On average, it takes companies more than a month to detect and remediate security breaches. Yet data can be reliably protected if you consider its complete lifecycle - from creation to deletion. Forcepoint, a provider of IT security solutions for enterprises and public administrations, has found that these four steps are crucial:

1. Data Discovery: The first step is to track down all of the company's data. Typically, data is scattered across countless endpoints, servers and cloud services, so the challenge is not to miss any storage locations. The goal of data discovery is to find out what data the company even owns, where it is stored, who can access it, and when it was last accessed. Users often have more access rights than they actually need. Assigning rights according to the least privilege principle helps to minimize risks because users only receive the authorizations they need for their activities. In addition, knowledge of one's own data is necessary for compliance with regulatory requirements and standards such as DSGVO or PCI DSS. After all, companies cannot protect sensitive data if it is hidden in unknown storage locations or in a huge mountain of dark data.
2. Data Classification: Once all the data has been collected, the next step is classification, i.e. division into categories. Based on this, companies can define appropriate protection for each category and prioritize the most sensitive data. However, given the enormous volumes of data in most companies, manual classification is extremely time-consuming and error-prone, if not impossible. Advances in AI and machine learning, however, now allow fast and accurate automated classification. This not only flags data that is particularly worthy of protection, but also data garbage, for example. This is redundant, obsolete and trivial information that is simply superfluous and can be deleted. This saves costs and reduces risks.
3. Data Monitoring: Tracking down and classifying data is just the beginning, because comprehensive protection also requires continuous monitoring. On the one hand, to keep the information about the data stock up to date - after all, data is constantly being copied, processed and transferred. On the other hand, to identify potential threats and quickly initiate countermeasures to stop data leakage or data breaches. Real-time monitoring of all data, storage systems and accesses helps to identify unusual changes to data, accesses that deviate from normal access patterns and other suspicious activities. This information is important for risk assessments and enables proactive responses. It also feeds into reports and audit trails, enabling organizations to demonstrate their security efforts and track the progress of security breaches in detail.
4. Data Protection: Data discovery, classification and monitoring provide valuable information on which companies can build to largely automate the protection of their data. The key is a data-first approach that allows control of all interactions with the data and the reliable enforcement of policies. These policies should be able to be managed consistently and centrally to avoid inconsistencies and thus gaps in protection that often occur when each tool brings its own set of rules. Moreover, many dangers can be massively reduced by Zero Trust, because, for example, infected files do not enter the company in the first place or cyber criminals do not even reach the valuable data thanks to restrictive assignment of rights and consistent authentication of all accesses.

"Ultimately, companies can only protect their data if they know it and know what is happening to it," emphasizes Frank Limberger Data & Insider Threat Security Specialist at Forcepoint in Munich. "That's why it's not enough to just capture and classify data once. Rather, companies need modern technologies and solutions that continuously watch over all data and offer a high degree of automation. Today's data inventories are simply too large for manual work - moreover, security breaches require immediate reactions, because when data leaks or is encrypted, every second counts."

Source and further information: Forcepoint

Whether in production, customer service or human resources: the use of artificial intelligence in companies is now no longer just a helpful addition, but is increasingly becoming an indispensable tool for innovative companies. Specifically with regard to efficiency within an organization, AI offers great opportunities, especially in procurement. "Integrating AI into procurement not only helps companies work more efficiently, but also in cost reduction and decision-making," knows Patrick Sommer, consulting manager at CNT Management Consulting in Zurich. At the same time, the expert emphasizes that a large number of companies are not yet fully exploiting the potential of AI in their procurement solutions. In contrast, those organizations that address the issue early on benefit from the sustainable stabilization of their supply chain and a significant competitive advantage. Above all, the methods of machine learning and advanced analytics are used here.

Real-time insights about future events

One of the greatest advantages of artificial intelligence is its ability to analyze and compare millions of unstructured data in a very short time. From this, for example, patterns and trends can be identified in a matter of seconds. "As a result, the procurement department knows immediately about alternative sources of materials or raw materials and recognizes where the desired products are available and at what price," explains Sommer. A particularly practical feature is that the self-learning algorithms analyze external data as well as internal data and can thus include information on geopolitical dynamics, current market developments or environmental factors. Through so-called predictive analytics, companies are able to react to events at an early stage, even if they have not yet occurred. For example, the software can identify demand trends or hard-to-sell products. Because artificial intelligence generates these insights almost in real time, companies benefit from significant advantages over their competitors.

