Swiss industry is neglecting digitization at a strategic level. But there is very much positive news: A large proportion of manufacturing companies in Switzerland have already implemented numerous digitization projects. These are often optimizations of operational processes. This usually marks the beginning of all digitization efforts. Accordingly, 44 percent of the participants in a survey conducted by the "Digital Strategy" working group of the "Industry 2025" initiative in the 2nd half of 2020 rate the digital maturity level of their company as "medium". Only 13 percent live digitization as an integral part of their corporate culture, while 17 percent have already implemented a digital roadmap and clearly defined processes and tools.

Swiss industry lacks formulated digital strategies

Just how operationally Swiss industry is still on the move when it comes to digitization is reflected in the fact that almost two-thirds do not yet have a fully formulated digital strategy. Although digitization is one of the top three strategic topics for more than half (55%) of the companies and even the number one strategic topic for 12 percent, one in five companies (22%) does not yet have a formulated corporate strategy or digitization is not a strategic topic in it.

The survey, in which the AWK Group played a key role with Dr. Boris Ricken, Head of Manufacturing, acting as co-leader, shows that industrial companies are still focusing strongly on the digitalization of their internal processes. 70 percent describe the automation of production and processes as an "important" or "very important" strategic challenge. This is also reflected in investments: 40-50 percent are making "high" or "very high" investments in the automation of their core processes (production, sales and marketing, service and customer service, development). Another important investment topic is new digital products and services. 46 percent said they were investing a lot or very much here. By contrast, significantly less money is being invested in the digitization of support processes (procurement, logistics, HR / admin).

High investment in business software

From a technological perspective, the companies surveyed invest by far the most in information technologies (ERP, CRM, MES, PLM). 61 percent said they were making "high" or even "very high" investments in this area. Other important technologies are the Internet of Things and data analytics. In contrast, industrial companies invest little in blockchain technology, smart contracts and communication technologies. It is surprising that despite the numerous cyber attacks on industrial companies in 2020, only 20 percent of all respondents said they had "high" or "very high" budgets for security technologies.

Leveraging Corona's digitization push

Corona changes this snapshot considerably. Almost three quarters (70%) of respondents agreed with the statement that digitization has become even more important to them as a result of the Corona crisis. Only a fraction of survey participants (6%) anticipate an extensive halt to digitization projects in their own companies due to Corona. Dr. Boris Ricken, co-author of the survey, points out: "Corona has made digitization even more important for industrial companies. However, the working group's survey also shows that there is still a lot of work to be done for Swiss industry. For example, a large proportion of companies do not yet have a strategy for digitization. In addition, the focus is still very much on internal process optimization. However, we strongly recommend that the other fields of action for digitization also be taken into account: Where are opportunities for new digital products and services? How can we inspire our customers even more with digital solutions and bind them to the company?"
Philip Hauri, Business Manager Industry 2025, adds: "Our Swiss industry has some catching up to do. The Corona crisis is also a catalyst that picks winners and losers based on their ability to digitize. We recommend strategically reprioritizing the portfolio when resources are scarce. Digitization is a top management issue that needs to be driven at executive management and board level."

113 companies in Swiss industry surveyed

113 Swiss manufacturing companies took part in the survey, which was conducted in the second half of 2020 by the "Digital Strategy" working group of the "Industry 2025" initiative. 82 percent of the participants are in upper management, of which 50 percent are members of the executive board and 32 percent are at department management level. Half of the companies are active in mechanical and plant engineering (including suppliers) and 17 percent in manufacturers of electronic, optical and electrical products. 61 percent of the companies surveyed employ 1 to 249 employees, 12 percent 250 to 999 employees and 27 percent more than 1000 employees.

Source: AWK Group and Industry 2025

The role of the ERP system has changed massively in recent years, from pure enterprise resource planning to the backbone of digital transformation. More recently, it has taken on yet another key position: as the central hub for more sustainable business management. The software manufacturer proALPHA describes the areas in which a modern ERP system already contributes to greater environmental protection.

A modern ERP system saves paper

Even if completely digitized operations remain a vision: Companies that handle as many processes as possible via the ERP system save paper and thus actively contribute to the protection of forests. In administration, for example, this can be achieved through digital processing of incoming invoices. Likewise, outgoing invoices should be converted to e-invoices wherever possible. Where this is not yet possible, companies can at least ensure CO2-neutral dispatch. But even in production today, a lot still runs on paper - from parts lists and work schedules to feedback. Mobile store floor data collection (PDC) not only puts an end to paperwork, it also shortens throughput times.

