How High Will Your Supply Chain Jump To Build Customer Centric Business Processes?

Richard Howells

The 21st century consumer is always on, always connected, and doesn’t make a move without consulting the Internet. The millennial generation is emerging as a major demand driver, with access to huge amounts of information about products and trends on “what’s hot and what’s not,” via social media.

Take my teenage son (please!!!) for example, a basketball player in his high school. Every season, he wants the latest and greatest sneakers that will make him run, jump, and rebound better and faster. So what does he do? He turns on his tablet to go online to check out what’s available. And here he can not only see and buy what the NBA stars are wearing, but he can also customize the shoes to match his school colors and have his name and team number stitched into each sneaker. Through the advent of omni-channel sales, he can (once he gets my credit card of course) order from anywhere, on any device he has access too. Long gone are the days of the only option being the white high top!

And what happens when my son posts a pic of his new kicks on his social networks? Inevitably many of his friends are going to jump on their devices and order a pair for themselves. Is your business prepared to deliver to meet demand when your product is deemed “hot” and goes viral among the millennials?

Point of sales at the store is not the ONLY source of data to drive the replenishment process. It is no longer good enough just to be “demand driven.” We need to be “market driven.” We not only need the information from orders and sales forecasts, but also from weather forecasts, traffic reports, market share reports, and customer sentiment. We need to know what is being tweeted about our products, what and where products are hot, and what is being said, both good and (sometimes more importantly) bad via social media. This involves all the sources of data that describe the market and where the market is going at the most granular level.

Why is this important? Because the customer, or consumer, is becoming more demanding. If I order something online, I expect the delivery on the same day, or at least the next day. That introduces the need to think about demand differently. It is not possible to compete with aggregated demand for a product family in a region. To respond with speed, we need the information at the detailed level, so that it can be aggregated and analyzed to service a channel, market sector, customer, and specific order.

It sounds so simple, but to deliver those custom basketball sneakers to my son before he gets impatient, how high does the supply chain have to jump to enable him to make that three pointer?

Here are a few ways that we have to re-imagine this business process to be centered around the customer.

  • Design a customizable sneaker, with all possible allowed combinations of colors.
  • This design is handed over to both the sales and manufacturing organizations, to enable customers to design their own sneaker, and to the manufacturing site to produce it.
  • At the moment an order is placed, through any sales channel (in store, online etc.), the specific demand is instantly visible. The customer can specify unique text or numbers to be stacked onto the sneaker. They can also determine the shipping rules and instructions.
  • The specific order is planned and scheduled at an appropriate manufacturing facility.
  • The production line is set up to create all combinations of the sneaker for a “lot size of one.
  • At the final manufacturing step the unique text is stitched onto each sneaker.
  • The logistics processes are configured to uniquely pack and shipped to the desired pick up or delivery location based on the shipping rules determined by the customer.
  • Processes need to be in place to capture real demand signals coming from social media as demand for these custom sneakers take off in certain markets, regions, or even cities.

This is just a simple example of some of the business processes that have to be adjusted, and how leveraging a digitized extended supply chain can deliver a personalized solution by putting the customer in the center of the process.

The benefits of this scenario are significant:

  • Improved customer service and engagement
  • Stronger competitive differentiation
  • Compelling and holistic brand experience
  • Improved revenue

For more on supply chain optimization, download the free e-book How to Attack Supply Chain Fraud, Waste, and Abuse: The Quick Guide.


About Richard Howells

Richard Howells is a Vice President at SAP responsible for the positioning, messaging, AR , PR and go-to market activities for the SAP Supply Chain solutions.

The Realities Of Innovation In Manufacturing

Kevin Jinks

Many leaders in manufacturing say, “There are things on our shop floor we wouldn’t want anyone to see.” When they say this, they mean the sheer amount of manual effort needed to keep things running. They mean paperwork, Post-it notes, and a lack of automation at the operational, tactical level. Throughout the industry, my customers are talking about operational efficiencies. I’ve learned that no matter the size or location of your business, there are plenty of people who share your problems.

Operational efficiency: goodbye Post-it notes and paperwork

If you’re like most of my customers, you’re taking a hard look at how well your shop or plant functions. Demand forecasting, for example, is a tough call when data about markets is not tightly aligned to production.

A single-system approach can be part of the answer to these problems. New technologies give you solutions that are end-to-end, capable of automating your shop floor and then delivering cognitive technology to help you figure out failures in advance. This gives you fresh insight into demand.

Realistically, the best way to help improve your businesses is with pre-built solutions; these become the core to your success because the commodity work that you normally do on your nickel has already been done. And when you can remove risk, it’s a good thing.

To predict demand, you don’t need 40 systems; you need one

Even the best-run shops struggle with how to predict demand. Let’s say your forecasting is way off – you completely underestimated demand and market. This missed forecast becomes a missed profit opportunity. And your competitors will be quick to step in.

That’s why a digital approach works so well for manufacturers. Technology is a powerful tool here, because it can deliver input into the demand side. If you can do this well, you won’t undermake or overmake. You’ll optimize profits.

The latest “digital core” solutions for manufacturing are robust. They’re provable. And when you have the building blocks into which you can add robotics, prepare to be surprised. The best solutions use AI to mine data that you’re not thinking of, including strong social media mining. This is the kind of information that lets you refine your products – or launch new ones.

You don’t need 40 ERP systems to improve your business; you need one. Imagine a plant that uses the IoT and real-time sensors to read equipment and perform predictive maintenance; you’ll keep the lines running. Plus you’ll keep track of how many products you’ve created and can sell. You’ll be able to tell which products consumed lots of raw materials, which means that plant managers are armed with the information they need to proactively understand what’s going on. Again, it’s not about the number of systems you have in place, but the effectiveness and reliability of just one.

