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Human Resource Information Systems (HRIS) : 
Not Just a Tool, It’s a Strategic Weapon! 
RIRI SATRIA 
CEO – Value Alignment Advisory
My name is RIRI SATRIA 
President Director / CEO – Value Alignment Advisory (VA2) – since 2012 
Consultant – strategic management and organization development - since 1996 
Education background in computer science (UI), strategy (PPM) and HR management (IPB). 
Lecturer – Master of Information Technology – University of Indonesia – since 2004 
Lecturer – Master of Management – PPM School of Management – since 2000 
Chairman – Alumni Association, Faculty of Computer Science, Univ. Indonesia – since 2011 
Previously worked at KPMG Indonesia and PPM Management. 
… Literature and arts enthusiast … Active blogger and social media enthusiast … 
http://about.me/ririsatria 
http://strategy4management.wordpress.com 
http://www.facebook.com/ririsatria.va2 
http://twitter.com/ririsatria 
http://www.linkedin.com/in/ririsatria 
ririsatria@va2indonesia.com or ririsatria@gmail.com 
http://www.facebook.com/ValueAlignment
The Loyalty Effect 
(Fred Reichheld) 
• Customer Loyalty 
• Employee Loyalty 
• Investor Loyalty
Why Financial Management is 
Strategic to Organizations? 
… because it gives strategic 
information to the CEO to 
make strategic decisions ..
What Makes HR Management become 
Strategic to Organizations? 
… if it could give 
strategic information 
to the CEO to make 
strategic decisions .. 
… but what strategic 
information of HR?
Human Resource is the Highest Critical 
Success Factor for Business Performance 
BRILLIANT 
BUSINESS 
STRATEGIST AND 
RISK ANALYST 
UNUSUAL HIGH 
QUALITY 
PRODUCES 
CREATIVITY AND 
BUSINESS 
INNOVATIONS 
UNUSUAL SERVICE 
EXCELLENCE 
SPECIAL SKILLS 
HIGH 
PRODUCTIVITY
The Shifting of Human Resource Management 
Model in Organizations or Corporations 
Personnel Management 
Model. 
……… - end of 1970s. 
Only for administrative 
things in personnel 
management. 
Human Resource 
Development (HRD) Model. 
1980s – mid 1990s. 
People is not just a 
production component. We 
should develop the capacity / 
competency of the people. 
Human Capital (HC) Model. 
Mid 1990s – now. 
People is the strategic 
asset. So any expense on 
people is not a cost, it’s an 
investment. People is the 
heart of organizations / 
corporations.
The Shifting of HR Management Model 
Technology and business changes drive need 
for HR Management change.
The Roles of Human Resource Management 
Professionals (Dave Ulrich)
The Shifting of Information Systems Model 
in Organizations or Corporations 
Electronic Data Processing 
(EDP) Model. 
1940s – mid 1970s. 
Only for data processing, not 
more than that. 
Management Information 
Systems (MIS) Model. 
Mid 1970s – mid 1990s. 
The role of information 
technology is to support 
managerial activities such as 
decision making process. 
Strategic Information Systems 
(SIS) Model. 
Mid 1990s – now. 
The role of information 
technology is develop 
competitive advantages of the 
organizations or corporations. 
Big data and business 
analytics.
The Shifting of HRIS Model 
First Generation HRIS Model, 
known as personnel 
administration and data 
processing (example : payroll 
applications) 
1970s – 1980s. 
Second HRIS Model for managerial 
decision making (specially in HR 
management). 
Mostly not integrated to business 
strategy systems. 
Mid 1970s – mid 2000s. 
Third HRIS Model, Enterprise 
(Strategic) HRIS, also named 
Human Capital Information 
Systems (HCIS) 
Integrated systems for all HR 
management activities and 
business strategy systems. It is 
also empowering people to 
develop their capacity and social 
capital. Use big data and business 
analytics. 
Mid 2000s – now.
Big Data and Business Analytics
Business Analytics (SAP Model)
The Strategic Human Resource 
Information Systems Model 
COMPETITIVE ADVANTAGES 
OF THE ORGANIZATION / 
CORPORATION 
STRATEGIC HUMAN RESOURCE 
MANAGEMENT (S-HRM) or 
HUMAN CAPITAL (HC) 
STRATEGIC INFORMATION 
SYSTEMS (SIS) 
STRATEGIC HUMAN RESOURCE 
INFORMATION SYSTEMS (S-HRIS) 
or HUMAN CAPITAL 
INFORMATION SYSTEMS (HCIS)
Example 
• Business strategy : 
• Leading in innovative products with short time to market. 
• Human Resource Management Strategy : 
• Create a leading creative team with high competence in creativity and 
product simulation. 
• Information Systems Strategy : 
• Main strategic information systems in-house and outsource the support 
applications. 
• HRIS Roles : 
• Provide information about the competency and product of creative team. 
• Provide the learning management systems for creativity. 
• Built social capital with other creative workers community.
Second Generation HRIS Core Modules 
• Personnel Information Systems. 
• Organization Structure Management. 
• Recruitment Management. 
• Training and Development Management. 
• Personnel Posting and Career Management. 
• Performance Management. 
• Leave Management. 
• Report Management. 
Companies in Indonesia 
mostly using this second 
generation HRIS ..
Example : Netis HRIS Architecture
Third Generation HRIS / Enterprise-HRIS 
or HCIS Core Modules 
• All old HRIS core modules. 
• Learning Management Systems (not just training and development). We are 
talking about Knowledge Management and Learning Organization. 
• Performance Management (that linked to business strategy and activities, 
competency management, not just an ordinary key performance indicators 
management). 
• Investment Analysis of HRM activities (that linked to financial and 
accounting information systems). 
• Social Capital Development (empowering employee and enggagement 
satisfaction management to gain competitive advantage)
Closing Remarks 
• Now, we have the Third HRIS Model, the Strategic or Enterprise-HRIS that also 
named as Human Capital Information Systems (HCIS) is not just a tool for 
managing people. It is a strategic weapon to develop competitive advantages and 
improve business improvements. 
• The Third HRIS Model combined the concepts of Strategic HR Management or 
Human Capital with Strategic Information Systems (SAS). 
• The Third HRIS Model has strategic modules : Learning Management Systems, 
Performance Management, Investment Analysis, and Social Capital Development. 
The modules are integrated to business strategy and activity modules. 
• The Third HRIS Model also adopt big data and business analytics model. 
• It is not the technology that lead the HR Management practices, but the 
technology should follow the HR Management strategy and practices.
http://about.me/ririsatria 
http://strategy4management.wordpress.com 
http://www.facebook.com/ririsatria.va2 
http://twitter.com/ririsatria 
http://www.linkedin.com/in/ririsatria 
ririsatria@va2indonesia.com or ririsatria@gmail.com 
http://www.facebook.com/ValueAlignment 
PT. Solusi Inovasi Dayaguna 
Menara Rajawali level 7-1, Jl. DR. Ide Anak Agung Gde Agung 
Kawasan Mega Kuningan, Jakarta Selatan 12950, Indonesia 
Telepon : +62 21 29552660 ; Fax : +62 21 29552661

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HRIS IS NOT JUST A TOOL .. IT'S A STRATEGIC WEAPON!

  • 1. Human Resource Information Systems (HRIS) : Not Just a Tool, It’s a Strategic Weapon! RIRI SATRIA CEO – Value Alignment Advisory
  • 2. My name is RIRI SATRIA President Director / CEO – Value Alignment Advisory (VA2) – since 2012 Consultant – strategic management and organization development - since 1996 Education background in computer science (UI), strategy (PPM) and HR management (IPB). Lecturer – Master of Information Technology – University of Indonesia – since 2004 Lecturer – Master of Management – PPM School of Management – since 2000 Chairman – Alumni Association, Faculty of Computer Science, Univ. Indonesia – since 2011 Previously worked at KPMG Indonesia and PPM Management. … Literature and arts enthusiast … Active blogger and social media enthusiast … http://about.me/ririsatria http://strategy4management.wordpress.com http://www.facebook.com/ririsatria.va2 http://twitter.com/ririsatria http://www.linkedin.com/in/ririsatria ririsatria@va2indonesia.com or ririsatria@gmail.com http://www.facebook.com/ValueAlignment
  • 3. The Loyalty Effect (Fred Reichheld) • Customer Loyalty • Employee Loyalty • Investor Loyalty
  • 4. Why Financial Management is Strategic to Organizations? … because it gives strategic information to the CEO to make strategic decisions ..
  • 5. What Makes HR Management become Strategic to Organizations? … if it could give strategic information to the CEO to make strategic decisions .. … but what strategic information of HR?
  • 6. Human Resource is the Highest Critical Success Factor for Business Performance BRILLIANT BUSINESS STRATEGIST AND RISK ANALYST UNUSUAL HIGH QUALITY PRODUCES CREATIVITY AND BUSINESS INNOVATIONS UNUSUAL SERVICE EXCELLENCE SPECIAL SKILLS HIGH PRODUCTIVITY
  • 7. The Shifting of Human Resource Management Model in Organizations or Corporations Personnel Management Model. ……… - end of 1970s. Only for administrative things in personnel management. Human Resource Development (HRD) Model. 1980s – mid 1990s. People is not just a production component. We should develop the capacity / competency of the people. Human Capital (HC) Model. Mid 1990s – now. People is the strategic asset. So any expense on people is not a cost, it’s an investment. People is the heart of organizations / corporations.
