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HR Transformation-The Digitization Impact: The Future is Now

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HR Transformation-The Digitization Impact: The Future is Now

Business Environment is massively impacted by VUCA, Technology & New workforce. New business models are fast emerging and are totally different from the current ones. The new dynamics will require HR to undergo a metamorphosis in order to deliver value. The Future of HR is NOW.

Business Environment is massively impacted by VUCA, Technology & New workforce. New business models are fast emerging and are totally different from the current ones. The new dynamics will require HR to undergo a metamorphosis in order to deliver value. The Future of HR is NOW.

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HR Transformation-The Digitization Impact: The Future is Now

  1. 1. Human Resources Transformation The Digitization Impact Manish M Misra
  2. 2. The Journey So Far
  3. 3. HR Transformation 1.0 HR Operations (75%) HR Transformation Organization Effectiveness (20%) Business Strategy (5%) HR Operations (10%) Current HR Service Profile Targeted Future HR Service Profile INTEGRATION TECHNOLOGY PROCESSES PEOPLE HR Strategic Partner Change Agent Administrative Expert Employee Champion Design and implement HR programs that align / fit with the business vision Active Role in setting strategic direction Create cross-functional collaboration & organization readiness to accomplish change initiative & performance results Effective Transformation & Change Continue improvement of the HR Process to Optimize operational efficiencies & employee self- service Process Optimization & Efficiency Develop employee competences with continuous skills & knowledge management; foster achievement / performance recognition programs Motivated & Competent Personnel Business Strategy (50%) Organization Effectiveness (40%)
  4. 4. HR Transformation 1.0 Business Partners Shared Services Center of Expertise  Establish relationships with customers – line /business unites  Contribute to business unit plans  Develop organizational capabilities  Implement HR practices  Represent center HR  Log needs and coordinate HR services  Front Office  Deliver HR services  Manage routine processes effectively and efficiently  Often using a single HRIS, intranets to provide basic information and call centres for specific queries  May be outsourced  Back Office  Create HR frameworks  Develop and introduce strategic HR initiatives  Specialized areas such as compensation and benefits, employee relations, learning and development, talent management, OD, staffing, diversity, and workforce planning  Often depend on the business partners to roll out programs to the business Human Resources Has Made Significant Progress In Transforming Itself…. But With What Results….
  5. 5. The Report Card CEO view 58% of CEO’s state lack of business acumen is biggest issue with HR (Hewitt Associates) Line Manager view 58% of the line manager’s believe HR lacks the capability to develop strategies aligned with business objectives (McKinsey) Global Study HR is not making the grade as companies move away from HR as people administration, to a focus on people performance (Deloitte 2014) 87% of global workers are not engaged in their jobs (Gallup 2013) 34 % Of CEOs felt that HR was well-prepared to capitalize on transformational trends CEOs feel their HR isn’t ready for the task ahead when asked how well- prepared the major functions in their business were to capitalize on transformational trends, only 34% felt their HR was well- prepared end 9% said if was not prepared at all. HR Has Much To ProveOnly
  6. 6. The Report Card First Generation HR Transformation Report Card Reduce Cost B Streamline technology B Manage People Globally C Shift HR focus from administration to strategy D Human Resources Function Is Struggling To Meet The Challenges Of Today’s Business
  7. 7. The New Business Realities….
  8. 8. This Turbulent Environment Has A Name….. An “Adaptive Response” is the only Way in VUCA World For Volatility Frequent and sudden changes For Uncertainty Unpredictable patterns of change For Complexity Complex problems and opportunities co-exist For Ambiguity Contradictions and confusion – unsettling scenarios. V U C A
  9. 9. The VUCA Impact States of Organization Tightly Coupled  Physical coupling of people and process Hybrid  Combination of physical and virtual coupling of people and process Loosely Coupled  Virtual coupling of people and process INFORMATION Hierarchy To Wirearchy
  10. 10. Technology is everywhere & …….. Learning to scale, reason with purpose and interact with human naturally Social, Mobile, Analytics & Cloud Creating new standards of engagement, collaboration and networking Artificial Intelligence, Cognitive & Robotics Massive impact on workflow automation and mass personalization Big Data and Automation Ability to process multivariable algorithms resulting in accurate predictability, forecasting and scenario analysis
  11. 11. Technology Impact… Business Models will change @ particular information levels just like natural element changes its form at melting point. In Nature In Business Platinum 3,220⁰ Energy Iron 2,800⁰ Utility Nickel 2,651⁰ Manufacturing Aluminum 1,221⁰ Travel Zinc 787⁰ Healthcare Lead 621⁰ Life Science Tin 449⁰ Retail Banking Sodium 208⁰ Insurance Water 32⁰ News Bromine 19⁰ Book Retailing Mercury -38⁰ Movie Rentals Chlorine -150⁰ Personal Communications Nitrogen -346⁰ Maps Hydrogen -434⁰ Research / Encyclopedia Helium -458⁰ Classified Ads RoomTemperature Today’sInformationLevel F
  12. 12. THE FIRST INDUSTRIAL AGE Provided the platform for the Industrial Corporate Model STEAM POWER STEEL ELECTRICITY
  13. 13. THE NEXT INDUSTRIAL AGE Laying foundations of the Knowledge Corporate Model SOCIAL, MOBILE, CLOUD, ANALYTICS AI, COGNITIVE, ROBOTICS BIG DATA, AUTOMATION
