Andreas F.J. Obereder

Digitize now or never

Andreas F.J. Obereder
CEO and Founder | ATOSS

Interview, Annual Report 2018

    Mr. Obereder, the 13th record year in succession – aren't you running out of steam by now? 

    On the contrary – our topic is more relevant than ever. Today, companies are focusing on automating and digitizing processes and business models. ATOSS is playing the role of digital trailblazer, helping companies in all sectors to make tomorrow’s work more efficient and master the transformation leading to the world of new work. It’s not just a matter of efficiency and optimization, but first and foremost of intelligent, new ways of organizing working time and better integration of existing manpower into these processes. Agility and flexibility are the success factors of tomorrow.

    How does ATOSS manage to stay ahead of the pack even after more than three decades?

    The key to it lies in the expertise of our staff as well as the state-of-the-art technology and innovative power of our company. 40 percent of our almost 500 employees are developers, and every year, we invest 20 percent of our sales in driving sustainable, technological progress – more than 100 million euros in total. This investment share makes ATOSS the clear number 1 among European workforce management suppliers as the EU has just re-confirmed in its annual “EU R&D Scoreboard”. Values such as reliability and credibility which frame our actions are also pivotal for our success. 

    Can you cite an example of one of your values?

    Well, the share price is certainly a good, objective indicator of credibility for listed companies. And as of January 2019, this share price had multiplied ten-fold in the last ten years. And that is five times higher growth than the DAX and broadly comparable with the appreciation of the Apple, Google or Facebook stocks. And in all those years, we have never once downgraded a forecast. 

    ATOSS seems to be a very reliable company, but what risks do you see in your economic environment?

    The risks to further positive growth in the overall economy have heightened due to creeping deglobalization caused by the increase in ruthless nationalism. This is exemplified by the trade war between the USA and China or the gradual rejection of multinational institutions as in Great Britain. These are the times when best-in-class companies back solutions to optimize their processes and efficiency. And precisely this is our competence.

    Don't you not feel just a little bit of pessimism looking forward, Mr. Obereder?

    Not when I look at ATOSS. In 2018 alone, over 1,000 companies around the world – the Rhenus Group, GrandVision B.V., or more precisely Apollo Optik, DB Netze or hidden champions such as Manthey-Racing – went for an ATOSS solution. The range of our solutions for companies from two to 200,000 employees and for nearly every sector and any challenge is totally unique. 

    Andreas F.J. Obereder

    How have customer requirements changed over time?

    It used to be all about administrating and calculating working times. Today, that is merely the platform on which we build high-performance algorithms with data on companies, employee requests and statutory frameworks. The result is an accurate forecast of personnel requirements and optimized planning aligned with the forecast. The quality of these algorithms is already making a difference today and will do so to an even greater extent in the future. Take our customer, the perfumery chain Douglas, which today knows precisely which employees to deploy and when, thanks to our highly accurate forecasts. As a result, Douglas is able to plan the volatile Christmas period with its peak demand times significantly better, more fairly and more cost-efficiently. Within six months, this led to a 25 percent reduction in overtime for the same level of sales.

    What about the war for talents – how much of an effect is this having on your customers?

    You mean the shortage of specialists in various lines of work? It’s already slamming the brakes on growth in many places. The roportion of unfilled vacancies in Europe has risen by more than 60 percent in the last five years. This trend will intensify appreciably if the economy remains healthy. And it’s compounded by the new challenges posed by younger generation Y and Z employees such as a rising demand for more flexible working ours and the democratization of corporate processes. Establishing a win-win situation between a company and its staff has never been harder. And this is precisely where we enter the picture, with solutions enabling highly flexible work patterns and integrating staff in planning their working times. 

    How does this employee integration work in practice?

    Let’s use one of our long-standing customers, Lufthansa, as an example. Here the transparency surrounding working times has improved markedly and with it employee satisfaction. Shift exchange platforms and preferred duty planning based on smartphones have been very well received by staff as additional service features in the company. Our solution also shows the degree to which employee requests are met which provides strong support for the democratization process which is so important these days in companies. 

    Why should a CEO invest in your solutions?

    The quantifiable benefits of digital workforce management are strategically significant for just about every company today. They impact sales as well as customer satisfaction, productivity, quality and efficiency. They accelerate processes, prevent mistakes and achieve cost benefits. Put in a nutshell, they deliver value added on many levels. In Austria's exclusive department store, Kastner & Öhler, our solution allows customer demands in terms of high quality of service and low waiting times at the check-out to be met while simultaneously lowering personnel osts. Improving the service level naturally also has a positive effect on sales. Such effects are commonplace among our customers. Many of them are actually saving millions every year thanks to the value added our solutions deliver. 

    From your point of view, how far has the process of digitization progressed in companies?

    You would be amazed to know how many companies are still operating on in-house or heavily customized partial solutions, manual processes or even with pen and paper. Sometimes I get the impression we are doing just a bit too well, and are spoiled by the success and growth of the last few years. And it eems to me, the conclusion many companies draw is that there is no need to change the status quo. But they do recognize the importance of it. According to a study conducted by etventure and GfK, more than half of German companies cite digitization among their top 3 priorities. But only 35 percent are happy with their digitization status. This means they are lagging significantly behind the USA where 85 percent of companies see themselves as well or very well prepared for digital transformation. Now is the time when companies must act, when the economy is booming and the resources are available. It’s now or never as they say. Industry 4.0 and workforce scheduling on a whiteboard just don’t go hand in hand.

