Digital innovation capability: Switzerland still has room for improvement

In many respects, Switzerland is a top performer. But what about its digital innovation capability? A comparison with other OECD countries shows that our country is doing well, but has some catching up to do, particularly in the areas of startups and investments and patents. A new index creates better comparability.

Digital innovation capability: The top 20 OECD countries. Note: The green diamonds represent the respective value of the individual countries in the overall distribution. The dark gray diamond shows the average. On the far right is the maximum score achieved, on the far left the minimum. (Source: Deloitte, BAK Economics)

Compared with other industrialized countries, Switzerland is known to perform above average on many economic indicators. It has high competitiveness, low unemployment and low national debt. In terms of productivity, however, Switzerland is only average. Productivity growth has not only weakened in recent years, it has also been well below that of other industrialized countries. This is all the more astonishing when one considers that the influence of digitization on the world of work and society has steadily increased. The progress of digitization in recent years still seems to have had little impact on productivity statistics. One main factor for this is that they have mainly made themselves felt in the consumer sector. On the other hand, there has hardly been any widespread use of the latest digital technologies on the corporate side. Furthermore, some digital technologies are probably only at the very beginning of their development.

Index measures digital innovation capability

Despite declining productivity growth, there is little doubt that digital technologies currently offer the greatest potential to increase productivity and thus the prosperity of the population in the long term. The decisive factor, however, is how capable Switzerland and the companies based here are of innovation and how well equipped they are to exploit this potential.

To measure this, Deloitte has developed the "Digital Innovation Capability" index in collaboration with BAK Economics. This shows how Switzerland compares with other OECD countries in terms of the development, application and commercialization of digital technologies. Three pillars are at the heart of the index: talent, startups, and investments and patents.

Switzerland in 8th place - good, but not good enough?

Overall, Switzerland performs relatively well according to this index. With 51 points, it ranks 8th out of 35 OECD countries measured (see table). In other words, Switzerland performs above average, but there is still relatively much room for improvement. Above all, the gap to the first-placed USA is large. These results thus show a somewhat different picture than the well-known and much-cited innovation and competitiveness rankings, in which Switzerland has been at the top for years.

Talent: Switzerland performs very well

In terms of the first main pillar, talent, Switzerland is among the leaders. Not only does Switzerland have access to a good pool of workers, the outlook for the future is also encouraging. The study sees the reason for this in the quality of the Swiss education system. Thanks to this education system, the renowned universities and a high level of attractiveness for foreign workers, Switzerland achieves second place among all OECD countries.

According to the study, there is a need for improvement above all in STEM education (mathematics, information technology, natural sciences and technology) and in the teaching of digital skills in basic education. In terms of the number of STEM graduates, Switzerland is only OECD mediocre. Young people should be more enthusiastic about technical professions and cooperation between schools and companies should be strengthened, postulate Deloitte and BAK Economics with reference to measures already taken. In terms of the basic digital skills of employees, the index shows Switzerland only just above the OECD average. One of the reasons for this is probably the fact that ICT skills are not yet sufficiently embedded in basic education. The authors of the study call for action here, on the one hand by strengthening the understanding of technical subjects in schools in general, and on the other hand by giving IT more weight as a subject.

Start-ups: Lack of affinity for start-ups, relatively good infrastructure

The second pillar of the index, Start-ups, measures a country's entrepreneurial activity and its affinity for entrepreneurship. Here, Switzerland scores mediocre - at 17th place, it is exactly in line with the OECD average. The main factors here are the lack of affinity for start-ups, the relatively low level of start-up activity and regulatory hurdles in the process of setting up and insolvency of companies. Positive factors are the digital infrastructure and the international orientation of the startups.

Reto Savoia, Deputy CEO of Deloitte Switzerland, says: "Switzerland has some catching up to do when it comes to startups. The population's affinity for entrepreneurship is lower in this country than in Anglo-Saxon countries such as the USA, Canada and New Zealand. There are starting points here, especially in the social perception and status of entrepreneurship. Here, entrepreneurship and startups must be addressed as valid career options and students and trainees must be prepared accordingly. Also crucial is help in starting a business, whether through a link between university and company, university start-up support or private accelerators. Switzerland has already greatly improved its position here, but lags behind the world's best offerings."

Investments & patents: High investments, deep networking

The third pillar of the "Digital Innovation Capability" index measures investment in innovation, once in the form of capital investment and once in the form of investment in digital knowledge capital, the latter measured via patents. Switzerland is in the top 10 in terms of investments and patents. ICT investments are very high, but the value added by the ICT sector is relatively low. The number of digital patents per capita is also relatively high in an OECD comparison. In contrast, digital technologies still do not penetrate the patents of other technologies sufficiently.

"In terms of the number of digital patents per capita, Switzerland can place itself in the top 10. By contrast, the broad impact of digital technologies is far below average; the application of digital technologies in other technology fields - the so-called penetration rate - is far behind the leaders in this field," says Marc Bros de Puechredon of BAK Economics, adding: "The most important finding for Switzerland is that it can keep up internationally in the individual technologies, but has weaknesses in technology interconnection. It cannot contribute its existing digital competencies to the development of other technologies to the same extent as most of its competitors. The challenge for Switzerland will therefore be to drive forward the networking and interconnection of its technological capabilities."

Swiss companies must become more digital

Switzerland's innovative strength is primarily due to traditional industries with strong roots in Switzerland, such as pharmaceuticals, chemicals and machinery. When it comes to digital innovations, however, Switzerland is not at the forefront, as the index shows. A look at a current list of the world's most innovative companies, based on a survey of corporate executives, confirms this thesis: there is not a single Swiss company among the top 50. The top spots are occupied by digital players such as Apple, Google, Airbnb, Netflix and Uber. Much-noticed innovations have emerged primarily in the digital sector and especially in the business-to-consumer area.

