{"id":5275,"date":"2020-11-12T10:41:00","date_gmt":"2020-11-12T10:41:00","guid":{"rendered":"https:\/\/glocalthinking.com\/on-premise-is-dead-long-live-cloud\/"},"modified":"2021-08-31T10:38:33","modified_gmt":"2021-08-31T10:38:33","slug":"on-premise-is-dead-long-live-cloud","status":"publish","type":"post","link":"https:\/\/glocalthinking.com\/en\/on-premise-is-dead-long-live-cloud\/","title":{"rendered":"On Premise is Dead, Long Live Cloud"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Heraclitus said 2,500 years ago that, \u201cThe only constant thing is change.\u201d In keeping with everything that is happening now, to say that the world is changing is a daunting truth. <!--more-->But from the overall HR perspective and that of information systems in particular, it is worth stopping to analyse these changes, their impact in this area, and how both aspects are affecting HCM solutions.<\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">THE WORLD IS CHANGING<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Based on this thinking, companies shape their business models. But what is changing?<\/span><\/p>\n<ul>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Political\/legal changes. <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Today\u2019s uncertainty shows how the regulation and implementation of national and international policies impact the manner in which companies change the way they do business, which in turn affects the way professionals work (different policies of different governments, subsidies, tax policies, Cold War II, etc.)<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Macro- and micro-economic changes. <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Such changes also have a huge impact on how companies modify their production and value generation models, with the purpose of maximizing profitability in changing high-pressure environments. A few of these changes are interest rates, inflation, taxes, labour costs, etc.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Social changes. <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Social or cultural trends, currently set by new generations entering into the working world, whose priorities and objectives are different from previous generations. These trends are shaping a paradigm shift with few antecedents, to which organizations are still trying to respond. Other aspects may include remote working (teleworking), new business models emerging focused on user experience as a core value, or the &#8220;uberization&#8221; of business models.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Technological changes. <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Digital transformation of companies, supported by an unprecedented technological evolution, has led to changes through using automation, AI, agile models, and the realistic opportunity of omnichannel models.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">All these aspects impacting companies and their workers are determining the policies, actions, and activities that HR must undertake. Changes such as labour market variations, organizational adjustments, new work models, digital transformation, and more, require significant HR efforts for adapting to these situations and for preparing an organization-wise response to the needs of their business units, employees and managers and middle managers.<\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">HR IS CHANGING<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Continuing with the same analysis, the role of HR has reached new levels of relevance within the heart of organizations, as we shall see when reviewing each of the factors already mentioned:<\/span><\/p>\n<ul>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Political\/Legal. <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">These factors force HR to prepare for reacting almost immediately to situations of uncertainty that arise, and which have a clear impact on running the business and managing professionals (new skills that keep changing).<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">These factors require a major focus on cost efficiency in each of the personnel and talent management activities, such that HR \u201cdoes more with less\u201d.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">General social trends require an increasingly bigger focus on the workforce in organizations, in terms of both the individual (Employee Centricity) and the ever more ubiquitous work teams, while following the guidelines from agile methodologies that companies are putting into practice (Team Centricity).<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Managing and piloting the reality of digital transformation is placing technology in the core of organizations as a real generator of value and savings as well as an essential tool for digital transformation and evolution towards new business models.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">All these endogenous factors impacting the HR field should also be considered, including factors intrinsic to the actual business circumstances. Assuming that business growth is the quintessential business objective, this growth necessarily occurs through increasing efficiency (by seeking operational excellence) and through business transformation (e.g. seeking access to new markets and heavy use of technology). Both aspects are key for adapting to market conditions.<\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">WHAT&#8217;S HAPPENING TO TECHNOLOGY?<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">We are witnessing the emergence of a large number of technology-based and technology-dependent business companies and models (Spotify, Uber, Amazon, Netflix, Airbnb,&#8230;.) that respond to society&#8217;s demands and benefit from unprecedented technological progress in human history. These new models are shaping new human management needs right within the company and the reality of HR departments, such that their technology tools are not always able to respond to these needs. In fact, the &#8220;HR Realities 2018 \u2013 2019&#8221;<\/span> <span style=\"font-size: 12.0pt; color: #4f4f4f;\">study already showed that nearly 70% of organizations felt that their HR systems did not meet the needs of a modern workforce. And in this context&#8230;<\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">ARE CLOUD SOLUTIONS THE TECHNOLOGY ANSWER FOR HR?<\/span><\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">The fact is, if you have enough internal capabilities to build, maintain, develop and evolve your own solution &#8220;in a timely manner&#8221;, adapted to your business reality and your professionals, then probably an in-house solution is the best answer for the organization. How many companies experience that reality? Well, none really, since for HR the technological needs in this area rarely hold the top spot among the company\u2019s needs. This means that cloud solutions are configured as the first option. <\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">The report by Sierra Cedars, &#8220;2019-2020 HR System Survey White Paper&#8221;, <\/span><span style=\"color: black;\">shows <\/span><span style=\"font-size: 12.0pt; color: #4f4f4f;\">that a third of companies plan to migrate to a cloud solution within 12 to 18 months. The investment in cloud solutions has increased by 14% last year as compared to a 15% drop for on-premises solutions. Moreover, the user experience in cloud solutions was rated 3.63 versus 2.92 (25% higher). Furthermore, the above-mentioned report shows that for HCMS, Talent Management, Workforce Management and Payroll solutions, the presence of cloud solutions grows at a rate of 5-10% per year; such solutions, when it comes to talent management issues, are already present in 81% of companies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Based on the experience of Meta4, A Cegid Company, there are many reasons for this behaviour, but we highlight 7 factors we believe are key to enabling HR to respond to the endogenous and exogenous factors discussed previously:<\/span><\/p>\n<ul>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Deployment: <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">your new applications will be available sooner, without a cumbersome deployment process.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Quick adaptation: <\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">to regulatory and regulatory requirements, improving efficiency and avoiding possible penalties for non-compliance.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Maintenance of security, communications, and information integrity<\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">: allowing HR to devote their efforts to management and not to the information systems.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Technical and functional updates<\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">: ensuring the availability of functionality at all times.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Access anytime, anywhere and with any device<\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">: allowing HR professionals to work remotely and to be available to business and employee needs.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Direct employee involvement<\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">: in the required processes (absences, highs, casualties, log of day and activity&#8230;), keeping the data updated and improving the management options.<\/span><\/li>\n<li style=\"margin-top: 0cm; margin-right: 0cm; margin-bottom: 0cm; text-align: justify;\"><strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">Clear and limited cost model<\/span><\/strong><span style=\"font-size: 12.0pt; color: #4f4f4f;\">: right from the onset, since we are talking about a predictable pay-per-service, that is divided into instalments.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; color: #4f4f4f;\">A provider who addresses all these factors, enables HR to concentrate on what is actually important, their company and their workers. Consequently, the HR field is experiencing a cloud revolution, in which companies no longer wonder whether it is interesting to migrate, but &#8220;how&#8221; and &#8220;when&#8221; they should make the leap over to this SaaS model. Do you want to be part of this HR revolution?<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From the overall HR perspective and that of information systems in particular, it is worth stopping to analyse these changes, and how both aspects are affecting HCM solutions.<\/p>\n","protected":false},"author":24,"featured_media":325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[345],"tags":[52,74,61],"class_list":["post-5275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hr-technology","tag-cloud","tag-hr-cloud","tag-hr-software"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>On Premise is Dead, Long Live Cloud - Glocalthinking<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/glocalthinking.com\/en\/on-premise-is-dead-long-live-cloud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"On Premise is Dead, Long Live Cloud - 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