Digital Consultants Offer Insights on What s Ahead
What important HR trends for 2019 do we sense?
We choose 10 trends for the 2019 list. It could have been 8,9 or 11, but 10 itis.
3. Development as a service
What can we learn from football? In football some of the top players hireorganisations, as Your Tactical Analyst, to help them with their development.The provider gathers data about the player (per match), analyses the data andsits with the player to discuss the outcomes and the lessons. The provider isthere for the player, paid by the player. The club of the player is notinvolved. This seems to work well, although some clubs do not like it. Theinterests of the player (the employee) and the club (the employer) are nottotally aligned. The club wants to become champion this year. The player wantsto develop into one of the most valuable strikers in the world. The interestsof the service provider (Your Tactical Analyst and others) are totally alignedwith those of the player. “We are here to help you to become better”.In business life we have not seen it a lot (a bit in the executive coachingarea), but we expect, and hope, it will come. We see a great perspective fordata-driven “Development as a service”.
4. Erosion of the Employee Experience
Recently I published “Trends in Employee Journey Maps“. It is interesting tostudy these maps. Most of these maps are roads.They look like two-way roads, but in fact you can only go one way. There areno exists, only at the far end of the road. Somewhere there is a big round-about. Only one small exit, and the road designer (the organisation) hopesthat you will never find it. The “Employee Experience” is a bit of a hype, andthe corporate HR designers have incorporated the employee experience in theirdesigns and interventions. But, as we can see in the majority of the employeejourney maps, they have not changed their approach. The approach is top-down,and organisation focused. “If you want an employee experience, we will giveyou one you will never forget”. They design employee experiences to please theboss, with no real focus on the employee.The initial starting point of the employee experience concept is very good:how can we give employees an experience that fits with their needs,expectations and capabilities? Unfortunately, it is eroding into a consultancyled framework, trying to fool employees into a journey on a one-way road withno exists, as the brief was “We want to attract and retain our talent” (TheDutch use “Binden en Boeien”, which Google translates into “Tie and Cuff”).Read: The Erosion of the Employee Experience.
8. Big = Beautiful
The big players in HR business solutions are getting bigger. LinkedIn boughtGlint. LinkedIn launched Talent Insights. SAP buys Qualtrics. Workdayannounced Workday People Analytics. In the past we have been skeptical aboutthe ability of the big players to incorporate new technologies and to beflexible enough to cater the different needs of organisations. Our skepticismis decreasing, and our expectation is that especially the big players will beable to help HR to make the transformation into digital. The creative andinnovative small players, and there are many, will increase their chances ofsurvival if they are bought by one of the big players, if they work seamlesslytogether (as a plug-in) with the big players or if they have been able tocapture a truly unique niche area.
9. HR Innovation Labs
Experimenting with new technologies and new innovative HR solutions can beenhanced by installing an “HR Innovation Lab”. Big innovative organisations,as Deutsche Telekom and RABO bank, are investing in teams that focus on HRinnovations and the possible applications of HR Tech. We consider this as apositive development. It is good for the organisations, as they increase theangle of the learning curve. HR tech providers benefit, as they can work withand learn from sophisticated clients. It helps HR to change the image of HR,from slow and traditional to fast and innovative.
10. HR is about People
The expectations of workforce analytics and technology are often too high.Three elements must be considered. In the first place, human behaviour is notso easy to predict, even if you have access to loads of people data. Even in domains where good performance is very well defined and where a lot ofdata is gathered inside and outside the field, as for example in football, itis very difficult to predict the future success of young players.Secondly, the question is to what extend managers, employees and HRprofessionals behave in a rational way. All humans are prone to cognitivebiases, that influence the way they interpret the outcomes of workforceanalytics projects. Some interesting articles on this subject are whypsychological knowledge is essential to success with people analytics, byMorten Kamp Andersen, and The psychology of people analytics, written bymyself. The third element: AI developments are going fast, but there are manytask where AI has great difficulty to come close to the performance of humanbeings. MIT’s Josh Tenenbaum in one of his articles show a hilarious video ofpsychologists Warneken and Tomasello, who studied altruism with young kids.The type of behaviour as shown by the toddler in the video is not so easy foran intelligent machine.HR is about people, and HR can add a lot of value, because HR is specialisedin people, people behaviour, and how people can benefit from technology. Let’snot underestimate our important profession!
