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How to Construct a Digital Transformation Analytics Roadmap | Blog

By | Blog, Digital Transformation

Is data really the new oil fueling digital transformation? Absolutely. A company’s ability to make fast-paced, meaningful decisions in a volatile business environment is key to competitive differentiation. Indeed, industry leading enterprises are using data and analytics to adapt to dynamic market conditions, drive continuous innovation, and accelerate the speed of doing business.

However, many organizations are struggling in their efforts to harness the value of data to aid their transformation efforts. The single most important reason for these failures is their technology-first thought process. They invest in the latest big data and analytics tools, AI and ML algorithms, and visualization technologies, and subsequently determine how to drive adoption.

This approach is flawed. Why?

Technology in and of itself does not provide answers to how businesses must adapt for success in a data-driven future. It’s not enough to have the best tools; organizations need to start with a broader vision built on a foundation of business requirements. Companies that succeed at meeting their analytics objectives let business goals drive the technology, and not the other way around.

The business objectives

To develop an effective and value-generating analytics roadmap, enterprises need to start with their strategic business objectives. These tend to fall into three broad categories:

• Top-line growth – Value derived from better understanding potential target segments to enable greater revenue generation. For example, improved customer satisfaction, creating long-term customer loyalty, etc.
• Cost reduction – Value created by leveraging analytics to identify the cost leaks, such as redundancies and inefficient processes, and trim expenses. For example, minimizing procurement spend, plugging revenue leakage by reducing inventory cost, etc.
• Risk and compliance management – Value gained from monitoring, preparing, and managing risk and compliance on a real-time basis, and anticipating any potential risk-related issues, e.g., fraud detection and monitoring.

 

analytics roadmap

The building blocks

After clearly establishing their business objectives, organizations need to make important decisions about four distinct building blocks:

• Data – At the heart of every analytics solution lies data in its raw form. Enterprises need to have a data strategy in place to cope with increasingly large and complex data volumes coming from diverse sources in a wide variety of formats (text, images, audio, video, etc.)
• Technology tools – Core technology tools and platforms for data ingestion, processing, preparation, and visualization are critical. But they cannot be one-off implementations. Enterprises should focus on building integrated technology ecosystems to address immediate, distinct use cases without considering the mid-to long-term creation of sustainable capabilities
• Talent – This requires the creation of competencies around the specific, expected data and analytics capabilities. Given the huge demand/supply gap for data and analytics professionals, particularly data scientists, e-enterprises must proactively and enticingly attract and retain the right talent
• Infrastructure – The focus here is on ensuring that the IT infrastructure can handle the volume, variety, and velocity of the data and the complexity of the analytics.

Once they’ve laid the business objectives and building blocks groundwork, enterprises can develop their digital transformation analytics roadmap. In order to achieve the desired business outcomes from the analytics process, they need to embrace a structured, five-step iterative approach.

Getting this right is critical, and the stakes are high. The organizations that proactively embark on a data-driven digital transformation journey – i.e., every company– will gain a significant competitive advantage. Those that fall behind risk irrelevance.

For more information and insights on how to create a digital transformation analytics roadmap for your business, or to share what you’ve been able to achieve with your roadmap, please contact me at [email protected]

Race to Reality: Full Contact Center Automation vs Fully Automated Cars | Blog

By | Automation/RPA/AI, Blog

The contact center industry is changing considerably due to technology enablement. Contact center automation is rapidly becoming a priority as centers increasingly embrace technologies such as artificial intelligence (AI), chatbots, robotic process automation (RPA), and robotic desktop automation (RDA) to handle customer interactions on rote queries like account balances, package tracking, and reservation confirmations.

A similar transformation is also taking place in personal transportation. Advancing technologies and intense competition are driving amazing strides in the autonomous vehicle industry. While cars aren’t yet 100 percent self-driving, companies like Tesla are already offering advanced driver assistance solutions that can pretty much take control of driving, albeit with human supervision.

