Steinbeiser Thomas Hösle urges us to leverage the efficiency potential of software and automation solutions
The multiple ongoing crises of recent years are causing ever greater challenges, especially for small and medium-sized enterprises (SMEs). It is becoming increasingly difficult to implement a strategy to ensure a business’s long-term success and prevent third parties from influencing company policy. And the balancing act of keeping your core business profitable while growing new prospective lines of business is getting trickier and trickier. But one thing is for sure, according to Steinbeis Entrepreneur Thomas Hösle: those who fail to continuously adapt and transform will inevitably be restructured sooner or later. His Steinbeis Consulting Center for Business Continuity identifies ways in which businesses can strengthen their future prospects and leverage potential growth opportunities.
There may be no general formula for a successful business, but there are some basic “recipes” that are critical to an SME’s survival. People in companies aren’t being replaced by AI or software solutions – they are being replaced by other people who have AI expertise. By the same token, SMEs aren’t being driven out of the market by AI, but by businesses that know how to leverage AI’s strengths.
It is thus vital for SMEs to start seeing themselves as tech firms, too. Figuratively speaking, they can’t afford to make the same mistake as Kaiser Wilhelm II, who thought motor cars were a fad and chose to stick with horses instead. Technological expertise, especially in practical AI and software applications, is therefore one of the keys to significantly improving an SME’s
future prospects.
Leveraging the efficiency gains enabled by AI and software
AI- and software-based automation can significantly boost process efficiency and productivity in SMEs. As such, it forms an important part of the lean management approach that is evolving into “lean digital management” thanks to the use of digital tools.
Mentions of process automation usually conjure up a picture of mechanical production and assembly processes on the shop floor. In this setting, it is assumed that all the processes that can be automated will be automated.
But what about the rest of the business, i.e. the commercial and technical functions? In Germany, we permit ourselves the luxury of squandering the potential of legions of highly-skilled professionals on routine tasks in these areas. The result is employee demotivation and human error, both of which have a detrimental impact on productivity and efficiency.
The risk of “unemployeement”
As far as motivation is concerned, surveys have found that just 21% or so of employees say they are able to do their jobs properly with the tools at their disposal. Yet keeping your employees happy is the most effective way of combating the “relative” skills shortage.
The use of smart software tools increases employee satisfaction and loyalty. All the – frequently monotonous – routine tasks in the commercial/technical administration functions can in principle be taken over by our “computer colleagues” using Robotic Process Automation (RPA).
Computers that work 24/7 can thus fill the “unemployeement” gap. The Federal Statistical Office predicts that, by 2042, there will be a shortage of some nine million employees in Germany. And this applies not only to skilled labor, but across all functions.
“I believe that the impacts of this labor shortage are one of the most underestimated risks for businesses”, says Steinbeis Entrepreneur Thomas Hösle. Only the attractive employers who provide for a high level of employee satisfaction and are smart about using the opportunities that automation offers both on the shop floor and for administrative functions will still have enough resources to deliver their services and thus ensure their future success. Another advantage of RPA solutions is that they are quick to implement and also to take effect. However, entrepreneurs need to act swiftly and turbocharge the relevant measures in SMEs. After all, if you want to create a resilient, sustainable business that adds value, it’s no use arriving late at the party.
Contact
Thomas Hösle (author)
Steinbeis Entrepreneur
Steinbeis Consulting Center for Business Continuity (Pfullingen)
https://steinbeis-zukunftssicherung.de