displays suitable offers for this person on the advertising spaces the person walks past. The software can then "track" the person, e.g. to check whether the person subsequently asks for a displayed offer in the advertised store. For reassurance, the very strict Swiss data protection law can be mentioned here, which ensures that the individual data is deleted again immediately and only summarized "metadata" is kept and shared with the customers.

Blockchain in the real estate business

The strict Swiss regulations were also a topic in the panel discussion led by Prof. Dr. Roland Waibel, Head of IFU-FHS, between Dr. Michael Steiner, Chairman of the Executive Board of Acrevis Bank AG, St.Gallen and Domenic Kurt, CEO of Crowdli and Crowdlitoken AG, Frauenfeld, the latter company enabling investments in real estate using blockchain technology. Acrevis is investing 20 million in digitalization and automation, prioritizing the "customer interface" rather than processes: It wants to provide customers with as much freedom as possible in managing their banking transactions. As Michael Steiner explains, while it is to be expected that the longer these options are available, the more customers will demand them, what is generally the case with digitization projects is that you don't know when the time is right; when a technology will catch on. And if you are too early or too late, it hurts the company. The second issue that triggers uncertainty is that you don't know which technological solutions will prevail and survive in the long term.

Another Unternehmensspiegel Ostschweiz will take place on March 26 in Teufen, Appenzell. Source: www.fhsg.ch

People, markets and society will change fundamentally. New technologies are forcing companies to radically rethink their business models and offer enormous growth opportunities. But companies must also be able to take advantage of these opportunities. As a direct consequence, mastering the digital transformation means a huge effort, especially for existing companies. Old thought patterns and structures must be broken, and new approaches and business models must be developed. The pressure to innovate and change is becoming a continuous challenge - also for Swiss SMEs.

DigiBarometer: The most important results and findings

Against this backdrop, the Chief Digital Community (CDC), in collaboration with the Lucerne School of Information Technology, conducted the DigiBarometer for the first time in 2018 to survey the situation of Swiss SMEs with regard to digital transformation. By means of this survey, important insights into the situation of Swiss SMEs in the increasingly digitalized world could be gained, with the aim of raising awareness.

• 97 percent see digital transformation as an opportunity.
• 20 percent are successfully underway with digital transformation, 68 percent partially successful.
• 70 percent have anchored digital transformation in their corporate strategy, and 13 percent are planning to do the same.
• 49 percent have sufficient know-how internally, while 29 percent do not yet.
• Fifty-six percent gave no answer regarding the location of experts for digital transformation within the corporate structure. 24 percent mention the company management.
• 49 percent state that they have too few resources internally for digital transformation.
• 46 percent name products and services as the reaction area of digital transformation.
• 28 percent say their board of directors has a high level of knowledge, while a further 8 percent rate this as very high. This contrasts with 38 percent who rate their board of directors as having a low or very low level of knowledge.

SME boards of directors with sufficient know-how?

"Anchoring digital transformation in corporate strategy a driver of implementation success," the DigiBarometer study says of these results. And it goes on to say: "Overall, the proportion of very large companies with a strategic anchoring of digital transformation is higher than among smaller and very small companies, where there are almost no differences compared with the overall sample. Accordingly, one measure for SMEs is to take up and anchor the topic strategically, according to the study's recommendation for action.

In 58 percent of the cases, the respondents believe that their board of directors has a high or very high level of expertise in digital transformation if digital transformation is part of the corporate strategy. According to the study, this figure falls to 49 percent when the overall sample is considered. The explanation for this is that a board of directors with a high level of digital expertise will recognize digital transformation as a strategic imperative and anchor it in the strategy accordingly.

Source: www.chiefdigital.ch

Every two years, the Swiss Venture Club, a non-profit association for the promotion and support of SMEs in Switzerland, awards the Prix SVC entrepreneurship prize in various regions. On March 13, 2019, it was that time again in the Espace Mittelland region: six companies were in the final for the award and were able to present themselves to 1400 guests. Beforehand, they had prevailed in a multi-stage nomination process against 200 companies in the region. The award ceremony in the Kursaal Bern was hosted by Patrick Rohr.

Asic Robotics makes the running

First place went to the Burgdorf-based company Asic Robotics AG, led by CEO Milo Gasser. The company convinced the 16-member jury of experts in every respect. Thanks to its consistent focus on the exact needs of its customers, the company is now a leader in the field of automation solutions for all industries. From the idea, through conceptual design, to execution and commissioning, everything is carried out at the Burgdorf site. In his laudatory speech, jury president Walter Steinlin praised: "Asic Robotics has an exceptionally structured value proposition: the high-tech robots are supported from the initial contact to delivery and commissioning by the same project manager, who can rely on a consistently customer-oriented and operational workforce. This may sound simple, but it is a masterpiece of holistic management. Asic is thus sustainably and above-averagely successful." Asic Robotics employs 90 people. Milo Gasser is convinced that robotics in particular can contribute a great deal to maintaining Switzerland as a center of industry. Thanks to a high level of automation, industrial companies can continue to produce at competitive conditions in the future - and preserve jobs that would otherwise be lost due to production relocations.

