Preliminary survey report : Digital HR in Thailand

© 2017 TAS Consulting Partner I All Rights Reserved
www.tas-consultingpartner.com
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HR Digital Transformation in Thailand
Preliminary Survey Report
October 2017

The study was conducted as part of collaboration between
Expectation of Business toward HR contribution in
and its readiness for Digital Transformation
Personnel ManagementAssociation of Thailand
TAS Consulting Partner
www.pmat.or.th
October. 2017
© 2016, All rights reserved.
Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

122 BUSINESS AND HR LEADERS PROVIDED
THEIR OPINION THROUGH ON-LINE SURVEY
In this study, PMAT and TAS Consulting Partner conducted online survey of
122 business and HR leaders across types, sectors and sizes In Thailand.
The study was completed in October 2017
25%75%
BusinessHR
By Revenue
>10,000
>100-500
1,000-5,000
>5,000 - <10,000
>100
>500 -1,000
mio.THB p.a.
By Type of Corporate
14%
24%
17%
7%
14%
24%
31%
34%
28%
MNCs
Thai companies
Thai companies that
have oversea operations
Others 6
By Sector
43%
22%
35%
Production
Services
Trading
By Number of Employee
>5,000
1,000-<5,000
500-<1,000
200-<500
<200
35%
22%
19%
7%
17%
Executive Summary.About Survey Executive Summary Key Finding No. 1 2 3 4 5 6 7 8 Conclusion
73%
25%
13%
13%
9%
9%
7%
3%
of 96 HR Leaders, what experiences* do they
possess?
person
HR throughout
Others
Marketing, Sales,
Communication
Business Planning,
Risk Management
Finance, Treasury,
Accounting
Production, Logistic,
Supply Chain
IT
International
exposure
*In full-time role for more than 6 months
<10 (63%) >10-50 (29%) 5
>200 (2%)
100-200(1%)
51-100
By Number of HR
person

THE STUDY MANIFESTED NINE KEY FINDINGS THAT
PROVOKE ORGANIZAT ION TO TAKE THEM FURTHER
Digital era bring about o p p o r t u n i t y rather than risk to the business
Business leader believed that H R h a s s i g n i f i c a n t r o l e t o p l a y in digital
transformation of the company, nevertheless, e x i s t i n g c a p a b i l i t y o f H R n e e d t o
b e u p l i f t e d in order to meet the expectation
Having C l e a r V i s i o n for Digital is the most critical factor to successful digital transformation
when asked what will be happening to HR in the next 1-2 years , Business and HR leader explicitly
have d i f f e r e n t v i e w on number of H R F T E and adoption of n e w t e c h n o l o g i e s
No.1
No.2
No.4
No.5
o n e - f o u r t h of HR from surveyed organization said it has not p r e p a r e d n o t h i n g
a t a l l in order to cushion impact of digital economy

THE STUDY MANIFESTED NINE KEY FINDINGS THAT
PROVOKE ORGANIZAT ION TO TAKE THEM FURTHER
introducing and/or enhancing H R T e c h n o l o g y is the main activity adopted by HR of the
surveyed organizations that have already kicked started HR digital transformation
Key challenges that HR is facing is l a c k i n g o f k n o w l e d g e and clear
u n d e r s t a n d i n g about meaning, implication and impact of Digital Economy on
organization and HR in particular
The more advanced technologies is , the more important E t h i c a l P r a c t i c e will be – as
a critical competencies that HR must possess in the age of digital.
No.6
No.7
No.8
No.9
While Business and HR leaders has aligned opinions that S e l e c t i o n and O r g a n i z a t i o n
D e s i g n are the top priority that need to be revamped, however, Business leaders was of the
opinion that P e r f o r m a n c e M a n a g e m e n t also need immediate attention but HR’s opinion
incline toward L e a r n i n g & D e v e l o p m e n t .

DESPITE PERCEVING DIGTIAL AS OPPORTUNITY BUT
BUSINESS ARE STILL CAUTIOUS ABOUT THE IMPACTS
for Business : What are the positive impacts of digital economy?
improving net profit contributed by lowering cost
and increasing sales revenue
New revenue stream from new business
Increasing sales revenue
40
27
23
for Business: What are the negative impacts of digital economy?
Shortage of critical skills in needs and are highly
completive in labor market
38
Declining of revenue due to losing customer
and market share.
21
Going out of business due losing competitive edge
and being unable to compete.
21
13
Others e.g. lose competitiveness because
[SMEs are] unable to catch up with the
technological change , emerging of substituted
products fueled by innovation etc.
8
Others e.g. improving customer satisfaction,
enhance capability of employee etc.
9
No negative impact at all
From Business’s point of view
9.0
8.4
5.4
5.2
O p p o r t u n i t i e s
H R
B u s i n e s s
R i s k s
rather than
B u s i n e s s and H R L e a d e r s
have perceived Digital Transformation as
H R
B u s i n e s s
8.3
8.9
6.1
6.0
capability
of HR
E x i s t i n g
contribution
from HR
E x p e c t e d
How critical is the R o l e of HR in digital
transformation of the company and what is the level
of existing C a p a b i l i t y that HR possess?