Reto Savoia comments: "Ultimately, the decisive factor is how strongly companies based in Switzerland focus on the development and application of digital innovations and the optimization of their processes. With the right incentives and framework conditions, the state can have a not unimportant but ultimately only indirect influence on digital innovation capability. Companies therefore play a central role when it comes to improving Switzerland's position in the 'Digital Innovation Capability' index. Swiss companies have long recognized the importance of digitization, of course. Nevertheless, the potential seems to be far from exhausted at most companies."

www.deloitte.ch, www.bak-economics.com 

Where the collection procedures are most complicated

Sweden, Germany and Switzerland are leading the way internationally when it comes to making collection procedures as streamlined as possible. Countries in the Middle East, Africa and Asia, on the other hand, have the most complicated collection procedures. However, despite good framework conditions in Switzerland, the advance payment of court costs is a major obstacle for many companies.

Collection proceedings are not very complex in Switzerland. One obstacle, however, is high court costs in insolvency proceedings. (Image: Fotolia.com)

In its new study "Collection Complexity Score and Rating", credit insurer Euler Hermes shows how complicated it is to collect money for outstanding invoices in the world's 50 most important trading nations. To do so, Euler Hermes experts assessed the level of complexity of international debt collection procedures based on three main factors: payment practices, local court proceedings and insolvency procedures in the countries concerned. This results in a ranking designed to help companies navigate their international trade activities.

Local collection procedures nothing transferable to foreign countries

Although Switzerland ranks among the countries with the least uncertainty in the payment of receivables due, Swiss companies cannot transfer this framework to their foreign operations. Local law applies in collection procedures, which can differ significantly from Swiss practice.

Western European countries in the lead

With a global average score of 51 on a scale of 1 (no degree of complexity) to 100 (high degree of complexity), Western Europe tops the scale with the simplest collection procedures. Sweden, Germany and Ireland in particular have the lowest level of complexity, with scores of 30, 30 and 31 respectively. Sweden leads the ranking with the best payment practices, the simplest court procedure, and the most effective insolvency law.

In absolute and relative terms, Europe is home to most of the countries categorized by Euler Hermes as having the lowest collection complexity. 14 out of a total of 16 European countries surveyed are categorized as "less complex", while Greece and Italy are the exceptions with high collection complexity.

Legal costs in Switzerland: advance at the expense of the companies

The Euler Hermes study shows that the largest economies, the most dynamic markets and the most solid countries are not characterized by business-friendly conditions in all areas. There are also difficult aspects of the debt collection process in Switzerland. "Following the standardization of the Code of Civil Procedure, companies now have to advance the court costs. However, many SMEs cannot afford the high court costs and are therefore unable to enforce their rights," says Stefan Ruf, CEO of Euler Hermes Switzerland. This is particularly problematic for the large Swiss exporters, mostly medium-sized companies, according to the credit insurer. Unpaid invoices could quickly threaten the existence of such companies. "That's why a comprehensive assessment of the contractual partners from the outset is a more reliable basis than relying on standard dunning procedures - especially in countries with complex framework conditions," Ruf continues. And he notes, "Generally speaking, if the money hasn't arrived after 60 days, it's high time to call in debt collection experts with international experience." Depending on the canton, court costs can also vary greatly:

  • Dispute value CHF 20,000: costs between 8,000-50,000
  • Dispute value CHF 100,000: costs between 20,000-100,000
  • Value in dispute CHF 1.5 million: 125,000-500,000

Bringing up the rear in debt collection: the Middle East

At the other end of the scale, the Middle Eastern countries Saudi Arabia and the United Arab Emirates rank as top performers in the complexity of debt collection procedures. With a score of 94, the international procedure in Saudi Arabia is three times as complicated as in Sweden. 78 out of 100 complexity points on the debt collection scale means third place for Malaysia, followed by China (73), Russia (72), Mexico (70), Indonesia and South Africa (67).

Source: www.eulerhermes.ch

 

Industrial Gases Association Switzerland IGS goes "full throttle" with new president

"Without gases, Switzerland stands still," says Dr. Ing. Hans Michael Kellner, newly elected president of the Industrial Gases Association Switzerland IGS, based in Zurich. On January 10, 2018, he was unanimously elected for a four-year term of office. Dr. Kellner has been active in the industrial gases sector for more than 30 years.

The Industrial Gases Association Switzerland IGS has a new president in Dr. Hans Michael Kellner. (Image: zVg)

The Industrial Gases Association Switzerland IGS has elected Dr. Ing. Hans Michael Kellner as its new president. Hans Michael Kellner is Managing Director of Messer Switzerland AG based in Lenzburg, one of the leading suppliers and manufacturers of industrial gases. 

Industrial Gases Association Switzerland emphasizes the importance of gases

The association's main goals for 2018 are to ensure the highest safety standards and to present a unified front to regulators and all gas users. "Standardization makes the processes in our highly regulated industry easier and clearer. In addition, gases, in our opinion, are given far too little attention, especially since Switzerland would come to a complete standstill if no gases were available," Dr. Kellner continued.

Little known to the general public, the Industrial Gases Association Switzerland IGS unites all industrial gases companies in Switzerland, which together generate annual sales of around CHF 450 million. "Highly qualified employees from all leading gas companies in Switzerland work for the IGS. SMEs, hospitals and private individuals benefit equally from the concentrated expertise on topics such as safety in the handling of gases," says the new president, Dr. Hans Michael Kellner.

