Cloud watch on HCM solutions q3 preread

Copyright © 2013 Capgemini Consulting. All rights reserved.

Cloud Watch on HCM Summary Version CC India, Research

October 2013


Contents

Objective and approach

Sneak Peek at HCM Cloud

Market

HCM Cloud Solution

Footprint

Contact Details

2


Objectives, Approach and Context

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

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

Q3, 2013

Objectives and Approach Context


Contents



Market

HCM Cloud Solution

Footprint

Contact Details

4


A sneak peek at HCM Cloud Market(1/2)

5

October, Q3, 2013

Oracle has enhanced its best-in-class cloud HR software Oracle HCM Cloud to provide mobility benefits with Oracle Fusion Tap >> Read More

Workday introduced Workday day Big Data Analytics for HR and Finance >> Read More

SumTotal and Skillsoft introduced industry’s first intelligent talent solution that allows customers to deliver in-context learning and talent content to employees >> Read More

Lumesse launched Mobile Talent Management to support generation mobile >> Read More

VENDOR CORNER

Workday partners with Capgemini as one of its service partners help Workday customers deploy and integrate Workday enterprise applications >> Read More

Peoplefluent extends its social recruiting capabilities through expanded partnership with SmartPost >> Read More

Kronos acquired TimeLink to extend its leadership in workforce management, particularly in the enterprise segment >> Read More

SilkRoad partnered with Recruit.net as its latest free job distribution partner >> Read More

NorthgateArinso partnered with Selex ES, AgustaWestland and Finmeccanica UK for a HRO and integrated HRP solution >> Read More

PARTNERSHIPS, ALLIANCES AND M&AS


A sneak peek at HCM Cloud Market(2/2)

6

October, Q3, 2013

Successfactors was named as a leader for the fifth consecutive year in the IDC MarketScape Worldwide Integrated Talent Management report >> Read More

Peoplefluent Social Collaboration was the winner of Ventana Research “Technology Innovation Award for Business Collaboration” >> Read More

SumTotal Learn was awarded the Best Enterprise Learning System and SumTotal Work as the Best HR solution at the Best of Elearning! Awards >> Read More

ADP was named a leader in Multi-Process HR Outsourcing as well as Star Performer >> Read More

ANALYSTS SPEAK

SuccessConnect 2013, organised by SuccessFactors to be held on 9th-11th October, 2013 in Las Vegas, Nevada >> Read More

HR Technology Conference & Expo 2013 will be held on 7th-9th October , 2013 in Las Vegas, Nevada >> Read More

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 >> Read More

Global HR Leadership Summit to be held on 21st- 23rd October, 2013 in the Ritz-Carlton, Denver >> Read More

“Plan, Implement, and Integrate SuccessFactors” is organized by Success factors on 4th – 6th December in

Copenhagen, Denmark >> Read More

EVENTS

http://www.successfactors.com/en_us/successconnect/las-vegas-2013.html

http://www.hrtechnologyconference.com/

http://www.hrtecheurope.com/amsterdam/about/

http://www.evanta.com/hr/summits/global

http://www.successfactors.com/en_us/events/seminars/plan-implement-and-integrate-successfactors-copenhagen.html


Contents



Market

HCM Cloud Solution

Footprint

Contact Details

7


HCM SaaS solutions can be categorised into Core HR, Workforce, Talent, Learning, Recruitment Management and Compensation & Benefits

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HCM Cloud Solution Footprint

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

Organisational 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

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



Core HR

Organizations tend to integrate social networking activities to leverage Core HR data activities to drive best-in-class business results

Core HR Solutions

9

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

Integrating social media into core HR activities boosts collaboration

Using HR software that embeds social media into daily activities and processes that encourage employees in all work locations to communicate and collaborate in real-time and via mobile app too

Infor’s HCM app fosters collaboration by displaying social networking activities and documents from within the people tracking software

Focus on full technology integration

Companies need to move away from information silos to unified Core HR systems

Solutions must centralize the HR management throughout the life cycle of employees

SuccessFactors ‘Employee Central’ enables global HR teams to focus on creating strategic value for the business by streamlining processes and providing access to information that supports faster decision-making

Tren

ds

Completeness / Strength of the

offering;

Employee Records Payroll Benefit

Administration and Enrolment

Salary and wage structure

Jobs and positions Employee

Engagement Compliance

Organisational structures

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 2012; www.workforce.com; http://successfactors-corehr.com/

http://www.workday.com/

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

http://peoplefluent.com/

http://www.workforce.com/

http://successfactors-corehr.com/




WFM consolidation will continue to occur in the vendor/provider market through partnerships and acquisitions across the industries

Workforce Management Solutions

10



Time reporting

Workforce scheduling and assignments

Attendance

Productivity Analysis

Paid Time Off

Labor Cost Distribution

Absence Management


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

Vendor Landscape

Vendor Landscape Completeness / Strength of the

offering;