Minimize resource consumption

Sustainable resource management involves using materials as effectively, economically and profitably as possible. A modern ERP system addresses this issue in several areas, for example through intelligent production planning. Orders can be combined in such a way that as little waste as possible is produced, for example in punching or laser cutting. Quality assurance with real-time data processing helps to minimize production errors and rejects: another component for reducing material consumption.

However, sustainable production does not only include low material usage. Those who want to avoid excess inventory can, for example, manufacture in smaller batches down to batch size 1. Automated production planning takes over resource planning and brings together the right amount of material at the right time with the right tools and the right personnel.

On the way to a circular economy

With the help of product lifecycle management (PLM), companies can take the first step towards a circular economy. The basic building block for this is a functioning supplier management system. This is the only way to prevent the verification of sustainable and ethical production conditions along the supply chain from turning into a paper battle. In addition, a modern ERP system allows complete traceability of batches and series back to the material source.

This goal is also supported by predictive maintenance: And not only because the service life of products and machines can be extended. Predictive maintenance also prevents unnecessary replacement of spare parts and thus excessive material consumption. In addition, the desire for greater sustainability is giving rise to new business models, from rental and pay-per-use models to take-back and remanufacturing. Manufacturers - and ERP systems - must increasingly adapt to this.

Smarter on the road

Today, more and more companies are working on practical and environmentally friendly mobility concepts for their employees. One central component: remote work. After all, those who work from their home office save themselves many trips to the office. In addition, the use of modern project management tools integrated into the ERP system makes many on-site appointments and thus business trips unnecessary. The up-to-date information that is so important for distributed teamwork can be accessed there at any time and from anywhere. ERP systems also support efficient intralogistics: For example, a real-time location system (RTLS) quickly shows unnecessary routes and transports.

Modern ERP system helps reduce energy consumption

As digitization progresses, energy requirements in data centers are increasing. In the future, it will therefore become increasingly important to use computing and storage power sensibly. Therefore, only the data that is really needed should be collected and stored. In addition to saving data, integrated, modular ERP systems also prevent redundant data storage in distributed applications and thus make a further contribution to saving energy.

The transformation to more sustainable operations involves changes in all areas. Many of them affect the core processes and thus the ERP system. The goal of sustainability can therefore hardly be achieved without up-to-date software.

Source: proALPHA

The outplacement service provider von Rundstedt conducted a large study on the topic of Smart Working in Switzerland between December 2020 and February 2021 under the direction of Prof. Dr. Andrea Martone (Director Research & Studies at von Rundstedt). A large survey was also launched in the process.

Pandemic as a Driver for Modern Forms of Work?

The study and survey aim to examine the experiences and effects of home office work on work culture and company structures and processes one year after the first lockdown with compulsory home office was declared for many employees. Is the forced home office move in Switzerland finally leading to the new work culture long predicted by Work 4.0 and Future Work? Are we on the way to Smart Working, or are we simply teleworking from home? Are Swiss companies taking advantage of this opportunity to shift in principle and permanently to a work culture with greater flexibility and autonomy in the choice of work space, time and means? Will the pandemic shock ultimately lead to a cultural change in Swiss companies? What are the first experiences with Smart Working? Does Smart Working really lead to more productivity, efficiency, quality and better results? Are Swiss companies aware that this requires more than home offices and teleworking?

Smart Working: 9 Insights

534 HR managers and executives from companies in various industries, language regions and company sizes took part in the survey. Nine findings can be derived from the responses:

1. Mainly telecommuting, but hardly any smart working: The vast majority of the companies surveyed have not introduced smart working, but teleworking. They are still working within the same structures, processes and methods and have merely moved the same work processes that previously took place in the office to a remote location (the home office). In the eyes of the study authors, this means that many companies are missing out on a major opportunity.
2. Covid as an involuntary accelerator of Smart Working: For 77.4% of the companies, Covid was the main reason for home office practice and smart working. Most companies would not have voluntarily switched to remote working until today. Smart Working is therefore currently not a choice, but pure necessity. This also explains why modern forms of work are not yet really anchored in the company and culture.
3. Too much remote working: Experts see the optimal and healthy remote time at 2 days per week. Based on Covid, over 60% of all companies in Switzerland have exceeded this mark. 46% of the companies even sent their employees 60-100% to the home office, and this last year, before the home office obligation. This is not a healthy level and is alarming, according to the study. Possible consequences are demotivation, coordination problems, declining relationship quality and endangered work-life balance.
4. Positive impact on efficiency and quality: It is often feared that the more difficult leadership and coordination and opportunistic behavior of employees will have a negative impact on productivity and efficiency. The study finds that the opposite is the case: over 75% see no drop in efficiency. Some 37% even see a clear increase in productivity. A similar picture can be seen with quality. Some 80% see no drop in quality, and 22% even believe they are seeing an increase in quality.
5. Negative impact on team and employee motivation: Not surprisingly, team and employee motivation seem to suffer under Smart Working. While the quality of collaboration remains unchanged. However, around one-third of companies report a decrease in collaboration and teamwork. 69% of companies see a deterioration in social relationships among employees. And almost half of all companies observe that employee identification with the company has deteriorated. Against this background, companies would do well to launch targeted measures to engage and retain key personnel.
6. Younger with higher readiness; older with more skills: It is not surprising that younger employees are quicker and more willing to switch to smart working and accept more flexibility and autonomy. They are also more accustomed to virtual communication than older employees. However, if we look at the ability for Smart Working, it would actually be the older employees who, with their experience in working life and in organizations, have the better prerequisites than the younger ones. Smart Working requires a good understanding of the organizational context. This should not be underestimated when introducing Smart Working to younger employees. Readiness and ability diverge here.
7. Smart working will remain in the future: Although smart working and remote working were introduced more or less involuntarily by Covid in most companies, only 6% of the companies believe that this new form of working will disappear again. The overwhelming majority of 69% believe that Smart Working will continue to exist as a work model and culture in the long term, but that it will decline slightly in its intensity and characteristics, i.e. settle into a healthy middle ground. A further 15% even believe that this changed form of working will continue to increase, spread and intensify.
8. Too little support for employees: This change in work culture and collaboration model is not easy for many employees. However, in most companies, employer support is primarily limited to the provision of technological resources and infrastructure (laptop, printer, licenses). Most employers are very reluctant to provide further financial support (e.g. office infrastructure and working environment in the home office). Too little is also done in terms of personal and individual support (training 40%, coaching 19%). Only when it comes to making working hours more flexible do a majority of employers (76%) lend a hand.
9. Opinions in management differ widely: There is definitely disagreement in management about whether Smart Working is successful, desirable, sustainable and meaningful. Various parameters point to dissent. For example, half of the managers think that Smart Working will lead to more confusion and lack of clarity in the work environment, while the other half do not see it that way. Probably the same half of the managers see Smart Working as leading to a loss of control over employees, while the other half do not see it that way. The study also locates an exciting finding in the self-doubt of managers: over half of managers believe that executives and managers have more trouble with the transition to Smart Working than employees. These figures indicate that a large proportion of managers feel they are in a dilemma.

Strategies for the future

The findings of the study have been compiled by von Rundstedt in a white paper. It also outlines strategies for the future. There is no doubt that the world of work will be different after the pandemic than it was before. That's why changes are needed at various levels: In leadership, in the measurement of productivity indicators, in corporate structures, in training, and in labor mobility. For example, leadership will have to shift more to the relationship level and focus less on processes. KPIs will be replaced by OKR (Objectives on Key Results) as measurement criteria. Corporate structures will have to become more flexible and be based on teams instead of hierarchies. This means more autonomy for employees, who will have to be trained differently. Personnel development will become more important and is likely to lead to increased demand for corresponding services.

Source: von Rundstedt

Crime is in and of itself something banal and takes place at all times and almost everywhere - wherever there is opportunity. This is how Serdar Günal-Rütsche, head of cybercrime at the Zurich Cantonal Police, outlines the situation, thereby revising the notion that criminals must be exclusively "tough guys". After all, opportunities for crime abound in Swiss cyberspace: According to an analysis by Dreamlab Technologies, a large proportion of all IP addresses in Switzerland are easy or relatively easy to attack. The analysis even identified several thousand cases where the system software is so outdated that computers are left unprotected, as it were, against the rigors of the Internet.

Cybersecurity in Switzerland becomes a top priority

However, cybersecurity in Switzerland is moving higher and higher on the agenda of political and economic players everywhere. We are now too dependent on technology to risk a total failure. And this risk certainly exists, as evidenced by recent attacks on Microsoft systems by state-sponsored actors, for example. This also means that it is no longer just "lone wolves" who are causing trouble and damage with hacks or Internet fraud. There is now a kind of "war" in cyberspace. Accordingly, security policy aspects were heavily weighted at this year's Swiss Cyber Security Days, which were held virtually on March 10 and 11. Speakers such as Army Chief Thomas Süssli or General Didier Tisseyre from the French Ministry of Defense pointed out the urgency of building up know-how in order to be able to defend against the multifaceted threats from cyberspace. The federal government and the cantons are in the process of making the federal structures more consistent in order to be able to fight cybercrime more effectively.

Innovation offensive in cyber security called for

Important stakeholders in this endeavor are also the companies - and thus also the SMEs. They are the ones who could generate know-how for cyber defense. An innovation offensive is needed, as André Kudelski, President of Innosuisse and CEO of the Kudelski Group, demands. There is currently a lack of investment by SMEs in research and development. That's why better access to venture capital is needed - combined with a change in mentality: promoting entrepreneurship with more courage to take risks and less Swiss caution. In addition, it is important to prevent innovative startups from being sold abroad too quickly.

But there are also concrete steps to report: At a time when there is a growing need for meaning and support to ensure the future viability of a business, it was also announced the creation of the digiVolution Foundation, a new strategic force to better master cyber-bio-physical convergence and digitalization.

Companies lull themselves into a false sense of security

What makes sense strategically still seems far from reality operationally in many places. A Study by gfs-zürich recently showed that many companies in Switzerland are not yet taking the issue of cyber security seriously enough. All the more so because the home office obligation has multiplied the attack surface. The reasons are manifold: Many decision-makers are overburdened or overestimate the capabilities of their own IT departments. Many see the issue as settled when technical measures such as firewalls are implemented, forgetting that organizational measures are also needed. This was the criticism of keynote speaker André Duvillard, delegate of the Confederation and the cantons for the Swiss Security Association. Nicolas Mayencourt (CEO Dreamlab Technologies) and Marc K. Peter (University of Applied Sciences Northwestern Switzerland FHNW) were in the same vein: "The digital transformation brings a massive increase in complexity and a high dependence on technology. This has just been highlighted by the Corona pandemic, which has massively accelerated the digital transformation. "2020 became a record year for cybercrime," Mayencourt said. Much still needs to change, he said: while detailed standards and regulations are in place for fire safety, for example, there is a lack of anything comparable for cybersecurity. And cybersecurity is far too little discussed in education in Switzerland. And last but not least, cybersecurity is also a question of leadership: it cannot simply be delegated, but must also become a management issue in companies.

Impressive example of the damage cyberattacks can cause

Nisa Meta from Swisswindows AG, a company with 150 employees at three locations, showed what consequences a cyber attack can have on an SME. It started in May 2019 with an email that seemed unsuspicious: It appeared to be part of a pre-existing conversation, but carried a compromised attachment. Accordingly, the recipient was sure everything seemed fine. The consequences of clicking on the attachment were ultimately fatal: it was ransomware that encrypted the company's data, coupled with a ransom demand. Swisswindows did not respond to the demand and reported the incident to the police and MELANI. The company was initially offline for 10 days, project data was lost, and for a month the company had to switch to manual work because the production control system was also down. It took two months before the machines could be started up again, and six months before the main interfaces were working again. The resulting loss of production and sales coupled with the high repair costs ultimately led to the company's insolvency. Nisa Meta derives the following recommendations from these experiences: Rely on reliable external IT partners who have the appropriate expertise for production operations, in addition to building an internal IT team for first level support, implement crisis management, ensure cost buffers and train employees in cybersecurity - so that opportunities for cybercriminals are identified before it is too late.

Meeting place for cybersecurity in Switzerland

The third edition of the Swiss Cyber Security Days brought together more than 1,800 people live online, creating countless interactions between experts, service providers and participants. The main presentations were each simultaneously translated into French, English and/or German, a digital tour de force that - with a few "bumps" - was successfully implemented. The conferences now remain accessible to the public throughout the year on the "SCSD 365" platform. The exchange and information platform is accessible free of charge and enables the cybercommunity to get in touch with each other all year round. The exhibitors' marketplace on the SCSD365 platform was used for around 1,200 contacts over the last two days and almost 4,000 messages were exchanged. The next Swiss Cyber Security Days will take place on April 6 and 7, 2022.

More information: Swiss Cyber Security Days

Tips for IT security can be found in the book "IT Security for SMEs"

Changes in sentiment on the global markets will continue to influence exchange rates in 2021. In particular, companies operating abroad should not disregard currency fluctuations, as costs will quickly skyrocket if they fail to hedge. The fintech company Ebury, based in Zurich, helps its customers to optimally hedge against currency losses and is once again ranked first among the best forecasters for the euro/US dollar exchange rate by Bloomberg due to its accurate exchange rate forecasts in the fourth quarter of 2020.