Underestimated importance of the association

The professional handling of gases is essential for survival, which many people are not aware of until now. The main tasks of the association include:

  • Advice on gas safety for members and non-members (storage, handling, transport, etc.)
  • Promotion of education and training
  • Exchange of information and cooperation in safety-related matters, also with authorities and official agencies
  • Participation in Swiss and international committees in which legal norms, guidelines and other regulations are developed or implemented.
  • Development of recommendations for members and third parties

No more blown balconies

In 2018, the association is creating a new website that will present the many applications of gases and how they are handled to the general public. "We want to ensure, for example, that private users handle gas cylinders correctly at their barbecues and that we don't have to read news of blown-up balconies in the future," Kellner continues. Gases are perfectly safe if you follow a few simple rules.

Further information: Industrial Gases Association Switzerland IGS, Bahnhofstrasse 37, 8032 Zurich, phone +41 (0)44 225 15 25

 

"There would be many more jobs for people with disabilities"

The Forum.Integration at the Pfalzkeller on March 12, 2018 aims to highlight the hurdles and success factors for people with disabilities on their way into professional life. On the podium: Reto Gnägi. His consulting company employs a commercial employee with a handicap. The East Switzerland Integration Award will be presented again.

Has employed a person with a handicap since 2016. His consulting company takes on deputies at social welfare offices: Reto Gnägi, co-owner of RGB Consulting, Degersheim. (Photo: zVg / mw)

The company RGB Consulting in Degersheim and Gossau offers, in addition to the classic fiduciary activity, services in the consulting and social sector, such as, for example, Springer assignments for vacancies in all municipal departments. Co-owner Reto Gnägi (see interview below) will be a panelist at the Forum.Integration in the Pfalzkeller on March 12, 2018, an event organized by Dreischiibe, Procap, Profil - Arbeit & Handicap and Obvita, and Suva for the tenth time. The forum aims to raise awareness among employers about the integration of people with disabilities and to show best practice examples of how to create and maintain jobs for employees with physical and mental disabilities. The forum is supported by Migros Kulturprozent, Die Post, SVA St. Gallen, Gewerbe St.Gallen, Wirtschaft Region St.Gallen, Bühler Group, Raiffeisen, Schweizerischer Arbeitgeberverband, and IHK St.Gallen-Appenzell.

Reto Gnägi, how did you come to hire your employee with a handicap?

Reto Gnägi: Obvita, the organization of the East Swiss Association for the Blind, approached us. Michael Binkert had completed a commercial apprenticeship there. The young man had originally studied mechanical engineering, was operated on for a brain tumor and had to undergo chemotherapy. After the operation, he only has a visual test of ten percent. After the retraining, the aim was to assess his performance in the primary labor market.

Why did you finally hire him permanently?

After the internship with us, he applied without success. We thought it would be a good idea for us to try integration. We are active in the social sector ourselves, for example by working at social welfare offices and taking care of individual cases there (see below). Michael Binkert has been with us on a permanent basis for a little over a year now. He is paid within the limits of his capacity. The IV finances this.

Otherwise, the IV clarifies the capability.

Correct. But we are closer to the realities on the first labor market and have been able to objectify the performance better. The IV would like to institutionalize this procedure. A new, practice-oriented procedure emerged.

They were coached by Obvita.

Yes, Obvita provided the tools - such as the device that reads the documents to our employee. We received glasses that allow us to visualize how our employee perceives the environment. It is important to provide support in terms of care - how to deal with a person with a handicap when things are not going so well. For this purpose, location discussions took place in each case.

There were stumbling blocks?

Our employee had to undergo another operation and further radiation treatments, which set him back. He is very tired at times and suffers from migraines, so he cannot work. The team needs empathy, some patience and social skills. These are the things I ask of employees in other ways as well.

Can you paraphrase your employee's job description?

He handles all the mail, is in charge of accounting, and writes work reports and correspondence. His portfolio corresponds to that of a normal KV employee. The only difference is in terms of performance.

Did any areas stand out where he is particularly good?

We expected that going to the post office would be much more difficult. He also copes very well with using the digital equipment, such as the copier, even though he is almost blind. And he finds his way around our offices very well, even though they are spread over three floors.

How do you assess the situation today?

Michael Binkert has a high level of satisfaction. Until the IV had decided, our employee did not know where he stood financially. This was very stressful. The fact that he was initially set back in his career goals and then experienced that no one needed him when he was looking for a job was something we were able to absorb with appreciation. He blossomed and regained his self-confidence. Today, our employee is fully integrated into the team and is perceived as such.

What about your satisfaction?

We can work with a person who has gone through this on a one-to-one scale. In the social sector, we are always confronted with people with such fates. We can now pass on our experience there. We are more authentic.

Goodwill is needed for professional integration.

Our attitude does not require special admiration. Others carry out team building for such experiences. These are things that cannot be measured materially. We have the feeling that we also fulfill a social task.

Nevertheless, there is still too little professional integration.

The need is greater than the offers. In some cases, integration is abandoned because of prejudices. There is a fear of having to dismiss someone if it does not work. We look at it differently. If you integrate people with disabilities more, you give them a lot in return, and they give you a lot in return. It is then really a win-win situation.

How could employers be motivated to increase vocational integration?

In the beginning, it needs the coaching and support of a professional organization to discuss and clear up open questions and difficulties. Then many more such jobs would be available and feasible than one would think.

Without industry differences?

Where someone can work depends on the disability. Not all industries are the same, and not all are suitable for people with all handicaps. But there are opportunities in every industry - just not for the same people with disabilities.

More information:

Forum.Integration at the Pfalzkeller, "Entering the workforce - practical examples show hurdles and success factors for people with impairments," Monday, March 12, 2018, 6 to 8 p.m. Registration: www.forumimpfalzkeller.ch or info@forumimpfalzkeller.ch

At the forum, four current film portraits provide an insight into the situation of people with disabilities at their workplace. The Eastern Switzerland Integration Prize will also be awarded for the second time. The nominees are Alterssiedlung Kantengut, Chur, Alterszentrum Am Schäflisberg, St.Gallen, Bäckerei-Konditorei Beck Beck, Wittenbach, the municipality of Herisau (technical services, fire department), Genossenschaft Migros Ostschweiz, Hotel Wolfensberg, Degersheim, Kliniken Valens, Valens, Reha Seewis, Seewis Dorf, and Werkhalle Schmid, AG, Schwellbrunn, with Martin Klöti, member of the cantonal government, as laudator. The event will be moderated by long-time SRF Federal House editor Hanspeter Trütsch. mw.

To the author:

Michael Walther is a journalist in Wattwil SG.

Part-time jobs: These are the top 100 part-time employers in Switzerland in 2017

The city of Zurich on its way to the top. In the 2017 ranking of the 100 top part-time employers by Teilzeitkarriere.ch, which claims to be the largest internet portal for part-time jobs, only Lidl Switzerland is better. Companies with flexible, individual and mobile working time models have a competitive advantage, it says.

Lidl Switzerland is once again the frontrunner in terms of part-time positions advertised. (Image: Lidl Switzerland)

Lidl Switzerland, last year's leader, maintains its position with 2402 part-time positions advertised. These were increased over the year 2017 to Part-time career.ch around 201,000 times. The city of Zurich follows in second place (1753 part-time jobs advertised), which already performed very strongly in the previous year and has improved its ranking by another 5 places. Manor ranks 3rd (1566). The two companies from the healthcare sector, the Hirslanden private hospital group and Zurich University Hospital, which shared 2nd place last year, now occupy 4th and 5th place. Credit Suisse and SBB can both make up 3 places. They occupy 6th place (1099) and 7th place (1091). The canton of Zurich (8th place - 941) and Swisscom (9th place - 904) also make up further ground and are in the top 10 for the first time. Aldi Suisse lands in 10th place.

"Part-time work has become a matter of course".

This year, Zühlke Engineering AG has made it into the top 30 of part-time employers for the first time (rank 28 - 386). Part-time work and other flexible working time models have become indispensable at Zühlke. As an implementation partner for product and software solutions as well as process optimization, the company is constantly dealing with changes that drive society forward. "We are successful when our customers are successful and the key to this lies in our employees" says Aglaia Trapp, Head Employer Branding at Zühlke. The demand for part-time opportunities has grown steadily over the years and this has been responded to accordingly. "Our positive experience with part-time positions confirms this time and again. After all, the decisive factor for performance is commitment, not the workload." Various positions in Zühlke's squad are also filled on a part-time basis. The high proportion of men with part-time jobs is also worth mentioning. Of the approximately 560 employees, 35% work part-time, of which 67% are men and 33% are women.

Promotion and relegation

With an increase of 193 places, the Tertianum Group is the climber of the year and currently occupies 17th place. The Kantonsspital Baden, as well as the Spitalverbund Appenzell Ausserrhoden also make a considerable leap forward, with an increase of 129 and 94 places respectively. Siemens Schweiz AG, following on from last year's positive development, improved its ranking by a further 55 places. The top newcomer is ABB Schweiz AG, which is ranked 15th in the current ranking. But Swiss Medical Network SA (34th), BLS AG (68th) and Pflegezentren Stadt Zürich (73rd) should also be mentioned here as newcomers.

The slump in advertised part-time positions in the retail sector is particularly striking. The supermarket chains Denner AG (-58 positions), Migros (-34) and Coop (-24) all slipped significantly in the ranking. When asked, only Coop was able to provide a statement. Andrea Bergmann, media spokesperson at Coop, explains that "many part-time positions are filled internally, for example by employees who want to work a reduced hours after maternity leave" and are therefore not advertised. Family-friendly working conditions are important to the company. "The continued employment rate after maternity is 80% for us," which is indeed a good record.

Recently, there has been repeated discussion in the media about whether the increasing number of self-scanning and self-checkout checkouts will lead to job cuts. The companies claim that this will have no effect on the number of jobs. The Unia trade union is nevertheless skeptical about this and comments on its homepage. "If the customer replaces the cashier, there is a threat of creeping job losses. Even if some cashiers take over other tasks in the company, it stands to reason that others will no longer be replaced in order to achieve savings."

Part-time positions are becoming increasingly popular

Employees' demands on employers are changing. According to many HR experts, flexible, individual and mobile working time models are needed to recruit good specialists and managers in today's labor market. Many companies have recognized the problem and are actively working on a cultural change. This is also shown by the significant increase in the number of part-time positions. In 2015, for example, around 8,700 part-time positions were advertised among the top 10 part-time employers; in 2016, there were already around 12,000 part-time positions. In 2017, there was a further increase with around 13,100 part-time positions. Many companies have started to systematically advertise their positions with a 80-100% workload in order to increase the range and attractiveness. It also offers women, in particular, the opportunity to pursue more highly qualified jobs on a part-time or job-sharing basis.

Driving cultural change

Siemens Schweiz AG, one of the top climbers in the ranking, sets a good example here. For several years, part-time work and other flexible working time models have been explicitly promoted within the company. "Promoting a future-oriented work culture is a major concern for us," says Garry Wagner, Head HR at Siemens. "We are convinced that this will sustainably increase the motivation of our employees and the success of our company." The options for working time models are individual and are adapted to the needs of the employees. Andy Keel, initiator of Part-time career.ch and TEILZEITMANN repeatedly emphasizes that "real cultural change in the company only succeeds if top management is behind it and top down is also promoted". This is also confirmed by Garry Wagner, who reports on examples of implementation at Siemens: "Top management repeatedly declares its support for flexible working time models at events and in messages to the workforce. We have made role models visible in employee portraits who live flexible working time models. In culture change events, managers and employees at our company are given the opportunity to exchange views on the topic across divisions." In the future, the company also plans to offer tailored management workshops to promote flexible working time models.

