SMEs lag behind in terms of automation

In recent months, there has been much discussion and reporting about the use and consequences of artificial intelligence. But what impact do technological developments have on companies and employees in Switzerland? What is the state of automation in offices here? Where are savings being made through technology? These and other questions were investigated by the software company Exxas in collaboration with the LINK Institute in a large-scale study. The company, headquartered in Schlieren ZH, offers, among other things, a cloud platform to control and automate business processes in a company.

Great savings potential thanks to automation

The large-scale study on automation shows that jobs are being lost and that tasks and professions are changing. The people surveyed have a very differentiated view of automation. When it comes to the impact on society, fears and concerns predominate. But for the companies themselves, according to the participants, the use of automation is a great advantage and crucial for competitiveness. The respondents can save up to 11% of their own weekly working time with fully or partially automated solutions. Extrapolated to Switzerland, that is just under 465,740 of 4.234 million full-time equivalents, based on a survey by the Federal Statistical Office (FSO) for the quarter 2023.

However, the study also shows that almost half of Swiss SMEs have a considerable backlog in automation. The potential is far from being tapped. Interestingly, in the question on the status of automation, there is a significant response divergence between senior executives of companies using Exxas and those using a different solution.

Job loss and growing technology dependency

The opinion of the respondents on automation is very complex. While some recognize the benefits and potential of automation, fears and concerns prevail for many, especially with regard to the social impact and the situation of employees. The most frequently cited fears relate to the potential risk of job loss, the disappearance of certain occupations, the accompanying pressure on wages and the growing dependence of companies on technology. Around one-third of respondents view the impact of automation on society and employees with skepticism, if not as extremely negative.

Stefan Dettwiler, Managing Director of Exxas, can understand the fears and explains: "We often feel these concerns in our customer projects. Employees feel insecure about whether their position will still be needed after a process has been automated. These fears are understandable. However, experience shows that positions saved in another area, such as marketing, customer service or IT, lead to expansion. Routine tasks are reduced, and employees can devote themselves to more conceptual, strategic and extraordinary tasks. The study also shows that in the past, around 10% of jobs were eliminated through automation, but at the same time 14% new jobs were created."

Swiss companies lag behind technological change

The results of the study make it clear that around half of the companies surveyed consider their current status in terms of automation and digitization to be lagging behind that of other companies in the country. Around one in ten SMEs has hardly automated any processes to date. Interest in increased automation is present and quite diverse. Some 55% of those surveyed hope for an increase in productivity, while about half also expect an improvement in quality and about a third expect increased flexibility through automation. However, only about one in five respondents has the expectation that automation can open up new areas of business.

According to the study, a lack of time, a high level of effort and insufficient financial resources are the biggest obstacles to the introduction of new solutions. José Gerónimo, Deputy Managing Director of Exxas, agrees with this finding: "Management in SMEs is usually already fully occupied with day-to-day business and simultaneously confronted with several challenges. Large, lengthy digitization projects are out of the question. The financial resources have to be well managed. That's why SMEs are looking for standardized solutions that can be introduced quickly and adapted to their needs. For the introduction of Exxas, we have developed service packages for this purpose and take over the data migration from the previous ERP and CRM system. Nevertheless, senior employees have to free up time slots for workshops."

Estimates of the potential time savings through automation vary. On average, men expect to save 25 hours per month, while women predict an average time saving of 12 hours per month. On average, however, small and midsize businesses see significant potential to save 19 hours per month. This figure is equivalent to just over two working days per month, or a workload of 11%.

Changed tasks through automation

The changed tasks of employees due to automation are perceived by around two-thirds of respondents as more demanding and responsible, albeit somewhat less creative. Encouragingly, it turns out that in half of the cases, process quality, the company's image and overall productivity have improved as a result of automation and digitization. Niklas Schüler, team leader at Exxas, comments on these changes among employees: "I can only explain the fact that creativity in work is reduced by the fact that manual work with creative activities is probably also eliminated. For example, if supplier invoices are approved and processed automatically, employees in the accounting department can devote their time to improving management reporting. In this way, accountants also help build and develop the company."

The results of the study indicate that automation will continue to gain importance in the Swiss economy. Some 60% of respondents believe that more administrative tasks in the company will be automated in the future. One encouraging aspect is that one in two senior executives say that their team has benefited from previous automations and that they have made their day-to-day work easier.

Recommendations for action

Whether on the construction site, in the catering trade or in the office, technology can be found in every profession today. Employees should be actively involved in the use of software, clouds, digital business models and process optimization in their companies and build up the necessary skills for this. Every modern and successful company, regardless of industry, has or will become a tech company. Pure "users" run the risk of only taking on the leftover routine work.

Companies should constantly be on the lookout for optimization opportunities in their processes and in their organization. This has been part of the standard repertoire of entrepreneurs for a hundred years. In order to discover these opportunities, decision-makers need to know what is possible with new developments. Existing business models should also be critically examined from time to time, from the customer's point of view. The following train of thought helps here: "The patient doesn't want a doctor. He wants to be healthy.". Modern systems can not only accelerate processes or enable new service offerings, but combined with the cloud also contribute to greater controllability and resilience of a company.

Swiss software vendors and technology providers should take to heart that their solutions can be easily implemented in an SME. The benefits of their solution must outweigh the costs. According to the study, in 26% of the cases, the benefit does not justify the expense. SMEs need standard solutions that can be easily adapted to their needs. During implementation, manufacturers and service providers should ensure that as much knowledge as possible is transferred to the customer's employees. The customers understand the business and industry requirements best and can use the technology expertise to optimize their system on an ongoing basis.

Source and further information: Exxas Inc.