Level-Up Your Customer Experience: Lessons From The Gaming Industry

Mark de Bruijn

From the first teaser trailer to the final level, the gaming industry demonstrates that it knows exactly how to engage and cultivate the interest (and loyalty) of its customers. And, it’s a goldmine: there are an estimated 1.5 billion gamers, and this year revenue from the global games industry will be around $100 billion.

So, what can other industries learn from this example? Developers and game designers are under huge pressure to create a new experience each time, one that gamers are willing to pay for. Competition in the ceaselessly growing industry is enormous. For every hit, there are countless games no one plays. This constant “survival of the fittest” has a major advantage – many games offer a customer experience that has been perfected down to the finest detail.

Here are five ways gaming takes customer engagement to the next level.

1. Promotion

Popular franchises like Pokémon, Grand Theft Auto, and Battlefield are constantly preoccupied with building a relationship with their customers. Real fans know well in advance that they want to buy a game. They are teased with new features, sneak peeks, trailers, artwork, events, and promotional campaigns. Early birds get discounts and unique content, like new levels and rare weapons.

Games companies understand that customer retention is an ongoing process. And they know that it’s easier and cheaper to sell something to an existing customer than to a new one. Franchises are strong brands with recognizable characters that appeal to the gamer. It’s only a matter of galvanizing the fans into action at the right moment – for example, for the holiday season.

Foster your existing customers, whet their appetites with news of your new products or services, and reward the early birds. And just keep on building a strong brand!

2. First impressions

New mobile games appear daily and can often be downloaded for free. However, research has shown that around a quarter of the apps are opened only once. For that reason, making a good impression is very important for game developers. After all, you don’t get a second chance. That’s why a game is tested exhaustively before it’s launched.

A messy or un-intuitive interface, the lack of a tutorial, long loading times, poor performance, irritating advertising, and intrusive in-app selling can motivate people to delete a game instantly. But factors outside the game also play a role, like the description of its features, general evaluations, and the amount of space needed for installation.

Developing games is a question of testing, optimizing, and testing again. And that’s how companies should also approach their customer experience: only perfect is good enough.

3. Immersion

What actually makes a game good? Tastes differ, just as with films or music. But whether it’s a futuristic shooter, a strategic RPG, on an online word game with friends, a game has to be compelling or “immersive.” There’s no magic wand for creating an immersive experience. But there are certainly elements which contribute to it:

  • Gameplay
    • Good gameplay is crucial. Some games feature deep gameplay mechanics or have a high difficulty level, others opt for addictive elements like puzzles, and still others put the emphasis on the competitive factor (who’s the best?). Whatever they do, the game’s mechanisms must entertain the player.
    • Gameplay elements enrich the customer experience. There are countless examples of gamification. For example, at Starbucks you can earn stars with purchases. The Spanish bank BBVA lets customers perform tasks to promote the use of Internet banking. And the running app Nike+ Run Club challenges sports enthusiasts to measure themselves against others.
  • Graphics and sound
    • A brilliant-looking game that’s enhanced with varied musical and sound effects creates a credible world that gamers want to plunge into. If you constantly encounter visual errors and strange animations, or you’re irritated by poor voice actors and repetitive music, it detracts from the immersion.
    • High visual production values are also a unique selling point for companies, and not only in terms of their products and services. So, for instance, a slow or ugly (mobile) website can upset the customer journey and can motivate potential customers to head to a competitor.
  • Story
    • A huge attraction in many games is the story. Interesting characters, exciting developments, and humorous dialogues ensure that the gamer feels emotionally involved and is curious to discover what will happen. The choices you make, along with the way of playing, leads to a personal experience.
    • Marketing is increasingly concerned with emotion. You persuade the modern consumer not with superlatives, but with storytelling: a good story, which he or she would like to be part of. The interaction between customer and brand is one and the same. Buying stems from that.

Immersion is also very important for the customer experience. The process from orientation to buying and use doesn’t only have to be smooth. It must also be absorbing, personal, and even fun.