Second and third place for Romantik Hotel Hornberg and Polydec SA

Second place goes to the Romantik Hotel Hornberg in Saanenmöser-Gstaad. Jury president Walter Steinlin emphasized in his laudation: "The managing couple Brigitte and Christian Hoefliger-von Siebenthal has created a strong brand with professional competence, focus on customer satisfaction, professional, prudent analysis of the market, continuous investment in infrastructure and personal enthusiasm and can thus hold its ground very successfully in a highly competitive market." Romantik Hotel Hornberg was founded in 1936 as a family business and employs 53 people.
Third place was awarded to the Biel-based company Polydec SA. Polydec SA is one of the world's leading suppliers of micro-turned parts. The company produces around half a billion high-precision parts per year for customers in the automotive, watchmaking, electrical and medical technology industries. Polydec was founded in 1985 by Claude and Jean-François Konrad. Since January 2019, Polydec SA has been led by CEO Pascal Barbezat and employs 70 people.

Other exemplary award winners

Other award winners of the evening are Domicil Bern AG, a leader in long-term care for senior citizens in the canton of Bern, the spirits producer Matter-Luginbühl AG, and Schneeberger AG Lineartechnik, a specialist in the field of linear technology. Roland Schaller, SVC Regional Manager Espace Mittelland, emphasizes: "We honor companies that belong to Switzerland's SME elite. Our focus is on exemplary companies that create jobs and help shape the Swiss economy. With the Prix SVC, we offer these companies a platform to showcase their success to the outside world. Last but not least, the attention that our award winners receive through the Prix SVC should also be an incentive for other companies."

www.swiss-venture-club.ch

Blockchain for practice: Thanks to clear structuring, numerous illustrations, practical examples and associated website access, "Blockchain" for practice provides a sound insight into the functionality and application fields of blockchain technology. In an accessible manner, a wide range of insights are conveyed for beginners as well as for advanced users.

The textbook, written by Pascal Egloff and Ernesto Turnes, is aimed at investors in cryptocurrencies and tokens, students in higher education and training, and anyone interested in learning more about the potential and functionality of blockchain technology.

"Blockchain for Practice" is available now via the website www.verlagskv.ch or available on all major retail platforms and in bookstores.

In a competitive environment where artificial intelligence, digitization and automation are causing significant upheaval, not only are workflows continuously changing, but so is who is doing the work. Executives predict an upward trend for the gig economy in particular: 79 percent worldwide expect contingent workers and freelancers to largely replace full-time employees in the coming years. That's one of the key findings of Mercer's new 2019 Global Talent Trends Study. The study provides insights into the views of more than 7,300 executives, HR professionals and employees across nine industries and 16 regions worldwide. Nearly three-quarters (73 percent) of executives worldwide predict significant disruption for their companies over the next three years. In 2018, only 26 percent predicted disruptive developments. In response to the upcoming upheavals, transformation processes are being initiated, but these entail significant HR risks. However, only one in three executives globally believes that their company is in a position to minimize such risks - and, for example, effectively reduce skills shortages or permanently overcome employee change fatigue.

Search for stability

In today's climate of uncertainty, employees are looking for stability. The study concludes that job security is one of the most important reasons worldwide why employees joined their company and the main reason why they stay. However, one in three fear that artificial intelligence and automation will replace their own jobs. One approach to giving workers a sense of security is to foster social relationships. This is also underlined by the study: employees who are healthy, financially well off and satisfied with their careers describe their role in the company as "focused on social relationships" and their work environment as "collaborative" - twice as often as employees who do not characterize themselves accordingly.

"The future of work lies in the ability to build relationships and networks and to create a work environment that appeals to today's employees. For this, it is necessary that employees have the feeling that they are not replaceable. It should also enable data-based individualization of offerings to employees. For example, corporate communications, benefits or training opportunities can be tailored to the needs and desires of employees," explains Kate Bravery, Global Leader of Career at Mercer.

