cloud watch on hrms solutions q2 2013_final_10072013 pre-read

Transform to the power of digital

Cloud Watch on HCM Cloud Solutions

Summary Version

July 2013

Contents

Introduction

A sneak peek at the Market

HRMS application footprint

Contact Details

2

Copyright © 2013 Capgemini Consulting. All rights reserved.

Objectives, Approach and Context

Objectives and approach

Provide a single source of information on leading HR solution providers across the globe

Identify leading players across HRM SaaS functionalities

The study uses publicly available information sources:

— Company websites

— Text line searches

— Industry reports

— Analysts reports

Context

Cloud computing is the availability of hardware, software and data via the internet and it represents the network of connected computers

Software as a service (SaaS) is one of the service models offered in cloud computing along with Infrastructure as a service (IaaS), Platform as a service (PaaS) and Network as a service (NaaS)

SaaS is a growing phenomenon in the market and has made a successful penetration into mainstream Enterprise IT

Earlier, licensed on-premise software was the dominant deployment model in production, but with time, on premise vendors have also begun to offer SaaS based solutions

Coupled with the buy side objective of reducing the cost of ownership, the SaaS revolution is bound for exclusive growth across all forms of a business

Globally, Capgemini Consulting helps many of its clients on the use of Software as a Service solutions, and this document intends to provide a single source of truth about HR SaaS solutions currently available in the market, with a focus on the European market

3

Version Status

Final

Authors

CC India, Research

services

Delivered in

Q2, 2013

Contents

Introduction

A sneak peek at the

Market


Contact Details

4


A sneak peek at SaaS industry (1/2)

5

Workday launched Workday 19 with embedded analytics for financial management

Peoplefluent launched Peoplefluent TalentUnity, an enhanced version of its recruiting and contingent Workforce Management solutions

SumTotal introduced elixHR, a powerful HR data engine enabling one comprehensive view of employees

ADP launched ADP Plan Health Review, a tool to help ADP Retirement Services clients measure the retirement readiness of their employees

Successfactor partners with Kronos to help deliver on integrated Workforce Management, human resources, payroll, and Talent Management offerings in the cloud

Cornerstone OnDemand partners with Cloud provider, Appirio to help Appirio broaden its Talent Management portfolio

ADP acquired Payroll S.A., a provider of human resource outsourcing, payroll and employee benefits services across Chile, Argentina and Peru

SilkRoad partners with HR survey/analytics authority, Nobscot Corporation

July, Q2, 2013

Partnerships, alliances and M&As

Vendor corner


A sneak peek at SaaS industry (2/2)

6

July, Q2, 2013

SuccessFactors ranked a Leader in The Forrester Wave(TM): Talent Management, Q1 2013 for its Performance & Goals, Succession & Development, and Learning Solutions

SumTotal named as ‘Champion’ in McClean & Company’s Talent Management suites vendor landscape report

Silkroad has been recognized as the 2013 HRO Today TekTonic Awards winner in the HRMS Suite category

Saba was the winner at the Customer and Partner Excellence Awards

HR Tech Europe 2013, Europe's leading conference and networking event for Business, HR and IT Leadership will be held in Amsterdam from 24th -25th October, 2013

Oracle Open World, a conference for Oracle customers and technologists, will be held in San Francisco from 22nd-26th September, 2013

Peoplefluent will host WISDOM 2013 Global Conference in Orlando, 22nd – 25th September, 2013

IHRIM's 2013 HRMS Strategies Conference and Technology Expo took place on June 2-5, 2013 at Disney's Contemporary Resort, Lake Buena Vista, FL

Events

Analysts speak


Some examples of Lessons Learnt based upon Capgemini’s experience in implementing HCM Cloud Solutions

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Communicate, communicate, communicate!

Implementing a HCM (Cloud) Solution is not only an IT project, but needs to be approached in an integral way covering technology, processes,

organization and people

HCM Cloud Solutions can be tailored to meet (most) requirements of the organization by means of configuration delivered within the solution

This provides great opportunities for standardization, and minimizes maintenance efforts

It is important to understand and communicate these benefits along with the restrictions such as no customizations of a HCM Cloud solution

Good mix of internal and external resources in terms of availability, knowledge and expertise

Internal (project) resources: To provide quality data and organizational context, ensuring ownership of a sustainable solution

External resources: To provide the knowledge and expertise for implementing HCM Cloud Solutions, scaling up of project capacity and the outside-

in view

Start simple

Implement in waves and consider the learnings after every wave

It is always better to “Keep it simple” and not add too many functionalities in the first implementation itself

