ABeam DX Insight No.15

DX Engine
- The Three Elements of DX Human Resource Portfolio Management -

October 6, 2021

Kazuki Sugata

Executive Officer, Principal
Strategy Business Unit


DX organizations are commonly expected to help with the acquisition and training of personnel to achieve the digital transformation of the business. The ability to acquire and train the necessary personnel has already become a problem for management considering the shortage of DX talent, now recognized as a considerable issue facing society.

Therefore, to meet the expectations for the acquisition and training of DX personnel, the DX organization must prepare a system for DX HR portfolio management for company-wide optimization as a function of the DX organization. While many companies do posses mechanisms for portfolio management, those mechanisms often do not function as required. For example, it is typically the case that while the company has established a DX organization to which software engineers and other specialists in digital tech have been assigned, those personnel are only deployed to projects in specific business divisions, and too much consideration is placed on client relations during down time. This results in personnel allocation that is inefficient overall. Furthermore, the prioritization of individually optimal deployment creates a risk of an inability to form the desired DX HR portfolio and management approach in the future. For this reason, the DX organization must carry out resource management from the perspective of company-wide optimization.

As shown below, DX HR portfolio management will be considered from three standpoints, which are: defining the DX HR portfolio according to DX strategy, optimizing DX HR training and assignment, and building an immediately effective DX resource formation.

Figure 1: The three elements of DX HR portfolio management

Figure 1: The three elements of DX HR portfolio management

Defining the DX HR portfolio according to DX strategy
(Visualize situation)
The first step is to understand the current situation of your company. However, it is important to understand the practical issues by analyzing that situation for the aforementioned issues such as inefficient deployment caused by prioritization of individual optimization.

(HR definition)
Next, clarify how many people you need and with which capabilities according to the mid to long term strategy. This is a point for which specific output is expected at a detailed level as part of DX strategy planning.

Optimizing DX HR training and assignment
(Supply & demand)
A detailed understanding is required of both the demand for DX personnel on the part of business units and projects, and the supply side in terms of the current available resources. It is particularly important to update with the latest information in a timely manner for both.

(Matching, optimization)
From the standpoint of realizing the DX HR portfolio over the mid to long term, DX personnel should be matched with demand side requirements according to their individual level of training. Furthermore, the PDCA cycle should be run regularly to implement thorough forecasting and take any actions necessary to achieve mid to long term goals.

Building an immediately effective DX resource formation
The acquisition of DX resources required for the short term is essential for responding speedily to developments during the DX process. As illustrated in the following examples, the required approach will depend on the type and number of personnel needed.

Figure 2: Formation options for DX resources

Figure 2: Formation options for DX resources

As expectations over DX initiatives rise and more specific results are called for, initiatives related to DX personnel become ever more important. While there are many examples of JV establishment for the purpose of short term personnel acquisition, it is important to consider the above three elements with an appropriate level of balance in order to avoid, among other things, overdependence on outside resources. Accordingly, we believe it is important to position the DX organizational functions at the center of the DX HR portfolio management approach, and further strengthen it.

ABeam DX Insight

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