Transparency avoids unnecessary costs

In addition to providing information on the most favorable suppliers of the required goods, AI also helps to save costs in other ways. By fully digitizing their supply chain, companies can link all the services and materials they need on one page, creating transparency across the entire procurement process. Superfluous expenditures are thus identified and eliminated. The aforementioned analysis of external factors also makes demand forecasting more precise, optimizes inventories and avoids bottlenecks. Sommer reports, "Many companies don't know about their suppliers' inventories, making it difficult to forecast their own production." With the digitized process chain, companies create transparency about their own as well as their suppliers' inventory situation and can always react agilely to changes. Software such as SAP Ariba, for example, in collaboration with suppliers via the SAP Business Network for Procurement, can bring all this data together and clearly display all supplier relationships. "Common procurement risks such as dependence on a few suppliers or non-transparent supply chains are minimized as a result," Sommer emphasizes. This helps to identify weaknesses in the supply chain and implement adaptations accordingly.

Cognitive assistance speaks all languages

Artificial intelligence also supports the procurement department in the form of cognitive assistance. With the help of such support, procurement employees can, for example, contact suppliers in their respective national language without errors and thus guarantee flawless communication. "Intelligent assistants also help to adhere to current laws and compliance regulations and minimize errors, while simultaneously accelerating processes," says CNT expert Sommer. Even the creation of contracts is possible: the smart assistants can check and analyze existing documents in seconds and then create templates. By analyzing online data, the cognitive assistant even recognizes and takes into account new regulations and legal requirements.

Source: CNT Management Consulting

Digital transformation in the public sector does not cover the same topics as in the private sector. In addition to the digitization of business processes, the focus is on the development of digital tools for the population. This can facilitate and expand their interactions with local authorities. However, municipalities have limited resources to deal with new developments.

State of digitization surveyed in Swiss municipalities

A digitization survey was recently conducted among Swiss municipalities. It was developed in collaboration with the Swiss Association of Municipalities (SGV), the Myni Gmeind association and the TransferPlus AG opinion research institute. The survey analyzes which topics are currently occupying the municipalities. In the area of digitization, the survey asks about motives and factors for digitization activities. The survey also shows where there is still a need and which measures have already been implemented. It also asks whether digitization is seen as an opportunity or a risk and whether the municipalities see themselves as "pioneers" or "laggards. The questions as to whether digitization is coordinated across the board and whether there is a digitization strategy are also answered.

The results of the survey help the SGV and the Myni Gmeind association, as well as the cantons and the federal government, to provide targeted support for the municipalities in their digital transformation. There are digital solutions for all of these challenges. That is why Myni Gmeind offers support together with several partners.

Results show: Digitization is an opportunity for communities

736 municipalities throughout Switzerland took part in the survey (= 34 % response rate, comparable to 2022). The majority of responses to the survey from the municipalities came from municipal/city clerks (> 60%), 13% from municipal/city presidents. The evaluation shows that around 75% of the municipalities fundamentally see digitization as an opportunity. This is still a positive assessment, although it is stagnating at a high level.

In the area of digitization, only one-third of the municipalities see themselves as "pioneers"; two-thirds see themselves more as "laggards". The municipalities that see themselves as "pioneers" occupy a position (person or committee) for cross-departmental coordination. Of these municipalities, one in three has already defined an overarching digitization strategy. Among the municipalities that define themselves as "laggards," only 14 percent have an effective digitization strategy.

The motivations for digitization (in %) are the same as in previous years:

Hardly any cost savings due to digitization

It is interesting to note that, from the point of view of the Swiss municipalities, the benefits of digitization are not associated with a reduction in costs. Currently, the digitization of administrative processes (49%) and the acquisition of digital tools, including for IT security, are in the foreground. However, digital transformation (developing the culture of employees) is also important for the municipalities. From the perspective of the municipalities, the political will and the provision of sufficient financial and human resources are central to this. Digitization projects are predominantly budgeted on a topic or area basis. The communities see a need for support from third parties in the following areas:

• IT security (data protection, data security and cyber attacks)
• Digitization of administrative processes (eGovernment)
• Further training in administration on digitization topics
• Digital services for the population and the economy
• Digitization of process management in administration

Conclusion: Digitization remains a focal point of community development

Digital transformation has arrived at the management level of municipal administrations. The focus is now more on the human and financial resources required for the transformation, but this is viewed rather skeptically. When it comes to creating the technical prerequisites, the measures focus on the digitization of administrative processes, IT security and digital services for the population and the economy. Thus, the topic of "digitization" remains a focal point in the current development of the municipality.

Source: www.mynigmeind.ch

NT-ware is a Canon Group company based in Bad Iburg near Osnabrück. It develops state-of-the-art print and scan management software, such as the uniFLOW Online solution. This is a secure, public cloud printing and scanning solution for businesses of all sizes that facilitates the management of their entire print environment. It is designed to meet the needs of organizations that want to avoid managing local servers, but still control the printing process and benefit from flexible scanning workflows.