The realities of change

You can’t gain a lot of insight if you have 40 different systems. So when you’re investigating a single-system approach, make sure that you’re adopting best practices, rather than designing best practices. Your projects should involve adopting processes, not creating them.

Today, digital transformation is not a design/build project. After all, there are already solutions available that determine how you take an order, process that order, store your inventory, pick it and ship it. So don’t spend your time on an accounts-receivable aging report. Instead, seek out technology that lets you take advantage of AI, cloud, security and deep, predictive analytics. You’ll surround great code with advanced tech to get you light years ahead of the competition.

Learn more

To take advantage of all the benefits described in this post, request your HANA Impact assessment today. IBM will be at SAPPHIRE NOW and ASUG Annual SAP Conference this June 5-7 in Orlando. Visit IBM at booth #612 and talk to IBM-SAP experts – check out our event website to see what we’re doing at the event.


Kevin Jinks

About Kevin Jinks

Kevin Jinks is Vice President & Partner / Industrial Sector SAP Leader for IBM Global Business Services. With more than 22 years of IT consulting and client management experience, he has extensive knowledge in ERP systems, architectural design, system development and implementation management for major clients globally.

Retail IoT: How to Streamline Inventory Supply Chains

Christoph Schroeder

Your inventory is the lifeblood of your retail store. Whether you are selling bath products or artisanal cheeses, you need to have a steady flow of products moving from the warehouse to the front room to please your customers. If most of your business relies on brick-and-mortar sales, a reliable inventory supply chain is necessary to ensure that you have products when you need them. Yet many retailers struggle with warehouse and front-store issues that can affect their sales line.

Inventory management is a challenge for most retailers. Merchandise tracking is never fully accurate once shipped products reach the warehouse floor and are placed onto shelves. Employees often rush to fill empty shelves without taking note of inventory numbers or updating depleted batch numbers in warehouse computer systems, and you end up unaware of product shortages until it is too late to get a shipment in on time.

On the opposite end of the spectrum, product overstock can lead to waste and high budget costs. Your inventory can be impacted by warehouse placement if you don’t have the proper backroom shelving system set up. Products may get lost among other items so you end up ordering too many products that can’t be moved in a timely fashion. If you have perishable items, you have to throw old products away.

Another issue is product quality. Merchandise such as food or beverages can be negatively affected by factors such as changes in temperature, pressure, or vibrations, and you may end up placing inferior products on shelves. If customers have a bad experience, it can damage your reputation and the future of your business.

Lastly, inventory management can be affected by employee theft. Without a  tracking and security system in place, you could end up ordering products to replace those that employees have taken.

Retail IoT: Stores focusing on technology for better inventory management

You cannot be at the front of the store helping customers while also managing the back of the store. You are busy with administrative tasks, talking with new suppliers or coming up with new marketing strategies to help your business grow. Yet finding a way to better manage your inventory must also be a top priority. The retail Internet of Things (IoT) may be one solution to improve product quality, reduce waste, and monitor stocked products.

The Internet of Things basically refers to the connectivity of “things” such as computers, networks, and equipment systems that can communicate and share data in real time without human interaction. In the retail industry, storefronts and warehouses are becoming equipped with innovative technologies that help keep track of your inventory and help you gain better visibility and traceability of merchandise.

Here are several technologies that you may be able to employ now or in the near future to enhance your inventory management processes.

Smart shelves

Smart shelf strategies can help you track inventory movement without impacting employee productivity. Sensors on smart shelves and RFID chips on merchandise link to warehouse computer systems. When customers purchase a product, updated inventory data is sent to the warehouse. Inventory alerts can inform workers when they need to restock shelves and order more products.

Store cameras

While cameras are not a new technology, enhancements have been made that allow you to better track inventory as it moves from the back to the front of the house. Smart displays show how much inventory is on the shelves. Cameras can also bring added security to your business to prevent product theft from employees or customers. Furthermore, this technology can be used to monitor store traffic, create heat maps, and gain insight on promotion effectiveness and other initiatives.

Track and trace sensors

The retail supply chain, or the time between when products leave the manufacturer and reach your store warehouse, can also benefit from IoT innovations. Sensors and beacons on products in trucks can monitor temperatures and vibrations during transport. This strategy is essential for food and beverage products to protect from sudden humidity, temperature changes, or vibrations that could adversely impact product shelf life. Once the products reach your loading dock, your warehouse staff can better evaluate for product loss. Furthermore, monitoring trucks with the help of geofencing can enable employees to spend time with customers instead of waiting for shipments.

Investing in retail IoT

According to Forbes, about 71 percent of retailers will be investing in IoT technologies by 2021. Business owners are recognizing how IoT tools can bring better visibility and traceability methods to their stores and warehouses. These technologies can streamline inventory management as well as make operations more efficient and cost-effective. As the retail market increasingly competes with online stores, these innovations can help enhance the shopping experience for customers.

In summary, IoT can seamlessly connect the front- and back-offices, boost process efficiency, and increase customer-centricity. This can help bring customers into the “sweet spot” of value, convenience, and experience.

Learn how to innovate at scale by incorporating individual innovations back to the core business to drive tangible business value by reading Accelerating Digital Transformation in Retail.


Christoph Schroeder

About Christoph Schroeder

Christoph Schroeder is Global Vice President of Vertical Merchandising and Supply Chain at SAP. He works with premier customers such as adidas, Luxottica, Giorgio Armani, and Tommy Hilfiger. Follow Christoph on Twitter @nightrain_x.

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.


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.