Presented by Scott Klososky – Founder, FPOV – Future Point of View Your PEO is one of the greatest solutions ever created for the small business, but in the midst of disruptors it can be hard to see that from your point of view, and the customer’s. In this ½ day workshop, Scott will walk your organization through a highly interactive exploration of our industry; how-to disrupt your business from within and how to implement key decision making today that will secure your future. You’ll have practical steps to take when you get back to the office. The PACE Annual Conference focuses on the sales, marketing, and technology trends that affect PEOs and the service providers that support them.

1. Scott Klososky
Digital Transformation,
Disruption & Maturity:
Prospering in the PEO Industry

2. Like it or not, technology has become
the jugular vein of the organization
Mike Foster

3. Digital Transformation
2000 to 2050
A historically significant
change in humanity…
Using
Digital
Wearing
Digital
Implanting
Digital
The Hive
Mind
Disconnected
The Dark Ages

4. Connected People
Web 2.0
Connected Devices
Web 3.0
Connected Data Platforms
Web 4.0
Augmented Humanity
Web 5.0
Connected Organizations
Web 1.0
IoT & M2M
Ambient
Computing
Ambient
Intelligence
Transhumanism
Social
Technologies
Digital Marketing
eCommerce
The Transformation of Connection
2000
2010
2020
2028
2045
Year
of
Traction

5. Connected People
Web 2.0
Connected Devices
Web 3.0
Connected Data Platforms
Web 4.0
Augmented Humanity
Web 5.0
Connected Organizations
Web 1.0
IoT & M2M
Ambient
Computing
Ambient
Intelligence
Transhumanism
Social
Technologies
Digital Marketing
eCommerce
The Transformation of Connection
Cybersecurity
Risk Grows
Viruses
Social
Engineering
Device Takeover
Data Extortion/Corruption
Augmentation Extortion/Control
2000
2010
2020
2028
2045
Year
of
Traction

6. 01
All actions and processes performed have a component of
HUMAN activity and TECHNOLOGY activity.
02
HUMALOGY is the ability to break down the components, and identify
the amount each contributes to the overall action performed.
03
This is important to understanding how adding, or subtracting,
technology can aid in the efficiency of the action.

7. HUMAN
INVOLVMENT
0
TECHNOLOGY
INVOLVMENT
H5 H4 H3 H2 H1 T1 T2 T3 T4 T5
HUMALOGY SCALE
H5 H2 T2 T50
TODAY
Digging a HoleDigging a Hole

8. BRAINS - the Internet,
processing power,
workflows, data storage,
devices, equipment,
software, and computers
HEARTS - intuition,
discernment, creativity,
inspiration, emotions,
curiosity, trust, love, joy,
peacefulness, forgiving,
grace, and mercy
Funeral Homes
Churches
Events, Networking
Instinct & Experience
Tellers, Loan Officers
A Rock Concert
Amazon
YouTube
Digital Marketing
AI & Robotics
Online Banking
Digital Music

9. We are now shifting from
the Information Age to:
The Age of Entanglement
As technology and humanity
continue to converge the
repercussions on our future are
staggering…

10. RateofChange
Time
People & Organizations
Change Logarithmically
Technology Changes
Exponentially
Strategy Risk Gap
The Transformation Dilemma

11. RateofChange
Time
People & Organizations
Change Logarithmically
Technology Changes
Exponentially
The High Beam
Zone
The Transformation Dilemma

12. What have you learned, and what are your observations
about the role that technology is playing in helping you
to be successful in the market?
DISCUSSION ONE

13. PRACTICE
Not on
your radar
You first
hear of it
Clearly
a trend
Common
Practice
FuturePast
What you
are actively
working on
}
Present 1YR 5YR
ORGANIZATION
& LEADERS
REACTION
TIME
Becomes a
practice
-1YR-5YR
Learning to be High Beam

14. The Growing Digital Skills gap
Hyper Personalization (Individualizing Tech)
Relentless Automation
Migration of IT from Utility to Weapon
The Maturation of Data Services
Machine Intelligence
Integrated Security
The
High Beam
2018 List

15. David Ferrucci, the developer of IBM Watson,
was asked if the system can think…
He answered, “Watson can think like a
submarine can swim”
Machine Intelligence

16. Machine Intelligence
Roadmap
Step
One
Step
Four
Systems have the ability to review data
and learn for themselves
Self Learning
Step
Three
Systems go through a human led training
process in order to refine algorithms
Trained
Step
Five
Systems have decision
making flexibility with a
desire to improve
Intelligent
Systems are connected to the Internet with
the ability to “talk” to other systems
Smart
Step
TwoSystem is hard coded
with rules that mimic
human thought process
Programmed
Step
Six
Systems understand
their mission and have
ethics to guide them
Enlightened

