Not so long ago, a digital transformation project was considered something new and innovative. These projects have now escalated to such a level that they have almost become the norm across multinational organizations around the world.
The rise of digital, cloud-based technology has resulted in the widespread adoption of what can be considered digital market strategies. These strategies involve a commitment and financial investment in digital technologies that will strengthen and innovate the overall IT network within an organization. The goal is for this to result in major productivity gains and innovative new ways to ensure a better customer experience.
In this article, we will examine the rise of the digital transformation project, look into the reasons why these projects are in widespread existence and escalating -and look at one business critical service which could benefit from such a transformation -the crucial global payroll department.
Widespread adoption of digital projects
You know that something has become huge when technology writers, industry specialists and the global media put the word ‘market’ after it in a sentence! Digital transformation has evolved from an idea and a concept to an actual strategy designed to drive business models. When it reaches this level of importance at multinational companies globally, adoption starts to spread around the world, and it doesn't take very long for something like this to be designated a market in its own right.
Digital transformation is now very clearly a market, attracting attention and widespread investment around the world. The amount of money being invested in digital transformation has escalated in recent years and it is reasonable to assume that the coronavirus pandemic escalated such investment even further.
Digital transformations by their nature are digitally focused and seek to empower employees with innovative tools that help them do their jobs in a faster, smarter and better way. In a post Covid world, where remote working and delivery of business-critical service is likely to be the new normal, you can expect to see a significant rise in digital transformation projects that will enable a global workforce that is spread across multiple countries and regions to deliver business services remotely using digital technologies.
What does this look like in terms of figures? Well, the current market perception is that the global digital transformation market size is expected to grow to USD 1009.8 billion by 2025.
This is the kind of staggering financial figure that makes many people sit up and take notice of their digital transformation efforts, and also makes people who are not currently considering a digital transformation project, wonder if they are out of the loop and being left behind.
Endless scope for digital transformation
Digital transformation projects come with a massive level of scope – pretty much all functions at an organization need advanced digital technologies to run it, meaning there is scope and potential to digitally transform almost every department so that they share information better and introduce operational efficiencies.
In terms of finances and time commitment, this of course is not realistic - so what organizations tend to do is focus first on what they consider to be key business critical functions, or alternatively, departments that are interconnected or currently operating with similar types of technology.
A unique trend that has emerged in many global organizations is a digital transformation project initiative that connects the interconnected department of Finance, HR and Global Payroll.
This is a good example of where finances and resources could be condensed in a digital transformation initiative that could digitally transform three departments in sequence with new technologies capable of benefiting all three departments, on both an individual and connected basis. This would be a case of genuine innovation in practice, capable of propelling disconnected departments forward so that they start operating on a whole new digital level.
Process and productivity gains could then be realized across all three departments while new software could be implemented to facilitate smoother and more secure data flows between these three business critical functions. If these type of results can be articulated in a business case, then there is a very strong chance that investment in a digital transformation project to cover all three would be supported by business leaders and C-Suite executives such as cios or the chief digital officer.
Why transform digitally?
Digital transformations have escalated from desirable to simply necessary such has been the rate of technology growth in the last decade. It is now a case that those who fail to digitally transform, genuinely risk losing ground in the marketplace. Customer expectations in terms of digital processes have risen to a whole new level - this is largely thanks to the digital transformations they have experienced with their technology devices in their personal lives, particularly the use of mobile devices and apps.
Global consumers of products have now come to expect and demand the same level of convenience when interacting with professional companies. They expect to be able to gather information, perform tasks and interact with user friendly software when making purchases or engaging with organizations that interest them.
There is a new and growing demand for innovative digital platforms, smooth intuitive design and helpful customer features that allow them to get what they want with the minimum of clicks or actions. Organizations that go to market with a focus on digital innovation are breaking into new territories and markets while those who remain stuck in the past are losing a lot of ground to organizations who prioritize digital innovation as part of a progressive mindset.
It is simply a case of moving with the times and recognizing the power of digital processes in everyday life. Any business model that fails to move with the digitalization times gets left behind - global markets show little mercy to anyone with operating models that are slow or uninterested in consumer behavior or the optimization of the user experience.
If consumer demand has changed, and the public now approach an organization with new demands - those in a position to meet these new demands are the ones that will excel and grow. Organizations that adopt innovative technology tools and run their business model inside a secure cloud deployed platform will find themselves aligned to the needs and desires of external consumers. Crucially, they will also be meeting digital transformation initiative demands from their own employees, who also expect and desire to work with advanced digital processes that enable them to do their jobs better while feeling empowered.
The benefits of digital transformation
They are many and varied- here are just a few:
- Innovative technology to support faster and smarter business processes
- Empowered and motivated employees
- Satisfied consumers and product/platform end users
- Strong public perception as a progressive, digitally focused organization
- Timesaving productivity and strong return on investment
- A more agile and responsive organization
- Stronger scope for market capitalization and scaling
- Stronger data protection and information security measures
Global payroll and digital transformation
The global payroll function is an ideal one to be given a digital transformation - it is an essential and business critical service delivery, but for many multinational companies, it is a department that is hindered by outdated legacy technology that is no longer fit for purpose.
Paying international employees accurately and on time is a serious business, it makes sense then that global payroll professionals employed to do this are equipped with digital tools that enable them to do it in a smart and effective way. Unfortunately, the reality is that many of these professionals rely on emails and spreadsheets and are forced to input global payroll data manually.
This department badly needs a digital transformation strategy. It needs to integrate with a digital platform and cloud environment where innovative tools can be used to improve global payroll processing and operational efficiency as well strengthening payroll data security measures.
Data needs to be standardized across multiple payroll countries and automation needs to be introduced to replace manual data import and validation. Digitization and platform integrations are needed to make this a reality. Global payroll is filled with crucial data and insight -and this needs to be released via smart digital reporting and real-time analytics. Digital reporting tools should be in use so that multiple stakeholders can run country cost reporting and other reports in real time, on a self-serve basis.
Digital calendars, task switching functionality and transparent audit trails are needed for greater visibility and control over global payroll processing. When it comes to global payroll, a digital transformation project can literally transform the function into a modern, innovative platform service delivery department. The business case is clear, the benefits are obvious and can be realized relatively quickly- the only question is, why has it taken so long?