ISO 27001 certification for high level of data protection

The demands on information security are correspondingly high. Security breaches can have far-reaching consequences, including financial losses, loss of business and damage to reputation. Therefore, it has always been important for NT-ware to ensure the greatest possible level of security and data protection. ISO 27001 certification now documents that all data protection and IT security measures within NT-ware are subject to structured processes, sound risk management and continuous improvement. The scope of the certification includes design, planning, development, quality assurance, support and operation of the cloud-based print and scan management solution uniFLOW Online. This also includes the corresponding client and server components on site.

Obtaining and maintaining certification

The successful certification was achieved with a wide range of measures and elements, including the following key elements:

• The definition and communication of the company's security policies required in the ISMS framework.
• The inventory of information resources (systems, services, laptops, servers, infrastructure, and staff).
• Risk management (identification, assessment, treatment and monitoring of risks)
• Training for employees and awareness programs

These measures are periodically re-evaluated to maintain certification.

Internationally recognized standard

NT-ware has chosen ISO 27001 because it is not only internationally recognized, but also based on two key principles. First, it always relies on certification by an accredited external body, which creates neutrality and credibility. In this case, the British Standards Institution (BSI) performed the accreditation and audits. Second, certification involves regular assessments instead of one-time activities. The continuous certification process is in line with NT-Ware's ongoing efforts to continuously maintain the highest standards of security and privacy, both in the products they develop and in the way they operate.

Source: Canon

Swiss companies' need for solutions against cybercrime is great and growing at a fast pace. According to the "Global Digital Trust Insights 2023" of the consulting firm PwC, 73 percent of Swiss companies see an urgent need for action in this area. With the rise of cybercrime as one of the most central top risks, the insurance gap for large-scale cyber incidents is growing nationally and internationally. Helvetia's symposium "Challenges in managing top cyber risks" on June 5, 2023, aggressively brought the acute problems into the public eye.

Hardly sufficient protection against large-scale cyber risks

"It is true that the insurance industry can cover individual risks well today - provided that companies make appropriate investments in prevention and data security," said Martin Jara, CEO of Helvetia Switzerland. "But for major events, which can go far beyond individual attacks with a large number of people affected, there is currently insufficient protection in Switzerland." The central element, he said, must be to build resilience into the Swiss SME economy: no mandatory coverage, but industry-specific prevention to allow financial compensation to continue.

"Triad of Resilience"

Alexandra Arni, Head of ICT at Swiss Banking and Vice President of the Swiss Financial Sector Cyber Security Centre (FS-CSC), explained what such an approach might look like. There, the cooperation of all parties involved is already based on the "triad of resilience," namely prevention, crisis management and damage repair. Hans-Ulrich Bigler, Director of the Swiss Trade Association (SGV), pointed out that the most important pillar of the Swiss economy, namely the approximately 600,000 SMEs, are affected by the threat of cybercriminals at least as much as large companies and operators of system-critical infrastructures. It is therefore important that SMEs deal with the risks and take prevention seriously.

Raphael Reischuk, Partner and Head of Cybersecurity at Zühlke Engineering, picked up the thread of the previous speaker. Reischuk emphatically emphasized that the insurability of cyber risks must be ensured as soon as possible for the benefit of the population, the economy and ultimately also the democratic structure of our society. Reischuk showed how the issue can be tackled technically by means of a data-based system for the real-time collection of cyber risks, which enables an improved global situation picture, promises incentives to reduce cyber risks and rewards policyholders with adaptive insurance premiums.

Administration and science support broad cooperation

The need for a solution to improve the insurability of large-scale cyber risks, as well as the bundling of different competencies and experiences, also met with an open ear among the representatives of the administration and academia present. Florian Schütz, head of the National Center for Cyber Security (NCSC) and designated director of the new Federal Office for Cyber Security, emphasized in his remarks how important the contribution of companies is for a cyber strategy in line with national values and principles. Ultimately, however, he said, the business community also has an interest in placing cybersecurity at the top of the agenda as a productivity driver. In any case, he said, on the part of the NCSC, one is pleased that the insurability of cyber risks is increasingly coming into focus. "In the context of the national discussion about increasing cyber resilience and minimizing economic damage, today is the right time to have this discussion," said Florian Schütz.

On the scientific side, industry and government can rely on the extensive know-how of specialized start-ups and national institutions such as the Swiss Federal Institute of Technology ETH. Professor Florian Tramèr, an expert in computer security, privacy protection and machine learning in the Department of Computer Science at ETH Zurich, showed how intensively science is currently addressing the topic and is already developing future-oriented models with the involvement of business and government.