Part-time positions especially in retail trade

Retail, public administration/services and healthcare are the most strongly represented sectors in the ranking of the 100 top part-time employers 2017, again confirming the trend from the previous year. Service companies and public administrations are advertising more and more part-time positions and for the first time are the most strongly represented sectors in the ranking of the 100 top part-time employers of Part-time career.ch.

In 2017, Andy Keel launched what is probably Switzerland's first gender diversity consultancy under the name DOIT-smart. This is because he is convinced that "increased diversity in management has positive effects on corporate success and reputation." The consulting approach of DOIT-smart starts exactly here. It advises and accompanies companies in the implementation of gender diversity strategies to increase the proportion of women in management positions. With concrete measures and suitable products, the entire personnel lifecycle of the company is thus improved.

You can find the complete ranking here

For more information, please visit: http://www.teilzeitkarriere.ch/top100.html

Artificial intelligence to provide greater cybersecurity

While ensuring cybersecurity is becoming increasingly complex, a number of promising new technologies and strategies are emerging this year to address this. These include artificial intelligence and machine learning, in addition to deception technologies.

More and more, developments in artificial intelligence are also being harnessed for greater cybersecurity. (Image. momius - Fotolia.com)

The company is constantly upgrading its equipment to increase cyber security. The latest achievement in this arms race are so-called "deception technologies". These pose as an actual existing IT resource (such as servers, accounts, etc.) and aim to trap potential attackers. Once they become the target of an attack, this immediately leads to the alerting of security teams. The goal of such systems is to increase the likelihood that internal security teams will detect intruders on their networks. Meanwhile, there are already some robust and sophisticated technologies on the market that are a good option when a modern "cyber hunting program" is too costly. Furthermore, these systems are aimed at companies that want to use additional detection methods alongside existing security processes. However, since this approach has not yet gained widespread acceptance, there is as yet no empirical data on how sophisticated attackers might react to such systems.

Artificial intelligence already delivers results

Artificial intelligence (AI) and machine learning in particular have developed significantly in recent years, including in the area of security. Solutions are now available that deliver impressive results when properly tuned. While there are currently still a large number of vendors that do not offer a significant improvement over new technologies, this will change in 2018. In addition, the new EU General Data Protection Regulation (EU GDPR), which comes into force in May and will bring heavy penalties for non-compliance, plays an important role. Companies should therefore establish a uniform set of rules with which they can meet current and future compliance requirements.

Three steps to improve cybersecurity

But even though artificial intelligence may already be doing a lot for cybersecurity, companies can still do a lot themselves to protect themselves from the new security threats and ensure greater data security.

  1. Inventory of applications: To build a security architecture that takes into account enterprise risk and allocates resources effectively, it is necessary to determine what needs to be protected, where these assets are located, and how important they are to the enterprise. This requires close collaboration between business units.
  2. Reduction of the attack surface: Modern security concepts have long assumed that attackers penetrate internal systems, because today firewalls or IPS systems can no longer keep them outside the network. To reduce the number of accesses by cyber criminals, an organization's total attack surface should be reduced to a minimum. This includes processes such as patch and vulnerability management, but also security models like Software Defined Perimeter or Beyond Corp.
  3. Governance: In many companies - especially in small - little investment is made in governance. It should help understand the risk to the business, prioritize the necessary safeguards, make investments, and create strategic plans. At the same time, it should require maintenance according to established policies and measure the effectiveness of operations. With an incident management plan in place, organizations are able to respond quickly to a security incident.

Source: Rackspace

Managing crises: Keep a cool head!

Close your eyes and get through it - this is the motto that companies often follow when they are in crisis. But it is precisely then that it is important to open one's eyes and set a new course. So that the crisis does not turn into a catastrophe.

Crises in companies: Instead of hectic and blaming each other, you need a cool head. (Image: Antonioguillem - Fotolia.com)

The company's executive suite is like a swarm of bees. Executives are rushing from one meeting to the next, and employees are ducking their heads to avoid being caught in the impending storm. The reason for the hectic activity: the current quarterly results. Completely unexpectedly, the company slipped into the red. So those in charge are now rushing from one meeting to the next to discuss what to do in this tricky situation.

But the hectic back and forth is not productive. Because the question keeps coming up: How did it get this far? And, at least indirectly, the question: Who is to blame? Just when all those responsible should be acting effectively together, they get caught up in mutual recriminations. Or they use the situation to settle old scores. What's more, very few people are playing with their cards on the table, because they are afraid: If I'm not careful, I'll be pilloried.

Crises are often recognized and named late

This is also the reason why many crises are only recognized and named when it is already too late. Because no one dares to say openly: "If things go on like this, we'll end up in a crisis." Because everyone fears; Then everyone else will fall over me. So they prefer to keep their mouths shut and hope that things won't get so bad or that someone else will open their mouth and take a beating.

This is why bad figures are often covered up and quality deficiencies concealed until the first major customers withdraw their orders. That's why managing directors often hesitate with painful decisions until the bank pulls the ripcord. And that's why projects are still pursued even when it's long been clear to everyone: We'll never achieve the project goals. Accordingly, it is important to create a structure and culture in companies that enables risks and problems to be identified and named at an early stage.

External moderation often helpful

And if a crisis does occur, those responsible should first be aware of it: Crises can be managed - if you keep a cool head. However, those involved in crisis situations often fail to do just that, because they themselves are more or less affected. That is why it is advisable to call in an external moderator in such situations. The moderator creates the necessary framework conditions at the crisis meetings so that those responsible can overcome the crisis together.

To do this, they should analyze together in the first step: What alternative actions do we have in the current situation? These are usually more numerous than they appear in the initial panic. Especially when solutions are considered that were previously taboo in the company - because they run counter to the usual approach. Or because they challenge established structures and privileges. Or because they contradict (at first glance) the company's self-image.