Swiss franc depreciation and further prospects

A depreciation of the Swiss franc has been observed for some time. This, after last year's state of emergency around COVID-19 saw the Swiss franc live up to its reputation as a "safe haven". Fabio Comminot, Head of Dealing at Ebury, reveals how the Swiss franc will fare this year and what stance the Swiss National Bank (SNB) will take.

Switzerland's economic and political stability makes the Swiss franc a sought-after investment internationally. Is this also reflected in the current uncertain situation due to the Corona pandemic?
Fabio Comminot: Currencies, which are considered safe havens in times of crisis, benefited most from the prevailing uncertainty following the outbreak of the corona virus in the first quarter of 2020. In particular, at the beginning of the crisis, the Swiss franc rose sharply and appreciated against the euro and the U.S. dollar. This was despite the Swiss National Bank (SNB) intervening heavily to curb the appreciation of the Swiss franc. As the political situation normalized somewhat after the first lockdown in March, the EUR/CHF currency pair was at its low point in May. This is because the lower the uncertainty, the less investors worldwide seek protection in the Swiss currency.

The downward movement of the Swiss franc accelerated further in November 2020 and this despite still high infection figures. Why did the ongoing uncertain economic situation not lead to an appreciation of the franc again here?
Fabio Comminot: Real economic conditions are always important for the development of exchange rates. However, it is not so much the actual state of an economy that is decisive, but the expectations of market participants. For example, following the outcome of the U.S. elections and news of progress in the development of several vaccines, the Swiss franc became visibly less attractive as many investors became cautiously optimistic and thus more willing to take risks.

Uncertainty and hope also characterized our start to 2021. What will happen to the Swiss franc this year?
Fabio Comminot: As the Swiss government has been rather lenient by international standards with regard to pandemic containment measures, we expect the Swiss economy to benefit less from the easing of the Corona measures in 2021 than other countries. The Swiss franc will therefore continue to depreciate gradually against the euro. The return to a more "normal" level of global economic activity is likely to further reduce the attractiveness of "safe assets".

As previously mentioned, the Swiss National Bank (SNB) intervened heavily in the earlier stages of the Corona crisis in an attempt to weaken the Swiss franc. What strategy will the SNB pursue in 2021?
Fabio Comminot: In the first half of last year alone, the SNB spent an estimated 90 billion francs to weaken the national currency. This is because Switzerland's heavy dependence on exports means that a strong currency is a problem for the SNB. Thus, preventing a strong appreciation of the franc remains the SNB's most important policy tool. We at Ebury therefore believe that the SNB will continue to intervene in the foreign exchange market and prevent a significant appreciation of the franc. The optimistic view on vaccinations and the global economy also ensures that intervention will become increasingly less necessary in our view, as investors will prefer risky currencies instead. We expect the Swiss franc to depreciate further against the euro by the end of 2021.

Support from experts

It can be difficult for Swiss companies to budget ahead for the coming year when exchange rates change between the time they invoice or receive an invoice and its due date. Risk solutions experts, such as those at Ebury, can help companies develop a plan to manage risk that is aligned with each client's business objectives so that future currency fluctuations won't hurt them. In general, however, the depreciation of the Swiss franc is helping the Swiss export industry.

More information: Ebury

After a year of lockdowns and restrictions, SMEs are still particularly affected by the impact. The offer portal Gryps.ch, a procurement platform for SMEs, has asked: What support services have SMEs applied for? What is the financial situation? What developments do they expect in 2021? 150 SMEs took part in the survey. It was conducted between March 4 and 11, 2021.

Hardship request? Rejected!

One of the survey's findings in particular is worth noting: Many SMEs fall through the cracks in the hardship program. One in three SMEs has applied for support from the hardship program. Of these, one third have already received a rejection for a hardship application, and another third are waiting for the decision. This comes too late for many SMEs whose existence is threatened. According to the survey, 45% of the SMEs have experienced a drop in sales of more than 25% in the Corona year, and support from the federal government and cantons flows too slowly, if at all. The personal statements of the participants show a clear dissatisfaction: 85% consider the processing to be too time-consuming or too slow. Many SMEs still feel that they receive too little support from the federal government and the cantons.

