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The Role of HR on Digital Transformation

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The Role of HR on Digital Transformation

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This presentation shows the results and briefs of some researchs and literature reviews related to "The Role of HR on Digital Transformation".

"Digitalisation changes the business and HR professionals always have a seat at the table to take an active role for transformation." (Green, 2018)

This presentation shows the results and briefs of some researchs and literature reviews related to "The Role of HR on Digital Transformation".

"Digitalisation changes the business and HR professionals always have a seat at the table to take an active role for transformation." (Green, 2018)

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The Role of HR on Digital Transformation

  1. 1. The Role of HR on Digital Transformation Uğur Gürbüz
  2. 2. 2 Index 1. Introduction 2. Literature Review – Introduction to The Role of HR on Digital Transfromation a) Literature Review – Digital Transformation as a concept b) Literature Review – Human Resources as a concept c) Literature Review – The Role of Human Resources on Digital Transformation 3. Sources a) Article 1 - Digital Transformation and Its Impact on HR (Quantitative Research) b) Article 2 - A Study on Innovative Practices in Digital Human Resource Management (Secondary Data Collection) c) Article 3 - Do line managers’ have ‘linking pin’ in HR roles? d) Thesis - Human Resource Management in a Digital Era (Qualitative Research) e) Case Study - HR Digital Transformation (SAP) 4. Conclusion 5. References
  3. 3. 3 The Role of HR on Digital Transformation If the rate of change on the outside exceeds the rate of change on the inside, the end is near. ” “ Jack Welch Former CEO – G.E.
  4. 4. 4 Introduction The HR world is changing fast via technology and HR employees have to adapt themselves into this situation not to be out of box. (Deo, 2017) Digitalisation changes the business and HR professionals always have a seat at the table to take an active role for transformation. (Green, 2018) Talents have a big impact on organisations in terms of innovation and success. At this point, HR plays a role to bring new talents to the company. (Moreno, 2016) Companies have to develop and innovate human resource practices in order to sustain in the competitive industry. (Tripathi & Sigh, 2017) Digital Transformation is effecting not only external customers but also internal customers. Namely, our employees. This is why, HR plays a big role on this. (Deo, 2017)
  5. 5. 5 Digital Transformation Transforming an information from a phsical format to digital one is digitisation. However, Digitalisation is leveraging digitisation to run business processes more efficiently. (Burket, 2017) Digital Transformation is a digital integrations in all areas of an organisation like culture, experiment and operation. (Enterpriserproject, 2018) Digital Transformation is the main factor of change via internet/cloud systems which is a new way to information exchange more efficiently for more people. (Tripathi & Sigh, 2017) Digital Transformation is defined as the use of technology to radically improve performance of reach of enterprises. (Capgemini, 2011) Digital Transformation Strategies have 4 dimensions: - Use of technologies - Changes in value creation - Structural changes - Financial aspects (Matt, Hess & Benlian, 2015) Digital transformation is a social, mobile, analytics or cloud induced change that significantly affects three or more dimensions on individual, firm, and/or societal level. (Tolboom, 2016)It is expected that the market size of digital transformation will grow from $150 billion to $369 billion in coming 5 years. (Tolboom, 2016)
  6. 6. 6 Human Resources Human resources management is an important approach to employement and managing people. (Armstrong, 1977) HR departments and units in organizations have activities like employee recruitment, training and development, performance appraisal, and rewarding/compensation, employee motivation, pay-roll. (Paauwe & Boon, 2009) Human Resource is a term which is evolved from personnel. (Heathfield, 2018) 2018 trends: passive candidates, remote workforce, gamification, blind hiring and future- proofing employees (Millet, 2017)
  7. 7. 7 The Role of HR on Digital Transformation Dave Ulrich thinks there are 4 key roles played by HR in any organisation, which can be considered as a starting point for digital transformation for HR: Strategic Partner, Change Agent, Administrative Expert, Employee Champion (Hassan, Mansor, Rahman, Kelena 2017) Digital transformation of a business is not only about use of technology in physical things but also it is about the company culture. (Jones, 2016) Since digital technology started to have an effect on most areas of industry, like easy communication via laptops, mobiles, it is clearly said that it influences humans at work, especially, human relations and work environment. (Kumar, 2016) HR must contribute more digital talents to the company to have a good digital journey because digital talents inspire change, leverage technology, innovate, increase speed and agility in the company. (Hart, 2015) Digitalisation changes the business and HR professionals always have a seat at the table to take an active role for transformation. (Bengtsson & Bloom, 2018)
  8. 8. 8 The Role of HR on Digital Transformation Sources different sources were used in this research: 6 articles, 2 thesises, 1 handbook, 1 case study and 8 internet researchs. 18 6 Articles 2 Thesises 1 Handbook 1 Case Study 8 Internet Researchs
  9. 9. 9 The research sums up that digital revolution has a positive impact on human resource factors and is bound to play an influential role at the workplace. Article 1 Summary The aim of this paper is to examine the role of technology and innovational practices in digital era. Hypothesis H1: Digital revolution impacts positively on human resource development. H2: Digital revolution has an effect on the talent management. H3: Digital revolution n influences performance at work. Quantitative Research Questionary method is used that 30 respondant joined. Conclusion Digital Transformation and Its Impact on HRM