With the perceived nature of each of these two industries, it’s easy to assume that contact centers will be fully automated in far less time than the two to three years some believe it will take for autonomous driving solutions to get you from one point to another without human intervention.

However, this is an incorrect assumption.

Indeed, counter-intuitive as it seems, it’s much more difficult to completely automate contact centers than it is to automate driving. Why?

Driving involves a large, but still finite, number of scenarios that need to be programmed for. But a contact center environment can throw up potentially infinite unique problem statements and challenges that enterprises cannot possibly predict and program for in advance. Yes, AI helps, but even that can only get you so far. At the end of the day, the human mind’s problem-solving ability far exceeds anything that the current or foreseeable technology can offer. And while most people would be more than happy to let robots take over the wheels on the road, they still expect and require human touch, expertise, and judgment for the more complex pieces that usually make or break the customer experience. Technology just isn’t sophisticated enough to handle these yet.

The degree of contact center automation that can be leveraged within an industry varies by process complexity

Although technology use in contact centers is in the early stages, we are already witnessing higher agent satisfaction and lower attrition rates in an industry that has one of the highest churns globally. And as robots increasingly take care of customers’ simple, straightforward asks, we certainly expect agents’ satisfaction to increase.

Of course, agent profiles will continue to evolve as they are required to deal with more challenging and complex issues leveraging machine assistance. This will, in turn, demand greater investments into talent acquisition and upskilling programs.

It will be interesting to see how all of this plays out in the next few years as technology becomes increasingly advanced and capable. The only thing we can say with certainty is that the customer experience of the future will be much more pleasant as irritations like long wait times, inept IVR responses, and repetitive conversations with agents who hold incomplete information become issues of the past…or, shall we say, smaller and smaller objects in our rearview mirrors?

Digital Transformation ROI: How to Measure the Impact of Your Investments | Blog

By | Blog, Digital Transformation

Organizations around the world have invested millions of dollars on digital transformation initiatives. Yet, many IT leaders struggle to measure how well their companies’ digital investments are performing, and others see just a portion of the ROI picture because they only look at one or two parameters.

Here are Everest Group’s two key recommendations for how IT executives should measure digital transformation ROI.

Think and act like a mutual fund manager or venture capitalist

Mutual fund managers and venture capitalists view their investments through a portfolio lens. They look at the portfolio’s overall performance to understand how it is doing, recognize that underperformance of one stock or seed-stage company doesn’t signal overall failure, and make as needed adjustments to individual stocks or investments that are underperforming.

They also make sure their portfolios are comprised of investments with different risk profiles. This is because higher risk projects create the opportunity for higher returns, and deliver a lot of learning take-aways if they fail. Note that when it comes to measuring digital transformation ROI, IT executives need to look at overperformance as well as underperformance. If every project in the portfolio is deemed a success, the organization is likely not pushing the boundaries enough, isn’t innovating enough, and will likely only reap incremental benefits.

Define a clear set of business metrics before you measure

IT executives should define a clear set of business metrics for the digital transformation effort well in advance of the measurement initiative. The metrics should be rooted in a hypothesis about the various impacts the portfolio of projects will likely have on the business. While it can be difficult to link individual projects to outcomes, . Examples of hypotheses include:

  • Meeting customer expectation – as customer experience a more digital world, their expectations of how to engage with the enterprise will change. An hypothesis that keeping up with the evolving customer expectations could be that it will increase customer retention and potentially new sales
  • Breaking down the silos between IT and the business – secondments between IT and business units can increase and understanding of the links between IT initiatives and business objectives. An hypothesis could be that a greater understanding could enable faster innovation

Many IT executives err by focusing only on cost savings metrics. While the business case for technology projects must include cost savings, organizations that make strategic and operational impact their objective consistently achieve higher returns across all dimensions, including cost. In a recent Everest Group study on next-generation infrastructure, the 88% of the leading enterprises were able to achieve some level of reduction in operating costs from their infrastructure transformation efforts with 65% achieving reductions in excess of 10%. Only 29% of the rest of the study participants were able to achieve savings at that level.

