The dust is starting to settle on the initial wave of cloud-based HR transformation, and business is gearing up for the next quantum leap combining human capacity management (HCM) and finance, otherwise known as fintech. That’s because in the digitalized business era, data from any team, including and especially the HCM system, radically changes how decisions get made – for the better. Expert opinions and new research show that no department can go it alone.
A recent Oxford Economics study found 78% of respondents categorized as “digital winners” made data-driven decisions, while over 60% of that same group made decisions in real time, and 75% made decisions distributed across the organization. Almost 60% of respondents working for digital winners said decisions were transparent to the people affected by them. Findings like this matter because digital winners also reported strong revenue and profit growth (76%), and have more satisfied employees (87%) who are more likely to stay in their jobs (75%).
Titled “Leaders 2020: The Next-Generation Executive,” the SAP-sponsored survey reflected feedback from over 4,100 executives and employees worldwide. The findings reflect important trends that industry leaders are talking about as well. During a video interview on “Firing Line with Bill Kutik,” Mike Ettling, president of SAP SuccessFactors, talked about fintech’s tantalizing possibilities for massive transformation — but only if it’s connected with HR.
Having begun his career as a chartered accountant in South Africa, Ettling has a unique perspective on the inextricable link between finance and HCM. In his mind, people and money make up the two levers of every company and have to operate together in order to propel the business forward. However, most organizations are just beginning to make this next digital transformation. Findings from the same Oxford Economics survey indicated only 55% of respondents said their decisions were informed by data, and just 15% said it’s easy to make fast decisions. Cloud-based computing may be well underway in HR, but – connected with fintech – it promises to take companies even further, remaking entire industries.
Download the Leaders 2020 study by Oxford Economics for more insight.