4. Customer behavior

Game developers are extremely proficient at analyzing customer behavior. The free-to-play model with in-app purchases has accorded this a completely new dimension. How long does the average gamer play? What type of content and what offers open wallets? What notifications are effective to get you to play again?

Research has shown that just 0.19 percent of mobile gamers account for half of all revenues. They are referred to jokingly as “whales.” Games companies pull out all the stops to land these meaty fish. Sometimes digital items are even developed specially for one whale. You might wonder whether this is ethical, but that gamer is certainly given the royal treatment.

Analyzing customer behavior offers valuable insights with which you can improve the customer experience. And it helps each company determine which customers are really worthwhile.

5. Feedback

Certainly with mobile games, it’s entirely normal to ask the gamer for feedback. This has all sorts of benefits. A positive review can be just enough to persuade people to try an app. But bad reviews with complaints and criticism can also be very valuable. A developer can then see immediately what he has to change.

Even better is if the feedback arrives during the development. That’s why players of previous games are often invited to beta-test a new title – an excellent way to bind gamers at an early stage and get focused feedback from the target group. It’s also an economical way to spot bugs.

Every company benefits from feedback. Take every sign from customers seriously, both positive and negative. And let them test new products, for instance in exchange for a discount.

Business can learn lots from the games industry, but the customer experience is not a game. The biggest difference? Unfortunately your company doesn’t have an endless number of lives. Once your customers walk away, it really is game over.

Here’s another industry to model: Improving The Customer Experience: It’s Time To Look To Fintech.


Mark de Bruijn

About Mark de Bruijn

Mark is an energetic and positive marketer with a focus on creativity, teamwork, digital, data and technology. Responsible for SAP Hybris in the EMEA region (Europe, the Middle East and Africa). He is passionate about SAP Hybris solutions for marketing, sales, service, commerce and billing.

Yes, It’s Possible: Happier Customers And A Lower Cost-To-Serve

Greg Peterson

Imagine a typical young customer, mobile phone in hand. He loves his phone. He loves shopping with his phone, he loves posting photos on his phone, and he can’t live without his favorite apps. This young man wants to do everything on his phone – except make a phone call.

So when he realizes that he must actually dial a number to speak with your utility’s customer service department about an issue, he’s automatically peevish. It’s your job to keep him (and all your other customers) happy. But it’s also your job to keep cost-to-serve at a minimum. Let me tell you how it’s possible to do both.

First, be aware of common misperceptions

Don’t try to take on a customer-facing project in a piecemeal manner. Building a single mobile-payment app, for example, might seem like a quick way to build customer advocacy. But I’ve seen this approach fail because a standalone app is often just that – a one-off effort that only makes a small part of the customer’s life easier.

Instead, think holistically. Create a way for customers to be able to pay the bill and request services (including start, stop, and transfer). Give them a way to interact for appointments (such as confirming, reschedule, cancel and so on) using SMS/text, email and “robocalls.” This end-to-end approach is more than just a one-off app; it’s the single best way to build rapport with your customers – and it can happen only if you have real-time data underpinning your efforts. After all, building the app, the SMS/text, the email, and the voice script is the easy part. Having the automated workflows and analytics is the hard part, because you need the ability to do all of these things in native mobile apps that operate on the same platform.

Also, because your organization is likely quasi-government regulated and thus must make its money through return on capital, you might be tempted to say, “I can’t afford to do this in a big way because of the operational expense.” But be aware that with the right approach, you can often structure a capital project with a high annual operational expense reduction. You can often prove to stakeholders that yours is a self-funded project and that customers will be more satisfied. For those of you who must go to regulators to get rate increases, this also puts you in a better position to drive your agenda, rather than endlessly discussing the topic of customer-service complaints.

Use the full power of technology to your advantage

Let’s face it—in our industry, people usually call only when they have an issue. One way to improve customer service is to give them fewer reasons to call. A new wave of real-time data technology can delight your customers and keep cost-to-serve at a minimum. SAP S/4HANA does a great job of this. I recently worked with a natural gas supplier who took a holistic approach. The company invested in intelligent grid technology so that their customers could benefit from more-reliable service, faster restorations after outages and reduced cost. In the most recent report from the American Customer Satisfaction Index, this gas supplier emerged as the new leader among investor-owned utilities with a four percent climb to a rating of 82 – the largest gain for the category and the second year of improvement.