  14. 14. The New Workforce….. Man (Women) & Machine Collaborating will the New Workforce Multi Generational Always On the Move & Mobile Workforce Multi Cultural Robotics Millennials
  15. 15. Millennial Expectations Are Changing Work Workforce Impact Millennials make more than 60% of the workforce Germany, Japan, and even China and US will soon have negative population growth. 41% workforce in US is Contingent Workforce, growing @1% every year. Long Term is less than 2 yrs, Normal is 7 months Job Hopping and Career Shifts are new normal Learning is the key to retention Their “ Team Mates ”are the most important people at work Expect Feedback weekly and progression annually
  16. 16. The Reality
  17. 17. The Reality… Industry Widget Winners Digital Winners Tipping Points Book Retailing Borders Amazon Borders Bankrupt 2011: Amazon market Cap, $99 Billion. Movie Rentals Blockbuster Netflix Blockbuster bankrupt 2011: Netflix Streaming Volume Exceed Rentals in 2012 and Constitutes one- quarter of U.S, Internet Traffic. Mobile Phone Nokia Apple, Google Nokia Market share at 1997 level, 3% of peak market cap, $215 Billion. Online Communication Platform AOL Facebook AOL value 95% from peak: Facebook Market Cap, $48 Billion. Photographs Kodak Flicker, Shutterfly Kodak Files for Bankruptcy in early 2012 Maps Rand McNally TomTom,Garmin, Google Garmen Market Cap, $7 Billion.
  18. 18. The Reality… In 2012, there were more than 10 times as many photographs taken than in 1992 and yet Kodak filed for bankruptcy More news is being generated on a daily basis than ever and yet the Los Angeles Times is bankrupt, The New York Times debt sits at junk status Book Sales increased 27% in 2011 in the US alone and yet BORDERS BOOKS Collapsed! Encyclopedia Britannica Wikipedia Year founded 1768 2001 Articles 65,000 4,086,999* Languages 1 271 Words 40 million 2 billion Updated Annually Real-time Mistakes per article 2.92 3.86 Cost $729 Free
  19. 19. But Will These Jobs Really Go Away? Of today’s jobs are predicated to be gone in 10 years ( Oxford Research Institute ) No, They Simply Change. 53 % Up to The Prediction……
  20. 20. Business Leaders Are Worried Leaders not getting new digital skills 6X more likely to leave their org within the next year Believe digital will disrupt their industry Whole new talent base is needed to compete Organizations are not correctly structured to operate in this new environment Need a whole new talent base to compete Don’t have the right leaders 92% 87% 70% 6X 87% 70% 11% Believe they the right skills to compete Only
  21. 21. Human Resources Response…. Integrated Solutions Provider Business Alignment & Outcomes New Innovative Practices & HR Infrastructure Workforce Enter Millennial Generation HR TRANSFORMATION WAVE 2.0
  22. 22. New Transformation Principles 1 HR must be adaptive… & Responding to Business Problems 2 From Silo Working to Supply Chain Model 3 Must Become Data Driven & Forward Looking” 4 Speed, Agility & Responsiveness must match other parts of the business environment
  23. 23. New Transformation Principles 5 One Size Fits All is Dead, Mass Personalization is the key to success 6It is all about “Experience, Personal learning , Reinvention & Fun” 7 Embrace Technology as a enabler and partner
  24. 24. Innovative HR Practices Data will proactively forecast people challenges, issues and trends so damage control can be done before the event for effective talent management Workforce planning will become continuous, collaborative, analytics driven instead of annual exercise Talent Acquisition Platform manages employee referrals, internal mobility and employer branding in one solution power with predictive intelligence, process automation & real time performance dashboard. Simulations & Gamification for assessing the “best fit” Performance assessment, feedback and coaching will become real time, resolving issues quickly Personalized management of employee based on their motivation profile will increase
  25. 25. Innovative HR Practices Compensation adjustment decisions will be based maximum impact – maximum pay Learning will be more and more anytime & any where. MOOC ( Massive Open Online Courses) Simulation, Gamification Driven Embedded and Intelligent learning Leadership assessment and development will be more real time data based than core psychological model based Recognition will become data driven. Metrics for recognition will emerge based on company value and behavioural drivers Career Mobility will assume “network shape rather than vertical growth Transactional HR activities will be outsourced to service providers or driven by self service platforms
  26. 26. New Rules Of Culture & Engagement Dynamic measurement of engagement as opposed to static measures will be required Retention analysis based on social data activity analysis Culture that accelerates team work, breaks silo and keeps connected Use of social network will grow to engage employees and further support the building of employer brand Career navigation opportunities, building relevant networks that help employee complete tasks successfully Culture which instils pride, respect and happiness
  27. 27. Building The HR Infrastructure Personal credibility, ability to change and reinvent will become key to success Predictive Data Analysis will drive decision making in all HR practices CoE and shared services model will change shape from functional silos to integrated comprehensive solution provider Web application first to Mobile application first HR will necessarily have to learn the business well and learn the language of business- finance very well More line managers will shift to HR roles
  28. 28. The Future Is Now And It’s All About People …Reinvent HR…Recreate Possibilities
  29. 29. Thank You Secondary Research Sources & Acknowledgement Google Search Cognizant Technologies KPMG,Deloitte,PwC & other similar firms

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