Insurance industry relies on improved fundamentals and appropriate risk models

Jean-Philippe Moser, Head of Insurance Sectors at the Swiss Insurance Association (SIA), and David Ribeaud, CEO Specialty Markets at Helvetia, emphasized the industry's willingness to play its part. For example, in the effort to achieve a solid data basis and suitable risk models for better insurability of cyber attacks. At the same time, both speakers emphasized the need for improved foundations to create increased cyber resilience in the Swiss economy and society. Companies that invest in cyber security and prevention will have a better chance of obtaining appropriate insurance solutions.

Chances for political acceptance are good

And what about the political majority capability of such solutions? According to Werner Salzmann (SVP, BE), President of the Security Policy Committee of the Council of States (SiK-S), the chances are good. After all, the SiK-S has long considered the issue of cybercrime to be one of the most pressing problems in the current security situation. Any broad-based initiative from outside the political spectrum would be looked upon favorably, said the SVP politician at the cyber symposium in Bern.

Taking into account the positions presented, the SIA and the affiliated insurance companies are developing the necessary foundations in the "Cyber" working group. At a follow-up symposium, the findings will then be discussed with the players and any further steps defined. From this perspective, it is realistic to expect that Switzerland will be able to establish a realistic cooperation between the most important representatives of business, science and government within a reasonable timeframe and with the support of all parties. This would be a globally pioneering measure and a great opportunity for the business location.

Source and further information: Helvetia

Exactly two decades ago, the starting signal for ConSense GmbH was given. The software developer from Aachen surprised the market with modern software solutions for setting up process-oriented quality management and integrated management systems. The goal was to effectively support companies with a user-friendly, practical solution for the transparent management of the quality management standard DIN EN ISO 9001 as well as any other standards and guidelines.

Full electronic IMS and QM support

Today, in 2023, the company claims to be one of the technologically leading providers of software for process and quality management as well as for integrated management systems. The company itself particularly emphasizes the holistic approach of the products: In addition to intelligent technology for complete electronic support of various management areas, the solutions also take aspects of sustainable organizational development and the active involvement of employees into account. Specialized products also support industries with increased regulatory requirements, e.g. in the transparent management of GxP requirements. More than 750 companies in 30 countries now use ConSense software in over 20 languages.

Continuous development for living, accepted management systems

Over the course of two decades, ConSense GmbH has repeatedly adapted its software solutions to the current needs of the practice through numerous further developments. For example, the integration of an AI assistant into the software, which relieves QM managers of a lot of work in the creation of texts, processes and eLearnings, is completely new. "Our clientele appreciates us for our innovative strength and a strong service mindset, and we are constantly presented with new exciting tasks that inspire us and drive us to peak performance. The goal is always to significantly relieve the burden on companies and organizations through living and truly accepted management systems," says Dr. Iris Bruns from the management of ConSense GmbH. She adds: "We also have a lot planned for the next two decades - our customers can look forward to it.

Source and further information: ConSense GmbH

Industry data according to more than two-thirds of companies, errors occur in more than one percent of the total invoice volume, and 20 to 30 percent of all invoices must be processed manually. Therefore, it is critical to improve this error-prone process. Automating invoice management offers a simple and future-proof solution. By using artificial intelligence and cloud technology, companies can streamline their process and free up their finance department. Employees then have more time for more strategic tasks. But what challenges do finance departments face in invoice management? When can automation software help?

Challenge #1: Paper invoices and manual processes

According to the American Institute of Finance & Management IOFM the average company still receives 63 percent of its invoices in paper form. This reliance on paper invoices significantly impacts the efficient processing of invoices, with over half of organizations manually processing over 75 percent of their paper invoices. This results in costly and error-prone data entry, delayed payments, missed discounts, compliance and security risks, high storage and retrieval costs, delays in uploading approved invoices to downstream systems, and time-consuming vendor inquiries.

Employees must manually enter and reconcile purchase order, invoice and payment information, making the process tedious and time-consuming. Matching invoice items with data in a purchase order system and manually approving invoices cause problems for 28 percent of accounts payable employees. 17 percent consider entering invoice data to be the biggest challenge, while 15 percent cite invoice coding as a major concern. Additionally, 20 percent of companies have difficulty obtaining supply documents for reconciliation. An equal percentage struggle with processing duplicate invoices when handling paper invoices, according to IOFM's research.

Solution: Modern cloud solutions make it possible to fully automate expense management processes - including invoice processing. Paper invoices are scanned or uploaded to appropriate platforms. This ensures that most fields (invoice number, date, due date, order number, currency or supplier name) are extracted automatically. If the solution has AI technology, the captured data is independently assigned to the desired posting categories, the various documents are reconciled and transferred on time. For this, the solution must be seamlessly connected to the existing system landscape including ERP systems. This not only reduces the time required for invoice processing, but also ensures high-quality and correct bookings, as the risk of human error is greatly reduced.