  • 8. The Shifting of HR Management Model Technology and business changes drive need for HR Management change.
  • 9. The Roles of Human Resource Management Professionals (Dave Ulrich)
  • 10. The Shifting of Information Systems Model in Organizations or Corporations Electronic Data Processing (EDP) Model. 1940s – mid 1970s. Only for data processing, not more than that. Management Information Systems (MIS) Model. Mid 1970s – mid 1990s. The role of information technology is to support managerial activities such as decision making process. Strategic Information Systems (SIS) Model. Mid 1990s – now. The role of information technology is develop competitive advantages of the organizations or corporations. Big data and business analytics.
  • 11. The Shifting of HRIS Model First Generation HRIS Model, known as personnel administration and data processing (example : payroll applications) 1970s – 1980s. Second HRIS Model for managerial decision making (specially in HR management). Mostly not integrated to business strategy systems. Mid 1970s – mid 2000s. Third HRIS Model, Enterprise (Strategic) HRIS, also named Human Capital Information Systems (HCIS) Integrated systems for all HR management activities and business strategy systems. It is also empowering people to develop their capacity and social capital. Use big data and business analytics. Mid 2000s – now.
  • 12. Big Data and Business Analytics
  • 14. The Strategic Human Resource Information Systems Model COMPETITIVE ADVANTAGES OF THE ORGANIZATION / CORPORATION STRATEGIC HUMAN RESOURCE MANAGEMENT (S-HRM) or HUMAN CAPITAL (HC) STRATEGIC INFORMATION SYSTEMS (SIS) STRATEGIC HUMAN RESOURCE INFORMATION SYSTEMS (S-HRIS) or HUMAN CAPITAL INFORMATION SYSTEMS (HCIS)
  • 15. Example • Business strategy : • Leading in innovative products with short time to market. • Human Resource Management Strategy : • Create a leading creative team with high competence in creativity and product simulation. • Information Systems Strategy : • Main strategic information systems in-house and outsource the support applications. • HRIS Roles : • Provide information about the competency and product of creative team. • Provide the learning management systems for creativity. • Built social capital with other creative workers community.
  • 16. Second Generation HRIS Core Modules • Personnel Information Systems. • Organization Structure Management. • Recruitment Management. • Training and Development Management. • Personnel Posting and Career Management. • Performance Management. • Leave Management. • Report Management. Companies in Indonesia mostly using this second generation HRIS ..
  • 17. Example : Netis HRIS Architecture
  • 18. Third Generation HRIS / Enterprise-HRIS or HCIS Core Modules • All old HRIS core modules. • Learning Management Systems (not just training and development). We are talking about Knowledge Management and Learning Organization. • Performance Management (that linked to business strategy and activities, competency management, not just an ordinary key performance indicators management). • Investment Analysis of HRM activities (that linked to financial and accounting information systems). • Social Capital Development (empowering employee and enggagement satisfaction management to gain competitive advantage)
  • 19. Closing Remarks • Now, we have the Third HRIS Model, the Strategic or Enterprise-HRIS that also named as Human Capital Information Systems (HCIS) is not just a tool for managing people. It is a strategic weapon to develop competitive advantages and improve business improvements. • The Third HRIS Model combined the concepts of Strategic HR Management or Human Capital with Strategic Information Systems (SAS). • The Third HRIS Model has strategic modules : Learning Management Systems, Performance Management, Investment Analysis, and Social Capital Development. The modules are integrated to business strategy and activity modules. • The Third HRIS Model also adopt big data and business analytics model. • It is not the technology that lead the HR Management practices, but the technology should follow the HR Management strategy and practices.
  • 20. http://about.me/ririsatria http://strategy4management.wordpress.com http://www.facebook.com/ririsatria.va2 http://twitter.com/ririsatria http://www.linkedin.com/in/ririsatria ririsatria@va2indonesia.com or ririsatria@gmail.com http://www.facebook.com/ValueAlignment PT. Solusi Inovasi Dayaguna Menara Rajawali level 7-1, Jl. DR. Ide Anak Agung Gde Agung Kawasan Mega Kuningan, Jakarta Selatan 12950, Indonesia Telepon : +62 21 29552660 ; Fax : +62 21 29552661