Technology for your business: a lower cost-to-serve

When you use the full power of technology to your advantage, the results can be remarkable. From a business standpoint, you can reduce inbound calls with targeted proactive notification (such as for planned outages). You can deflect calls to low-cost self-service channels like intelligent IVR, chatbots and listening agents in which AI uses natural language processing to resolve issues. And if someone does need to contact your call center, you can increase the productivity of your agents, because they automatically know not just who is calling, but also the likely reason for the call.

Remember too that technology drives integrated work management. Cable-company customers can see on their app who is coming, when the service person will arrive and even whether outside conditions or traffic will impact arrival time. So if your field technician is dispatched to service a gas furnace, guess what? The field technician has same information as the call center. There’s an app with service timing – and the app integrates customer data with the information from the field tech.

Technology for your customers: pleasant surprises

From a customer satisfaction standpoint, you can be uniquely positioned to deliver surprisingly proactive, helpful information. Your customers can get proactive notifications and updates. For example, if their power goes out and they’re sitting in the dark, they can learn through a text alert when power is likely to be restored, when the outage was initially reported and how many of their neighbors have been similarly affected. It’s easy for customers to opt-in to notification services during times of trouble, such as flooding and fire emergencies. And for customers who are prone to be late with their payments, you can send a proactive notification that’s perceived as a friendly reminder. When an overdue invoice is paid, it’s even possible to reconnect power without the need for the customer to phone the call center.

So take action to investigate the power of SAP HANA. Get a 360-degree view of each customer, served up to various stakeholders in real time. Your customers – and your business leaders – will thank you for it.

Learn more

To take advantage of all the benefits described in this post, request your SAP HANA Impact assessment today. You can also visit IBM at booth #612 at SAPPHIRE NOW 2018 and talk to IBM-SAP experts – check out our event website to see what we’re doing at the event.


Greg Peterson

About Greg Peterson

Greg Peterson is Vice President at IBM Global Business Services. He leads the SAP Practice For Energy and Utilities in the US. He has a 20 year plus track record of Client, People and Business success in large enterprise application consulting, sales, industry based Go-to-Market (GTM) and project delivery. Greg is a proven Business Architect that drives Digital Reinvention using a value based agile strategy, operating model and process design methodology.

Customer Experience: Keeping It Real

Jennifer Horowitz

Both authentic and artificial intelligence play an important role in the customer experience (CX), where humans drive evolution and innovation.

Artificial Intelligence (AI) can deliver speed, analysis, and efficiency to the customer experience, but most would agree that only people can provide empathy, ingenuity, and context. What if a strategy that involves a customer-focused approach to artificial intelligence and the ability to automate CX processes could improve interactions, increase engagement, and empower humans?

Tony Tsai, chief innovation and information officer at customer service and technology provider TTEC says, “Digital transformation focused around the customer experience is not just about technology implementation but also about how humans carry forward the output of that technology. Brands which employ a thoughtful approach to automation and AI, including the use of analytics and insights blended with the human touch at key moments of impact, will deliver on the promise of truly exceptional customer experience.”

From that perspective, the human touch should never be lost during this time of digital disruption. Companies must stay up-to-date with AI while also maintaining a human approach to the emotional environment we live in. The sophistication of AI and emerging technologies increases the importance of the human aspect of customer interactions.

Authenticity and trust play a significant role in the success of high-performing businesses. Companies should be able to support productivity and growth while also supporting their customers emotionally.

There are ways to practice authentic intelligence. For example, AI robots can be developed to display more “human” qualities, which improves communications. The key is to engage customers in interactions that feel “real.”

The future of CX involves more authentic AI technology. “AI is poised to transform business in ways we have not seen since the impact of computer technology in the late 20th century,” Paul Daugherty, CTO of  Accenture, stated in a report. “As AI matures, it can propel economic growth and potentially serve as a powerful remedy for stagnant productivity and labor shortages of recent decades.” 