Challenge #2: Inaccurate or incomplete data

Another challenge in invoice management is dealing with inaccurate or incomplete data. This is due to error-prone data entry by hand and a lack of standard processes for invoice capture. The result: inconsistencies in data entry - especially when paper documents and Excel sheets accompany the process.

Solution: Automatic text recognition and data extraction prevents errors associated with manual data entry. If the solution has AI technology, it can validate the invoice data it reads, match it with vendor purchase orders, and automate line item coding - including categories, cost objects, and VAT. If errors surface (for example, duplicate invoices or data that appears fraudulent or doesn't match ERP data), the platform sends alerts to preset user roles. In this way, it ensures that outliers are checked individually. This prevents policy violations and duplicate payments, and minimizes manual intervention.

Challenge #3: Complex approval workflows

Often the approval process in accounts payable is complex, lacking clarity and consistency. This may be due to differences in organizational structure - for example, in global organizations where each unit uses a different accounting system, independent process, or different software solutions. In addition, the use of paper-based business processes can further complicate approval workflows and lead to delays and errors.

The consequences of complex approval workflows include longer processing times, higher costs due to manual intervention, potential compliance issues, and difficulty tracking invoices. Invoices requiring multiple levels of approval sometimes get lost between systems, which can lead to late payments and missed discounts for early payments.

Solution: An automated solution allows different approval workflows to be used for different entities or types of invoices, for example, vendor-based approvals, cost unit approvals, or custom approvals. Vendor-based workflows assign a default vendor approval upon submission. In this case, the invoice can be automatically routed for review.

Another option is to implement workflows for supervisors with automatic approval. Here, all invoices are automatically approved if they are below a certain threshold. Cost unit-based workflows can also be automated. In more complex cases, a mix of approval workflows can be used, such as cost unit-based approval workflows with supplier-based automated workflows.

Appropriate software also makes it possible to define roles and responsibilities for each stakeholder involved in the approval process. This reduces the risk of duplicate or contradictory approvals.

Challenge #4: Lack of standardization

There is another major obstacle to automating accounts payable: the lack of standardization in the format and content of invoices. Suppliers sometimes use different invoice methods, such as a mix of manual invoice processing and electronic invoicing. This is sometimes compounded by different invoice processing software for different companies. This easily leads to a lack of data consistency, making it difficult to automatically extract and process the required information.

The lack of standardization in invoice processing workflows increases the risk of errors and delays that can impact the entire cycle to payment.

Solution: The introduction of an AP solution (AP stands for Accounts Payable) results in uniform data formats and a reduced number of software solutions that are seamlessly connected. With it, companies are not only able to read any invoice format, but also to receive invoices via different channels, such as e-mail, Peppol or supplier portals. The data is processed directly in the AP solution and routed to the connected ERP system. Additional technologies or tools such as document scanners or workflow solutions are then superfluous. This creates true end-to-end transparency and control. This also eliminates data silos, enabling real-time analysis of spend and more accurate forecasting.

Challenge #5: Lack of cash flow insights

Senior financial managers attach great importance to cash flow analyses. However, many companies struggle to accurately forecast their medium-term cash flow. According to KPMG, only 23 percent of companies are within five percent of their forecasts, with inaccurate data being a major problem for executives and CFOs. Additionally, 34 percent of companies lack visibility into invoice and payment data. In a paper-based invoice processing environment, finance departments lack a comprehensive view of workflow, making working capital improvement difficult.

Managing money ineffectively can negatively impact the entire business, including higher borrowing costs and the inability to invest in growth. That's why 58 percent of companies say they need real-time insights into accounts payable financial data. However, in a paper-based environment, important data falls by the wayside, plus sometimes outdated information flows in.

Solution: An AP system prevents payment delays through automation and end-to-end integrations. In a manual process, it is common for payables to get stuck in invoice receipt, resulting in delayed payments of supplier invoices.

Automation software makes it easy to implement automatic approvals for specific suppliers, giving accounts payable real-time insights into outstanding payments and payment times. With the analytics module, the finance team is able to determine processing times for each supplier in less than a minute. They also receive real-time notifications to easily identify and resolve bottlenecks. Invoices automatically land with the responsible parties to reduce processing time.

In addition, the software improves spend visibility and enables companies to make decisions based on real-time data. It monitors cash flow, tracks payment status, and strengthens relationships with suppliers through timely and accurate payments.

Author:
Lars Mangelsdorf is co-founder of Yokoy and leads the German team based in Munich. The Swiss fintech is a provider of an AI-driven expense management platform for medium-sized and large companies. 

