Cloud Watch on HCM Summary Version

Copyright © 2014 Capgemini Consulting. All rights reserved.

Cloud Watch on HCM Summary Version CC India, Research

March 2014


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

Q1, 2014

Objectives and Approach Context


Contents



Market

HCM Cloud Solution

Footprint

Contact Details

4


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

5

March, Q1, 2014

Successfactors has introduced ‘SuccessFactors Presentations’, a tool which use presentations to automate and improve the quality of talent review process >> Read More on Pg 34

Workday introduced latest update, Workday 21, which includes more than

240 new HR and finance features >> Read More on Pg 37

Peoplefluent introduced Talent Management Suite with performance analytics and pervasive video >> Read More on Pg 41

Kronos introduced Workforce Task Management to its Workforce Tablet which delivers real-time,

location-specific store execution information to retailers >> Read More on Pg 46

VENDOR CORNER

Cornerstone Learning Cloud connects directly with Workday HCM through a Workday Cloud Connect >> Read More on Pg 49

Lumesse and HireVue entered into a global partnership to expand the talent acquisition

reach and functionality of Lumesse TalentLink >> Read More on Pg 55

NGA Human Resources and Securex, a HR services provider are collaborating in Belgium, Luxembourg

and France and have now extended their partnership to the Netherlands >> Read More on Pg 67

PARTNERSHIPS, ALLIANCES AND M&A’S


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

6

March, Q1, 2014

Peoplefluent was recognized as a leader for vendor management systems (VMS) in both the

‘VMS SOW/Project Capabilities’ and ‘VMS Contingent Capabilities’, by Forrester >> Read More on Pg 40

Sumtotal’s ElixHR Platform was awarded a Gold Brandon Hall Group Excellence Award

for ‘Best Advance in Creating a Fully Integrated Talent Management Platform’ >> Read More on Pg 43

Ventana Research named Kronos the top “Hot” vendor in workforce management in its

Value Index for Workforce Management >> Read More on Pg 46

ANALYSTS SPEAK

HR Technology, a Conference and exposition on HR technology to be held on 7th-10th October, 2014 in Las Vegas >> Read More

Human Resource Summit 2014 will be held from 8th-10th October, 2014 in Barcelona >> Read More

HR Tech Europe 2014 to be held on 23rd-22th October, 2014 in Amsterdam >> Read More

EVENTS

http://www.hrtechnologyconference.com/about.html

http://www.summit-events.com/Human-Resource-Summit/index.html

http://www.summit-events.com/Human-Resource-Summit/index.html

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

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


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

8

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 “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

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

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.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”

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; Hype Cycle for Human Capital Management Software, Gartner 2013


Adoption of integrated WFM solutions

Organizations are looking for integrated WFM solutions due to market consolidation in industries like healthcare and the emergence of specialized needs such as fatigue management in regulated industries

Kronos workforce central puts time and attendance, scheduling, absence management, HR labor analytics etc. into a single integrated WFM system

Improvement of workforce analytics reporting and visualization

Traditional BI providers like Oracle, SAS, SAPare improving their analytics reporting flexibility, usability and visualization options via acquisitions or organic development

Large HR/payroll service providers (e.g., ADP, Ceridian, Ultimate Software) have significantly strengthened their workforce analytics applications and offerings

Tren

ds


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

Talent Management Solutions

11

HCM Solutions (Cloud & Mobile) Talent

Management

Employee Performance

Goal Management Career Planning

Competency Management

Succession Planning Talent Review Retention

Management

Talent Management

“The market for integrated talent management systems will reach nearly $5 bn in 2014”


Integrated talent management systems is the new focus to solution providers

ERP providers like Oracle, SAP and Workday etc. are focusing on incorporating analytics platforms, mobile interfaces in their HR solution offerings

Offering solutions that enable them to configure integrations to third party HCM systems of record through the use of standards-based tools

Oracle Talent Management Cloud delivers end-to-end talent management with a single, integrated solution that enables organizations to recruit, nurture, and retain top talent

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: Global Human Capital Trends 2014,Deloitte University Press 2013; 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

12

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”


Advancement of Social learning platforms

Most of the corporate learning vendor offerings incorporate social software features or integrate with enterprise social tools to provide employees and other stakeholders with an engaging learning environment

IBM’s Kenexa provides Social Learning Management System contains learning management functionality to administrate, document, track, report and deliver content and courses in support of classroom, online, mobile and social learning

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; Hype Cycle for Human Capital Management Software, Gartner 2013; http://www.upsidelearning.com/blog/index.php/2012/09/18/4-key-emerging-trends-in-lms/; CC India Analysis

http://www.upsidelearning.com/blog/index.php/2012/09/18/4-key-emerging-trends-in-lms/












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”

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; Hype Cycle for Human Capital Management Software, Gartner 2013; CC India analysis


Social recruitment and ATS(Application tracking system)

Although the ATS market is mature, social recruitment is dynamic and growing rapidly

Tools to manage the interactions and optimize the candidate experience have grown

Oracle Taleo Social Sourcing Cloud Service is a referral recruiting tool integrated with leading social networks such as Facebook, LinkedIn, and Twitter

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 and job requisition 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

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 Solutions application

footprint

Contact Details

15


Please get in touch with:

Want to know more?

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]

Peter Speleers

Practice Manager HCM Technology Transformation Services

Mob: +3227081666 Mail to: [email protected]

Hannele Koskenmäki

Managing Applications Consultant


Andreas Stålbäck

Consultant

Mob: + 46703395607 Mail to: [email protected]

Hugo Ruiz

Managing Consultant

Mob: 0034-647746053 Mail to: [email protected]

Ronan How

UK HR Cloud Lead


Agra Fernando

HCM Consultant

Mob: +49151402504 60 Mail to: [email protected]

mailto:[email protected]















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