Cloud watch on hrms solutions q42013 final - preread
- 1. Cloud Watch on HCM
Summary Version
CC India, Research
December 2013
Copyright © 2013 Capgemini Consulting. All rights reserved.
- 3. Objectives, Approach and Context
Objectives and Approach
Context
Provide a single source of information on leading HR
Cloud computing is the availability of hardware, software and
solution providers across the globe
Identify leading players across HRM SaaS functionalities
The study uses publicly available information sources:
data via the internet and it represents the network of
connected computers
Software as a service (SaaS) is one of the service models
– Text line searches
offered in cloud computing along with Infrastructure as a
service (IaaS), Platform as a service (PaaS) and Network as a
service (NaaS)
– Industry reports
SaaS is a growing phenomenon in the market and has made a
– Company websites
successful penetration into mainstream Enterprise IT
– Analysts reports
Earlier, licensed on-premise software was the dominant
Authors
deployment model in production, but with time, on premise
vendors have also begun to offer SaaS based solutions
CC India,
Research services
Version Status
Final
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
Delivered in
Q4, 2013
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
Copyright © 2013 Capgemini Consulting. All rights reserved.
3
- 5. December, Q4, 2013
A sneak peek at HCM Cloud Market(1/2)
VENDOR CORNER
Oracle has enhanced its Oracle HCM Cloud and Oracle Talent Management Cloud by streamlining succession planning, extended mobile
recruitment, centralize performance feedback, etc
>> Read More on Pg 31
Workday introduced Workday day Big Data Analytics for HR and Finance
>> Read More on Pg 37
Peoplefluent launched OrgPublisher 11.2, that help deliver advanced turnkey workforce visualization reports
>> Read More on Pg 41
Kronos made significant enhancements to its mobile and tablet applications in terms of easy access, notification
alerts and geo-fencing capabilities
>> Read More on Pg 47
PARTNERSHIPS, ALLIANCES AND M&A’S
Strategic partnership between SAP and China Telecom in cloud computing to provide SAP Cloud portfolio to
small and large organizations in China
Salesforce.com and Workday strengthen their strategic partnership as they plan to integrate the entire Salesforce
and Workday product lines
Integration of SumTotal Talent Expansion Suite with Salesforce Identity to enable single sign-on across
SumTotal Talent Expansion Suite
>> Read More on Pg 35
>> Read More on Pg 38
>> Read More on Pg 44
Copyright © 2013 Capgemini Consulting. All rights reserved.
5
- 6. December, Q4, 2013
A sneak peek at HCM Cloud Market(2/2)
ANALYSTS SPEAK
Oracle Fusion HCM received Ventana Research Technology Innovation Award for business innovation
in the category of HCM
>> Read More on Pg 32
SuccessFactors named a Leader in 2013 IDC MarketScape Integrated Talent Management Report for Western Europe
Kronos named Worldwide Leader in Workforce Management solutions by IHS Inc
Raet named as the most innovative Dutch organization in the Erasmus competition and
innovation Monitor
>> Read More on Pg 35
>> