HR Transformation: Business Drivers for Moving to the Cloud
The transformation of HR as a strategic business function is well underway, as top HR executives become more and more engaged in long-term strategic planning for the business. This HR transformation involves deepening and broadening the collaboration between HR and other business units, with a greater focus on driving business results through the strategic use of technology.
Clearly, technology is reshaping the role of HR, and cloud technology is becoming increasingly critical. In fact, according to a report from Oxford Economics, about 60% of organizations anticipate significant impact from cloud technology in the next few years.
Even so, many HR leaders still struggle to build the business case for moving from legacy on-premise HCM systems to a cloud solution such as SuccessFactors. What’s the best way to get started? Take a look at your business drivers.
There are a lot of reasons to consider a move to the cloud. At the corporate level, it’s usually a focus on lowering costs and faster deployment that drive decision making. Cloud technology generally has a lower set-up cost, since you can opt to pay for only the modules and functionality you need. It also is faster to deploy and requires less in-house technical resources to implement and support. And there is absolutely no hardware cost involved.
Of course, the HR team’s objectives are somewhat different. What drives HR toward digital HR is the modern, user-friendly interface that makes it easier for both HR personnel and employees to use the solution from mobile devices, tablets and desktops. And cloud technology provides an opportunity for HR to revise, refresh and revive outdated business processes. Best of all, HR cloud technology provides the access to data and analytics that will truly drive the transformation of HR from an administrative function to a strategic business partner.
Any transition to new technology requires buy-in from IT, and the IT team has lots of reasons for moving to the cloud. When asked about their business drivers for moving the IT infrastructure to the cloud, the top business drivers for HRIS/IT professionals include:
- Improved IT efficiency and agility
- Cost effectiveness of the solutions (reduced costs)
- Access to IT applications and services through mobile devices, tablets and desktop devices
- Flexibility and scalability of computing resources
What are your key business drivers? Once you have identified all the “why factors” for moving HR to the cloud, you’ll have the information needed to build your business case.