For more on technology and the customer experience, see Digital Experience: The Key To User Delight.


Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.

The Human Angle

By Jenny Dearborn, David Judge, Tom Raftery, and Neal Ungerleider

In a future teeming with robots and artificial intelligence, humans seem to be on the verge of being crowded out. But in reality the opposite is true.

To be successful, organizations need to become more human than ever.

Organizations that focus only on automation will automate away their competitive edge. The most successful will focus instead on skills that set them apart and that can’t be duplicated by AI or machine learning. Those skills can be summed up in one word: humanness.

You can see it in the numbers. According to David J. Deming of the Harvard Kennedy School, demand for jobs that require social skills has risen nearly 12 percentage points since 1980, while less-social jobs, such as computer coding, have declined by a little over 3 percentage points.

AI is in its infancy, which means that it cannot yet come close to duplicating our most human skills. Stefan van Duin and Naser Bakhshi, consultants at professional services company Deloitte, break down artificial intelligence into two types: narrow and general. Narrow AI is good at specific tasks, such as playing chess or identifying facial expressions. General AI, which can learn and solve complex, multifaceted problems the way a human being does, exists today only in the minds of futurists.

The only thing narrow artificial intelligence can do is automate. It can’t empathize. It can’t collaborate. It can’t innovate. Those abilities, if they ever come, are still a long way off. In the meantime, AI’s biggest value is in augmentation. When human beings work with AI tools, the process results in a sort of augmented intelligence. This augmented intelligence outperforms the work of either human beings or AI software tools on their own.

AI-powered tools will be the partners that free employees and management to tackle higher-level challenges.

Those challenges will, by default, be more human and social in nature because many rote, repetitive tasks will be automated away. Companies will find that developing fundamental human skills, such as critical thinking and problem solving, within the organization will take on a new importance. These skills can’t be automated and they won’t become process steps for algorithms anytime soon.

In a world where technology change is constant and unpredictable, those organizations that make the fullest use of uniquely human skills will win. These skills will be used in collaboration with both other humans and AI-fueled software and hardware tools. The degree of humanness an organization possesses will become a competitive advantage.

This means that today’s companies must think about hiring, training, and leading differently. Most of today’s corporate training programs focus on imparting specific knowledge that will likely become obsolete over time.

Instead of hiring for portfolios of specific subject knowledge, organizations should instead hire—and train—for more foundational skills, whose value can’t erode away as easily.

Recently, educational consulting firm Hanover Research looked at high-growth occupations identified by the U.S. Bureau of Labor Statistics and determined the core skills required in each of them based on a database that it had developed. The most valuable skills were active listening, speaking, and critical thinking—giving lie to the dismissive term soft skills. They’re not soft; they’re human.


This doesn’t mean that STEM skills won’t be important in the future. But organizations will find that their most valuable employees are those with both math and social skills.

That’s because technical skills will become more perishable as AI shifts the pace of technology change from linear to exponential. Employees will require constant retraining over time. For example, roughly half of the subject knowledge acquired during the first year of a four-year technical degree, such as computer science, is already outdated by the time students graduate, according to The Future of Jobs, a report from the World Economic Forum (WEF).

The WEF’s report further notes that “65% of children entering primary school today will ultimately end up working in jobs that don’t yet exist.” By contrast, human skills such as interpersonal communication and project management will remain consistent over the years.

For example, organizations already report that they are having difficulty finding people equipped for the Big Data era’s hot job: data scientist. That’s because data scientists need a combination of hard and soft skills. Data scientists can’t just be good programmers and statisticians; they also need to be intuitive and inquisitive and have good communication skills. We don’t expect all these qualities from our engineering graduates, nor from most of our employees.

But we need to start.

From Self-Help to Self-Skills

Even if most schools and employers have yet to see it, employees are starting to understand that their future viability depends on improving their innately human qualities. One of the most popular courses on Coursera, an online learning platform, is called Learning How to Learn. Created by the University of California, San Diego, the course is essentially a master class in human skills: students learn everything from memory techniques to dealing with procrastination and communicating complicated ideas, according to an article in The New York Times.

Attempting to teach employees how to make behavioral changes has always seemed off-limits to organizations—the province of private therapists, not corporate trainers. But that outlook is changing.

Although there is a longstanding assumption that social skills are innate, nothing is further from the truth. As the popularity of Learning How to Learn attests, human skills—everything from learning skills to communication skills to empathy—can, and indeed must, be taught.

These human skills are integral for training workers for a workplace where artificial intelligence and automation are part of the daily routine. According to the WEF’s New Vision for Education report, the skills that employees will need in the future fall into three primary categories:

  • Foundational literacies: These core skills needed for the coming age of robotics and AI include understanding the basics of math, science, computing, finance, civics, and culture. While mastery of every topic isn’t required, workers who have a basic comprehension of many different areas will be richly rewarded in the coming economy.
  • Competencies: Developing competencies requires mastering very human skills, such as active listening, critical thinking, problem solving, creativity, communication, and collaboration.
  • Character qualities: Over the next decade, employees will need to master the skills that will help them grasp changing job duties and responsibilities. This means learning the skills that help employees acquire curiosity, initiative, persistence, grit, adaptability, leadership, and social and cultural awareness.


The good news is that learning human skills is not completely divorced from how work is structured today. Yonatan Zunger, a Google engineer with a background working with AI, argues that there is a considerable need for human skills in the workplace already—especially in the tech world. Many employees are simply unaware that when they are working on complicated software or hardware projects, they are using empathy, strategic problem solving, intuition, and interpersonal communication.

The unconscious deployment of human skills takes place even more frequently when employees climb the corporate ladder into management. “This is closely tied to the deeper difference between junior and senior roles: a junior person’s job is to find answers to questions; a senior person’s job is to find the right questions to ask,” says Zunger.

Human skills will be crucial to navigating the AI-infused workplace. There will be no shortage of need for the right questions to ask.

One of the biggest changes narrow AI tools will bring to the workplace is an evolution in how work is performed. AI-based tools will automate repetitive tasks across a wide swath of industries, which means that the day-to-day work for many white-collar workers will become far more focused on tasks requiring problem solving and critical thinking. These tasks will present challenges centered on interpersonal collaboration, clear communication, and autonomous decision-making—all human skills.

Being More Human Is Hard

However, the human skills that are essential for tomorrow’s AI-ified workplace, such as interpersonal communication, project planning, and conflict management, require a different approach from traditional learning. Often, these skills don’t just require people to learn new facts and techniques; they also call for basic changes in the ways individuals behave on—and off—the job.

Attempting to teach employees how to make behavioral changes has always seemed off-limits to organizations—the province of private therapists, not corporate trainers. But that outlook is changing. As science gains a better understanding of how the human brain works, many behaviors that affect employees on the job are understood to be universal and natural rather than individual (see “Human Skills 101”).

Human Skills 101

As neuroscience has improved our understanding of the brain, human skills have become increasingly quantifiable—and teachable.

Though the term soft skills has managed to hang on in the popular lexicon, our understanding of these human skills has increased to the point where they aren’t soft at all: they are a clearly definable set of skills that are crucial for organizations in the AI era.

Active listening: Paying close attention when receiving information and drawing out more information than received in normal discourse

Critical thinking: Gathering, analyzing, and evaluating issues and information to come to an unbiased conclusion

Problem solving: Finding solutions to problems and understanding the steps used to solve the problem

Decision-making: Weighing the evidence and options at hand to determine a specific course of action

Monitoring: Paying close attention to an issue, topic, or interaction in order to retain information for the future

Coordination: Working with individuals and other groups to achieve common goals

Social perceptiveness: Inferring what others are thinking by observing them

Time management: Budgeting and allocating time for projects and goals and structuring schedules to minimize conflicts and maximize productivity

Creativity: Generating ideas, concepts, or inferences that can be used to create new things

Curiosity: Desiring to learn and understand new or unfamiliar concepts

Imagination: Conceiving and thinking about new ideas, concepts, or images

Storytelling: Building narratives and concepts out of both new and existing ideas

Experimentation: Trying out new ideas, theories, and activities

Ethics: Practicing rules and standards that guide conduct and guarantee rights and fairness

Empathy: Identifying and understanding the emotional states of others

Collaboration: Working with others, coordinating efforts, and sharing resources to accomplish a common project

Resiliency: Withstanding setbacks, avoiding discouragement, and persisting toward a larger goal

Resistance to change, for example, is now known to result from an involuntary chemical reaction in the brain known as the fight-or-flight response, not from a weakness of character. Scientists and psychologists have developed objective ways of identifying these kinds of behaviors and have come up with universally applicable ways for employees to learn how to deal with them.

Organizations that emphasize such individual behavioral traits as active listening, social perceptiveness, and experimentation will have both an easier transition to a workplace that uses AI tools and more success operating in it.

Framing behavioral training in ways that emphasize its practical application at work and in advancing career goals helps employees feel more comfortable confronting behavioral roadblocks without feeling bad about themselves or stigmatized by others. It also helps organizations see the potential ROI of investing in what has traditionally been dismissed as touchy-feely stuff.

In fact, offering objective means for examining inner behaviors and tools for modifying them is more beneficial than just leaving the job to employees. For example, according to research by psychologist Tasha Eurich, introspection, which is how most of us try to understand our behaviors, can actually be counterproductive.

Human beings are complex creatures. There is generally way too much going on inside our minds to be able to pinpoint the conscious and unconscious behaviors that drive us to act the way we do. We wind up inventing explanations—usually negative—for our behaviors, which can lead to anxiety and depression, according to Eurich’s research.

Structured, objective training can help employees improve their human skills without the negative side effects. At SAP, for example, we offer employees a course on conflict resolution that uses objective research techniques for determining what happens when people get into conflicts. Employees learn about the different conflict styles that researchers have identified and take an assessment to determine their own style of dealing with conflict. Then employees work in teams to discuss their different styles and work together to resolve a specific conflict that one of the group members is currently experiencing.

How Knowing One’s Self Helps the Organization

Courses like this are helpful not just for reducing conflicts between individuals and among teams (and improving organizational productivity); they also contribute to greater self-awareness, which is the basis for enabling people to take fullest advantage of their human skills.

Self-awareness is a powerful tool for improving performance at both the individual and organizational levels. Self-aware people are more confident and creative, make better decisions, build stronger relationships, and communicate more effectively. They are also less likely to lie, cheat, and steal, according to Eurich.

It naturally follows that such people make better employees and are more likely to be promoted. They also make more effective leaders with happier employees, which makes the organization more profitable, according to research by Atuma Okpara and Agwu M. Edwin.

There are two types of self-awareness, writes Eurich. One is having a clear view inside of one’s self: one’s own thoughts, feelings, behaviors, strengths, and weaknesses. The second type is understanding how others view us in terms of these same categories.

Interestingly, while we often assume that those who possess one type of awareness also possess the other, there is no direct correlation between the two. In fact, just 10% to 15% of people have both, according to a survey by Eurich. That means that the vast majority of us must learn one or the other—or both.

Gaining self-awareness is a process that can take many years. But training that gives employees the opportunity to examine their own behaviors against objective standards and gain feedback from expert instructors and peers can help speed up the journey. Just like the conflict management course, there are many ways to do this in a practical context that benefits employees and the organization alike.

For example, SAP also offers courses on building self-confidence, increasing trust with peers, creating connections with others, solving complex problems, and increasing resiliency in the face of difficult situations—all of which increase self-awareness in constructive ways. These human-skills courses are as popular with our employees as the hard-skill courses in new technologies or new programming techniques.

Depending on an organization’s size, budget, and goals, learning programs like these can include small group training, large lectures, online courses, licensing of third-party online content, reimbursement for students to attain certification, and many other models.

Human Skills Are the Constant

Automation and artificial intelligence will change the workplace in unpredictable ways. One thing we can predict, however, is that human skills will be needed more than ever.