Note: 1 CAGR refers to Compound Annual Growth Rate Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis; Factiva ; Cisco Systems, 2012


Strong demand for Mobile Workforce Management (WFM)

Mobile WFM helps increase employee responsiveness and decision-making speed

Increase in demand to enable employees to work when mobile

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

Expansion of applications through acquisitions

Expanding application breadth through organic development and acquisition, with increasing vertical industry focus

Consolidation will continue in the vendor market

Kronos acquisition of healthcare WFM provider API Healthcare Corporation

RedPrairie acquired all-commerce solutions provider Escalate Retail

Tren

ds





Need to provide integrated talent management solutions and enhanced charting and visualization are the key trends in talent management

Talent Management Solutions

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HCM Solutions (Cloud & Mobile) Talent

Management

Employee Performance

Goal Management Career Planning

Competency Management

Succession Planning Talent Review Retention

Management

Talent Management

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

Vendor Landscape


offering;


Talent Management systems market is rapidly integrating through vendor consolidation

Most users are now looking for a toolset which integrates talent management, core HR and payroll

No vendor has a perfect solution yet but all leading players are moving towards providing an integrated talent management solution

Oracle Fusion HCM), SAP (Employee Central and SuccessFactors) are essentially there now (with many little integration issues to complete), ADP and SilkRoad are each well along with a fully integrated system

Enhancing charts and visualization capabilities

Talent management vendors will continue to enhance charting and visualization capabilities in their product

Workday's faceted search integration with n-Box and ‘active’ organization charts in multiple vendor offerings

Tren

ds

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

Next-GenerationProcesses And Technology; Forrester; Hype cycle for HCM software, Jul 2013; Forbes.com; CC India Analysis;





Over time, there have been rising need for customization in learning management to adapt to the end users’ preferences

Learning Management Solutions

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Learning Management


Leadership Development

Learning Course Administration

Content Management

Collaboration Social and Informal

Learning Professional Certification

Mobile Learning

Mentoring

Learning Management

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

Vendor Landscape


offering;


Need for Personal Learning Environment (PLE)

An interface that can be manipulated to meet end-user’s needs and preferences

Know learners’ interests and gaps in knowledge and skills and proactively suggest new information courses

Saba provides Personalized Learning Experience through

Domain-specific portals - Access related companies and organizations within each vertical

Highly configurable user interface and user-defined graphical navigation

Gamification in Workplace Learning

Global game-based learning market reached $1.2 billion in 2011. and is estimated to more than double to $2.5 billion by 2015

Peoplefluent released its Workforce Explorer iPad app which includes a first of its kind gamification functionality, called “Workforce Explorer Challenge

Tren

ds

Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions) Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; Peoplefluent website; Saba website; Bersin blog; CC India Analysis





Recruiting technology is now gravitating toward customer relationship marketing focusing on candidate experience and identifying the right candidate from the entire pool

Recruitment Management Solutions

13

HCM Solutions (Cloud & Mobile) Recruitment

management

(Strategic) Workforce Planning

Requisitions Sourcing and Social

Recruitment Candidate

Engagement

Applicant Evaluation Diversity & Compliance Onboarding Talent Pools

Recruitment management

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

Vendor Landscape


offering;

Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions) Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; http://www.hrtechnews.com; Kenexa website; CC India analysis


Selection management system or Smart ATS (Applicant Tracking System)

Systems to use a combination of biometric data and proprietary algorithms to predict which candidates are likely a fit, and which are not

Kenexa provides its applicant tracking system trough its product, Kenexa 2x BrassRing

SilkRoad provides ATS in its SilkRoad OpenHire product

Video, Bigdata and Analytics on the rise

Video interviews and video resumes will be on the forefront

Help parse applicant information and predict those who are likely to be stellar performers

Workday provides mobile analytics feature in its ‘Workday Recruiting’ that allow recruiters to conduct headcount planning, job requisition, and pipeline management analytics on the go

Tren

ds




http://www.hrtechnews.com/


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

Compensation & Benefits Solutions

14



Bonus Programs Commissions Stock and Long Term

Incentives

Employee Recognition

Base Salary Administration

Wellness Retirement and

Savings Market Pricing and

Equity


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

Vendor Landscape


offering;

Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions Source: Embrace Future Trends To Deliver HRM Business Impact, Gartner 2012; HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; Forrester 2012; CC India Analysis


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, a provider of on-demand talent management, payroll, and compensation solutions and ADP’s acquired Workscape, provider of integrated benefits and talent management solutions and services

Tren

ds





Contents



Market

HCM Cloud Solution

Footprint

Contact Details

15


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

16

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 Mail to: [email protected]

Lysette Kampman

Managing Consultant People & Performance Mob: +31 6 29560779 Secretary: +31 (0)30-6898844 Mail to: [email protected]

Please get in touch with:

mailto:[email protected]