  10. 10. 10 There is need for transformation not only in terms of policies or structure but also the way it operates. Article 2 Summary This research paper analyses the importance of digital revolution in the Mauritian public service and its impact on related human resource factors like human resource development, talent and performance management. Findings There are many findings from literature. Eg: Firms can achieve sustained competitive advantages by accumulating resources that produce economic value, are relatively scarce, and can sustain competitive attempts at imitation, acquisition, or substitution. Research Method Secondary data collection is used. An information search was made on e-databases with the purpose of accessing content related to study. The key words used for this search were, HRM practices, digital HRM, technology and innovative HR practices etc. Conclusion A Study on Innovative Practices in Digital Human Resource Management
  11. 11. 11 Do line managers’ have ‘linking pin’ in HR roles? Factors such as desire, self-efficacy, and HR support have been identified as the driving force for line managers to get involved in HR initiatives. Article 3 Summary The present article aims to identify the possible line managers’ involvement factors in human resource initiatives and its ‘linking pin’ to the HR roles. Methodology The paper intends to provide a conceptual review of the past literature in the areas of HR roles and line managers and further justify the proposed conceptual framework that will move this work further Findings The review also showed that HR devolution to line managers will boost line managers’ participation and responsibility to practice HR roles at the workplace. Conclusion
  12. 12. 12 Human Resource Management in a Digital Era Digitalization is perceived as an ongoing change in society that creates external pressures for change within organizations. It was described as creating a fast-changing environment to which the organization needs to adapt in order to survive. Thesis Summary The objective of this thesis was to delve deeper into human resource management in a digital era. Research Questions • How do HR managers make sense of digitalization? • What do they perceive as the main challenges? Qualitative Research In-depth interviews were used with 12 HR Managers which takes 60 minutes for each. Conclusion
  13. 13. 13 HR Digital Transformation This transform let SAP to reduce the complexity around the functions for which HR is responsible, while increasing internal customer satisfaction. Case Study Company Overview For 44 years, SAP SE has been supplying enterprise application software. 77,000 employees working in 120 countries and about 300,000 customers worldwide Aim of Study • Examine SAP’s mission to transform its HR operations and solutions to cloud computing • Explore how the company used design thinking methodology • Reveal how SAP HR’s quality gates enable success and adoption of new tools and business practices across the global organization Objectives of SAP • Moving all systems to cloud • Training employees on digital transformation field • Facilitating the communication amoung employees all over the world • Creating a flexibility for employees. Like remote-working. • Having 3 principles: Simplification, standardization, customer satisfaction. • Providing elearning to all employees. • Talent management Improving leadership skills of employees. Conclusion
  14. 14. 14 Conclusion Digital Transformation provides a competitive advantage to companies for sustainability so companies need to change their culture, business models etc. HR plays a main role on this transformation because HR is the department communicating the employees in terms of the company culture, trainings, motivation etc. and can create a change on employees’ vision.
  15. 15. 15 References • Kumar, B.N. Digital Transformation and Its Impact on Human Resource Management. researchgate.net (August 2016) • Tripathi, R.T. & Singh, P.K. A Study on Innovative Practices in Digital Human Resource Management. researchgate.net (March 2017) • Paauwe, J. & Boon, C. Strategic HRM: A critical review. Researchgate.net (January 2009) • Hassan, M.A. & Mansor, N.N.A. & Rahman, W.M.Z.W.A. & Kelana, B.W.Y. Do line managers’ have ‘linking pin’ in HR roles?. researchgate.net (January 2015) • Westerman, G. Digital Transformation: A Roadmap for Billion-Dollar Organizations. Capgemini Consulting (July 2017) • Matt, C. & Hess, T. & Benlian, T. Digital Transformation Strategies. Bus Inf Syst Eng 57(5):339–343 (July 2015) • Tolboom, I. The Impact of Digital Transformation. Delft University of Technology, Faculty of Technology, Policy and Management. Master Thesis. Netherland. 2016 • Bengtsson, C. & Bloom, M. Human Resource Management in a Digital Era. Lund University. MBA. Sweden. 2018 • Jones, K. SAP in 2016. HR Digital Transformation. Bersin by Deloitte • Armstrong, M. Handbook of Human Resource Management Practice. Kogan Page Limited. 1977 • Deo, T.P. The Four Roles of HR and Digital Transformation. https://www.capgemini.com/2017/11/the-four-roles-of-hr- and-digital-transformation/ . (08.09.2017) • Green, A. Time for HR to bite the bullet on digital transformation.https://www.insidehr.com.au/hr-digital- transformation/ . (26.08.2016) • Moreno, H. Accelerate Digital Transformation To Achieve Strategic HR.https://www.forbes.com/sites/forbesinsights/2016/08/26/accelerate-digital-transformation-to-achieve-strategic- hr/#1714ca1e4f4b . (26.08.2016) • Enterprisersproject. What is digital transformation?.https://enterprisersproject.com/what-is-digital-transformation • Heathfield, S.M. What Is a Human Resource?.https://www.thebalancecareers.com/what-is-a-human-resource- 1918144 . (30.04.2018) • Millet, J. The 2018 Human Resources Trends To Keep On Your Radar.https://www.forbes.com/sites/forbeshumanresourcescouncil/2017/10/26/the-2018-human-resources-trends- to-keep-on-your-radar/#747b242421b3 . (26.10.2017) • Hart, B. The Role of HR in Digital Transformation.http://www.weareatmosphere.com/human-resources-digital- transformation/ . (22.06.2015) • Burkett, D. Digitisation and Digitalisation: What Means What?.https://workingmouse.com.au/innovation/digitisation- digitalisation-digital-transformation . (19.12.2017)

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