Many redundancies

Other results of the survey also show the sometimes difficult situation of SMEs: For example, half of the respondents had imposed a hiring freeze in the last 12 months. In 60 percent of cases, this is still in place. One in five SMEs has also already had to lay off employees - that's more than you would just one year ago had to fear. Many SMEs are also directly affected by Corona infections: around one third of the companies surveyed have recorded Corona cases among their employees.

Consequences for the SME landscape

However: SMEs trust the home office and rate the efficiency of their employees as equivalent or even higher, as the survey finds. However, this does not hide the fact that the forecasts for many SMEs are gloomy: Further sales losses and bankruptcies are to be expected. Others, however, expect an upswing after the crisis.

The Swiss SME landscape is far from having recovered, concludes the Gryps.ch survey. The effects of the large declines in sales and the long hiring freezes on the labor market would be felt in the coming years.

Source: Gryps.ch

That a family business like Maler Höhn can celebrate 100 years is not a matter of course. In this case, it is a special merit and a tribute to the boss Silvio Höhn, who tragically died in an accident in 2019. He had led and shaped the business for over 35 years with great dedication and expertise. His serious professional attitude was appreciated by customers, employees and suppliers alike. The anniversary can also be seen as a reward for the new crew, which successfully navigated through difficult times under the leadership of Monika Höhn. Whether and when the celebrations can take place in 2021 depends on the pandemic situation. However, the anniversary is a proof of achievement that deserves great recognition.

And this is how the now 100-year history of Maler Höhn began: Johannes Muschel founded his painting business in Rüti/ZH in 1921 in the midst of industrialization. He soon moved to the rural town of Schlieren, which, however, was stirred up by the Spanish-Brötlibahn and the "Lisbethli". From there, Muschel, his stepson Silvio Höhn Sr. and later Silvio Höhn Jr. worked as a family business for a total of 92 years. In 2018, master painter Silvio Höhn Jr. moved his thriving business to Birmensdorf. Höhn AG circumnavigated many pitfalls over the hundred years, survived several economic crises and, thanks to the professionalism and agility of its "doers", created a name for itself as a serious and reliable regional partner. Höhn has always stood for high-quality painting work with heart.

The range of services offered by Höhn AG includes both exterior painting work (facade renovation, concrete and wood protection, lettering) and interior painting. This ranges from wallpaper and wall coverings to plastering and plastering work. Decorative techniques and spatulas are also used. Color and expert advice and work on listed buildings as well as the application of special paints (magnetic, whiteboard or luminous paints or protective coatings against electrosmog) are part of the versatile portfolio of the family business.

Source and further information

Wherever there are many people indoors, such as in open-plan offices or even in classrooms, there is a risk of poor air quality. Study of the FOPH already revealed in 2019 that the air quality in around two-thirds of all classrooms is insufficient. In the meantime - as we know - this situation has been exacerbated by Corona. This is because aerosols contaminated with viruses from the air we breathe pose a major risk of infection. Regular ventilation can reduce this risk, but it has the disadvantage that a lot of heating energy is wasted, especially during the cold season.

Innovative ventilation system that reduces the risk of infection

A solution to this dilemma is promised by an innovative ventilation system: Vitovent P-200. This ventilation system was developed by Viessmann, one of the leading providers of heating, ventilation and air conditioning solutions in Switzerland. Vitovent 200-P works according to the displacement flow principle (see Explainer video). In the process, the ventilation system directs fresh air into the room, where it is distributed over the floor. Vitovent 200-P then uses the body heat of the people present. This is sufficient to set air circulation in motion. The clean air on the floor rises and is inhaled. The stale exhaled air - including aerosols of people potentially infected with covid - also rises and reaches the Vitovent 200-P at the ceiling with the air flow. There, the so-called HEPA particulate air filter (High Efficiency Particulate Air) filters more than 99.995 percent of all aerosols from the extract air. Then, cleaned and enriched with fresh air from outside, it flows back into the room at floor level.

Immediately available and energy efficient

Vitovent 200-P is suitable for retrofitting indoors, is available immediately and can be commissioned within half a working day, the manufacturer writes. While surge ventilation, which is recommended in Corona times to reduce the risk of infection, wastes a lot of energy and thus contributes to climate change, the Viessmann ventilation system recovers up to 96% of energy from the warm, stale indoor air, it adds.

