Cloud watch on hrms solutions q2 2013_final_10072013 pre-read1. Transform to the power of digital
Cloud Watch on HCM Cloud Solutions
Summary Version
July 2013
3. 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
5. Copyright © 2013 Capgemini Consulting. All rights reserved.
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
6. Copyright © 2013 Capgemini Consulting. All rights reserved.
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
7. Copyright © 2013 Capgemini Consulting. All rights reserved.
Some examples of Lessons Learnt based upon Capgemini’s experience in implementing
HCM Cloud Solutions
7
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
8. Copyright © 2013 Capgemini Consulting. All rights reserved.
Some examples of pitfalls based upon Capgemini’s experience in implementing HCM Cloud
Solutions
8
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
10. Copyright © 2013 Capgemini Consulting. All rights reserved.
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
ManagementLeadership
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
11. Copyright © 2013 Capgemini Consulting. All rights reserved.
HCM
Solutions
(Cloud &
Mobile)
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
11
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
Trends
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
12. Copyright © 2013 Capgemini Consulting. All rights reserved.
As one of the major trends, many of the retailers & public sector industries are relying on
WFM solutions to improve productivity
Workforce Management
12
Description Vendor Example
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
Workforce
Management
Vendor Landscape
Trends
“SaaS adoption has slowly started to evolve, as the leading vendors have
now begun to offer both on-premise and SaaS solutions”
Completeness/Strength
of the offering;
HCM
Solutions
(Cloud &
Mobile)
Workforce
Management
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
13. Copyright © 2013 Capgemini Consulting. All rights reserved.
Integration challenges with Core HR, growing importance of social Talent Management are
the key trends in Talent Management
Talent Management
13
Vendor Landscape
Description Vendor Example
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
Trends
Talent
Management
“58% of the products revenues from Talent Management solutions are via
SaaS based solutions”
Completeness/Strength
of the offering;
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
14. Copyright © 2013 Capgemini Consulting. All rights reserved.
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
Description Vendor Example
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
Trends
Learning
Management
“In Learning Management, the SaaS model currently accounts for 45% of
its product revenues”
Completeness/Strength
of the offering;
Learning
Management
HCM
Solutions
(Cloud &
Mobile)
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
15. Copyright © 2013 Capgemini Consulting. All rights reserved.
Market consolidation and growth in the existing portfolio are the major trends in the field
of recruitment management
Recruitment Management
15
Description Vendor Example
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
Trends
“83% of the product revenues of recruitment solutions market was
contributed by SaaS based solutions”
Completeness/Strength
of the offering;
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 OnboardingTalent Pools
16. Copyright © 2013 Capgemini Consulting. All rights reserved.
Compensation & Benefits tools have become a component of broader Talent Management
suites and there have been significant mergers & acquisitions targets in the market
Compensation & Benefits
16
Vendor Landscape
Description Vendor Example
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
Trends
Compensation
& Benefits
“SaaS penetration in the Compensation and benefits function has gained
momentum and contributes 52% of this segment’s product revenues
Completeness/Strength
of the offering;
HCM
Solutions
(Cloud &
Mobile)
Compensation
& Benefits
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
18. 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 : ronberg@capgemini.com
Tim van der Wal
Managing Consultant People & Performance
Mob: +31 6 1503 0286
Secretary : +31 (0)30-6898844
Mail to : Tim.vander.wal@capgemini.com
Lysette Kampman
Managing Consultant People & Performance
Mob: +31 6 29560779
Secretary : +31 (0)30-6898844
Mail to : Lysette.Kampman@capgemini.com