To always have the right answer at hand, you first need one in production: Transparency - at the touch of a button. Together with the Responsiveness it is one of the primary targets that a company must pursue. Transparency and responsiveness are in turn the prerequisites for Economic efficiency - the third target variable in the magic triangle of perfect production. Only when the processes of a manufacturing company can be controlled via fast control loops can efficiency be increased and thus competitiveness ensured.

Small cause, big effect

A practical example illustrates the relationships: A tiny metal chip in the oil can cause an oil pump to fail. As a result, the bearing is damaged and causes the complete failure of a machine. The machine comes to a standstill, the order is not completed on time and, in the worst case, a penalty is imposed because the delivery date is exceeded. This is still the way things are in many factories.

In transparent, responsive and economical production, the scenario would be different. The shift supervisor would only have to take a look at his production IT to see which machine he can switch to in the event of a malfunction (transparency). Thanks to system support, he could reschedule orders with just a few clicks (responsiveness) and meet the delivery deadline (cost-effectiveness). It gets even better: if the possibilities of modern manufacturing IT were used, the machine would never have broken down in the first place. Predictive maintenance is the magic word. The seamlessly recorded machine and process data could be precisely analyzed to proactively maintain machines and avoid unplanned downtime.

Four building blocks of perfect production

The case described shows that the goal of perfect production is inevitably linked to digitization. But for the successful transformation to a smart factory, it is not enough to install the latest production equipment and a manufacturing execution system (MES). The framework conditions must also be created to use manufacturing IT effectively. A holistic approach is therefore dedicated to the following aspects:

1. Value Stream Management 4.0
2. Lean value streams
3. Lean support functions
4. Sustainable process improvement

These four building blocks have proven their worth in helping companies achieve perfect production step by step. They aim to identify weak points and avoid them in the future.

Module 1: Value Stream Management 4.0

The first module essentially comprises value stream mapping 4.0 and value stream design. It is therefore used to record, analyze and redesign the processes. In addition to the manufacturing process and the material flow, special attention is paid to the information flows and the planning processes. After all, they control the manufacturing processes, where every minute counts. The findings of the 360-degree analysis are presented in a value stream diagram. In order to be able to quickly evaluate the information visualized in this way, a lead time diagram is created and the process efficiency is calculated as a measure of the cost-effectiveness of the overall process. For the area of information flows and planning processes, for example, the number of tools used and the degree of digitization are determined.

Now the facts about the processes in production and the production-related environment are clear. Questions about the manufacturing process, the information flow, the planning process and the (IT) tools used can be answered and the next steps derived from them: a value stream design with a target concept and a roadmap to implement the target concept.

Building block 2: Lean value streams

The second module aims to establish lean production processes, i.e. to consistently implement the target concept developed in the first module. This goes hand in hand with eliminating waste. The seven common types of waste, based on Taiichi Ohno, the former production manager at Toyota and founder of lean production, include: Overproduction, waiting, transportation, inefficient machining, warehouses, redundant movements and defects. These can be supplemented by the lack of employee involvement and motivation, and waste caused by information interfaces. After all, the active involvement of employees is the be-all and end-all for the successful implementation of lean value streams.

Building block 3: Lean support functions

The third module deals with the production-related support functions, i.e. rough and detailed planning and their integration into the production processes. A striking example is the optimization of planning: Production is often roughly planned in the ERP system on the basis of calendar weeks. Detailed planning for workstations and machines is then carried out to the day or shift on the planning board in the foreman's office or in Excel. It is obvious that transparency and responsiveness in the sense of fast control loops fall by the wayside. Since actual capacities and backlogs are not taken into account, production orders or deadlines are created that are simply not feasible. An integrated planning tool of a Manufacturing Execution System provides a remedy. It helps to create transparency and responsiveness. After all, in perfect production, not only the material but also the information must flow.

Building block 4: Sustainable process improvement

Once the processes have been streamlined and digitized, the fourth building block is about implementing the changes sustainably in the company and successively achieving further improvements. And this is done virtually on the side in day-to-day production. It is important to define goals according to the SMART method and to select the right key figures to measure the achievement of goals. This is followed by the establishment of control loops and cyclical auditing. This ensures that processes are adapted to changes in a timely manner and that the change processes generally do not disappear from the agenda again without the potentials being exploited.

MES as the basis for the Smart Factory

In the four building blocks of perfect production, the Manufacturing Execution System plays an important role as the basis for the Smart Factory. Because if the relevant lean methods are flanked by suitable MES functions, this is the best prerequisite for making good progress in the project. Since an MES records manufacturing data in real time, it is ideally suited for implementing short response times and fast control loops in production. The example mentioned at the beginning with the metal chip in the oil and the resulting machine failure shows how important it is to detect malfunctions quickly and take countermeasures in good time. The prerequisite for this is permanent monitoring of production - from the deadline situation to the machine and tool status to personnel availability and product quality.

