Swiss executives are optimistic and expect growth

According to the latest PwC CEO Surveywhich has just been presented in Davos, executives around the world are optimistic about growth. Digitalization continues to be a priority for Swiss executives. There is a growing understanding of digital transformation, what it means and how it can be used to transform their core business. This is particularly true for the design of ERP systems, supply chains and customer journeys. Cybersecurity continues to be an important issue for Swiss SMEs. In 2022, Swiss managers should focus on six points that are likely to prove to be success factors.

1) Leading investments in the cloud to real transformation.

According to Statista, in 2022 organizations worldwide will have around $1.78 trillion for cloud technology and other digital transformation initiatives spend. However, the question remains: are companies and governments investing in a real transformation or are they merely whitewashing business as usual? Crucial to the answer is the shift to cloud computing, including autonomous technologies. In the private sector, almost every industry already has one or more cloud-centric "digital rebels" who are transforming it. It is to be expected that a whole range of unconventional digital partnerships will emerge in all sectors. Certainly those companies that see the cloud as liberation will make the biggest gains. In fact, Gartner calls the cloud a "force multiplier" - it is a scalable, resilient technological foundation for long-term innovation and growth. Best example: The Deutsche Bank uses Oracle Exadata Cloud@Customer with more than 40 petabytes of data in Oracle Databases, thus saving enormous costs. We are also increasingly hearing from customers that the cloud relieves their IT specialists in the area of system and security updates and maintenance. The effect: they can concentrate more on developing profitable digital products and services. With this in mind, at the start of 2022, boards of directors will be demanding more evidence from their management teams that their cloud investments are positioning the company for long-term competitive advantage.

2) ML and AI become core competencies of leading digital companies.

The flood of data continues to grow and AI and ML algorithms are helping companies to analyze and continuously learn from the data, make better decisions and provide a range of information for the next actions. However, most companies are still in the experimental phase when it comes to AI and ML. Part of the problem is developing the necessary skills. Most companies and government institutions do not have the resources to assemble an army of PhD-level data scientists. An alternative would be to build smaller, more focused "MLOps" teams - similar to DevOps teams in application development. These teams consist of data scientists, but also developers and other IT staff whose ongoing task is to deploy, maintain and constantly improve LI/ML models in production. In addition, companies are recognizing the value of cloud infrastructure and applications with integrated AI and ML algorithms. Gartner predicts that by 2025 the ten percent of companies that have implemented AI/ML engineering best practices are at least three times as valuable from these practices than the 90 percent of companies that do not. Early adopters have a clear advantage here.

3) Customers and others increasingly evaluate companies in terms of sustainability

When buying goods and services, assessing potential employers and even investing in shares, people of all ages are increasingly paying attention to the sustainability strategy and commitment of companies. By 2022, every company will be required to develop and implement a comprehensive sustainability strategy - a tall order that is already gaining momentum. Forrester reports that 81% of Fortune Global 200 companies in the EMEA region have already appointed a sustainability officer at senior management level. A good start, but real action requires companies to change some of the fundamentals of their business in a sustainable way.

4) New career and hiring plans are critical to attracting talent.

Swiss executives and companies are aware of the importance of a skilled workforce and talent as the most important growth factor. In 2020, 64 % of Swiss CEOs surveyed by PwC rated the availability of skilled labor as the seventh biggest threat to their company. But the big Resignation, triggered by the global pandemic, suggests that employers still have a lot of work to do. As businesses begin to reopen, organizations must be more proactive in developing a career plan for their most valuable employees and address their concerns about work-life balance and workplace flexibility.

5) Supply chain disruptions - a new constant

Even the most sophisticated supply chain management technologies cannot fully anticipate the extent of market shocks such as a global pandemic, but they can help companies determine the right balance of safety stock. As buying behavior shifts from in-person to online platforms, companies need to recognize and respond to these changes, taking into account the impact in their factories, data centers and global supply chains. A good example is Cohu, which, thanks to its transformation, has been able to establish a smaller and more agile IT team to maintain systems while supporting the company's growing activity and future acquisitions.

6) AI as a springboard for new financial managers

Business models change in line with customer expectations. There have never been so many mergers, acquisitions and divestitures. All these challenges are prompting us to focus on the value of data: Cleanse data, accelerate planning cycles, but also look beyond the finance function. Companies are asking themselves what data they have, how it can best be structured and integrated into the various business areas and what benefits it offers. Those responsible for funding these projects need to know how to combine financial, supply chain, HR and other data sets. An excellent example from Switzerland is Galdermawhich opted for further transformation, implementing integrated business planning, freeing up resources and consolidating what could not be fully automated and streamlined into shared services, enabling the introduction of new services. The transformation has already stimulated a boom in innovation in Galderma's business units responsible for prescription medicines, consumer products and aesthetics, enabling the company to hope to become a global leader in dermatology. When companies consider these key priorities in the context of business opportunities, challenges and impacts, they are automatically better positioned to increase their commercial impact and improve their market position. Source: Oracle The contribution Swiss executives are optimistic and expect growth first appeared on MQ Management and Quality.

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