In this new era of artificial intelligence (AI), digital transformation, and rising business costs, SMEs in professional services, technology, non-profits, and construction companies are facing a constant uphill battle.
In the SME market in Ireland and the UK, approximately 70% of digital transformation projects fail to achieve their objectives. This high failure rate is consistent with global trends and is often attributed to several key factors.
One major issue is the lack of a comprehensive change management strategy. Projects that do not implement structured processes to help stakeholders understand and embrace changes are much more likely to fail. Additionally, treating digital transformation as solely an IT task, rather than a company-wide initiative, can lead to fragmented and ineffective implementations. Lastly, trying to do too much too quickly without adequate planning and resource management can also derail projects.
While every company should have digital transformation as a strategic pillar, it is possible to mitigate the risk of failure. Most digital transformation projects get derailed due to people. People do not derail these projects on purpose, but do so because of a lack of understanding and a reluctance to change their daily routines, as they fail to see how these changes can improve things.
After implementing thousands of Human Resources Information Systems (HRIS) for SMEs in the UK and Ireland, HRLocker knows that these projects can be implemented successfully and are more likely to succeed if you get your people on board. HRIS software impacts everyone in the organisation, and when implemented effectively, it lays the groundwork for further digital transformation success, as employees experience the benefits firsthand.
Implementing an HRIS System: Key Considerations
Cost: Ensure that the cost is within your budget and offers a clear return on investment.
Integration: The ability to work with other systems to generate reports that help with overall company metrics.
Ease of use: Select a system that is user-friendly and can be easily implemented.
Compatibility: Ensure new systems are compatible with your existing tech stack.
Implementation time: Aim for a short turnaround time from start to implementation.
Sector suitability: The system should be fit-for-purpose based on its cost and use relative to your organisation's sector and size.
Ownership: Management of the system outputs should be assigned to a specific department or individual within the company.
Too often, HRIS and people systems get left to the last phase of a digital transformation project. Frequently, the project runs over budget or time. In many situations, the HRIS gets dropped altogether. We advocate starting your digital transformation journey with people systems. They can be implemented quickly and effectively, and help get employees accustomed to the inevitable changes that will happen as your company evolves.
HRLocker hosted a virtual roundtable with valued guest speakers from Microsoft and Nexer on digital transformation, the benefits and growth opportunities for organisations and how it has enabled companies to scale. Find out more here:
Actionable ending
To ensure your digital transformation projects succeed, start with a robust change management strategy. Focus on people systems first, such as HRIS, to build a solid foundation for future digital initiatives. Remember, the success of digital transformation lies in getting everyone on board, understanding the benefits, and managing change effectively.
For more insights and tailored solutions, schedule a call to see how we can help in your digital transformation journey.
