Digitalization and AI are considered key to the future of SMEs. But Sanche Baskaren, CEO and partner at Epic Fusion, believes many companies are focusing on the wrong things. In an interview with the Tages-Anzeiger, he explains why true transformation goes far beyond new tools and why doing nothing is often the greater risk today.
Many SMEs are currently investing in digitalization and AI. Is that enough?
No, and I am saying that point-blank on purpose. I believe many companies are having the wrong discussion right now. For years, SMEs have been digitizing existing processes. That makes sense. But digitalization alone does not create a competitive advantage. Those who digitally replicate analog structures may be working in a more modern way, but not necessarily better. They are merely digitizing the status quo. Those who simply apply AI to existing structures are, at best, automating inefficiency. The real challenge runs deeper. Companies must rethink their organization, decision-making processes, and collaboration. That is transformation. It is something fundamentally different from digitalization. And it is precisely this distinction that is missing from most discussions.
International studies by McKinsey and Microsoft also show that companies derive the greatest benefit not from individual AI applications, but when they consistently adapt their working methods, decision-making processes, and organization to the new technological possibilities.
Epic Fusion was named Global Microsoft Partner of the Year in 2024. At the same time, you describe yourselves as a Frontier Firm. What is the story behind that?
We are naturally very pleased with the award. It confirms that we are at the forefront of technology. But that is not what we are most proud of. What is far more important is that we had the courage to completely rethink our own company. A little over a year ago, we made a decision that many would consider crazy. We reimagined our entire company. We did not just introduce AI. We systematically transformed Epic Fusion into a Frontier Firm. Every workflow, every knowledge structure, and every decision-making process was scrutinized. We treated ourselves as Customer Zero. And we discovered that around 30% of our working time was wasted on searching, coordinating, and aligning efforts. Strategic decisions were delayed by hours because the right information was not in the right place at the right time. Most companies face this problem.
And yes, it was painful. To be perfectly honest: This transformation was, and still is no walk in the park. It has changed established roles, challenged processes, and required us to let go of the familiar. And all at the same time, while we were still keeping daily operations and client projects running. But that is precisely why we now know from our own experience how transformation actually works.
As an SME, you talk about Frontier Transformation. What distinguishes this transformation from traditional digitalization?
Digitalization improves existing processes. A Frontier Transformation begins where companies stop viewing AI as a tool. AI becomes the foundation on which a company operates. These are two completely different ways of thinking. For decades, technology played a supporting role. Today, it is becoming a company’s operating system. That changes everything. It connects knowledge, supports decision-making, automates processes, and creates an entirely new level of speed. Companies that fail to recognize this will look digital, but will often continue to operate in an analog manner. International studies already show enormous differences in productivity between companies that consistently integrate AI and those that merely test individual tools. This gap will widen in the coming years.
However, this does not mean that people will become less important. On the contrary. Their role is changing, though, and is actually becoming even more valuable. People should no longer perform tasks that machines can handle faster and more efficiently. The more powerful technology becomes, the more valuable human skills such as empathy, creativity, and entrepreneurial thinking will be. Our job is to free people from this work, not to give them more work.
Epic Fusion positions itself as a transformation partner. What sets you apart from other consulting and software providers?
We do not sell a transformation that we have not experienced ourselves. Epic Fusion was not always the company it is today. It feels like we are changing every six months! We have had to, and still have to constantly and radically question our own organization. We have had to rethink processes and consistently align our work methods with automation and AI. Essentially, we are integrating AI into our everyday lives. We have made decisions that were uncomfortable. That was neither easy nor risk-free. It means questioning the status quo and making decisions whose success we cannot guarantee.
That is precisely why we understand our clients’ reality. And we know full well that such experiences can be painful – it was no different for us. Many consulting firms guide transformation through PowerPoint presentations or workshops. We know transformation from our daily operations. We know what resistance feels like, how uncertainty arises, and how to bring employees along on this journey. That is a crucial difference.
Frontier Engine emerged from this experience. Why did you develop it?
We realized that existing solutions were not solving the actual problems we, and many of our clients were facing. Most software or AI solutions optimize individual tasks but do little to transform the company as a whole. Knowledge remains scattered, processes are siloed, and employees switch between countless applications every day. What we needed was a system that connects all of the company’s knowledge and tools, prepares decisions, executes processes, and functions as a unified whole. So we built it. For ourselves. Only after Frontier Engine had measurably changed our own daily work did we make it available to customers. Frontier Engine is the result of real pain and a real solution.
What makes Frontier Engine different?
Imagine if every employee had a team of AI agents at their side. Not generic chatbots that provide general answers, but specialized AI agents that understand the company’s context. Agents that understand projects, prepare decisions, execute processes, and have already worked and taken action before employees even arrive at work. For an SME with 30 employees like us, this suddenly means the operational clout of a significantly larger company. Without any of the complexity of a large corporation.
Many SMEs want more digital sovereignty. What does that mean in concrete terms?
Digital sovereignty means retaining control over one’s own data, processes, and decisions. European companies, in particular, must ask themselves how dependent they want to become on individual platforms or international providers. AI makes this question even more relevant. Many SMEs do not realize they lack digital sovereignty until it is too late. For example, when employees leave the company taking all their knowledge with them, or when no one knows which system contains which information. Those who do not have their data under control will not be able to control their value creation in the long run.
At the same time, I understand that many companies are paralyzed. It feels like a new AI tool or large language model is released every week. Every provider promises transformation. The result is not innovation, but a sense of disorientation. Too many consultants and software providers are selling AI pilot projects. What companies need is not more tools. They need an operating model that works. And someone to show them what that looks like – not in theory, but in practice. That is why we have developed a platform that combines knowledge, processes, automation, and AI. Frontier Engine is the result of what we needed ourselves.
Many companies are still hesitant, though. Is not caution understandable?
Of course. But doing nothing is often the greater risk today. We frequently see projects that are analyzed for months before anything is even implemented. At the same time, the market is changing at a pace that has long since outpaced traditional project logic. Transformation is no longer just a project. It is becoming an ongoing leadership task.
You often talk about how SMEs need to be bolder. What are your hopes for the future of Swiss SMEs?
More courage. Switzerland is home to outstanding companies. That is what has shaped our prosperity. But optimization alone is no longer enough in a world of exponential technological change. Many companies invest millions in new software without changing their organizational structure. That is expensive and often leads to disappointment. Because existing processes are merely digitized – including all their inefficiencies.
What often holds us back is not a lack of innovative drive, but a culture of waiting and seeing. Technology only delivers its full benefits when companies are ready to redistribute responsibility, accelerate decision-making, and consistently challenge existing structures. Transformation rarely fails because of the technology. It fails because of a lack of willingness to change. The next generation of successful SMEs will be those that have the courage to think through their organization systematically. We have taken that step. We know what it feels like.