If you don’t get the employees on board, digitalisation won’t succeed

Journalist: Leah Süss | Photographer: Christian Grund

Ms Frei, how well advanced is the digital transformation in Swiss companies?
Switzerland has always been a pioneer when it comes to digitalisation. Back in 2015, when the Swiss franc sky-rocketed after the minimum EUR/CHF exchange rate was discontinued, export-oriented industrial companies had to automate a lot of processes in order to remain competitive. 

Which are the areas where there is still potential?
For example, many Swiss companies use machine learning to analyse data. Companies could do even more when it comes to artificial intelligence. AI technology has made a lot of progress recently, particularly in generative language models. These can support companies in developing new applications or implementing sustainability measures.

Schneider Electric has been operating its own smart factories, which are digitally networked and automated in line with Industry 4.0, since 2017. Since then, 36 production facilities worldwide have been digitalised. What lessons have you learnt from this?
Firstly, that every digital transformation is different and brings its own challenges with it, including that company and site teams often have different visions. This makes it important to define common goals from the outset. And secondly, that it’s often not technology, but people who are the decisive factor for the success of the digital transformation. That’s because successful digitalisation requires all employees to get involved – from management to the assembly line.

Let’s stay with people. You recently mentioned that Schneider Electric is struggling to recruit enough engineers, just like other industrial companies. What impact is automation having on job roles in the company?
This doesn’t just apply to Schneider but to the entire industry. The more automation there is in the workplace, the more accessible it becomes for workers who don’t have the traditional qualifications. Automation complements human skills and carries out repetitive or dangerous tasks with precision and speed. A visual inspection of components, for example, involves checking them for defects every 60 seconds. It is much more efficient to use an AI-supported camera to carry out this task and to entrust employees with more valuable tasks that require human knowledge.

Now let’s come to the company. The more networked the production, the more serious the failure of individual components. How can this risk be countered? 
Power failures or system faults are rare. In the event of power failures, an emergency power supply can still be provided by diesel generators or batteries on site. 
Cybersecurity is a major issue. An attack occurs every 14 seconds, and the number of security breaches has risen by over 65 per cent in the last five years. As a result, companies need to identify the weak points in their systems and correctly assess their cyber risks across the entire life cycle of all systems. People are also key here: companies need to train their employees in such a way that they understand the risks and adapt their behaviour accordingly.   

Another sticking point for a networked industry is the exchange of data between companies. Until now, many companies have guarded their data as a trade secret. Is this slowly changing?
This is certainly still a big issue. Some clients aren’t yet ready to disclose their databases including contextualised information about their production processes. However, having trustworthy data is crucial for driving collaboration and creating new industry models. We have a huge opportunity here in Europe: we have good laws, for example in the area of data protection, and could scale production better through a broader exchange of data. Other countries are already ahead of us in this respect.

Energy efficiency is also seen as an opportunity for digitalisation. Which are the main sectors of industry where it can still be increased?
Heavy industry, such as manufacturing and chemicals, has already achieved a great deal in terms of energy efficiency due to cost pressure and regulation. The oil and gas industry, which is the most energy-intensive there is, has made the most progress here. What really needs to catch up is so-called light industry, for example companies that assemble parts. Energy can be saved in all processes that involve water, light or heat, for example by installing heat pumps instead of oil heating systems. There is a clear incentive to do this, as energy efficiency is the greatest lever for achieving greater sustainability and lower costs. Most investments pay for themselves within three or four years. 

Looking ahead to the future, what trends do you expect when it comes to digitalisation?
Firstly, the industry of the future will use more and more advanced digital technologies such as AI, drones and virtual reality to optimise productivity, efficiency and sustainability. This will also be necessary in order to remain competitive. Secondly, digitalisation will remain a big priority when it comes to business planning. However, it has to start with people. You can’t just bring in external consultants for this because there can be a lot of internal resistance, especially in small and medium-sized companies. Digitalisation won’t succeed unless you get the staff on board. This all means that management needs to tackle problems and close gaps. It’s an exciting time!