Thus, IT executives should employ metrics that fall into three buckets. This ensures they are looking at the total value of the digital transformation initiative.

  • Strategic impact: revenue growth, increasing lifetime value of the customer, reducing customer acquisition costs, accelerating time to market of new products, etc.
  • Operational impact: productivity improvements, greater scale, operational efficiencies, etc.
  • Cost impact: reduced IT operating costs, reduced business costs, reduced total cost of ownership of IT assets, etc.

Once the measurement effort is underway, IT executives should regularly – quarterly tends to work best – look at every project in the portfolio for signs that it is delivering the anticipated type of impact, or is instead contributing in an unintended manner. This gives them the opportunity to determine if adjustments need to be made to how the project is being executed, if business requirements have changed (e.g. shifting customer demands, new competitive threat, etc.), if they have gleaned sufficient learning from the project (e.g. process optimization, technical limitations, success requirements, etc.), or to terminate the project it if they conclude it will not deliver results.

Please reach out to me directly at [email protected] to discuss how to measure the ROI of your organization’s digital transformation initiatives.

Persistent Team Vs Contract Labor Crucial In Solving Business And IT Misconnects | Blog

By | Blog, Digital Transformation, Talent

A major frustration between business units and their enterprise IT organizations is the issue of employee churn. The same issue affects relationships between enterprise IT and third-party service providers. Let’s look at how a company’s talent model affects whether the results of the IT work are consistent with the needs and desires of the business.

Read more in my blog on Forbes

Four Reasons Enterprises Aren’t Getting Full Value from their Automation CoEs | Blog

By | Automation/RPA/AI, Blog

As we mentioned in our Enterprise RPA Pinnacle report, there are multiple benefits of having an automation CoE:

  • Facilitates best practices and skill development, which eventually help in faster scaling-up
  • Provides structure and governance to the automation program, e.g., clarifies roles and responsibilities of various teams involved
  • Enables optimization of software and license costs
  • Fosters sharing and pooling of resources
  • Develops strong cross-functional collaboration among stakeholders.

While many enterprises have established CoEs to overcome challenges and accelerate their automation journeys, not all have been able to extract value from them. Here are some common pitfalls that limit the true potential of an automation CoE.

4 reasons not getting full value automation coe

No Enterprise-level Mandate to Drive all Automation Initiatives through the CoE

Automation CoEs work when there is a clear mandate from enterprise leadership. This directive helps ensure that the operating procedures and governance mechanisms are standard across the enterprise. Lack of it could result in the enterprise driving automation initiatives in pockets, leading to potential cost increases, lower license utilization, lower reusability of automation assets, and increased governance challenges.

Lack of Relevant Capabilities within the CoE

In its true sense, a CoE represents an entity with the capability to drive automation initiatives across the enterprise independently, with minimum oversight from outside. In many enterprises, however, automation CoEs lack the relevant skill sets – such as developers, project managers, solution architects, and infrastructure support staff – that are critical to driving these initiatives. Successful CoEs typically have three focus areas: day-to-day delivery, operational/tactical decision making, and strategic decision making/providing direction. Each layer, or focus area, has a unique set of roles and responsibilities that are critical to a smooth functioning CoE. Successful CoEs have an intentional focus on developing and nurturing in-house talent to strengthen the capabilities across the three layers. Many CoEs also bring in third-party specialists to accelerate learning. Our blog titled Driving Success in Your Automation Center of Excellence provides more details.

Loosely Defined CoE Roles and Responsibilities

The role of an automation CoE goes beyond just deploying bots into production. CoEs in best-in-class adopters of automation have evolved from executing solutions to empowering businesses across locations to drive initiatives on their own. For instance, the automation CoE in a financial services firm has established standard operating procedures (SOPs) for driving automation initiatives which include a well-defined approach for process selection, evaluation of ROI, talent impact, access to a library of reusable assets, etc. The CoE has created a platform through which business leaders can access these SOPs to evaluate opportunities on their own, and provides necessary governance and execution support, including talent and infrastructure.

As highlighted in Everest Group’s Smart RPA Playbook, the typical roles and responsibilities of automation CoEs include:

  • Providing training and education to develop talent
  • Approving all automation procedures before they are put into production
  • Assessing suitability of Smart RPA versus other Smart IT tools for use cases
  • Ensuring quality and compliance through well-defined standards, procedures, and guidelines owned and developed by the CoE
  • Driving the roll-out and implementation of Smart RPA projects, and ensuring coordinated communication with relevant stakeholders
  • Defining the roles, responsibilities, and skills sets required for driving automation across the enterprise, and regularly reviewing and optimizing them
  • Tracking success/outcomes in collaboration with operational teams so they can build, review, and refine the business case for scaling up.

Disconnect between Automation Strategy and Broader Digital Transformation Objectives

Outcomes achieved through automation initiatives are best realized when these investments are in line with the enterprise’s broader digital transformation objectives. Factors such as investments in other digital technologies (e.g., ERP transformation), changes in leverage of Global In-house Centers (GICs) or shared service centers, changes in vendor roles, etc., can have an impact on automation strategy. Automation CoEs need to closely align with enterprise strategy to realize maximum value.

Pinnacle EnterprisesTM – which we define as companies that are achieving superior business outcomes because of their advanced capabilities – have mastered each of these four requirements for successful automation CoEs. To learn more about how they’re maximizing value from their automation CoEs, please see our Enterprise RPA Pinnacle report.

Feel free to share your opinions and stories on how your automation CoE is evolving in its journey directly with me at [email protected].

Digital Brings Challenge To Direct-To-Consumer Model | Blog

By | Banking, Financial Services & Insurance, Blog

Historically, many companies have gone through channels to communicate about services and products with potential consumers. Insurance companies are a great example of this, as they typically go through broker-dealers, agents or wholesalers. But in today’s world where millennials and younger generations want to engage themselves in the buy, exclusively going through channels is not acceptable. Ideally, these consumers look for an e-platform, an experience on their phone or the Internet in which to engage. They like to do the research themselves and like to make their own decisions. But for companies, providing this kind of experience to consumers is far more complicated than it seems at first.

Read more in my blog on Forbes

Digital Transformation Changes Role Of Purchasing Organizations | Blog

By | Blog, Digital Transformation

The role of CPOs and their organizations grew over the last 10 to 15 years by institutionalizing consistent disciplines in acquiring products and services. There is no doubt that they made a strong contribution to the earnings of organizations. But in the context of digital technologies and services, the nature of the buying process is changing. Thus, digital transformation poses an existential threat to CPO organizations.

The importance of corporate CPO organizations was based on the foundation that there was tremendous value in introducing consistent disciplines in acquiring products and services. This resulted in a practice of “three bids and a buy,” which is the practice for most current purchasing vehicles and the classic request for proposal process in the case of third-party services. Most products and services, particularly for indirect spend, now are shepherded under the domain of the CPO organization.

Read more in my blog on Forbes

The Rise of BigTech in Healthcare | Blog

By | Blog, Healthcare & Life Sciences

A couple of weeks ago, my colleague and partner-in-crime, Abhishek Singh recapped his experience at HIMSS 2019, healthcare IT’s annual jamboree.

Now, I want to expand on one of them – how BigTech firms are homing in on healthcare (got to love almost-alliteration). Here are my key observations on how different BigTech firms are approaching the business of healthcare, based on what I saw and heard at HIMSS.

Google

The focus for the Mountain View-based company has been to develop a secure and compliant cloud platform, which has tools unique to the healthcare industry. It claims that the Google Cloud Healthcare API has significant momentum in the industry to really bring silos of data together. It has enabled FHIR integration as well. The general release of the platform is still sometime away though. On a lighter note, while Google is using AI to solve complex and messy problems in a range of industries, its HIMSS booth had a demo to help address the much dreaded fax plague in healthcare, allowing users to fax medical information to Google Drive, the company’s cloud storage service (as someone on Twitter pointed out), following Eric Schmidt’s observation that healthcare is still in the “stone age.”

Microsoft

The company, reinvigorated under Nadella’s leadership, is taking a smart approach to healthcare across two levers:

  • Utilizing broader technology bets with healthcare-specific use cases. It launched a service to help healthcare firms move large sets of patient data to its cloud (Azure) and connect with other systems. This is one of several attempts to connect patient health records in the cloud. It announced the availability of its healthcare chatbot in the Azure marketplace, as well as the launch of an API for FHIR in Azure
  • Leveraging a partner ecosystem. Microsoft is taking an ecosystem-based approach to accelerate healthcare adoption, using partners such as CitiusTech, DXC Technology, and Philips, to develop more cases on its technology offerings.

Oracle Health Sciences

Oracle is taking a dual approach – doubling down on a focused play in healthcare data and analytics, as well connecting with its life sciences focus – as the ecosystem converges. It announced integration between Quorum’s institutional review board (IRB) and goBalto, its recent acquisition focused on clinical trial site selection and activation. And it introduced Connected Care, a telehealth and remote patient monitoring tool initially aimed at improving stroke outcomes. Its other big focus was on Oracle ERP Cloud as the single stop solution to help unify a health system’s enterprise systems (HR, financial, supply chain) on an integrated platform.

Salesforce

Salesforce has bet big on verticalizing its CRM strengths to help deliver personalized patient experiences (CRM as the gateway to digital transformation.) It already has a bunch of use cases across the care lifecycle. Its focus is now on leveraging a partner network and adding more healthcare-centric functionality to its core set of products. For instance, it launched a feature to add social determinants of health information to patient profiles to improve outcomes. It also announced Fairview Health Services as a client deploying Health Cloud, Marketing Cloud, Heroku, and MuleSoft to centralize and manage patient touchpoints. Building from its progress at HIMSS18, where it collaborated with Cerner, Salesforce also announced new healthcare solutions using Health Cloud, built by consulting partners such as Accenture, Deloitte Consulting LLP’s Deloitte Digital, Huron, IQVIA, Silverline, Simplus and Torrent Consulting.

Uber and Lyft

Both ride sharing companies had a presence on the exhibition floor, and Lyft made a major splash and co-sponsored the opening reception as well. The common use cases they’re both addressing are around social determinants of health. An example is Lyft’s partnership with Allscripts (Lyft Concierge) to help patients get to appointments and lead healthier lives.

Ever since Amazon formally announced its move to shake things up in healthcare, the industry has been abuzz with an equal mix of anticipation and trepidation. While many are fixated on the idea that Amazon will take a Customer Experience (CX) route to healthcare, similar to its ecommerce disruption, I think this belief is misplaced. Why?

As we noted in our earlier analysis, Amazon is best placed to solve more messy problems in healthcare. Not many people realize how Amazon is already playing a role in reshaping healthcare’s supply issues. For instance, more than half of the products available on the Amazon Business platform are medical commodities such as syringes, IV bags, forceps, etc. It is targeting healthcare organization’s tail spend (typically 20 percent), which is focused on purchasing, pricing, suppliers, etc. This plays into its deep strengths in warehousing, distribution, and logistics.

At the end of the day, Amazon is just one of the growing number of technology companies looking to tap into the $3.4 trillion U.S. healthcare market. If HIMSS19 was any indication, BigTech is only going to accelerate its focus on solving key issues, with an ecosystem-driven approach. My bet for HIMSS20 is for someone showcasing curated Netflix content for improving mental health. One can always dream!

Future of Credit Unions: Do Digital Different, or Perish! | Blog

By | Banking, Financial Services & Insurance, Blog

For more than 100 years, not-for-profit credit unions have effectively provided their members with a wide range of financial services at comparatively affordable rates. However, they’re falling far behind in all aspects of what it takes to compete against large banks and FinTechs in today’s digital world. And, per our recently released report, Future Proofing Credit Unions from the Digital Onslaught, that’s causing credit unions to close at a staggering rate of one every two days.

To be fair, a good number of credit unions have invested in next-gen technologies like voice banking platforms and distributed ledgers, and made other moves to bridge the digital divide.

For example, Canadian credit union Meridian is launching a full-service digital-only bank named Motusbank in spring 2019. One Nevada Credit Union, Knoxville TVA Employees Credit Union, and Northrop Grumman Federal Credit Union have begun their implementation of a voice-first banking platform from Best Innovation Group (BIG). The following image shows other digital initiatives in the credit union space.

Future of Credit Unions blog image

But overall, credit unions’ digital investments pale in comparison to their competitors. For example, our research found that less than five percent of credit unions in the U.S. have a mobile banking app. And the top four banks in the U.S. spend five times more on technology than does the entire credit union industry.

Credit unions’ move to digital is hampered by multiple factors including dearth of talent and relatively small technology budgets that make it challenging to decide on run versus change investments.

But the biggest hurdle they face is lack of an overall organizational IT strategy for transformation. Their intent to invest and transform is there, but disjointed. This siloed approach fails to create a satisfying omnichannel experience for members. A glaring example is Navy Federal Credit Union, the largest credit union in the U.S. It faced multiple outages from December 2018 to February 2019, during which members couldn’t see the deposits in their accounts, the bank’s phone lines and digital channels, both mobile and online, weren’t working, and reporting delays led to inaccurate account balances.

So, how can credit unions stay relevant and afloat?

Share Costs with Other Credit Unions

We believe a solid short-term solution to delivering a better member experience is moving to a partner network wherein multiple credit unions mutualize costs. In this collaboration, the participating companies would share run-the-business costs. They might even co-invest in or co-secure funding for the latest technologies. One such example already exists: CU Ledger is a consortium of American credit unions that is exploring use cases for distributed ledger technology (DLT); and it’s already secured US$10 million in Series A funding.

A partner network with pooled resources would also create leverage for credit unions to collaborate with technology service providers. In a mutually beneficial situation, credit unions could share run-the-business costs while the providers could gain economies of scale.

Become Experience Orchestrators

In the longer-term, credit unions should embrace the role of lifestyle experience orchestrators. This means that they should orchestrate and integrate their offerings with those of third-party providers, serving as service and product aggregators to offer rich experiences to their members.

This could take on multiple shapes and forms. For example, they could integrate with a local car dealership and leverage data and analytics to recommend and finance purchase and lease options. Members would undoubtedly be more comfortable with their credit union’s recommendations than those from an unknown organization.

Future of Credit Unions

Future of Credit Unions

There’s no question that credit unions need to modernize their digital touchpoints to deliver experiences that will retain their members. The types of creative partnerships we outlined above will help them survive – perhaps even thrive – in today’s increasingly competitive and digital financial services industry.

Is your credit union undergoing some type of transformation journey too? Please write to me at [email protected] to share your experiences, questions, and concerns.

In the meantime, to learn more about the future of credit unions and the modernization journey they’re facing, please read our recently released report, Future Proofing Credit Unions from the Digital Onslaught.

On-demand Payroll: A Holy Grail for Employees and Employers?

By | Blog, Talent

When you think of payroll, the last thing that probably comes to mind is “flexibility.” For longer than anyone reading this blog can remember, payday has come on the same day(s) of the month for most employees. This puts a significant portion of the global workforce in a bind; they live paycheck to paycheck, and find it difficult to make ends meet, pay down debt, and save money.