9.0
8.4
5.4
5.2
O p p o r t u n i t i e s
H R
B u s i n e s s
R i s k s
rather than
B u s i n e s s and H R L e a d e r s
have perceived Digital Transformation as What are the positive impacts of digital economy?
Improving effectiveness of HR deliverables
Better receiving employee’s feedback
Having more time to focus on strategic work
Creating new HR innovation
Increasing access to business information
Reducing personnel cost
93
84
77
77
60
49
44
36
Better connecting and managing people from
remote location and different culture
Providing option for flexible workplace
What are the negative impacts of digital economy?
Shortage of critical skills in needs and are highly
completive in labor market
49
Tension in workplace caused by generation gap
and social media usage
48
HR processes that couldn’t keep up with the speed
of technological change become ineffective
44
adoption of AI/Robots could potentially lead to
labor dispute due to fear of redundancy
43
No negative impact at all 10
10Business discontinuity as workforce need to be
reskilled
8others
HR STRONGLY EMBRACED DIGITAL ECONOMY AS
IT W OULD HELP IMPROVING HR EFFECTIVENESS
From HR’s point of view
H R
B u s i n e s s
8.3
8.9
6.1
6.0
capability
of HR
E x i s t i n g
contribution
from HR
E x p e c t e d
How critical is the R o l e of HR in digital
transformation of the company and what is the level
of existing C a p a b i l i t y that HR possess?

K e y S u c c e s s F a c t o r
of successful Digital Transformation
V I S I O N of top management
D I G I T A L S T R A T E G Y
Clear and well communicated
P R O C E S S re-designed
to get optimal benefit
What are the critical factor of successful digital transformation?
From Business’s point of view
Vison of top management
Process redesigned to get the optimal benefit
Clear and well communicated digital strategy
Workforce with critical skills for digital economy
Role modeling of leadership team
Funding
53
29
24
20
20
20
13
4
Culture of the company
Collaboration among network and ecosystem
CLEAR VISION AND W ELL ARTICULATED STRATEGY IS
MORE IMPORTANT THAN INVESTMENT IN TECHNOLOGY

W h a t w i l l h a p p e n t o H R i n t h e n e x t 1 - 2 y e a r s ?
Adopt new
technology
Gain additional
budget
Define digital
HR strategy
Restructure
HR organization.
Increase HR
Headcount.
Decrease HR
Headcount.
Bring critical skill
from outside.
56%
41%
44%
33%
29%
15%
25%
49%
47%
18%
23%
22%
8%
46%
H R
B u s i n e s s
BUSINESS AND HR HAVE DIFFERENT OPINION ABOUT
HR FTE AND ADOPTION OF NEW TECHNOLOGY
N e e d t o p r o b e f u r t h e r w h y
t h e r e a r e s u c h d i f f e r e n t o p i n i o n

I s H R r e a d y ?
49% Will adopt “fast follower”
approach and are learning from others
41% Get Digital HR Strategy
endorsed and budget approved
24% of surveyed HR Leaders said
they have prepared N o t h i n g at all
W h a t s t a t e m e n t d o e s e x p l a i n c u r r e n t s t a t e o f y o u r H R
w i t h r e g a r d t o p r e p a r a t i o n f o r d i g i t a l e c o n o m y ?
Will adopt “fast follower” approach and are
learning from the “first mover”
Get Digital HR Strategy endorsed and
budget approved
Have started collecting information about
implication and impact within HR team
Have informed management team about the
implication and impact to gain awareness but no
concrete actions/decisions made yet
Have prepared nothing at all
49
41
40
34
24
ONE-FOURTH OF HR IN THE SURVEYED ORGANIZAT ION
SAID THEY HAVE PREPARED NOTHING AT ALL