Also discuss unusual solutions

Once the possible solutions are on the table, they need to be evaluated - starting with the question: What will help us best in the current situation? Here, too, external moderation is often helpful. This is because certain solutions are often not discussed seriously, even in crisis meetings - because those present would have to change their behavior or give up certain privileges in order to do so. If no one dares to suggest something like this, an external moderator can provide an advantage. For example, by asking: "Under what conditions could this solution be realized?" Then suddenly statements like: "If the decision-making powers of the sales department were expanded." Or: "If the requirement xy would no longer apply."

Only when the possible solutions have been evaluated in terms of their feasibility and their advantages and disadvantages can the parties involved reach agreement: We take the following action.... At the same time, they should agree: Who does what by when? When do we check whether the measures are having the desired effect? And: How do we measure this? This is the only way they can take countermeasures in good time if the measures do not have the desired effect.

Learning for the future

Only when the crisis has been resolved should those responsible sit down again to discuss the questions that were so burning on their minds at the beginning: How did the crisis come about? And: Why didn't we recognize it earlier? Because now they can address these questions in a much more relaxed manner - because the pressure to act is no longer so high. That's why there is also less blame and personal hurt.

In addition, such a meeting should discuss what has worked and what has not worked in overcoming the crisis. In this way, the necessary conclusions can be drawn from the shared experiences and the required (structural) changes can be derived so that the company does not slip into similar crises again.

To the author:
Klaus Doll, Neustadt an der Weinstraße, works as a business and executive coach for companies (Internet: www.doll-organisationsberatung.de).

Tom Lüthi will set the pace at the KMU SWISS Forum

At the business event on March 22, 2018, the "KMU SWISS Forum" presents an exciting selection of top-class speakers. Under the title "Dynamics - Flexibility of Action", motorcycle racer Tom Lüthi will be among those setting the pace.

Moderator Hugo Bigi will again interview interesting guests at the KMU SWISS Forum on March 22, 2018, including motorcycle racer Tom Lüthi. (Image: KMU SWISS)

The 16th KMU SWISS Forum will take place on Thursday, March 22, 2018 at the Trafo Baden Congress Center. Once again, well-known personalities, including Tom Lüthi, will discuss as speakers and interview partners, this year on the topic of "Dynamics - Flexibility of Action". Around 450 guests are expected to attend. "We live in a time of change. It takes rapid and flexible action to keep up with change," says Armin Baumann, CEO KMU SWISS AG, explaining the choice of topic.

Changing the tried and true takes courage

Companies are challenged to adapt to the rapidly changing market. Managers must make decisions quickly and react flexibly to new market conditions. Only those who tackle challenges, try out new ideas and are innovative are competitive. It takes courage and a certain amount of dynamism to abandon the tried and true and strike out on new paths. Legal frameworks and regulatory requirements, the lack of skilled workers, economic setbacks and the fear of digitization are slowing down the innovative power of small and medium-sized enterprises (SMEs).

Change is not just a matter for the boss

What strategies for success should an SME adopt in order to hold its own in today's changing business environment? What challenges are posed to management so that employees embrace new things and a culture of flexibility grows up? What are the prerequisites for the new corporate and working world? Personalities from different areas and industries present their strategies for success. They talk about their everyday lives and how they deal with the new challenges. This year's speakers are:

  • Suzanne Grieger-Langer, Profiler
  • Jürg Brand, President of Roll infratec (holding) ag
  • Madeleine Stöckli, CEO B. Braun Medical AG
  • Nils Planzer, CEO Planzer Transport AG
  • Ruedi Matter, Director SRF
  • Derek Brandt, CEO Sensile Medical AG
  • Urs Kessler, CEO Jungfrau Railways

Motorcycle racer Tom Lüthi as "star guest

The KMU SWISS Forum will be moderated by Dr. Hugo Bigi, communications expert and journalist. He will also interview motorcycle racer Tom Lüthi, his manager Daniel M. Epp and one of his sponsors, Toni Lee, CEO of SITAG AG. There will also be time for networking and discussion. Afterwards, the city of Baden invites all forum guests to the "Baden Marketplace". This year, Barbara Lüthi, team leader and presenter of the SRF discussion program "Club", is invited as a talk guest.

Program and tickets: www.kmu-swiss.ch/forum

There's life in the old dog yet: Three reasons why e-mail is not dying out

The world of work is in a constant state of flux as a result of the digitalization of work processes. In particular, the concept of the office, where employees come together every day to do their work, is being put to the test. Cross-location collaboration between employees in different departments or within a team is becoming increasingly important. What is more suitable for communication: a collaboration tool or good old e-mail?

Despite a plethora of collaboration tools on the market, traditional email will still be able to hold its own. (Image: iStock/oatawa)

Flexible working models with individual work scheduling in the home office and mobile devices are on the rise. The choice of digital collaboration tools for exchanging information is also growing: Slack, a web-based instant messaging service from the U.S. company Slack Technologies for communication within work groups, Wrike (a project management software) or Honey, a kind of "social intranet" for companies, are just a few examples. At first glance, these offer ideal solutions for networking employees. However, the benefits of classic e-mail for communication between employees, with customers and interested parties should not be underestimated, as providers of e-mail programs state. Essentially, three reasons still speak for the good old electronic mailbox:

The e-mail lives

According to a report by the US market research institute Radicati Group on the worldwide use of e-mail around 3.7 billion people write and receive 269 billion e-mails every day. In this context, the researchers recognize a clear increase in e-mail communication: the number of e-mail accounts will climb by 22 percent from 6.32 billion in 2017 to 7.71 billion in 2021. The explanation is simple: email communication is not only intuitive, it is also the only solution that allows you to reach everyone - that means external contacts as well - be it business partners, public authorities or private contacts. E-mail also makes it much easier and more secure to send and distribute documents, especially those containing sensitive information. In addition, people need e-mail addresses to order things online, sign up for services or register to attend events.