Technology Doesn’t Equal Innovation
As a basis for defining the concept of digital transformation, it’s importantto differentiate this term from the foundational availability of technology.Technological innovations come and go, while digital is about strategy andbusiness models. Advances in technology continue to facilitate unprecedentednew capabilities. Engineers and visionaries across the globe are constantlypushing the limits of what’s possible, from robots and wearables to “mixedreality” environments and voice recognition systems. Each time a newtechnological frontier is crossed, the starstruck developers declare that theworld is on the brink of a major transformation. However, technology onlybecomes disruptive when it can be directly applied to a company’s individualstrategic framework. Otherwise, even the most dazzling new capability won’t bea good investment for that company.
Why is Digital Transformation Important?
All businesses are moving along the same vector, heading towards a digitalfuture. It’s true of the world at large, and it’s true of every industry inthe global marketplace. Furthermore, that digital future is currently beingdefined by just a handful of industry leaders — mainly Apple, Amazon, Googleand Facebook. These massively successful innovators are setting the bar forconsumer expectations. If the consumer encounters a new convenience fromAmazon or Apple, they will expect to encounter similar streamlining from anyother company they interact with. Regardless of budget size, all businessesare now subject to comparison with the frame of reference created by thesemarket leaders. Agility and sophistication in this new ecosystem are criticalfor marketplace sustainability; businesses that resist the digital juggernautwill eventually fall by the wayside as they lose customers and credibility inthis era of changed expectations.
Digital Consultants Offer Insights on What’s Ahead
Centric Digital offers a specialized perspective of immersive experience inguiding companies through today’s technological revolution. We know thenuances of the digital transformation river per se, because we continuallynavigate it, in all kinds of economic weather, with all sizes and types ofvessels. Our benchmarking process provides granular knowledge of the potentialbenefits and obstacles hidden around the next bend. Without the solid dataderived from internal and external benchmarking, it’s challenging to develop areliable strategy that can result in digital success. Digital consulting can’tremove every risk a business faces, but skilled consultants use insightsgained from a digital-focused mindset to mitigate and clarify potentialhazards.
Fintech Digitalized Landscape
In India, the Fintech industry is divided into four major categories,i.e.,Payments, Wealthtech, Insuretech, and Lending segments. With the outbreak ofCOVID-19, the fintech sector has come out as the most significant lending andtransaction platform, reshaping the traditional model of banking services andcustomer’s end-to-end journey. Not only the banking sector but all othersegments that the Fintech industry in India covers under its wing. Fintech orFinancial Technology allows digitalization of the business operations,improvement in production capabilities,employee-efficiency as well as resourcemanagement, to name a few. It guarantees an enhanced customer experience, asthe role of AI-ML predictive analytics is immense for retrieving behavioralinsights thus allowing a better decision-making process and transparency inthe system.No industries match this quantum of digital transformation otherthan Fintech is doing in India.As per Adroit Market Research, the Global Fintech market is expected to hit ahuge $460 billion by the year 2025. As per another published report preparedby BCG and FICCI, the Fintech industry in India will touch a huge 150-160billion USD by the year 2025, as well. You can now estimate the developmentquotient of the Fintech industry in India if compared with the globalestimate!
Fintech replaces Legacy Lending Models
If you are a Start-Up, SMB, or SME in India, you are now aware of thelimitations of the legacy financial systems and how Fintech is proving to be acost-effective model for you! For example, traditional lending models. Theyare so inefficient as they are not scalable, and, would rather pose a barrierfor you to access finance. Contrarily, the Fintech model allows you to cutdown on your costs due to the lean operating model. And, Fintech is justaccelerating the pace of digital transformation making operations smooth,seamless, paperless, automated in the ecosystem. However, anywhere in theworld including India, transitioning from a legacy system to a digitalecosystem is not a walk in the park. For example, instead of going for acloud-based lending mechanism, think of an alternative. Building an APIarchitecture to seamlessly integrate with legacy systems, and then providesome sustainable, scalable digital model to facilitate an optimized lendingsolution. This would be an apt idea. So this amounts to one of the big reasonswhy Fintech is leading in India for digital transformation across industries.
Data Analytics for Operational Efficiency
Fintech Industry in India is faster than other industries for digitaltransformation because people need money, and loans for business and personalneeds, too. And, these people hail from just any industry. The presentplatforms for digital lending are equipped with innovative digital tools andfeatures, viz. Video-based KYC & personal identity, Social security basis forKYC, all these can be utilized by the account aggregators who can quicklyaccess required customer data and get their consent as well. Not only this,Predictive analytics, data analytics help understand customer portfolio thusenabling loan processing an efficient task. Fintech in collaboration with BigData Analytics can get useful insights into prospective customer’s credithistory. Their preferences are also extracted out of the analytics and frauddetection becomes easy.