Four top trends

Across all topics, the study identifies four top global trends that leading companies are pursuing in 2019:

• Align work with future value creation: Globally, 60 percent of companies plan to automate more and more workflows within the next twelve months. In terms of talent investment, executives believe job redesign has the highest potential for return on investment. This redesign also engages employees, 65 percent of whom want more clearly defined responsibilities. The challenge for HR management is to develop an integrated people strategy (an approach four times more likely to be adopted by high-growth companies) and conduct the right talent analyses to make informed decisions about the future size and structure of the organization. However, only one-third of organizations worldwide analyze the effectiveness of their talent strategies and understand the impact of building talent in-house, recruiting externally, hiring temporarily, or instead automating processes to save jobs.
• Build brand impact: For employees and job seekers, how a company conducts business and upholds its brand values matters. In a transparent world where social media is becoming increasingly relevant, the lines between a company's consumer brand and its employee value proposition (EVP) are blurring. To better reflect the contribution that temporary employees and freelancers, for example, make, many companies have evolved their EVP toward a Talent Value Proposition (TVP).The reason: successful companies want to ensure that their brand appeals to all employment groups. 68 percent of high-growth companies worldwide adjust their TVP for different groups (e.g., temporary employees), while among moderate-growth companies, only 47 percent make such adjustments. A company's total rewards philosophy is one area where brand values can shine: Successful employees are four times more likely to work for a company that provides equal treatment in pay and promotion decisions (78 percent vs. 18 percent).
• Making sense of everyday working life: A workday characterized by effectiveness and relevance is essential for retaining top talent. Successful employees are three times more likely to work for a company that enables fast decision-making (81 percent vs. 26 percent) and provides tools and resources to get work done efficiently (82 percent vs. 30 percent). Personalized and simple training plans are high on employees' minds - more than half (56 percent) of workers globally want curated training to help them develop their skills and prepare for future jobs. The concept of curated learning is nothing new. What is new, however, are its goals: The study shows that for employees worldwide, creative thinking and continuing education in technology are the most important skills to stay competitive.
• Initiate employee-based change: To ensure that employees are at the center of change, HR should have a say in business transformation. The study found that 61 percent of HR leaders worldwide are involved in planning major change projects and 54 percent are involved in implementing those plans. But only two in five HR leaders were involved during the ideation phase of transformation initiatives. HR departments see a lack of openness and commitment on the part of employees as major obstacles to the solidification of change: "Employee turnover" and a "decline in employee trust" are two of the biggest challenges worldwide in the coming months.

Source and further information: www.mercer.ch

Companies want to be more competitive in the digital economy, but are already failing to manage their data effectively. They are losing productivity and missing important opportunities, according to the results of a new study by Veritas Technologies a leading provider of enterprise data protection and software-defined storage. By contrast, if employees can access data quickly and efficiently to gain more insight, they make better, more informed decisions. Veritas commissioned a survey of IT decision-makers and data managers from 15 countries. 100 people from Switzerland also took part. The results show that weaknesses in data management have a massive impact on the efficiency of employees, their productivity and ultimately the profitability of companies. On average, employees in Switzerland lose one hour per day searching for data. As a result, their efficiency drops by an average of 14 percent.

Costs reduced thanks to smart data management

According to the study, companies that have already implemented smart data management on a day-to-day basis have been able to reduce costs and increase productivity. As many as 43 percent of respondents said they achieved savings, and as many as 61 percent said their employees have been more productive since then. "The exponential growth of data presents many opportunities for companies - but only if they can analyze their data intelligently. Unfortunately, most companies waste time and money searching for useful and crucial information in their fragmented data silos," said Thomas W. Luchetta, Country Manager Switzerland & Austria at Veritas. "Companies that put the necessary effort into maintaining their most important digital asset - their data - will have an advantage over the competition because their employees will draw more knowledge from the data and make better decisions."

Missed opportunities and lost sales

Apart from decreasing productivity, poor data management can have even more far-reaching consequences. Most Swiss respondents (88 percent) believe they have already missed valuable opportunities due to ineffective data management. In fact, 31 percent admit that their company is not taking advantage of new revenue opportunities, and as many as two in five (41 percent) say that data management challenges have caused an increase in operating costs for their companies. The following finding is particularly alarming: companies are losing more than one million Swiss francs per year due to their data management challenges.

Longer term disadvantages

Companies that do not solve their data management problems also risk longer-term disadvantages. For example, respondents say their ability to make strategic decisions will be limited (37 percent), they will be less agile (33 percent) and they will not be able to compete successfully in the marketplace (23 percent). A full 30 percent of IT decision-makers fear that their data security will be more vulnerable to threats, and another 26 percent have already found that their customers will be more dissatisfied.

"The questions of where data is and whether it is even secure are on companies' minds every day. If they can't answer these questions clearly, they will face several consequences. An organization will be less agile, face higher security risk and lower productivity, and make decisions more slowly - from the lowest to the highest levels," Luchetta continued. "To succeed in the dynamic digital economy, employees must maintain complete visibility and control over all of their data assets. Strategic data management lays the groundwork so employees will recognize opportunities and risks and unlock the value of their data."