More information: Viessmann (Switzerland) AG

75,000 Swiss companies are facing succession planning in the next five years. Around 40 percent will be transferred within the family, in 20 percent the handover will take place within the company and in around 40 percent the company concerned will be sold to a third party. Regardless of the type of handover, an early start to the 'succession' project is of the utmost importance: "Five years in advance is the ideal time," says Thomas Zimmermann, experienced succession expert at the Raiffeisen Entrepreneur Center. When it comes to a company handover, the most important guiding principle is: "It's too important to leave it to chance." The former metal construction entrepreneur Zimmermann explains which eight rules are part of successful succession planning in SMEs.

Rule 1: Declutter and make the company lean.

A succession is similar to a move. It is an opportunity to part with what is not necessary. The company must be in optimal saleable condition on day X. Saleable means fit and lean. Fit in the sense of an internal, organizational decluttering, lean in the sense of getting rid of non-essentials: non-essential properties, participations, cooperations in other companies or family members on payrolls who do not work at all. The buyer usually does not want a general store, but a company with a clear focus on its core business. Finally, you also have to deal with the issue of liquidity at an early stage. Many companies have too much liquidity. The future buyer does not want to buy money. All the dimensions of decluttering mentioned above have tax implications. Five years before the planned handover, this issue can be addressed in a targeted manner.

Rule 2: Manage retirement planning.

With the AHV, pension fund and free assets, it should be possible to maintain the previous standard of living in retirement. Can I even afford this in the long term by selling my company? This question sounds absurd to many, but very few people deal with a neutral pension analysis at an early stage. Due to a lack of pension planning, negative surprises can occur shortly before the actual sale and the money for retirement is missing. The point is for the entrepreneur to analyze her pension provision, tap into possible coverage gaps at an early stage and pay surplus liquidity of her company into the pension fund tax-free.

Rule 3: Keep employees and technology up to date.

Entrepreneurship is in a constant state of flux - a fact that plays a central role in company handovers. Some entrepreneurs are very reluctant to invest years before the actual succession. This not only reduces the sale value, but almost more importantly the number of potential acquirers. Certain industries will find themselves in a completely changed reality in five years. You have to prepare for this today. Future acquirers want to buy a modern company, a modern and appropriate machine park and trained personnel. The further training of employees is a permanent topic - digitization in the company is an absolute obligation and not a necessary evil. Successful innovation projects are highly relevant for the ability to sell. Finally, brand value and brand awareness must also be precisely scrutinized.

Rule 4: Find, retain and empower potential successor.

Sooner or later, the crucial question arises: Who should continue to run my company? Is it my employees, is it former apprentices, is it family members or does the company have to be sold to a third party? Every form of succession has its own laws. However, one thing is clear: No succession without emotions. You have to deal with this central question in good time and get all those interested, involved and affected on board as early as possible. The management buyout (MBO) is also about binding potential acquirers to the company at an early stage. This can be done by integrating them into the management, by giving them an insight into the figures or by offering them an attractive share model. The decision regarding succession also marks the beginning of entrepreneurial training. Why? Because good specialists are rarely also trained managers.

Rule 5: From tax-optimized to transparent financial statements.

In principle, it is gratifying when a company has to pay taxes on profits. This means that it is fit and future-oriented. However, most companies tend to present their annual financial statements in a tax-optimized manner within the scope of interpretation allowed by tax law. This should end five years before at the latest, and the change to transparent annual financial statements should be made. The reason is simple: what counts first and foremost for the company valuation is a healthy earnings situation. Making hidden reserves plausible is always a matter of interpretation and leads to unnecessary discussions.

Rule 6: Develop financing models.

Financing a company takeover is a challenge for successors, because in very few cases can the purchase price be raised entirely from the company's own funds. This fact requires early planning and a weighing of the options.

• Classic bank loan: In simple terms, is dependent on the plausible, fair price and the competence of the successor. The bank usually finances 50 - 60% of the purchase price. As a rule of thumb, it should be possible to repay the loan over a period of four to seven years from free cash flow.
• Equity and a bank loan are not always enough. In such cases, a seller can facilitate the financing with an internal seller loan: Here, the buyer usually pays a significant part of the price immediately. For the remainder, the seller grants him a contractually agreed loan, which is usually subordinated in combination with bank financing.

Rule 7: Involve professionals.

The sales process is new territory for most seasoned entrepreneurs: It is advisable to get external support for the entire succession process - because the process can be managed by the external professional in a targeted and independent manner. Unprofessional preparation and execution can lead to many risks. On the emotional side, it can go so far that the family ends up at odds. And on the technical level, a family member may take over the business who either does not want it or does not have the skills to do so. The different values and lifestyles also make a smooth succession arrangement difficult. It is necessary to deal with the psychologically most important stage goals at an early stage. In almost all cases where the succession process failed, the appropriate process flow was missing. Here, a neutral, external expert offers very valuable support.