I s H R r e a d y ?
49% Will adopt “fast follower”
approach and are learning from others
41% Get Digital HR Strategy
endorsed and budget approved
24% of surveyed HR Leaders said
they have prepared N o t h i n g at all
W h a t a r e t h e a c t i v i t i e s a d o p t e d b y H R o f t h o s e
c o m p a n i e s t h a t a l r e a d y k i c k e d s t a r t s i t s e f f o r t ?
INTRODUCING TECHNOLOGIES IS THE MAIN ACTIVITY
HR ADPOTED TO ITS TRANSFORMATION JOURNEY
43% Implement new
technologies & system
30% Re-design HR
processes and workflow
17% Restructure
HR organization and
operating model
Implement new HR technologies, software
and/or system s
Redesign HR processes and workflow the fit
the changing workforce and workplace
Restructure HR organization and operating model
Define digital competencies that is applicable to HR
Start building digital competencies of HR
42
30
17
15
2

Learning &
Development
Recruitment
& Selection
Organization
Design
Performance
Management
Priority of H R Pr o c e s s that need
to be R e v a m p e d due to digital disruption
H RB u s i n e s s
1
2
3
1
2
3
W h a t a r e t h e p r i o r i t y o f H R p r o c e s s e s t h a t n e e d e d
u r g e n t l y r e v a m p e d d u e t o i m p a c t f r o m d i g i t a l e c o n o m y ?
Organization design
low high
Recruitment & Selection
Performance Management
Leadership Development
Engagement& Employee well being
Compensation & Rewards
Career Management
Workforce planning
Succession management
Employment Branding
Learning & Development
ORGANIZATION DESIGN AND LEARNING ARE LEADING
PRIORITY LIST OF PROCESS TO BE REVAMPED

K e y C h a l l e n g e s that HR is facing
77% Lack of K n o w l e d g e
and clear understanding
43% not receiving B u y - i n
from M a n a g e m e n t
25% waiting for clear D i r e c t i o n
from parent company/HQ
Lack of knowledge and clear understanding about
Digital economy, its implication and impacts
Others e.g. support from IT, generation gap,
managing big data, readiness of
shopfloor/operator etc.
Management buy-in
Wait for clear direction from Parent company/HQ
Limited funding
77
61
43
25
22
W h a t a r e t h e k e y c h a l l e n g e s t h a t H R f a c i n g ?
LACK OF KNOWLEDGE ABOUT IMPLICATION AND
IMPACT OF DIGITAL IS THE KEY CHALLENGE

Ethical
Practice
Positive &
Innovative Thinking
Relationship
Orientation & Mngt
H RB u s i n e s s
Strategic Partnering
Coaching & Consultation
Positive & Innovative
thinking
Diversity Management
H RB u s i n e s s
Relationship Orientation
& Management
Assessment &
Evaluation
Ethical Practice Ethical Practice
People Management
Relationship Orientation
& Management
We a k n e s s
S t r e n g t h s
To p T h r e e C r i t i c a l S k i l l s HR need to
enable successful transformation of the company
H o w c r i t i c a l e a c h c o m p e t e n c y i s a n d h o w c a p a b l e
H R i s c u r r e n t l y f o r e a c h o f t h e m ?
Business Acumen
Strategic Thinking
Communication & Presentation
Leadership
Change Management
People Management
Relationship Orientation & Mngt.
Influencing
Diversity Management
Assessment & Evaluation
Positive & Innovative Thinking
Ethical Practice
E x i s t i n g C r i t i c a l
5
Proficiency
10
Level
ETHCAL PRACTICE IS THE MOST CRITICAL SKILL
AND HAVE PERCEIVED AS STRENGTH OF HR

TECHNOLOGY W ILL TRANSFORM THE WAY OF
HOW W E DO THE BUSINESS
C O M P E T I T I O N
D AT AVA L U E
C U S T O M E R S
I N N O VAT I O N
Source : The Digital Transformation Playbook, David L. Rogers, 2016

EMPLOYEES EXPECT AS ENGAGING AND
ENJOYABLE EXPERIENCES AS CUSTOMERS DO
Enterprises need to apply evolving expectation of customer to
constantly redesign and reinvent employee experiences
Source : Digital Transformation Initiative, World Economic Forum/Accenture, 2017
F E AT U R E S E X P E R I E N C E S
M A S S
P R O D U C T I O N
H Y P E R -
P E R S O N A L I Z A I O N
O W N E R S H I P - B A S E D
C O N S U M P T I O N
A C C E S S - B A S E D
C O N S U M P T I O N

To enjoy teamwork and communities
To be empowered and seek challenge
Continuous feedback
To play an active role in their own
development
To work for companies whose
purpose they share
Mix personal and professional life
To invent themselves and
change job often
To create their own business
MILLENIALS ARE REPRESENTING HALF OF W ORKFORCE
BY 2020, THEY W ILL DEMOCRATIZE THE W ORKPLACE
*20-35 years old in 2017
Source 2 : Future Workplace cited in What Role for HR in 2020-2025, Oliver Wyman and Orange, 2016
Well informed
Intellectually
autonomous
Unresponsive to claims
of compliance & hierarchy
Part of the leadership process
Source1 :Future of leadership in a changing workplace, Bersin by Deloitte, 2016
Specialization
Collaboration
Flexibility
Decentralization
*
“ E M A N C I P AT E D E M P L O Y E E ”
the rise of ‘Generation I’ – individualistic, informal, interactive, informed and innovative.