17. Machine Intelligence Ecosystem
Robotics
RPA (Robotic Process Automation)
Artificial Intelligence
Natural Language Processing
Recommendation Engines
Machine Learning
Deep Learning
Predictive Analysis
Cognitive Computing

18. The historical importance of humanity combining
with machines is not generally understood at the
present time. Only when we look back will we truly
see that this transformation will alter our lives more
than anything to this point…
THE FUTURE OF MACHINE INTELLIGENCE

19. How much impact do you think Machine Intelligence
will have on the PEO space?
DISCUSSION TWO

20. PrismHR, Core Providers, & Enterprise Architecture
It is critical to understand the strategic
implications of the core vendor
EA is getting easier to manage, but
more complicated to design
Core software decisions are at least
ten year commitments in most cases
Technology is a tool & weapon so
invest wisely in what you need most

21. ROI - Investment Versus Expense
An expense is a cost that
comes out of profitability
and likely does not have
long term value.
An investment also comes
out of profitability but can
have far reaching benefits.
Do not get these two
confused…

22. disruption
#digital maturity
halo
Scott Klososky

23. Cycle of
Disruption
1.
Newcomer
Implements better
digital tools.
2.
Industry
ignores
newcomer.
3.
Client
satisfaction
grows.
4.
Industry
bullies or buys
newcomer.
5.
Industry
adapts and
improves.
6.
Clients
reap benefits.
PEO’s and the Risk of Disruption
Being disrupted, or disrupting
others is a choice.
If the disruption makes
dramatic client or operational
improvements and you are
too slow to adapt, you will
lose market share that will be
difficult to ever win back…

24. Seven Disruptive
Catalysts
Wider Reach
Rapid Scaling
Automation
Wiser Decisions
Quality & Speed
Amplified Connections
User Capabilities
Cognitive
Computing
RPA/Robotics
Social
Technologies
3D Printing
Data
Intelligence
Cloud
Universal
Internet

25. Disruption Catalyst Strategizing
Yes
Or
No How? Investment$ ROI?
Wider Reach
Rapid Scaling
Automation
Wiser Decisions
Higher Quality
Amplified Connections
User Capabilities
Can I use digital tools to add:

26. If you only give
people what they
already want,
someone else will
give them what they
never dreamed
possible.
David Ogilvie

27. The Economy is by Nature Competitive…
To prosper you must be smarter, more innovative, use better tools, and
move with a faster velocity than your competitors!
To do this you need Digital Maturity!

28. New Clubs and Equipment+ Somewhat Better Golfer=Poor Golfer
How to Make a Okay Golfer

29. How to Make an Excellent Golfer
ASSESS their Current Skills +
Build a PLAN of Improvement +
Reassess and Adjust the Plan
as you go
+
Give them many focused LESSONS +
And if they get new clubs, equipment, then make sure
they are a good fit for their skills, abilities and level of competence,
the end result is… =
Practice, Practice, Practice +
An Improved
Golfer over
time

30. A Digitally Improved
Organization
=Buy new,
expensive, robust
software & install it
+Take an
Organization that is
Digitally Immature
+
The MYTH of achieving Digitally Maturity

31. To Achieve Digital Maturity
Assess Current Digital Maturity +
Gap Analysis of Current State v. Desired State +
Put these changes into Practice +
Build a Plan of Improvement +
And if there is new Software make sure it is
aligned with Digital Maturity abilities =
Engage in focused Training and Learning +
Digital
Maturity
achieved over
time
Reassess and Adjust Plan as you go +

32. What Digital Maturity
Looks Like
"There are always two choices,
two paths to take. One is easy.
And its only reward is that it's
easy."
-Unknown Highly functioning EA
Rapid innovation process
A high level of automation
Tech augmented relationships
More visibility into the Truth
Careful management of risks
A two-year lead on competitors

33. What Digital Maturity
Looks Like
"There are always two choices,
two paths to take. One is easy.
And its only reward is that it's
easy."
-Unknown Highly functioning EA
Rapid innovation process
A high level of automation
Tech augmented relationships
More visibility into the Truth
Careful management of risks
A two-year lead on competitors

34. Nine Dimensions
of Digital Maturity
Each dimension focuses on a
critical area of maturity
Maturity can be measured and
what can be measured can be
improved!
Leaders have the responsibility
for developing digital maturity in
order to prosper for a generation