Source and further information: www.veritas.com

In recent years, globalization and digitization have fundamentally changed the environment of many organizations. This is true not only for multinational, publicly traded corporations, but also for family businesses and other privately held companies. Like multinationals, private companies have an increasingly global presence and face increasingly complex cross-border regulatory requirements. As the study Private company global considerations for 2019 by Deloitte shows, increasing business connectivity for private companies today is both the cause of 'disruption' and an opportunity to be 'disruptive' themselves. To meet the new needs, Deloitte has now established Deloitte Private in Switzerland, alongside other offices such as in Belgium, Luxembourg and the UK.

Rising demand for advice from family offices

"We are seeing an increasing demand from private companies for more support to address their biggest challenges: they are looking for new growth opportunities, they want to benefit from digitalization, they want to ensure compliance with ever-changing complex cross-border regulations, and they want to protect themselves against risks such as cyber-attacks. Now more than ever, private companies need experienced advisors they can trust to play out globally integrated solutions locally across all disciplines," explains Karine Szegedi. She leads Deloitte Private in Switzerland and, in this capacity, has also joined the Executive Board of Deloitte Switzerland.

Instead of 20 consultants, just one point of contact

On average, family offices in Switzerland work with around 20 different advisors, including banks, tax advisors as well as those for succession planning. Deloitte Private now becomes the single point of contact, just as decision-makers of family-owned or privately held companies would like. In addition, private companies will benefit from Deloitte's local expertise in tax, mergers and acquisitions, business transformation, assurance and risk management, combined with the broad reach of its global network. According to the consultancy, it already acts for a number of private companies in the Swiss market.

Source: Deloitte

In 2018, 1,132 Initial Coin Offerings (ICOs) or Security Token Offerings (STOs) were successfully completed, twice as many as in 2017 (552 in total). This is revealed in the fourth ICO/STO report by PwC Strategy& in collaboration with the Crypto Valley Association (CVA). After crypto-crowdfunding continued its growth trajectory at the beginning of 2018 and already reached the total volume of the previous year in March 2018, the number and volume declined sharply in the second half of the year. Two startups, EOS and Telegram, generated a combined 5.8 billion as so-called "unicorns." Daniel Diemers, Head of Blockchain EMEA at PwC Strategy&: "The development shows that ICOs or STOs remain attractive from an investment strategy perspective for venture capital financing by investors. However, it also shows that a shift in thinking has taken place and investors are demanding more security and transparency."

New token models take off

With the persistent fall in the price of digital currencies towards the end of the year, the word "crypto winter" has become established in the blockchain scene. However, the declining investment volumes are not solely due to the latter. STOs are gaining popularity in the industry around cryptocurrencies. As token offerings for securities and rights in rem, STOs are not fundamentally different from ICOs; rather, they are a regulated form of them. As such, they combine several features of ICOs, for example, low barriers to entry for investors and traditional venture capital or private equity fundraising characteristics. Further, the underlying tokens bring additional financial rights such as dividends or shares and are bound by local laws and regulations such as KYC and AML.

In addition to securities, there is a discernible trend towards the tokenization of commodities such as gold, oil, etc., through to the tokenization of intangible goods (e.g. music rights). Daniel Diemers: "ICOs have often been designed as highly speculative vehicles and have attracted the attention of various regulators. Improved regulation through tokenization and recognition as securities is another step towards maturity. It is interesting to see how an industry has transformed in such a short time. In the future, it will be exciting to see which new business models will result or which will finally prevail."

Regulatory environment and infrastructure must keep pace with change

FINMA started to address the token issue early on and distinguishes between payment, usage and investment tokens. "Switzerland's progressive regulatory model together with the closer alignment of STOs with common securities laws provide a good basis for next developments in the blockchain space. We are glad to see that Switzerland continues to play a major role in a dynamic market that is shifting towards asset tokens and stablecoins," explains Daniel Haudenschild, President of the Crypto Valley Association.

In addition to increased protection, market participants are demanding new services such as flexible custody solutions, market data services, reliable rating services and research. With the rising expectations and increased regulatory requirements of STOs, the existing infrastructure, for example for trading and custody, must also evolve. Recognizing this opportunity, established exchanges and financial institutions are expanding their services in the crypto space. For example, Swiss exchange operator SIX announced in summer 2018 a platform for issuance, trading, settlement and custody of digital assets. Another Swiss bank has been approved to operate as the first global crypto custodian since January 2019.

Source: www.pwc.ch