Flood of emails through collaboration tools

One problem with chats and collaboration tools is that they are proprietary solutions that are incompatible with each other. For example, if a company switches its main communication to collaboration tools, it will have to use a myriad of solutions to stay in touch with all of its customers. In addition to this being impractical, there is a tendency for many of the major providers of these services to lock users into their own tools. A primary focus of collaboration tools is to simplify communication. However, using the services actually increases the number of emails in the inbox, as the tools usually generate additional emails. If we look at the area of marketing, this also thrives on communication via e-mail, since relevant people can be reached in a targeted manner.

Who is reading along? Communicate securely

As we all know, the new EU General Data Protection Regulation will come into force at the end of May 2018, which means that the rules for data storage will become stricter for companies. If we take the archiving of messages as an example, this too is more secure via the archive of an email inbox compared to message storage in collaboration tools, which often runs via US servers. It is therefore recommended to use a secure email client. For example, eM Client uses PGP encryption technology. This is also used for Google e-mails: all e-mails sent by the client are encrypted by the client itself, so that the Google server already receives them encrypted - the e-mails are also encrypted via the Internet provider.

Source and more information about the mentioned email solution: www.emclient.com

 

From the employer market to the employee market: HR services for SMEs

The "baby boomer" generation is retiring. The consequences: Fewer and fewer people in the "vie active" are active in the labor market. Human capital will shrink significantly over the next few years. The employer market is turning into an employee market. SMEs in particular therefore need more and more HR services.

The partner companies HR First Consulting GmbH Münsingen (Markus Mäder), prisca meier consulting Ittigen BE (Prisca Meier), GMP AG Rothrist (Denise & Michael Steiner), HRgenau GmbH Wil (Cornelia Hess) and Rindlisbacher HR-Consulting Zug (Erich Rindlisbacher) bring many years of experience and sound know-how in all HR topics. In their network, they offer comprehensive HR services for SMEs, including the HR concept "MAQuA". (Image: zVg)

The classic labor market no longer exists, so to speak: demand is no longer primarily for work, but for manpower. The consequence of this is that employers must have enough properly qualified employees and keep their own junior staff in the company for the long term. Generation Y in particular, people born in the 1990s and 2000s, has different expectations of employers than previous generations.

HR services in demand

In this competition for the best employees, SMEs have to be on a par with large companies. However, the resources for HR management are limited in smaller companies. SMEs are therefore dependent on external HR services. In particular, they need support not only in recruiting employees, but also in developing them internally.

On the other hand, the topic of "demographic shifts in the labor market" is also driving HR specialists. Thus, the partner companies HR First Consulting GmbH (Münsingen), prisca meier consulting (Ittigen BE), GMP AG (Neuendorf), HRgenau GmbH (Wil) and Rindlisbacher HR-Consulting (Zug) recently joined forces to meet this challenge. One of the first results is the newly developed HR concept MAQuA. The participants focus this concept on the two areas of "system" (leadership and organizational development) and "people" (corporate culture and HR policy).

Implement HR concept in two phases

The MAQuA HR concept is being implemented in two concrete phases. In the short term, the first step is to initiate a turnaround. The first step is an "HR stress test" - a systematic basic analysis. This enables a differentiated evaluation of the parameters fluctuation, age structure, etc., taking into account the organizational structure and occupational groups of an organization. The focus is placed on the causes and core problems and then targeted measures are defined, which are then implemented. Together with the companies, quick wins are realized according to the Pareto principle (80/20 rule).

In the long term, the aim is to develop a value-based corporate and leadership culture. Potential analysis and development are used to create prospects for employees. Because only intrinsically motivated employees remain loyal to the company and bring sustainable profit.

More information about the concept and HR services: www.hr-first.ch

Procurement law: The lowest price should no longer be the sole deciding factor

"The most economically advantageous bid shall be awarded the contract." This is currently stated in the Federal Law on Public Procurement (BöB). This is currently being revised. If the National Council's Economic Commission has its way, this passage will not be dropped. But particularly favorable bids are to be reviewed.

A paradigm shift is emerging in procurement law: it is no longer the cheapest price alone, but also the plausibility of a bid that is to decide on the award of the contract. (Image: Fotolia)

On February 15, 2017, the Federal Council adopted the dispatch on the total revision of the Federal Law on Public Procurement (BöB). One of the main objectives of the revision is to harmonize the procurement regulations of the Confederation and the cantons. In parallel, the Federal Council also adopted the dispatch on the revised WTO Agreement on Government Procurement of 2012 (GPA). The new agreement improves transparency and market access and replaces the original agreement of 1994. At the end of January 2018, the National Council's Committee on Economic Affairs (WAK-N) made some groundbreaking decisions in its detailed deliberations, particularly with regard to awarding contracts according to the lowest price.

Paradigm shift in procurement law

So will there be a paradigm shift in procurement law, whereby the lowest price will no longer be the sole deciding factor? The Economic Committee of the National Council wants to include a plausibility check for dumping bids in the revised Federal Law on Public Procurement. This was decided unanimously during the above-mentioned detailed discussions on the revision of procurement law (BöB). In future, unusually low bids are to be scrutinized more closely. "Today is a good day for the procurement of intellectual services," cheers Heinz Marti, president of the association of consulting engineering companies usic and co-president of the Alliance for Progressive Public Procurement (AföB). "Now this paradigm shift must also be implemented in practice." Stefan Cadosch, president of the SIA and AföB co-president, is also delighted, according to a media release: "Politicians have finally recognized that intellectual services cannot be procured like standardized goods."