The connection between conflict resolution skills, critical thinking courses, and the rise of AI-aided technology might not be immediately obvious. But these new AI tools are leading us down the path to a much more human workplace.

Employees will interact with their computers through voice conversations and image recognition. Machine learning will find unexpected correlations in massive amounts of data but empathy and creativity will be required for data scientists to figure out the right questions to ask. Interpersonal communication will become even more important as teams coordinate between offices, remote workplaces, and AI aides.

While the future might be filled with artificial intelligence, deep learning, and untold amounts of data, uniquely human capabilities will be the ones that matter. Machines can’t write a symphony, design a building, teach a college course, or manage a department. The future belongs to humans working with machines, and for that, you need human skills. D!


About the Authors

Jenny Dearborn is Chief Learning Officer at SAP.

David Judge is Vice President, SAP Leonardo, at SAP.

Tom Raftery is Global Vice President and Internet of Things Evangelist at SAP.

Neal Ungerleider is a Los Angeles-based technology journalist and consultant.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.

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HR In The Age Of Digital Transformation

Neha Makkar Patnaik

HR has come a long way from the days of being called Personnel Management. It’s now known as People & Culture, Employee Experience, or simply People, and the changes in the last few years have been especially far-reaching, to say the least; seismic even.

While focused until recently on topics like efficiency and direct access to HR data and services for individual employees, a new and expanded HR transformation is underway, led by employee experience, cloud capabilities including mobile and continuous upgrades, a renewed focus on talent, as well as the availability of new digital technologies like machine learning and artificial intelligence. These capabilities are enabling HR re-imagine new ways of delivering HR services and strategies throughout the organization. For example:

  • Use advanced prediction and optimization technologies to shift focus from time-consuming candidate-screening processes to innovative HR strategies and business models that support growth
  • Help employees with tailored career paths, push personalized learning recommendations, suggest mentors and mentees based on skills and competencies
  • Predict flight risk of employees and prescribe mitigation strategies for at-risk talent
  • Leverage intelligent management of high-volume, rules-based events with predictions and recommendations

Whereas the traditional view of HR transformation was all about doing existing things better, the next generation of HR transformation is focused on doing completely new things.

These new digital aspects of HR transformation do not replace the existing focus on automation and efficiency. They work hand in hand and, in many cases, digital technologies can further augment automation. Digital approaches are becoming increasingly important, and a digital HR strategy must be a key component of HR’s overall strategy and, therefore, the business strategy.

For years, HR had been working behind a wall, finally got a seat at the table, and now it’s imperative for CHROs to be a strategic partner in the organization’s digital journey. This is what McKinsey calls “Leading with the G-3” in An Agenda for the Talent-First CEO, in which the CEO, CFO, and CHRO (i.e., the “G-3”) ensure HR and finance work in tandem, with the CEO being the linchpin and the person who ensures the talent agenda is threaded into business decisions and not a passive response or afterthought.

However, technology and executive alignment aren’t enough to drive a company’s digital transformation. At the heart of every organization are its people – its most expensive and valuable asset. Keeping them engaged and motivated fosters an innovation culture that is essential for success. This Gallup study reveals that a whopping 85% of employees worldwide are performing below their potential due to engagement issues.

HR experiences that are based on consumer-grade digital experiences along with a focus on the employee’s personal and professional well-being will help engage every worker, inspiring them to do their best and helping them turn every organization’s purpose into performance. Because, we believe, purpose drives people and people drive business results.

Embark on your HR transformation journey

Has your HR organization created a roadmap to support the transformation agenda? Start a discussion with your team about the current and desired state of HR processes using the framework with this white paper.

Also, read SAP’s HR transformation story within the broader context of SAP’s own transformation.


Neha Makkar Patnaik

About Neha Makkar Patnaik

Neha Makkar Patnaik is a principal consultant at SAP Labs India. As part of the Digital Transformation Office, Neha is responsible for articulating the value proposition for digitizing the office of the CHRO in alignment with the overall strategic priorities of the organization. She also focuses on thought leadership and value-based selling programs for retail and consumer products industries.