Rule 8: Analyze the corporate form.

In the end, of course, corporate law also plays a significant role in company succession. The sale or succession of a partnership or general partnership usually has tax consequences because hidden reserves have to be liquidated. Here too, early planning of a possible conversion is crucial. After the conversion of a partnership into a legal company, a company can only be sold tax-free after five years. The same lock-up period of five years applies to a spin-off of a business branch of a legal entity into a new corporation. (e.g. operating company / real estate company).

Address succession planning in SMEs in good time

These eight rules alone answer the question why early planning of succession is worthwhile. The 'life's work company' is associated with so much work and sacrifice that even the last step should be completed just as flawlessly as profitably.

Editor's note: The Successor magazine of the ORGANISATOR magazine addresses current issues relating to succession planning in SMEs on an annual basis. The 2021 edition is in preparation.

Many health-related products, services and technologies are often not designed for women. However, there are many areas that require specific solutions for women's issues, such as pregnancy, menstruation, fertility or menopause. In Switzerland and Europe, very few companies and startups are addressing these issues. EPFL and Groupe Mutuel want to encourage the development of these startups and support them through EPFL's Innovation Park and high-quality mentoring. A startup accelerator has now been launched under the title "Tech4Eva". In it, selection programs, workshops and coaching are planned to develop a business model and promote the maturation of new technologies for women's health.

Startup accelerator for Swiss and European startups

A selection committee will determine a maximum of 15 startups to be supported in this first season. The goal is to address issues around women's health in terms of prevention, support and treatment. Tech4Eva focuses on innovative solutions in areas such as pregnancy, fertility, menstruation, menopause, mental health and family life. The products and services developed by the selected young companies are focused on technological solutions such as apps, internet platforms, diagnostic tools, therapeutic tools or preventive medicine supported by artificial intelligence (AI). The program will last 9 months and is open to companies from Switzerland and Europe.

A win-win partnership

The selected start-ups benefit from one of the best healthcare systems in Europe. Thanks to the EPFL Innovation Park network and its incubator La Forge, they gain access to international collaborations and investors. At Groupe Mutuel, they can also work on pilot projects and have access to a dynamic market with one of the leading Swiss health insurers. EPFL Innovation Park and Groupe Mutuel are convinced of the necessity of new technologies for women and speak of a "win-win partnership": "Unfortunately, women's issues are often forgotten when developing technological solutions regarding health. With this partnership, we want to close this gap in Switzerland," explains Thomas Boyer, CEO of Groupe Mutuel, for example. "We are delighted to be able to work with Groupe Mutuel to help boost the productivity and creativity of 50 percent of the population with a support program for femtech startups," adds Jean-Philippe Lallement, Executive Director at EPFL Innovation Park.

Source: Groupe Mutuel

The Swiss LiveCom Association Expo Event industry association, in collaboration with its partner associations svtb and Tectum, conducted a survey among its members. In doing so, the associations wanted to provide themselves and the authorities with a representative overview of the situation. In the process, the business owners and executives of 153 companies provided binding information, namely on sales figures, the employee situation, project prospects, the receipt of aid measures and numerous other relevant topics.

Event industry with large loss of gross value added

The numbers speak for themselves: According to the survey, more than 17,000 projects were canceled by the event industry in the crisis year 2020. This resulted in a drop in sales of 57%, which is equivalent to 3.19 billion. CHF. Approximately 4,460 jobs were lost in 2020. Spread across the entire event industry, quite a few companies have ceased operations or completely reoriented themselves. The loss of trade fairs, events and congresses creates a hole of CHF 10 billion in the gross value added.

Further cancellations threaten

All the results of the survey would show how much the survival of most companies from the event industry depends on whether a protective shield for Corona-related cancellations is anchored in the Covid 19 law, according to the media release from the associations involved. That's because even with an end to the pandemic, an end to the emergency is far from in sight for many companies, it said. More than 70% of the survey participants, for example, have applied for a Covid 19 loan, which will take years to pay off. In addition, potential clients are unable and unwilling to provide any certainty about future activities, which will certainly extend the planning uncertainty that has prevailed for a year now well into 2022.

Protective shield demanded

Based on the current epidemiological situation and the current Swiss vaccination schedule, the industry associations assume that there will also be many cancellations in 2021 and 2022. This means that thousands of jobs will continue to be at stake unless a protective shield provides a remedy.

Source: Expo Event