Companies have started digitizing most of their departments, such as financial department, marketing department, accounting department, etc. Do you think that these companies are ready for a digital transformation in the human resource (HR) department also?
Many companies are taking initiatives towards embracing the digital technology for the HR department. For example, over the past 10 to 15 years, they have started interacting with employees through social media, email, and more. But what more is required so that the HR can be fully transformed into a digital model?
Introduction of 6D model
Let us look at the Peter Diamandis’ 6D model of exponential technology that has six steps starting from digitalization to democratization. This model will help us understand the actual position of HR.
Digitalization is the first step where physical objects are converted into a machine language of bits and bytes (or 0 and 1). It enables using the computer power to modify, build, and distribute any product or service across the globe. For example, digital photography! With digital photography, you can distribute uncountable photos at a zero cost.
Deception is the second step where 3D printing was introduced since 1981. This step also includes robotics and artificial intelligence.
Disruptive comes at the third step where people start adopting technology. In this phase, AI plays a major role by performing every activity (be it recognizing human faces, writing financial reports, diagnosing cancer, etc.). It is better than a human in performing its activities more accurately. A few indicative examples are driverless cars and Internet of Things.
After disruption, comes the fourth phase known as Dematerialize. In this phase, technology starts coming free with mobile devices; for example, the flashlight, GPS system, and cameras. All these apps are freely available with smart phones and makes you free from holding physical objects.
Once you have dematerialized the product comes the fifth phase – Demonetization. It means after dematerialization; the physical object is available for free. You do not have to pay more for a mobile because it has a flashlight or GPS! Isn’t is great!
The last stage talks about Democratization. Here, the technologies themselves become cheaper. Cell phones are the best example. It is considered as the cheapest supercomputer which most of the people carry in their pockets.
HR tech position in the 6D model
Presently, HR tech is lying between phase 1 and 2 (digitalization and deception). Most organizations are comfortable sitting in the first place where they are still in the process of digitalizing their data. The HR data is considered as the secret data, which is not accessible to everyone. For example, compensation data might not be available for the performance management; the learning & development team is not allowed to access the hiring team’s data, so on and so forth. Therefore, companies are taking more time to transform into the digital world.
To embrace the digital wave, it is very important to change our mindsets. The data should be accessed across all walls round the globe. Instead of using the legacy applications, focus on investing digitalization of HR and moving it across the 6D model described above. Don’t get stuck at the first step! If you embrace the HRMS software that helps you move to step 3 and beyond of the 6D model, then you have a true opportunity to create disruptive success!