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Becoming DigitalMay 2017

Becoming Digital: Ecosystems, Platforms and HR Copyright © 2017 Deloitte Development LLC. All rights reserved. 2Becoming Digital: Ecosystems, Platforms and HR Copyright © 2017 Deloitte Development LLC. All rights reserved. 2

Workplace Disruptions

Journey to Becoming Digital: Digital Maturity Continuum

Mindsets for Becoming Digital: Business Ecosystems

Mindsets for Becoming Digital: Platforms

Practices for Becoming Digital

Key Takeaways

Agenda

Copyright © 2017 Deloitte Development LLC. All rights reserved. 3

Workplace Disruptions


Disruptions in the Workplace

Shifting Demographics

Fluid Labor Markets

New Technologies


To do this effectively, HR should redefine

how it delivers service & “Become

Digital”

From the Industrial Age to the Digital Age

From the intersection of people,

organizations, and work, HR has a

unique opportunity to lead the transition

to the Digital Age.


Disruption does not come from technology itself. The true power of new technology comes from:

o Integrating technology into the work

o Transforming the way people use technology to interact & create value

HR can play a leading role in Becoming Digital by:

o Adopting the mindsets associated with ecosystems and platforms

o Implementing practices for becoming digital

Journey to Becoming Digital


Mindsets for Becoming Digital: Business Ecosystems


Comprise co-evolving communities of diverse entities that create & capture new value through both collaboration & competition

Bring together individuals, organizations & alliances that are far better prepared to effectively meet market needs than individuals or single organizations alone

Able to create new ways of generating value & spur the development of new business models to capture that value

Share interests, goals & progress that drive mutual benefit

What are

Business

Ecosystems?

Business Ecosystems:


Example: HCM Technology Ecosystem

Elements & Dynamics of Business Ecosystems

Source: Bersin by Deloitte, Deloitte Consulting LLP, 2017


Experts move freely throughout the ecosystem

Talent may switch organizations or go freelance

Growth of individuals & teams as they recombine knowledge with others for further innovation

Circulation of talent throughout

the ecosystem

Reducing boundaries within and between

organizations

Rise of the “Open Talent Economy”

Talent is an asset managed as a strategic investment

Talent does not only come from traditional employees but also from contingent & various 3rd-party sources

Business Ecosystems: Potential Implications for HR


Mindsets for Becoming Digital: Platforms


Createvalue by facilitating

interactions between external producers &

consumers

Provide infrastructure for

value-creating interactions along

with rules for managing them

effectively

Support the identification & analysis of behaviors and interactions to refine & enhance performance

Focus mainly on interactions that create value, rather than on the products, services, or other outcomes

Platforms: The Interaction Interface of Business Ecosystems

Source: Platform Revolution: How Networked Markets Are Transforming the Economy—and How to Make Them Work for You,Sangeet Paul Choudary, Marshall Van Alstyne, and Geoffrey Parker / W. W. Norton & Company, 2016.


Attracting both consumers &

producers to the platform to enabling

interactions

Making it easy for participants to interact & encourage exchange of value

Applying information about consumers & producers to bring them together in mutually rewarding ways

Pull

Facilitate

Match1

2

3

Three Core Functions of Platforms: The Interaction Interface of Business Ecosystems

Source: Platform Revolution: How Networked Markets Are Transforming the Economy—and How to Make Them Work for You,Sangeet Paul Choudary, Marshall Van Alstyne, and Geoffrey Parker / W. W. Norton & Company, 2016.


The Pull Function• Translates directly to employee engagement• The tools we give workers should be ones they want to use &

pull them into the work

The Facilitate Function• Focuses on the interactions between workers • Should make it easy for them to connect and

communicate in a productive exchange

The Match Function• Involves using information from the platform and elsewhere

to bring people together in mutually rewarding ways• May include teams in pursuit of opportunities, in the course

of daily workflows, and addressing challenges as they arise

The Platform Model in HR

Applying the principles behind platforms is critical


Focus on the workers & their interactions to help

create value for organizations

Provide consumer-grade experiences & tools, social network capabilities & rules to govern interactions

Create, transmit &apply information,

insights &intelligence

Features of HR Platforms


2Treat the workforce

like customers

3Incorporate people

analytics into everything


1Develop the

organizational culture for Becoming Digital


Developing the Organizational Culture for Becoming Digital

While culture can vary across organizations, digitally maturing businesses across industries demonstrate common cultural characteristics

1


Implement “design-thinking”

Partner with customer-facing sales &

marketing teams

Treating the Workforce Like Customers

This represents a significant shift in the way organizations and HR approach the people who create value for business.

2

Develop an “outside-in” perspective on the

workforce


Incorporating People Analytics into Everything

Data & analytics are core to building a more personalized employee experience—a hallmark of treating the workforce as customers & Becoming Digital

3

Scalability of Data & Analytics

Accessibility of Data

Increasing number of sources for “people data”


Key Takeaways


The power of digital technology in the

workplace comes from transforming business, operating, customer

models & their associated processes

To Become Digital, HR should adopt the right

mindsets for:• Ecosystems• Platforms

Develop the organizational

culture for Becoming Digital

Treat the workforce like

customers

Incorporate people analytics into everything

Key Takeaways

Practices to Leverage the Power of Ecosystems & Platforms


Let’s discuss any questions!

We are currently seeking success stories and leading practices to share in our High-Impact HR research in the following areas:

Visionary HR leadership

Applications of social, mobile, analytics, and cloud technology

Workplace innovations and new ways of working

Building a culture of trust

Employee experience

If you have something to share, please contact:

Jeff Mike, VP and HR Research LeaderBersin by Deloitte, Deloitte Consulting LLP

Email: [email protected]

Proud of your accomplishments?

mailto:[email protected]

About DeloitteAs used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

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