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How Data Analytics is Changing the Role of Employees

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How Data Analytics is Changing the Role of Employees


RPA and cognitive automation have pushed employees to assume creative roles as the mundane tasks are handled autonomously.

Big data in HR helps analyze trends, monitor performance, and dictate the course of action to follow in the future.

 Workforce trends are seeing a titanic shift toward automation led by Robotic Process Automation (RPA) and cognitive automation, among other technologies. Although the process of automation in industries began a few decades ago, the pandemic and the competitive advantages have accelerated it further. It raises concerns about human workers losing their jobs during the transition and it’s true.

However, AI-powered data analytics has matured enough to provide insights into the employees and their roles in an organization. As automation is taking away repetitive tasks, employees are assuming more creative and decision-making roles thanks to the inputs from analytics of big data in HR.

How Data Analytics Is Changing Employee Roles in a Cognitive Automation Era

Cognitive automation and RPA are taking up mundane tasks as they adhere to rule-based and repetitive tasks in a high volume. It helps produce items from scratch in comparatively less time and without much error. Additionally, it gives a competitive edge to any organization as they can produce items in large quantities while keeping the cost less than half of what a low-salary worker would charge. It is the predominant reason why manufacturing jobs are phasing out and this has propagated to other sectors, including HR, IT, retail, etc.

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Data analytics has transformed the world of human resources and employee roles in organizations. As cognitive automation increasingly handles mundane tasks, employees are left with exploring their verticals and using their time creatively and productively. It has proven to be instrumental as employees can focus on value-added activities rather than punching in numbers in invoices or making transactional logs, among others. Big data in HR is crucial to be processed to make sense of the data. It analyzes the trends and behavioral patterns of the employees in an organization that HR managers can utilize to assign different roles or take appropriate actions.

Organizations use data analytics to ascertain employees’ performance benchmarks that use all kinds of data sources available. It can help human resources retain employees with higher productivity and progress ratios while reassigning or terminating those with the wrong skill sets in the company. Since tools analyzing big data in HR can track trends, AI can be used to find employees that might leave the organization for some reason.

The data-driven approach is a great way to analyze employee performance that helps HR managers to decide on promotions and other salary-related decisions, thereby minimizing any events of nepotism and bias. AI algorithms can be trained to take out any biases from the pie and generate outcomes based on legit factors deemed paramount by the organizations, such as KPIs. 

Cognitive automation is eating up jobs that involve mundane tasks and this is pushing employees to assume creative roles in any organization. Big data in HR can prove instrumental in deciding the employees’ roles in this automated era that can help stay relevant to the job profiles they are assigned while ensuring all the performance benchmarks are ascertained in deciding the fate of the employees.



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SaaS pricing inflation growing 4x faster than market inflation

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Cloud Computing News


Inflation has dominated the financial news landscape in 2022. In many markets, the consumer price index (CPI), has reached its highest point in a generation. This growth in the cost of ‘things’ also applies to software.

Almost every organisation has come to rely on SaaS to conduct business, from communications tools like Slack and Zoom to productivity suites like Microsoft 365 and Google Workspace, as well as department-specific platforms like Atlassian, Workday, NetSuite or Salesforce.

This is according to a report into SaaS inflation pricing from Vertice, a SaaS purchasing and spend management platform.

Spending on SaaS products grew more than tenfold between 2010 and 2020, from $13b to $157b annually. Investment accelerated even faster at the onset of the coronavirus pandemic, as companies raced to support remote working. SaaS spending increased by 26% in the months following the initial lockdown in 2020 and has only continued to grow in the years since.

Unlike many other significant overheads, like payroll and rent, the selection, management and renewal of SaaS are decentralised in nearly every organisation. This is for a variety of reasons, but buying power plays the most important role. Buying power typically sits across several individuals and departments, with finance leaders managing budget requirements, IT teams assessing systems and compliance considerations, and department heads selecting based on functionality. It’s a complex web of decision making and, even with the best intentions, it can be a struggle to gain a single view of all of the SaaS products a company uses.

This ‘wild west’ of a cost centre is a significant problem when the share of the total cost is considered. A growing percentage of all expenditures for businesses goes to SaaS, with around 12.7% of total spending now used on software investments. That means $1 in every $8 that modern organisations spend is now dedicated to SaaS. To translate that into dollars — as of 2022, companies spend around $3,112 per employee each year on SaaS. This figure rises to $4,552 for technology companies, who spend more than firms in any other category.

It has taken only five years for average SaaS spending to double. Based on the economic inflation rate over the same period, it would take 18 years for the cost of SaaS to double. This growth has far outpaced the rate of general economic inflation, even after factoring in recent periods of an uncharacteristically high CPI.

Clearly, the impact of SaaS in terms of productivity, collaboration and inclusion has been significant – but the accompanying cost has also been quietly spiralling upwards.

Analysis of more than 10,000 SaaS contracts shows that 74% of vendors have increased their list pricing since 2019. Among the quarter of vendors that have not, almost all have reduced the size of the average discount afforded to customers – effectively raising the spend without touching the list price.

A comparison of regional inflation rates with the SaaS inflation rate by geography reveals that over the past five years the cost of SaaS for US organisations has grown 3.5x faster than the general inflation rate – even after accounting for an exceptionally high national inflation rate in 2022.

SaaS inflation has outstripped general inflation rates even more rapidly elsewhere; spending at British and Australian firms has risen at a rate five times greater than regional economic inflation.

Joel Windels, VP of marketing at Vertice, said: “It’s become clear that not only is SaaS critical to modern businesses, but also that it represents a growing cost centre that can rapidly spiral out of control without strategic management. Even without investing in new tools or added licences, the data shows that spending on SaaS is exploding. With an uncertain economic outlook for 2023, finance leaders absolutely have to start taking a more considered approach to SaaS spending if they are to maintain growth and streamline their operations” 

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