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Functions’ News

ADVISORY

Digital Transformation:

the role of HR

Γεωργία Κωνσταντινίδου
Senior Advisor

The digital revolution in the workplace is undoubtedly This requires a few steps:
a challenging process. The digitization of the HR operation plays
— First of all, HR itself needs to develop a new mindset that
a crucial role in supporting the benefits of the digital
recognizes the speed of change in the digital era. They need to
transformation. Otherwise it doesn’t add the value need by the
redesign their structure to foster this digital mindset both within
workplace for which it works. Digital innovations are creating
its own boundaries, and across the company departments.
opportunities and business in every industry that needs to exploit
technological advances to not only stay competitive, but to — A second step would be the redefinition of HR function and its
survive. Indeed, many companies recognize that digital value to the business, using technology and skills that capitalize
transformation, artificial intelligence and customer centricity are on the value and competitive advantages of data and analytics,
all a means to an end and that end goal is growth. They are which must be actionable.
looking at digitalizing their systems ensuring they have the right
— In addition, tailoring workforce to meet evolving workplace
skills for the future and looking at how to develop more agile
demands rather than fitting people into fixed organization chart
ways of working.
structures, is set to be future trend.
But the question is: are companies ready to face the challenges
— Another step would be to consider employees as customers in
of digital transformation?
the increasingly digital and agile world of work, embracing
First of all it is worth mentioning that in today’s era of technology to increase connections and supporting an
unprecedented change, senior management leads in initiating overarching people agenda, as tasks and roles are defined to
technology acquisitions and acts as a focal point as it informs and include not only individual employees and line managers, but
leads the way to transformation. On the other hand, businesses intelligent automation, modern cloud HR solutions, third parties,
are failing in many cases to transcend the gap between knowing global business services entities and more.
what’s needed and doing what’s needed for real progress,
In conclusion, 30% of HR Leaders are confident in their ability to
combining modern technology with new processes and skills to
transform their workforce against 24% that are less or not
propel HR into the 21st century. Some say they are changing
confident with this premise. Digital transformation is a process, not
their technology but not their operating model, while others are
a destination. It supports company business objectives and HR has
simply biding their time, apparently poised to see themselves as
to be utterly aligned with them.
part of history, rather than making history for them by taking
control of their destiny in a digital world. Failing to pursue a
strategic view becomes increasingly risky as today’s technology Insights...
megatrends continue to redefine markets, business models and
workforces. — 70% recognize the need for workforce
transformation.
But what are the real challenges? A KPMG survey for HR
Transformation, is which 887 executives participated from 48 — 20% of HR leaders believe analytics will be a
countries, found that a lack of available funding is the top primary HR initiative for them over the next
challenge to implementing new technologies (47%). A large one to two years.
percentage of 37% believes that the lack of appetite, budget and
— 49% of HR executives invested in Human
skills to make required process standardization is an additional
Capital Management (HCM) over the past 2
challenge. Leaders however, view today’s disruption as a unique
years
opportunity to transform their business models and drive new
— 32% in cloud capabilities
levels of growth. Specifically, 65% of them view technological
disruption as an opportunity rather than a threat. — Over the next year, 60% is planning to invest
Businesses apparently do have a starting point and a strategic in predictive analytics, 53% in enhanced
roadmap to get in the digital age transformation. More than one process automation and 47% in AI.
in four (27%) organizations view their HR function as a key — AI is recognized as a force that can drive
business asset adding strategic value. HR professionals need to significant value for HR but it’s in the minority
ensure that the change actually occurs throughout the company, by far. Only 36% of HR functions have started
while employees are properly are on board with the current to introduce AI and just 14% have invested in
mission and values of the organization. AI over the past 2 years.

© 2018 KPMG Ορκωτοί Ελεγκτές ΑΕ, Ελληνική Aνώνυμη Εταιρεία και μέλος του δικτύου ανεξάρτητων εταιρειών-μελών της KPMG συνδεδεμένων με την
KPMG International Cooperative ("KPMG International"), ενός Ελβετικού νομικού προσώπου. Με την επιφύλαξη κάθε δικαιώματος.