Strict project management is the key: Stick to deadlines, frequent updates on progress on deliverables, be strict on the three iterations during

implementation

Manage dependencies between the project streams as well as external dependencies

Lessons learnt from implementation of HCM cloud solutions


Some examples of pitfalls based upon Capgemini’s experience in implementing HCM Cloud Solutions

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Lack of common (global) definitions relating to data elements, processes and KPI’s

Underestimation of the effort involved in data cleansing and data migration efforts, especially with a view to historical data

Lack of clear governance regarding data, definitions and the project

Lack of single source of truth

Lack of clear criteria and governance body regarding deviations of the agreed configuration

In principle, only deviations due to regulatory compliance and legislations should be catered for

Lack of proper and timely alignment with the stakeholders and the lack of involvement of the stakeholders

Lack of a clear reporting scope

Too little focus on defining and embedding proper support processes and its organization

Pitfalls of implementation of HCM cloud solutions

Contents

Introduction


HRMS application

footprint

Contact Details

9


HR solution SaaS can be categorized into Core HR, Workforce, Talent, Learning, Recruitment Management and Compensation & Benefits

10

HCM Cloud Solution Footprint

Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis

Learning Management

HCM Solutions (Cloud & Mobile)

Core HR

Workforce Management

Talent Management

Compensation & Benefits

Recruitment management

Employee Records Payroll Benefit

Administration and Enrolment

Salary and wage structure

Jobs and positions Employee

Engagement Compliance

Organizational structures

Time reporting Workforce scheduling

and assignments

Attendance Productivity Analysis

Paid Time Off Labor Cost

Distribution

Absence Management

Employee Performance

Goal Management

Career Planning

Competency Management

Succession Planning

Talent Review

Retention Management Leadership

Development Learning Course Administration

Content Management

Mobile Learning

Mentoring Collaboration Social and Informal

Learning Professional Certification

Bonus Programs

Commissions

Stock and Long Term Incentives

Employee Recognition

Base Salary Administration

Wellness

Retirement and Savings

Market Pricing and Equity

(Strategic) Workforce Planning

Requisitions

Sourcing and Social Recruitment

Candidate Engagement

Applicant Evaluation

Diversity & Compliance

Onboarding



Core HR

Although the comprehensive HCM Solutions in the market span the full breadth of HR, their strength lies in the core transactional processes, compliance, and structures

Core HR

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Core HR

Vendor Landscape

“Licensed on-premise software remains the dominant deployment model in production with SaaS based solutions contributing only 18% of Core HR segment’s revenues1”

Description Vendor Example

HCM Solutions footprints to gain in-

depth Talent Management,

analytics, and global capabilities

The depth of functionality has improved in several areas

Vendors are improving their depth through acquisitions

- Oracle acquired Taleo - SAP acquired SuccessFactors

Outsourcing vendors and ERP vendors are introducing mobile

HR apps

Outsourcing and ERP vendors are introducing mobile HR capabilities to their clients

Introduced new benefits and flexible spending account functionality to its ADP mobile solutions application

Tren

ds

Completeness/Strength of the offering;

Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions) Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; The Forrester Wave™: Human Resource Management Systems, Q1 2012; CC India Analysis; HRM Solutions: Traditional Models clash With Next-GenerationProcesses And Technology; Forrester

Employee Records Payroll Benefit

Administration and Enrolment

Salary and wage structure

Jobs and positions Employee

Engagement Compliance

Organizational structures

http://www.workday.com/

http://www.sumtotalsystems.com/index.html

http://peoplefluent.com/


As one of the major trends, many of the retailers & public sector industries are relying on WFM solutions to improve productivity


12


Strong demand for Mobile WFM

There is an increase in adoption of mobile based Workforce Management solution

Kronos licensed WFM solutions to more than 250,000 employees across a wide variety of industries

Demand for WFM solutions in retail

Growing demand for WFM in retail industry, it is estimated to have a CAGR1 of 3% till 2015

Reflexis claimed that it has signed 30 new clients in retail over 1 year

Increasing instances of public sector

usage WFM

Counties and other departments are extensively relying on WFM solutions to streamline utilisation

Boulder county implements Kronos WFM to control labor costs, minimize compliance risk and improve productivity


Vendor Landscape

Tren

ds

“SaaS adoption has slowly started to evolve, as the leading vendors have now begun to offer both on-premise and SaaS solutions”




Note: 1 CAGR refers to Compound Annual Growth Rate

Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis;Factiva

Time reporting

Workforce scheduling and assignments

Attendance

Productivity Analysis

Paid Time Off

Labor Cost Distribution

Absence Management





Integration challenges with Core HR, growing importance of social Talent Management are the key trends in Talent Management

Talent Management

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Vendor Landscape


Growing importance of social Talent Management

Organisations that want to be at the forefront must now shift their HR practices towards social media capabilities such as social sourcing, earning, etc.