The five most important MES tasks to realize fast control loops are:

• Monitoring of production in real time: In order to record the data automatically, machines and other peripherals are connected directly to the MES via interfaces. However, manual data acquisition is also possible. Store floor data collection provides a quick overview of the current schedule situation, while machine data collection contributes information on the status of machines and systems. The operator can see at a glance in the system whether the machine is running (green) or not (red) and can react to a standstill without losing time. For planning purposes, for example, personnel capacities and the qualifications of the employees are also immediately visible.
• Short-term reaction to events: Escalation management makes it possible to react to events at short notice. In addition to the machine malfunction already mentioned, exceeding or falling below the limit value of a quality characteristic can also lead to the quality representative being notified. Or the setter is informed as soon as the tolerance limit of a process value is violated. In the event of a machine stoppage, an MES can be used to quickly simulate the alternative actions and reschedule the orders by drag-and-drop. The same applies to personnel planning.
• Calculation and visualization of key figures: No process improvement without key figures: A Manufacturing Execution System is the ideal tool for calculating and visualizing key figures. It can not only display the standard key figures such as efficiency, OEE index or adherence to delivery dates. For example, process efficiency and lead time can also be determined from the recorded data. In addition, data can be compared over different time periods. Each company level receives the information it needs.
• CIP support: The best way to work on avoiding malfunctions or improving unstable processes is with the help of an MES, in line with the continuous improvement process (CIP). The PDCA cycle can be accelerated considerably because the data is available at the push of a button. Thanks to the greater level of detail of the information, more potential can be uncovered and improvements can be realized more quickly.
• Data provision for ERP systems: An MES reports the relevant data from production to the higher-level ERP system at defined time intervals - and thus closes the control loop. Based on such data as the actual capacity utilization, production is regulated in the medium to long term. The information is also used for commercial post-calculation and maintenance of master data.

When all four building blocks of perfect production have been implemented and a Manufacturing Execution System realizes and organizes fast control loops, you've made it: You're a whole lot closer to the three target dimensions of transparency, responsiveness and efficiency in production. You make optimum use of the potential of your systems, know the most frequent causes of malfunctions and know which machine you can switch to if a small metal chip in the gear oil upsets your production planning.

Author:
Jürgen Rieger is a member of the management board of Perfect Production GmbH and author of the reference book "Die perfekte Produktion. Manufacturing Excellence in the Smart Factory." Perfect Production Ltd. accompanies manufacturing companies on their way to perfect production and is part of the MPDV Group. 

We are witnessing something like the ignition of the second stage of Artificial Intelligence. With the spectacular emergence of ChatGPT, it has arrived in the consumer space: AI is now usable by everyone. It has thus reached a stage that is typical for the adaptation of groundbreaking technologies. The car experienced the breakthrough to a vehicle suitable for the masses around 100 years ago with the invention of the starter motor and Henry Ford's assembly line production; the computer became a private consumer item in the early 1990s thanks to Gordon Moore's famous law and the availability of ever smaller, more powerful and cheaper components. And now AI.

Arrived at the tipping point

Autocrats, military leaders, intelligence agencies and tech companies are excitedly kicking up their heels and dreaming of unimagined power options and profit margins. That may be their job, but it's certainly our job to keep an eye on them - and, if necessary, to give them a good rap on the knuckles. Because they're right about one thing: artificial intelligence has what it takes to turn everything upside down. The term "disruption," which has been used so inflationarily in recent years, doesn't come close to describing its innovative explosive power. The question is whether we will let it happen to us. In his latest book, political scientist Herfried Münkler, professor emeritus at the Institute of Social Sciences at Humboldt University in Berlin, describes the greatest danger for liberal democracies: growing passivity, indifference and disinterest in the political process among the population. Fatally, this also applies to the critical approach to new technologies - and ends in fatalism. If self-organizing drone swarms hunt for people via face recognition, it's too late, there's no turning back.

AI: Every potentate's wet dream

AI has the potential to develop into probably the greatest assault on individual freedom as we have experienced since the end of World War 2. The taming and shackling of war has become an existential task for mankind in the truest sense of the word, at the latest since the first atomic bomb. Nor should the control of AI development and application be left to IT experts, the military and corporations, i.e. to the supposedly free play of forces and markets with their hypertrophic momentum. There is far too much at stake for that. We would not let a hungry pride of lions decide whether to ban the hunting of gazelles. To put it disparagingly: AI is every potentate's wet dream. As I said, it is about nothing less than our freedom and self-responsibility as individuals. Granted, it would be the first time in history that a new technology would not be perverted. But if we no longer had the optimism to finally cut this knot, we might as well put the slavery ring on ourselves. Technology has to serve people, not the other way around.

