In the interview with Oliver Krautscheid, Board Member of EASY SOFTWARE AG

EASY SOFTWARE AG, headquartered in Mülheim an der Ruhr, has been developing software for the digitalization of business processes since 1990. The software seamlessly integrates into existing systems and automates, mobilizes, and optimizes workflows for customers worldwide. With over 13,600 cross-industry installations, EASY SOFTWARE is one of the market-leading companies for software solutions in Germany. EASY operates in 60 countries and currently employs nearly 400 staff. With the acquisition of Apinauten GmbH from Leipzig at the end of 2018, EASY made a technology purchase that provides access to new customer segments in the cloud business.

In an interview with the Board of Management, Oliver Krautscheid, we discuss SAP, invoice receipt processing, document management systems, archives, customer portals, and above all, the transformation of the German economy and the associated importance of optimizing business processes.

DIGITAL FUTUREmag: Mr. Krautscheid, many studies and books on digitalization in Germany paint a relatively sobering picture when it comes to the future viability of the German economy in terms of digitalization and transformation. They say Germany has fallen behind and now needs to make a huge effort to keep up in European and especially global comparison. Where do you think Germany stands in terms of digitalization?

Oliver Krautscheid: Most German companies successfully managed the significant challenges posed by the Covid-19 pandemic and the shift to remote work a year ago, as their existing information technology and business processes supported this transition. However, it also made managers and company leaders aware of how crucial digital business processes are and where there is still room for improvement. Our industry was able to help many corporate customers last year to securely provide confidential company documents such as personnel, customer, and contract files in a decentralized manner. The next step is to digitalize data not only to enable efficient workflows but also to provide better decision-making bases and to communicate more agilely with customers, suppliers, and/or employees.

On the other hand, there is still significant room for improvement here, including the widespread availability of fast internet connections, the legal framework for the use and improvement of artificial intelligence (GDPR), and the acceptance of digital business models and software thinking in industry and trade. We are sometimes surprised by how heavily German companies and authorities still rely on paper documents.

DIGITAL FUTUREmag: German companies often tend to continuously optimize existing business models and the associated processes. How closely are transformation and optimization linked? Or are they even contradictory?

Oliver Krautscheid: A transformation often involves optimization; however, optimization rarely leads to a profound transformation. Even the digitalization of an existing poor process only results in a poor digital process.

A genuine change that requires a complete transformation of a company’s business model can be observed, for example, in the increasing prevalence of subscription models in the media industry (music, TV, newspapers), retail, the automotive industry (car sharing), and many more. At the heart of corporate interest is the customer. Their needs should be better met, and an improved customer experience should be offered. To achieve this, employees must be trained company-wide, existing business processes must be automated or newly introduced, and communication must become faster. Success largely depends on whether companies can transform holistically or only department by department, which leads to silo thinking and isolated solutions.
Transformations often entail high risks, implementation barriers, and investments, meaning it can take a long time before tangible successes are achieved. In this regard, our industry can help with its own subscription or cloud offerings. These can be quickly provided to companies because, for example, the company’s own IT department does not need to be involved. Investment approvals are eliminated because the software application can be acquired through rental.

DIGITAL FUTUREmag: EASY SOFTWARE AG is one of the major SAP partners in Germany and focuses on key topics such as document management, optimized customer portals, or traceable procurement processes. In your opinion, what should be the top priority for the digitalization of SMEs in particular?

Oliver Krautscheid: Currently, more than half of SMEs use Enterprise Content Management solutions for the digital management of business documents and content. A rule of thumb is: the larger the company, the higher the degree of digitalization. A misconception that arises from this is that smaller companies quickly assume ECM solutions are only attractive for large corporations. Another misconception is that ECM is only about automating office and administrative processes; in reality, it is also—and primarily—about optimizing customer satisfaction. Higher customer satisfaction is almost always a byproduct of processes optimized through ECM. The key here is to understand customer problems and sometimes explicitly ask certain customers about their wishes. Once you understand where the shoe pinches, ECM systems or other automated solutions are the ideal path to greater satisfaction. Particularly digitally optimized customer portals give flexibility and closeness between companies and their stakeholders a completely new dynamic. Such improvements also always impact a company’s perception. If you take it one step further, you realize that knowledge about processes itself can become valuable. A company’s ECM system is the central hub for all data. Using intelligent algorithms, ECM solutions can automatically analyze this data and derive insights to optimize processes and work. These insights range from optimizing cash discounts, logistics, or pricing to entirely new offerings.

DIGITAL FUTUREmag: When optimizing business processes, topics such as document management and archiving certainly play a central role. Why is the introduction of a reliable document management system so important, and what do you consider to be the decisive criteria?

Oliver Krautscheid: Digitalized documents are the cornerstone of modern workflows. Anyone still searching for notes, documents, or contracts on a shelf is wasting valuable time. The electronic format also enables full-text searches and automated recommendations or evaluations. Predefined, automated workflows relieve employees of coordination tasks, ensuring they know when to focus their attention on which task. These systems and workflows should integrate seamlessly with existing systems from other providers, allowing new users to get started without a lengthy learning process. For archiving systems, our customers prioritize the following aspects: secure and confidential collaboration within the company, as well as with partners and customers, GDPR compliance, audit security, and the avoidance of data silos that cannot be easily evaluated over several years. Another key criterion is whether the solution can be provided flexibly (on-premises or as software-as-a-service) and integrates well with existing corporate systems. Ideally, the document management system should cover a wide range of applications or business processes and be scalable so that decision-makers can access relevant information at the touch of a button.

DIGITAL FUTUREmag: Time and again, SMEs face the challenge of procuring a suitable ERP system. When should a company seriously address the topic of ERP?

Oliver Krautscheid: The ERP system is the central data system for managing the company. Switching often involves high costs and implementation risks and frequently leads to limited data comparability with the previous system. Reasons for a switch arise particularly when system efficiency declines, ERP administration becomes cumbersome, time-consuming, and complex, and when a lack of flexibility means only part of business processes can be covered. In today’s digital age, where data-driven business models require diverse evaluations and rapid interaction with customers and partners, the question arises whether the existing ERP system is still up to date. Ideally, the ERP should provide consistent, current, and reliable data, offer flexible dashboards for decision-relevant evaluations, and allow quick access from anywhere.

DIGITAL FUTUREmag: Perhaps a look into the future: With AI (Artificial Intelligence) and VR (Virtual Reality), to name just two technologies among many, much needs to be rethought. In your opinion, what are the most important technologies that companies must consider in the coming years?

Oliver Krautscheid: I am convinced that applications with artificial intelligence still have a lot of potential and can generate even more value in the future. Intelligent algorithms already help today in evaluating corporate and communication data – faster and with more clarity than humans can achieve. Almost every company can benefit from this. Data on sales, production or usage behavior is now as important as the actual product itself. Because the insights gained from them significantly influence business – at least if we know how to interpret this data correctly. And in this context, artificial intelligence is the most efficient way to discover weaknesses or potential and stay one step ahead of the competition.

DIGITAL FUTUREmag: Thank you very much for this exciting interview.