It’s a well-known fact that organisations who are early adopters of technology, manage to out-perform their counterparts in nearly every facet of business. We witnessed it happen with the production of the personal computer in the ’80s, the inception of the internet in the ’90s, and more recently cloud-based applications and IaaS (Infrastructure-as-a-Service)/SaaS (Software-as-a-Service) business models.
So, if it’s been proven historically that early adopters of technology will have a competitive advantage. Why today, are organisations and business leaders still hesitant to engage with intelligent HR technology when it comes to strategic HR management?
When compared to other business functions, Finance/Supply Chain/Procurement – HR systems strategy are the least likely to be adopted. Think about your own organisation, and this will probably ring true. With this exception of an automated payroll system, most organisations fall into this category, and will publicly admit that it’s an area they are looking to improve over the next 12 months.
A recent study conducted by US firm Sierra Cedar showed that firms that have an HR systems strategy in place, have a high correlation to effective business outcomes. These businesses have seen an increase in innovation, market share, profitability, customer satisfaction and competitive advantage – by more than 25 per cent in the first 12 months from adaptation.
This study also concluded the top five initiatives for business in 2018:
In this new era of big data, firms are leveraging new visualisation tools, coupled with sophisticated, dedicated HR/BI solutions that mix services and analytics technology together, to analyse and visualise large amounts of enterprise data. It’s this next generation technology that’s being designed to inform our decision-making capabilities and simplify our activities.
The goal of these solutions is to help provide wider access into HR data, that can then be used to optimise workforce efforts, scenario planning and workforce planning. By using predictive analytics that will provide an organisation with the insights that are needed to make critical HR decisions for the future.
It’s the facilitators of change, the adopters of technology and cloud-based SaaS platforms that are witnessing the positive impact these technologies are having on their organisations. Studies show that high-cloud, data-driven organisations are investing heavily into business-outcomes, not just HR outcomes and are considerably more likely to be working on:
These organisations are 222 per cent more likely to be focused on business outcomes, compared to their non-data driven counterparts.
The benefits of being an early adopter of these types of technologies have been clearly proven, yet take up in Australia mid-cap market is currently less than 20 percent. Digital capabilities will increasingly determine which companies create or lose value, as new trends emerge and disruptive entrants appear. It will be the early adopters that stay above the rest of the curve.
As a business leader, it’s much better to be proactive than reactive when it comes to technology in the workplace. The necessity for HR technology is evident, the platforms are available, so take your organisation to where it needs to be.