Helplessly at the mercy of dynamics?

Perhaps the most depressing thing about the current situation is the helplessness with which we face its dynamics. What effect is the moratorium called for by the AI expert group around Elon Musk supposed to have? Six months of forced vacation for developers? And what should happen in the meantime? Neither despots nor greedy corporations will let this stop them. And we can't expect any help from politics. Anyone who lets even the German cloud (Gaia-X) degenerate into a laughing stock that is hushed up has sufficiently documented his incompetence when it comes to IT. And even if they were, what could Switzerland, Germany or Europe do? We are already miles behind and prefer to breathe short shrift. A gloomy scenario.

Author:
Andrea Wörrlein is Managing Director of VNC in Berlin and a member of the Board of Directors of the VNC AG in Zug. VNC is a global software company that develops open source-based applications for communication and collaboration in large enterprises. 

In his address at the opening of the two-day event, ICV Chairman Prof. Dr. Heimo Losbichler addressed the current challenges facing controlling and introduced the theme centers of this year's congress, which were dedicated to these urgent areas. His appeal to all attendees: "We must meet the transformation in controlling with flexible and agile leadership." Afterwards, various keynote speakers provided insights into their day-to-day controlling work. For example, Hans-Jürgen Kalmbach, CEO of the Hansgrohe Group, shared insights from the global player in the bathroom and kitchen industry with the audience and addressed the role of controlling in business transformation. The topic "Better Growth - Growth in Volatile Times" was presented by Dr. Andreas von der Gathen, CEO of Simon-Kucher & Partners Strategy & Marketing Consultants GmbH. Jens Ropers, Partner ofCA controller akademie devoted himself to FICO transformation and showed, among other things, that not all companies have a real FICO vision. And finally, Dr. Kay-Uwe May, Head of Transformation, Performance Management and Organization, German Railways AG, was particularly pleased that the rail strike had been averted. He was thus able to give a motivated talk on the transport turnaround and convey his message to the participants: "Climate change needs a modal shift".

Presentation of the ICV Controlling Excellence Award

A highlight of the first day of the conference was the awarding of the ICV Controlling Excellence Awards. The award will go to Merck KGaA in 2023. "Enabling High-Impact Culture in Financial Steering" is the title of the project with which the team secured the prestigious award. The "radical way" of dealing with the experience that traditional planning processes reach their limits convinced the jury team headed by Prof. Dr. Utz Schäffer. From Switzerland nominated was TX Group AG with their "Predictive Forecasting" project. As in Merck's winning project, the starting point was the realization that the forecasting process in a dynamic environment reaches its limits and ties up enormous resources. The core of TX Group's solution is the introduction of predictive analytics to support forecast creation. However, the nomination did not honor the technical solution or the good algorithm, emphasizes Utz Schäffer in his laudation. Rather, it was the fast, inexpensive implementation without external support in a medium-sized company that convinced the jury. Especially since the controlling team of TX Group did not end with the improved generation of the forecast, but also used the change to further develop the corresponding controlling processes and to strengthen business partnering, and "thus does in an exemplary manner exactly what many of you are facing as a challenge," Schäffer classified the significance of the project as a blueprint for other companies.

Controllers between corporate control and self-management

Afterwards, discussions continued in three topic centers. The first topic center was about cost and price management in a stagflationary environment. In a second topic center, Alexander Bauer and Fabian Egger from the Emmi Group presented the connection between sustainability and controlling in their company. The third topic center revolved around "Planning - Farewell to Old Habits?" Here, too, the focus was strongly on forecasting and how software solutions can provide support here.

The second day of the 47th Congress started again with an address by Prof. Dr. Heimo Losbichler. He summarized the key messages of the first day and noted, "In the turn of the times, we don't have to throw everything overboard that has proven itself. Many things will accompany us, but adjustments are necessary, especially in planning and budgeting."

This was followed by further keynotes on topics such as sustainability, cost control, energy transition and operational controlling. At the end, controllers were also the focus of a presentation: Prof. Dr. René Riedl, Professor of Digital Business & Innovation at the Upper Austria University of Applied Sciences, Steyr Campus, Associate Professor of Business Informatics at the Johannes Kepler University Linz and Scientific Director of the Neuro-Information-Systems Society Vienna, reported on "Digital Stress: Research Findings and Practical Implications". Among other things, he addressed IT-based interruptions and e-mail stress and dealt with the phenomenon of videoconference fatigue.

The next Congress of Controllers will be held on April 29-30, 2024.

Source and further information