Digitizing HRMike Theaker, SAP SuccessFactors

June 1, 2016

mike.theaker@sap.com TheakerMike

DIGITIZATION and CONSUMERIZATION

means

DISRUPTING BUSINESS MODELS

Examples….

Taxi Companies are substituted… … by UBER rides.

The Hotel business becomes… … AirBnB room-sharing.

No. 1 communication companies… … own no telco networks.

Industrial equipment manufacturers… … commit the output of their machines.

Selling cars becomes… … providing mobility services.

And OnPremise software… … moves to the Cloud.

… To Providing Mobility Services

EMOTIONS PRAGMATISM

INDIVIDUALIZATION STANDARDIZATION

FUNCTIONS & FEATURES EASY-TO-USE, VALUE-ADD EXPERIENCE

R&D, MAKE, SELL AND AFTERSALE DEVELOP, PARTNER, SUBSCRIBE AND SERVICE

DATA LOW, ASSET RICH DATA RICH, ASSET LOW

UPFRONT BUY AND PAY PAY AS YOU GO

HIGH MARGIN, VARYING VOLUME LOW MARGIN, HIGH VOLUME

SALES QUANTITY RE-USE / RENEW

CUSTOMER LOYALTY CUSTOMER SATISFACTION

From a PRODUCT business… … to a SERVICE business

What does “Digitizing HR“ then actually mean?

1. Digitizing human labor / people / employees

2. Serving the workforce in a digitized enterprise

3. Digitizing the HR Function in the enterprise

1. Digitizing People…

… by Replacing them with Robots

Knowledge work automation

tools could take on tasks equal to

the output of up to

140 millionFTEs

By 2025

1

Low-skill workers

90-95 million

2

Will not be needed by employers

and will be vulnerable to permanent

joblessness

by 2020

20%Of all jobs that exist today will have

been automated away

Within 5 years 3

1. McKnsey Global Institute, 2013.

2. McKinsey Global Institute, 2012.

3. Rohit Talwar, Futurologist

Fields of usage

HealthcareFraud

Detection

Legal

Services

Financial

ServicesLogistics EducationAudit &

Tax

Investment in AI and Robotics Continues to Rise

Google2013 - acquired Boston Dynamics

and seven other robotics companies

2014 – paid $500m for Deepmind

and $3.2bn for Nest Labs

Amazon2012 - $775m for Kiva Systems –

intelligent machines for warehouse

servicing

Facebook2014 - acquired Oculus VR (virtual

reality) and Ascenta (pilotless

drones)

From 2010 to 2014 Private investment in AI has grown from $1.7b to $14.9b

Pepper (2014)

Humanoid robot by Aldebaran

Robotics and SoftBank Mobile,

designed to read emotions.

Atlas (2013)

High mobility, humanoid robot by

Boston Dynamics, designed to

negotiate outdoor, rough terrain.

2. Serving the workforce…

… in a Digitized Enterprise

The makeup of the workforce is changing in a variety of ways –and these shifts impact best practices for organizations.

4. “Millennials: Breaking the Myths,” The Nielsen Co., January 27, 2014

5. “Gen Y Women in the Workplace,” BPW Foundation.

6. Christopher J. Dwyer, “The Future of Contingent Workforce Management Webinar Recap,”

DCR Workforce Blog, January 5, 2015.

7. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.

Millennials

will comprise

75%of the global

workforce by 20255

of the world’s

workforce will be

contingent workers

by the end of 20176

45%Nearly

people are entering

the middle class for

the first time.7

5 billion

Approximately Millennials

represent

24%of the U.S.

population4

The nature of work is

changingWorkforce expectations are

changing

3. Digitizing the HR Function…

HR Services

` … through Automation, Cloud, Mobile, Social, Apps,

Analytics … and a Change of Mindset! - 1 of 2

HR Services

Intelligent ServicesNext generation self-

services; end-to-end

intelligent services that

cross software

modules and integrate

disparate processes.

Digital FirstDriven by workforce

needs and UX; re-

definining how people

processes are

designed, delivered

and accessed.

HR AppsFocused mobile-

enabled Apps,

accessible 24 x 7 on

any device.

Extensibility.

AnalyticsIntegrate analytics into

every process.

Real-time; predictive.

Segment the workforce

to better understand

drivers, preferences and

behaviours.

` … through Automation, Cloud, Mobile, Social, Apps,

Analytics … and a Change of Mindset! - 2 of 2

HR Services

Chatbots

Growing with Siri on the

iPhone and Cortana on

Windows 10. Gartner

predicts by 2017 the

cost of managed

services will fall by 60%

.

Algorithms

Recommend Learning

activities based on peers

– Amazon style!

Recommend potential

sources of applicants and

predict the success of

applicants. Predict “At

risk”.

Sentiment Analysis

Monitor what

candidates, employees

and alumni say online

about the company and

maintains its employer

brand. Identify and

target key influencers.

Virtual Recruiter

AI in Recruitment:

virtual interviewer that

identifies if an

interviewee is focused

or leaving their chair;

algorithms create

questions based on the

previous answer.

The Impact on HR Operating Models, Roles, IT …

HR Services

Is the future of HR “No HR”?Yes, for commodity services – No, for high touch and strategic HR services

HR Service CenterAutomation, Intelligent Services, Self-Service = “business as usual” - reduce the

role and size of the HR SSC / HR BPO. Fewer, but more skilled HR resources.

Technology

Shift from “HR tools” to “Employee Tools”. Consumer-grade, mobile, real-time.

HR

HR Skills & CapabilitiesNeed to “raise the bar”: business understanding; analytics; mass-customization;

workforce-centric; building digital HR platforms; design thinking; consultative skills

HR RolesHR Business Partners more embedded in the Business; specialist HR resources

focusing on specific segments of the workforce? Project oriented (e.g., M&A)?

HR MindsetDigital First. Challenge everything we’ve been doing so far!

To Conclude

Technological advancements and globalization

are creating disruptive business models

• Changing the nature of work

• New combinations of human and machine resources

Workforce expectations have changed:

• How, where and for how long they want to work

• How they interact with the business and expect to be managed

• How they expect to manage their careers, learning and rewards

and collaborate anytime, anywhere on any device

Requires a “Digital First” HR Strategy and Service

Delivery Model

• Challenge everything we’ve been doing so far!

• Re-imagine with digital HR platforms and networks

• Create the Uber of Total Workforce Management

Questions and Comments