An organisation's social HR strategy reflects its culture, it can enhance productivity within an organisation and also collaboration and connectivity

IBM acquired Kenexa so that IBM could leverage Kenexa’s social media capabilities

Integrating challenges with

Core HR

Lack of usage of an integrated Talent Management solutions and not integrating Talent Management applications with their Core HR applications are some of the main reasons for integration challenges

No information available

Tren

ds

Talent Management

“58% of the products revenues from Talent Management solutions are via SaaS based solutions”


HCM Solutions (Cloud & Mobile) Talent

Management

Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions) Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis; Recruitment Aligns With Talent Management, Forrester, 2011 ; HRM Solutions: Traditional Models clash With Next-GenerationProcesses And Technology; Forrester

Employee Performance

Goal Management Career Planning

Competency Management

Succession Planning Talent Review Retention

Management





Learning Management has made the transition from on-premise solutions to SaaS and leading vendors indicate new deals coming in are heavily weighted towards SaaS

Learning Management

14

Vendor Landscape


New Players in Learning

Management

Talent Management solution vendors are looking to enter Learning Management market

SuccessFactors is moving toward an informal learning offering through its acquisition of Jambok

Lumesse developed a learning platform via its acquisition of ExecuTRACK

Learning point solution vendors

have built or acquired

performance capabilities

As learning has become central to employee development, vendors have responded to this change by expanding their solutions' existing functionality & adding Learning Management capabilities to it

Cornerstone OnDemand, Plateau, and Saba had built performance solutions and now offer integrated offerings

SumTotal added performance solutions through acquisition of Softscape

Tren

ds

Learning Management

“In Learning Management, the SaaS model currently accounts for 45% of its product revenues”


Learning Management


Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions)

Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; The Forrester Wave: Talent Management: Learning, 2011; CC India Analysis

Leadership Development

Learning Course Administration

Content Management

Collaboration Social and Informal

Learning Professional Certification

Mobile Learning

Mentoring





Market consolidation and growth in the existing portfolio are the major trends in the field of recruitment management

Recruitment Management

15


Market consolidation

Acquisitions in the applicant tracking system (ATS) area mean fewer vendors and cater for the needs of both enterprise and SMB customers

Kenexa acquired BrassRing, Cerdian acquired RSI, Sumtotal acquired Softscape and Cybershift

Growth of installed bases of the

existing players

Many vendors have made acquisitions for intellectual property, advanced technology, and increase of customer base

Oracle acquired Taleo to provide a richer recruitment application

Recruitment management

Vendor Landscape

Tren

ds

“83% of the product revenues of recruitment solutions market was contributed by SaaS based solutions”


HCM Solutions (Cloud & Mobile) Recruitment

management

Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions)

Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; Recruitment Aligns with Talent Management, Forrester Research, 2011; CC India Analysis

(Strategic) Workforce Planning

Requisitions Sourcing and Social

Recruitment Candidate

Engagement

Applicant Evaluation Diversity & Compliance Onboarding Talent Pools





Compensation & Benefits tools have become a component of broader Talent Management suites and there have been significant mergers & acquisitions targets in the market


16

Vendor Landscape


Compensation vendors leverage pay-

for-performance

Compensation specialists leverage the link between rewards and performance

Workscape added performance to its Compensation & Benefits capabilities

Mergers & Acquisitions

There have been significant mergers and acquisitions in the compensation market during the past few years

Kenexa acquired Salary.com and ADP's acquired Workscape

Tren

ds


“SaaS penetration in the Compensation and benefits function has gained momentum and contributes 52% of this segment’s product revenues




Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions

Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; Hype Cycle for Human Capital Management Software, Gartner-2011; CC India Analysis

Bonus Programs Commissions Stock and Long Term

Incentives

Employee Recognition

Base Salary Administration

Wellness Retirement and

Savings Market Pricing and

Equity




Contents

Introduction



Contact Details

17

Want to know more? In the full version you will find which HR cloud applications have which functionality

18

Please get in touch with:

Ronald van den Berg

Principal Consultant People & Performance

Mob : +31 (0)6 - 15030294

Secretary : +31 (0)30-6898844

Mail to : [email protected]

Tim van der Wal

Managing Consultant People & Performance

Mob: +31 6 1503 0286

Secretary : +31 (0)30-6898844


Lysette Kampman

Managing Consultant People & Performance

Mob: +31 6 29560779

Secretary : +31 (0)30-6898844


mailto:[email protected]



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