Mr. Obereder, yet another record year – the 16th in a row. How is ATOSS continuously managing to outperform its previous years?
Well, the past two years reveal there's no better alternative than the accelerated digitalization of organizational processes. Digitalization is also one of the most effective ways of compensating for the growing shortage of skilled workers. And workforce management is key to successfully executing on corporate strategies. This shift in priorities is reflected in our results. I’m thrilled, for example, that after 16 record years software license orders – our core business – is up again: by 28 percent.
Skills shortages aren’t a new problem. What exactly has changed over the past two years?
For one, that shortage has increased. The last couple of years – whether it’s despite or because of the uncertain times – people have been soul searching: What do I want to do? When would I like to work? How would I like to work? In America, there’s even the "Big Quit" phenomenon: This refers to masses of people quitting their jobs even if their future’s uncertain. They’re looking for companies or industries that offer better worklife balance. It's clear to everyone that there's new and better ways to work. Maybe even – that this is a once- in-a-lifetime opportunity. CEOs have to act now: Making a company future-ready is about reinventing its business model. And that's about reframing the term “staff” and establishing new management models.
What does reframing the term “staff” actually mean?
This term is outdated. Companies that want future success need to be more agile and flexible. This includes adopting hybrid work models in which, for example, either “staffing” the office or working from home can be done in parallel. McKinsey estimates that 20 to 25 percent of employees in an advanced economy are able to do their job from home three to five days a week. Then there’s the more prolific use of temporary "staff". A lot of our European neighbors are way ahead of us here. Temping f.e. is the dominant model for our logistics customers in the Netherlands.
To stay competitive, companies must offer a modern, attractive, human-centric work environment. Thos must satisfy the next generations' growing demand for combining work and private life.
Andreas F.J. Obereder | CEO and Founder, ATOSS
So what goals are companies setting for themselves when it comes to a modern workforce?
It's all about flexibility. The COVID-19 pandemic has shown us how vital it is to be quick and esponsive – especially on the supply and demand side. Without maximum flexibility and agility spanning the entire workforce, it’s virtually impossible to run a competitive company. And change here is well underway. A few decades ago, "staff" consisted predominantly of FTEs. These days, more than 40 percent of them work part-time, or as temps or freelancers. These new forms of working and work models may give us flexibility, but they come with more complexity on the management and compliance side. Which is exactly where our workforce management solutions come in.
Let me ask you about employee experience. This is huge in the HR community and beyond. So I figure it's on the ATOSS radar as well, right?
You guessed it! You only need to look at our corporate vision to see it in action. It states, among other things, that "we enable people to work more creatively, intelligently and human-centered, revolutionizing the interaction of cost efficiency and humanity." This vision has guided us for three decades already! We didn't call it employee experience at the time, but the topic has always been relevant for us. Now it’s relevant for so many more. These days, if you want to remain competitive, it’s no longer enough just to optimize revenue, overheads, and service levels. Alongside customer centricity you have to factor in employee satisfaction. For upcoming generations, in particular, this also includes the digital employee experience. It’s a huge factor in keeping the workforce happy. And the benefits are immediate and measureable. We experience these positive effects with our customers time and again. It really motivates all of us at ATOSS!
Help me out here: Explain to me how specifically workforce management contributes to employee satisfaction?
To stay competitive, companies must offer a modern, attractive, human-centric work environment. This must satisfy the next generations' growing demand for combining work and private life. And that's exactly where we come in, by enabling them to map flexible work odels or involve employees in the planning process. With our App, for example, it’s easy to submit shift requests, swap duties among teams, or plan vacation from the comfort of your own couch or chaise in the Caribbean sun. These factors and many others directly impact employee satisfaction and retention. And it applies just as much to the so-called deskless workforce. Why? Because workforce management software reaches everyone in the company – whether they’re in front of the PC, on the assembly line, in the operating room, at the cash register or anywhere else for that matter. Hardly any other software makes such a strong impact on a company – across the entire workforce! And so fast.
Are there any industries that benefit more than others from your solutions?
Not really. I’d say our relevance spans all industries. No matter the size. Of course, particular benefits can be reaped in labor-intensive industries with fluctuating demand. Take retail: Companies such as EDEKA, ALDI SÜD, Douglas or Fressnapf have long benefited from our solutions. And, of course, in the healthcare sector with customers that include Helios, University Medical Center Mainz, the Saarbrücken and Leverkusen hospitals, and the Swiss telemedicine provider Medgate. But we reach far wider: creating measurable value in the industries of logistics, manufacturing, and the service and public sectors with names like Rhenus Logistics, WISAG, thyssenkrupp Packaging Steel, HUK-COBURG and the City of Munich.
You started by stating that – latest since the pandemic – the significance of digitalization is more widely recognized by everyone. Where do we stand on that?
Well, as to whether everyone recognizes that, I can’t comment. But I think it’s fair to say that fans of pen and ink are dwindling. Awareness is certainly there and most companies have started to digitalize with clear KPIs. This is still only the beginning. According to Bain & Company, only about five percent of all companies worldwide actually achieve their digital goals. Projects are implemented too slowly. And there are more singular lighthouse project successes than there are holistic digital agendas. Yet, investments in a holistic approach pay off. The same study reveals that digital pioneers not only grow around 50 percent faster than the competition but they’re also up to 30 percent more profitable.
So you’d say there’s still unlocked potential in digitalization?
You bet! You only need to look at the giant technological leaps we’re making. These will shape tomorrow. Quantum computers are just one example. Last year, Google was the first to achieve quantum supremacy with its Sycamore processor. This machine needs only 200 seconds to solve a problem that would take a traditional supercomputer 10,000 years to figure out. In the field of data processing, we’re on the brink of a revolution! Of course, it’s still in its early pioneering phase. But it’s going to open up unimagined possibilities. Ultimately, it will mean we can release the value in all the data we're already collecting today. And use it in a meaningful way.
Various new forms of working and work models may give us flexibility, but they come with more complexity on the management and compliance side.
Andreas F.J. Obereder | CEO and Founder, ATOSS
Mr. Obereder, what else kept ATOSS busy in 2021?
We’ve made huge progress in implementing our ATOSS2025 strategy. First, there is the move of the entire company towards cloud transformation. This last year alone we invested EUR 16.9 million into the development of our products to be cloud native. And this successful transformation already shows in our bottom line. Over 68 percent of orders in 2021 came for cloud products – a growth of more than 100 percent! Second, our internationalization strategy is well underway with the opening of two new locations in Brussels and Stockholm. Finally, we are also digitalizing our own operations. This culminated last year in the rollout of our new ERP, CRM and HCM systems, among others.
Last year, you announced an expansion of ATOSS partnerships. How’s that going?
A lot has happened here as well. On the technology side, we have further expanded the integration of our systems with HCM providers such as SAP or Personio. We have also started to build a partner ecosystem for our service area. This now includes a number of national and international partners who implement and support ATOSS Cloud Solutions for customers. This allows us to accelerate growth without jeopardizing project quality or customer satisfaction.
It sounds like the future’s bright...
Sure is! And it’s precisely the enormous potential of our company and our business model that makes that the case. I think I speak for myself and the entire team when I say that this inspires us – everyday – to adapt and align to the future.
Mr. Obereder. Thanks so much for this interview. Wishing you all the best for a successful 2022!