However, in today’s world of increasingly instant gratification, those days could be ending.

Enter “On-demand Payroll,” an emerging area within payroll that gives employees the freedom to decide how and when they want to get paid, and provides them some level of safety should an unexpected expense pop up that wasn’t on their radar.

Benefits for Workers

Benefits of On-demand Payroll

Increase in flexibility: One of the key benefits is that it enables employees to choose their pay schedules and stay on top of their finances or react to sudden expenses.

“Payrolling” the gig-economy: With the world moving towards the gig-economy, an on-demand payroll system has the potential to overcome the limitations of the current payroll process for contingent workers and freelancers.

Financial wellness: This will help workers better plan and budget their expenses, preventing them from running into cash flow problems. Additionally, it will help them stay away from predatory lenders and payday loan products that can lead to added fees and greater financial burdens.

Expedited payroll for unexpected situations: In cases of missed payroll deadlines or an employee’s unexpected departure, an on-demand payroll framework can eliminate any delay and proceed with the payment instantly.

All this results in better employee engagement and satisfaction, leading to an overall increase in the employee experience.

Employers will also benefit. Given the strong link between financial stress and employee health, on-demand payroll will result in reduced absenteeism and increased employee productivity and retention.

On-demand Payroll Solution Ecosystem

Payroll service providers and FinTech companies are developing capabilities to support enterprises’ desire to move to on-demand payroll. For example, there’s been a rise in financial wellness platforms that help employees budget, plan, and track their expenditures and savings. And digital wallets and pay cards can serve as alternatives to banks by acting as vehicles for direct deposit and allowing payments for purchases, and can facilitate faster payroll payouts.

Two Most Common On-demand Payroll Scenarios

Earned wage payments –The employee uses the on-demand payroll platform to request payment for hours/shifts worked, choosing to receive the payment in a wallet, on a pay card, or into a selected bank account. The deduction is calculated into the employee’s regular cycle payroll payment, whether it was for the full or partial amount.  For this to work effectively and seamlessly, the enterprise needs to have an integrated system that can access all the relevant information needed for payroll processing, such as work hours data, tax related information, and employee data.

Advance payments – The employee asks for a salary advance (the maximum amount may be limited by company policies.) Although this scenario does not require a sophisticated and integrated system, enterprises must carefully track these transactions to make sure they’re properly accounted for, and to avoid running into cash flow issues.

Questions to Consider

Just like all other innovative approaches, on-demand payroll also comes with its fair share of challenges. So, here are several questions you should ponder before making the move.

Will there be an impact on my enterprise’s cash flows?

While employers may embrace a heightened role in their employees’ financial wellness, changes in pay schedules can mean disruption to cash flow management and forecasting, as well as added administrative burdens.

Will this impact tax calculations and payments to the government?

Due to the personalized nature of payments, employees may be withdrawing cash during non-standard financial cycles. Enterprises need to take into consideration whether it will impact the various mandatory reporting mechanisms, government payments, and filings.

What commercial model should be employed when a platform is used?

The most appropriate commercial model will be jointly determined by the on-demand payroll platform provider and the enterprise. Points to factor into the decision include whether or not the employees will be charged for using the platform, and whether a bank must be involved in advance salary requests.

How will the system be implemented?

Enterprises will need to integrate the various components required for a seamless transition to the new system, including time and attendance, the payroll platform, etc. They must pay particular attention to how the relevant data will be accessed, processed, and reported.

On-demand payroll forms a crucial part of the broader concept of “Employee Experience Suites.” Our upcoming three-part research series will cover these, practical ways to improve the employee experience, and some of the startup trailblazers disrupting this area.

Is your enterprise planning to reimagine the payroll process? Have you successfully implemented on-demand payroll? We’d love to hear from you about your experiences, questions, and concerns. Please connect with us directly at:

[email protected]  and [email protected].