35. Levels of Digital Maturity
LEVEL 1 LEVEL 2
INITIAL EFFORTS DABBLERS STRUCTURE DEVELOPMENT
INTRODUCTIONÿ

36. DMA Industry Minimums - The PEO Space
1. Leadership - Digital Readiness
2. Transformational Design Capabilities
3. Digital Workforce
4. Organizational Risk & Control
5. System of Engagement Effectiveness
6. System of Record Effectiveness
7. Data Assessment
8. Technology Completeness & Leverage
9. Market Competitive Ranking
80
70
80
90
80
85
80
85
2nd in market
PEO’s have a high need to process large amounts of employee information that must be done
perfectly, and protected well from loss. From a competitive angle, they must have digital methods for
connecting with clients in better ways than competitiors, and must automate rapidly in order to keep
costs down and improve profitability. All of this puts pressure on the leadership to make wise
investments and innovate at a steady pace.
Inflection
Point
-10 -8 -6 -4 -2 0 +2 +4 +6 +8 +10
PEO’s

37. Let’s Discuss What the Gap in Leadership
Digital Maturity Costs Your Organization

38. Bad decisions
made with good
intentions, are still
bad decisions
Jim Collins

39. Let’s
D
iscuss
W
hat the
Gap
in
Your
D
igital
W
orkforce
Costs
Your
O
rganization

40. Let’s Discuss What the Gap in Transformational
Design Costs Your Organization

41. Let’s Discuss What the Gap in Systems
of Engagement Costs Your Organization

42. Let’s Discuss What the Gap in Systems
of Record Costs Your Organization

43. Let’s Discuss What
the Gap in
Technology
Completeness and
leverage Costs Your
Organization

44. Let’s Discuss What the Gap in Data
Maturity Costs Your Organization

45. Mind the Gap!
Let’s Discuss What the Gap in Organizational
Risk and Control Costs Your Organization

46. Let’s Discuss What the Gap in Market
Competitiveness Costs Your Organization

47. Chasing the
Technology Halo
This is the state of being when an
organization has implemented digital tools
that customers clearly believe give the
organization a competitive advantage
Transform
ation
D
isruption

48. A Technology Halo: Hair Salons
Earning the Halo
Built the largest customer
database in the industry
Pioneered mobile
application for remote
check-in
Pioneered intelligent one
to one digital marketing
First in the industry to
manage online reputation
Lower IT costs than
competitors
Using technology to
control stylists market
The Benefits
Industry leader in
terms of size
The fastest growing
in the space
Higher level of
control over revenue
Taking market share
from competitors
Employee
satisfaction
Speed to market
with new technology
innovations

49. A Technology Halo: Financial Services
Earning the Halo
Pioneer with online
deposits
Best mobile app
functionality
Self serve functionality
Data gathering
Personalization
Aggregated financial
services
Focused on
international delivery
The Benefits
Customer loyalty and
trust
Fast growth
Low customer
turnover
Higher revenue per
employee
Industry reputation
Product expansion
Happy employees!!

50. In Search of the Technology Halo

51. Is it really possible for you to achieve the Technology
Halo in your area?
DISCUSSION FIVE

52. PEO
PLE
ELECTRONICPHYSICAL
AN INTEGRATED SECURITY MODEL
FAC
ILITIES
ORGANIZATIONAL ASSETS
Hacker
Internal
Threat
3rd Party
Co-conspirator
The ability to
join and manage
as a single
unified platform
the three pillars
of security to
mitigate risks

53. PEO
PLE
ELECTRONICPHYSICAL
AN INTEGRATED SECURITY MODEL
FAC
ILITIES
ORGANIZATIONAL ASSETS
CYBER
Hacker
Internal
Threat
3rd Party
Co-conspirator
The ability to
join and manage
as a single
unified platform
the three pillars
of security to
mitigate risks

54. PEO
PLE
PHYSICAL
AN INTEGRATED SECURITY MODEL
FAC
ILITIES
ORGANIZATIONAL ASSETS
CYBER
Hacker
Internal
Threat
3rd Party
Co-conspirator
The ability to
join and manage
as a single
unified platform
the three pillars
of security to
mitigate risks

55. ACCESS CONTROL
MONITORING
ELECTRONICS
ACCOUNTABILITY
TESTING
TRAINING
SECURITY AI’S
APPLICATIONS
DEVICES
The Future Integrated Security Model
DIGITAL FIREWALL
HUMAN FIREWALL
PHYSICAL FIREWALL
CONSTANTSTRATEGYEVOLUTION
GOVERNANCE(P&P)
AUDITS&ASSESSMENTS
SECURITYTEAMSKILLS
RISKTOLERANCE(ESRM)
FOUNDATIONS

56. What digital
footprints will you
leave at your
organization that
will give you a
competitive edge?
Someone once told me not to bite off more than I can chew. I
said I would rather choke on greatness than nibble on mediocrity

57. If you’re
done
getting
better…
Retire.
Ken Favizza

58. NEXT
STEPS
DOWNLOAD THIS
PRESENTATION
WWW.FPOV.COM/SK
BUILD YOUR RIVER
OF INFORMATION
THE DOWNLOAD
FROM MIT
TAKE A FEW DIGITAL
TRANSFORMATION
COURSES