    Why is workforce management a strategic topic that top level executives are devoting so much time to? 

    Well, the current shortage of skilled professionals, a situation that even a weak economy is hardly ameliorating, is forcing every company to use its existing personnel a great deal more efficiently. And of course it’s important to take best possible account of employees’ requests in terms of the duration, location and timing of their deployment. And executives are concerned not to break laws when it comes to working times and workforce management. Look at Austria, for example, where the new working time legislation passed in September 2018 extended the option of a 12-hour day beyond the retail trade. This just goes to show how quickly companies have to respond to changing framework conditions. We ensure that new regulations are quickly reflected in our solutions. Customers such as Fronius International, a globally successful technology company with almost 4,000 employees headquartered in Austria, are the beneficiaries. The automatic duty plans generated there and complying with statutory rules and regulations not only meet requirements but also ensure that teams represent the best blend of skills. This directly elevates their effectiveness and contributes towards the strategically vital goal of employee satisfaction.

    Are there examples of similar benefits in other sectors, too?

    Most certainly. We create value added wherever staff costs play a major role. At Versandhaus Walz, around 1,200 employees use ur self service solution in administration, branch offices, logistics and customer service. Employees plan their own holidays, take the initiative in reviewing the working times recorded for them and if necessary, submit an electronic application for correction. Their line managers enjoy mobile access to a wide range of applications via the ATOSS App, for example a  budget/actual comparison of staffing in branch offices or a live sales ticker for each specialist shop. Our solution is also generating measurable benefits in the healthcare and nursing sector. The precise assignment of the actual working time of all employees via detailed cost unit management enables highly detailed and proactive management of working time at our customer Leverkusen Hospital – especially in the medical and nursing areas. As a result, the hospital has been able to reduce provisions for overtime and residual leave by a six-digit figure, while maintaining consistently high care quality. ATOSS Workforce Management has also played a pivotal role in employer branding and the implementation of innovative working time concepts. 

    There’s a lot going on in the healthcare sector right now ...

    The nursing industry is indeed a good example of how changes 
    to external conditions can have a major impact on workforce management processes. The new regulation defining lower limits for nursing staff in hospitals has been in force since this year. It defines precisely the ratio between the number of patients and the number of nursing staff deployed for each shift – specialists and auxiliary staff. The ATOSS Medical Solution plays a pivotal role in helping hospitals and nursing homes to meet the new legislative requirements.

    The shortage of skilled professionals is forcing every company to deploy its existing workforce a great deal more efficiently.

    Andreas F.J. Obereder | CEO and Founder, ATOSS

    How is ATOSS dealing with customers’ increasing globalization?

    Our solutions are in use in over 40 countries today. Our standard software solutions can readily and fully adapt to local requirements without additional programming. This allows global companies to manage their workforce management processes in a standardized manner, as the company W.L. Gore, for example, has successfully proved by means of our Enterprise Solution in 29 countries. Or Shell Retail Netherlands, too, where we introduced Automatic Duty Scheduling for more than 3,000 employees at 230 gas stations in 2017. By the way, the ability to adapt quickly to constantly changing conditions is also crucial in an international context. In the Netherlands, for example, employees in various sectors have recently gained the right to know their duty plan two weeks earlier based on a local collective agreement called CAO. The rules governing holiday entitlements for older employees also changed this year. Both of these factors have to be mapped in processes and systems to guarantee that work complies with the law. 

    Speaking of globalization – what are your plans for the future?

    Well, we’re still far from the finishing line. Today’s global workforce management market remains highly fragmented. There are some regionally strong providers, similar to ATOSS in Europe. But there is no single player out there offering a standardized, genuinely beneficial solution portfolio worldwide. We want to be the first company to master this challenge by the year 2025. That’s no walk in the park, but I’m convinced that we are extremely well positioned to go for it. 

    And the ever-present cloud issues?

    It looks like the trend towards cloud solutions has now also arrived in the more reticent markets such as Germany. Today, ver 70 percent of our new customers are putting their money on workforce management in the cloud. And this upwards trend is set to advance further over the next few years. Which is why we continue to expand our cloud portfolio to provide our customers with fast, secure and flexible access to their applications. This enables companies to focus even more sharply on their core business and business innovations.

    Technology stands center stage at ATOSS – so what was your personal highlight in 2018?

    Last year, we succeeded in launching a revolutionary development in the self service solution area. Our new Staff Center proves that workforce management processes can actually be fun. When intuitive design and a radical focus on customer benefits go hand in hand, that is. Which is why we developed a highly innovative solution from the ground up, driven by the most advanced technology. To date, we have invested over 20 million euros in our Staff Center alone. These days, solution providers cannot keep the pace of IT developments without committing such hefty sums. The rule of thumb used to be that processing power doubles roughly every 18 months. Today’s AI is doubling every three and a half months – meaning that the growth pace has skyrocketed by a factor of 12. Only companies with state-of-the-art technology in place will be able to keep the pace over the medium and long term!

    And what can we expect from ATOSS in the future?

    Well, nobody is perfect. Which is why we are working on many innovative topics in line with our ATOSS|2025 growth strategy. Think voice and gesture commands or integrating AI into workforce management processes. So keep watching this space.

    I wish you every success in these endeavors!