LEADERS IN DISRUPTIVE ENVIRONMENT SHARE
COMMON CHARACTERISTIC OF AGILE LEADER
Source : Redefining Leadership for a Digital Age, IMD, 2017
H y p e r
A w a r e n e s s
F a s t
E xe c u t i o n
I n f o r m e d
D e c i s i o n
M a k i n g
C a r e l e s s
D r i v i n g
W r o n g
d i r e c t i o n
S l o w
d r i v i n g
H u m b l e
A d a p t a b l e
E n g a g e
V i s i o n a r y

THE W ORLD OF WORKPLACE AND WORKFORCE
IS CHANGING FASTER PACE THAN EVER
Source : Changing World of Work, CEB,, 2017
Data [over] abundance
and inaccessibility
Automation of
knowledge work via
machine intelligence
Empowerment of
individuals via mobile
and social technology
Large and more
complex organization
Generation shift in
employee motivation
Networked, searchable,
on-demand experience

DIGITAL TRANSFORMATION REQUIRES THE COMPANY
TO REIMAGINE , IF NOT REVAMP, HR PRACTICES
Source : Three trends in the digital transformation of HR for 2018, Capgemini 2017
The speed and agility to recruit, develop and re-skill through
digital employee operations , digital learning and digital talent
D i g i t a l Ta l e n t .
Designing and updating outdated and outcome target operating
models with the right roles needed for organization success
N e w R o l e s
Facilitating organization with the tools to manage and
increasing transient workforce
Tr a n s i e n t Wo r k f o r c e
Enabling organization to transition to simple, automated HR,
primarily enabled by Human Capital Management System (HCM) .
A u t o m a t e d H R
Fixing poor employee experience in getting the basic right
and bring consumer experience into the employee space
E m p l o y e e E x p e r i e n c e

DISRUPTION DENOTE SHIFTING IN ALL DIMENSIONS
THAT UNDERLYING HR OPERATING MODEL
Source : Disruption in HR that Every Pro should Know, Dave Ulrich, 2017
Focus HR is not about HR, but the value HR creates to key
stakeholders
Out-Side-In
Talent Well-being HR pivots from focusing on employee competence to
commitment to contribution and well being or framed as
“employee experience”
towardDimension
Organization Capability Definitions of organizations have been disrupted from seeing as a
hierarchy to be as bundles of capabilities
Leader Leadership,
Navigating
paradox and brand
First, from the individual leader to the collective leadership team.
Second, navigating paradox has become the next wave in the evolution
of leadership effectiveness. Finally, effective leadership is defined when
leader’s competencies reflect promises to customers and investors
HR
Competency
Ability to deliver
outcome
Competency for effective HR professional have been disrupted
from merely having them to demonstrate the impact
HR
Technology
Connection HR can use technology to build connections among people that
create positive social experiences thus overcoming the
demoralizing effects of social isolation.
HR Analytic Business impact Analytics has pivoted from a scorecard to insights based on big data to
interventions about which HR practices have which results to business
impact where HR drives customer share and investor confidence. .

DC E
B
C
B
A
D
EF
G
structured,
hierarchical
network
of team
FTE
Part-time
Outsource
Full Timer
Partnership
Borrowed
Open source
Machine
O R G A N I Z AT I O N will be redesigned
for speed, agility and adaptability
W O R K F O R C E already include
employee on and off balance sheet
as well as machine
Employer Brand
Digital
Experience
Advertising
Physical
Process
New technologies and evolution of
candidate behaviors change the way
R E C R U I T M E N T will be
manager’s push
L&D create content
learned skill last very long
at the pace of learning
self controlled
and driven
collective
intelligence
half-life of
learned skills
at speed of
business
Technology is not new to
L E A R N I N G but increasing amount
of content creation and accessibility
T H I N G S W E R E T H I N G S A R E
A
ALL HR PROCESSES REQUIRES RE -LOOK, RE-EXAMINE,
RE-DEFINE AND RE-IMAGINE