Bid plausibility as award criterion

The WAK-N announced on January 31 that it intends to submit a proposal to the National Council against dumping bids. By 29 votes to 0 with 2 abstentions, the commission decided to include the request of AföB, a federation of associations and organizations whose members provide intellectual services to public clients, for the introduction of a bid plausibility check in the award criteria. This is an important step in combating nonsensical price bids and improving the quality of bids. The Commission adopted by 16 votes to 6 with 2 abstentions another AföB concern, namely that unusually low bids should be subject to stricter review. The review requirement, which previously applied only to public sector bidders, is now to apply to all bids submitted. This will give the awarding authorities a powerful instrument to take action against purely low-price bids.

Real price-performance competition draws closer

Furthermore, the Commission has clarified the term "most economically advantageous offer" to mean the offer with the best price-performance ratio. The AföB has indeed demanded that the wording should be replaced by the "most advantageous offer". However, the clarification is in the spirit of the Alliance, which calls for genuine price-performance competition in procurement law instead of pure price competition.

More information and arguments: http://www.afoeb.ch/argumente/

 

 

M&A activities in 2017: SMEs make strong purchases

Swiss SMEs are healthy and were keen to make acquisitions in 2017: The number of mergers and acquisitions rose to 201 in 2017 compared to the previous year, according to Deloitte's new study on the M&A activities of SMEs in Switzerland.

SMEs are merging and acquiring for all they're worth: M&A activity increased by 5 percent in 2017. (Image: Fotolia.com)

SMEs remain the most important driver of M&A activity in terms of numbers. In 2017, Deloitte recorded 201 M&A transactions involving Swiss SMEs, an increase of 5.2% compared to the previous year. The upward trend observed in 2016 is thus continuing, although the number of transactions is still relatively clear below the levels of 2013 and 2014, according to the study published on January 29. "Since the franc shock three years ago, many SMEs have increased their efficiency, invested in innovation and quality, and made their prices more competitive. They are also generally profitable and have little debt. Their focus on growth has stimulated the transaction market and will continue to fuel it," explains Jean-François Lagassé, Senior Partner Financial Advisory at Deloitte Switzerland.

North American companies love Swiss SMEs

Last year, 141 Swiss SMEs gave up their independence to competitors or investors, each of which took over the majority of the capital. This is an increase of eight percent, which is mainly attributable to domestic buyers (71 transactions, +16%). SME acquisitions by foreign companies increased minimally from 69 to 70 transactions. "Entrepreneurial families without successors like to sell to Switzerland. Many foreign investors acquire Swiss SMEs because they want to position themselves more internationally and benefit from the location and know-how in the long term," explains Jean-François Lagassé. Foreign buyers came mainly from North America (17 transactions, +89%) and Germany (15 transactions, +88%). French (8 transactions, -58%) and especially Chinese buyers (1 transaction, -66%), on the other hand, held back in 2017. "Chinese investors have never occupied a significant position in SME transactions in this country in recent years. Rather, they have invested in larger companies. After the Chinese government exhorted companies to be more cautious in their investments last year, the significance has decreased even further. Swiss SMEs are still a bit far away for Chinese investors," says Stephan Brücher, Partner and Head of Corporate Finance Advisory, assessing the situation.

Swiss tech companies go into foreign hands

Companies from the technology, media and telecommunications sectors gained strongly in attractiveness in the course of the M& activities, with 17 transactions (previous year: 9, +89%). "In many industries, digitalization promotes growth and increases productivity. Foreign SMEs want to actively exploit the potential of new technologies and invest in Swiss companies to develop further. We have a world-class research hub here, offer a top-class talent pool and still development-friendly framework conditions that are very attractive to foreign investors," says Stephan Brücher. Also, several Swiss fintech companies have grown strongly in the past year and were able to close large financing rounds. This puts them on the radar of international private equity firms or large financial services providers. "Some Swiss fintech companies could be bought back or attract new strategic investors in 2018," is Jean-François Lagassé's assessment.

Swiss SMEs are also increasingly buying companies abroad

Despite the significant increase in domestic transactions, local SMEs continue to cultivate M&A activities abroad as well. The number of foreign investments fell only minimally to 60 after last year's record of 61. Swiss SMEs buy what they know and what is close to them: 82% of acquisitions were made in Europe and 57% in Switzerland's neighboring countries. Germany remained the preferred destination with 25 acquisitions (42% of all transactions). "Despite the devaluation of the Swiss franc, the still brisk purchasing activity abroad proves that local companies are seizing external growth opportunities in Europe and beyond. The still high level of foreign investment reflects the robustness of Swiss SMEs and the encouraging growth prospects in the euro area. Swiss SMEs are thinking long-term and continuing to diversify into further regions and sectors," comments Stephan Brücher on these figures.

There seems to be no shortage of capital and liquid assets, and many investors are intensively looking for profitable investments: quite a few are buying Swiss SMEs in this situation; foreign funds in particular took hold in 2017: in 2017, 28 Swiss SMEs were the target of a majority capital takeover by private equity funds (+23%). Of the funds, 32% originate from Switzerland, 61% are based in the rest of Europe. American funds made only two acquisitions, Asian funds stayed away from the market as in the previous year.

Clear increase in M&A activity expected for 2018

Three years after the franc shock, the economy has recovered. The decline of the franc against the euro gives companies room for higher profits and boosts the confidence of export-oriented Swiss SMEs. "The year 2018 should develop promisingly for Swiss SMEs. The prospect of a stable currency at around CHF/EUR 1.20 is stimulating exports and encouraging a willingness to invest. In particular, many need to expand manufacturing facilities and modernize operations," Jean-François Lagassé elaborates.

Nevertheless, great caution is called for, as currency fluctuations can hardly be predicted. "The SNB could follow in the footsteps of the ECB and the US Federal Reserve to quickly normalize its monetary policy. That would abruptly end the depreciation of the franc. In addition, it is also important for Swiss SMEs that the reform of corporate taxation moves forward quickly and that the relationship with the EU is regulated in a forward-looking and business-friendly manner," says Lagassé.

www.deloitte.ch

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