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  • Digital HR Transformation: General Concept

Digital HR Transformation: General Concept

11 January 2021

It is well known for business and HR practitioners that in the future, HR can no longer function as a support system only for companies but also as a business partner or even a business creator. This is because there are significant changes in the world of work after the COVID-19 pandemic, where HR is required to be able to provide business value to this situation. Fortunately, digital tools have spread widely in the market, making it easier for HR to adapt and create new business values ​​for the work situation after the COVID-19 pandemic. However, the question is how?

In short, it is necessary to carry out digital HR transformation within the company. Through this transformation, the data already owned by HR can be used optimally through various kinds of analysis to generate insights for making better business decisions. Through a process like this, HR can eventually generate business value in the midst of new work situations (all remote and online). What steps must be taken to carry out this digital HR transformation?

According to Heru Wiryanto, BDO's Senior Technical Advisor, the digital HR transformation process always refers to 2 main pillars, the first pillar (1) is the digitation process and the second pillar (2) is the digitalization process. Digitation is the process of converting manual things to digital, or better known as automation. Digitizing paper employee records in an HRIS database is a classic example of digitization in HR. Through digitation HR will have the tools that make it able to go digital. However, having a tool alone is not enough, that’s why the second pillar (2) is needed, namely digitalization. Digitalization refer to the process of forming a new organizational culture that encourages the use of digital tools so that it can add more value to the HR business process. While digitation is converting paper employee records into digital, digitalization is take some insight from those employee records in order to create better man power planning.

In implementing the pillars of digitation and digitalization in order to carrying out digital HR transformation, there needs to be an appropriate strategy based on the organizational situation. The details of this strategy will be discussed in more detail in the next article, HR Digital Transformation: Where to start, what to do, and what is the process.