The way we work has changed, so does
PE R F O R M A N C E M A N A G E M E N T
but how far it will be
Go beyond narrow focus on
engagement to personalization of
E M PL O Y E E E X PE R I E N C E
annual complicated
backward ranked
ongoing
multi-views qualitative
forward
IQ
Intelligence
Quotient
EQ
Emotional
Quotient
+ a n d . . .
DQ
Digital
Quotient
Promotion-based career culture Growth-based career culture
L E A D E R S in disruptive
environment need a new set of quality
in addition to IQ and EQ
C A R E E R PAT H in digital economy
incline toward growth –based than
promotion-based
applying
training performance
separation
rewardonboarding
joining
leaving
UNDERSTANDING OF W HAT W ILL BE CHANGING IS
NEEDED TO BE TRUSTED PARTNE R TO BUSINESS
T H I N G S W E R E T H I N G S A R E

HR TECHNOLOGIES SHALL BE OPTIMIZED TO ENAHCE
HR EFFECTIVENESS AND EMPLOYEE EXPERIENCE
Source : Do An HR Technology Audit To Get The Most Out Of Digital HR, Dave Ulrich, 2017
D i v e r g e n c e o f
H R Te c h n o l o g y Wo r k
1
Phase
to what extent do we use technology to streamline
administrative HR work?
S t r e a m l i n e A d m i n i s t r a t i v e Wo r k
2
Phase
to what extent do we use technology to innovate
our HR practices?
I n n o v a t e H R P r a c t i c e
3
Phase
to what extent do we use technology to
access information?
A c c e s s I n f o r m a t i o n
4
Phase
to what extent do we use technology to create social
experiences and connections
C r e a t e C o n n e c t i o n

KEY PRACTICES THAT INDICATE FUNDAMENTAL
CHARACTERISTIC OF DIGITAL HR TRANSFORMATION
D e s i g n e m p l o y e e e x p e r i e n c e s
Source : Seven Practices of High Impact HR, Josh Bersin, 2017
U s e t e c h n o l o g y t o i m p r o v e p e r f o r m a n c e
L e a d c o m p a n y ’ s d i g i t a l t r a n s f o r m a t i o n
F a c i l i t a t e t e a m - c e n t r i c m o d e l
S h a p e t h e c u l t u r e
A d o p t a g i l e t e a m i n t o H R
R e g e n e r a t e a n d u p g r a d e H R p r o f e s s i o n a l

© 2017 TAS Consulting Partner I All Rights Reserved Source : Global Human Capital Trends 2016, Deloitte University Press, 2016
Challenge HR to start with a digital first
Redesigning, delivering, operating HR base on
mobile and cloud solution
Embrace design thinking and leverage agile
approach to its delivery
Understanding employee experience before adopting
SMAC then integrating team to deliver prototype and
solution
Imagine employee experience in real time
Digital will enable real-time access, decision making
and result. HR team should adopt more real-time
and digital first operation rather than process, forms
and transactions
Learn, share and enable digital experience
Learn from early digital adaptors e.g. Marketing and
in turn help develop enterprise’s digital mind-set and
capability
Integrate analytics and reporting as part of
digital platform, not add on
HR process should provide manager real-time
information could provide good analysis for a
practical solutions
New Social
Contact
Digital
Technology
Demographic
Upheavals
Rate of
Change
THE CALL TO GO DIGITAL IS AN IMPERATIVE AND
REVOLUTIONARY FOR HR

MOVING AWAY FROM SERVICES PROVIDERS MENTALITY
TO EMPLOYEE EXPERIENCE CONSULTANT
Speak business language
Get insight of stakeholder experience
Strengthen stakeholder relationship
Provide sound and practical solution
Maximize technology integration
Secure support for Recommendations
Influence key Business Decision
From
HR
Functional
Expert
Reactive
Process Focused
Problem Solver
Strategic
Business
Partner
To
Proactive
Business Driver
Challenger
Building
Analytical
Foundation
Understanding
Business Drivers
and behavioral
economies
Identifying &
Diagnosing
Challenges
Leveraging
Analytics for
impact solution
Understanding
Financial
Statements
Understanding
Financial Metrics
Building the
Economics of a
Business Case
Improving
Financial
Acumen
Understanding
Stakeholder
needs
Communicating
the narrative of
a business
cases
Sourcing
stakeholder
agreement
Obtaining
Stakeholder
Commitment
Developing
Digital
Competence
Have worked across HR
and with multiple BU
69%
Have worked overseas
36%
Have advised other firms
as a consultant28%
Have research experience
28%
Source : What successful HR professional do and( adapted from ) Developing HR Business Partnership, CEB 2015
How to develop

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Preliminary survey report : Digital HR in Thailand

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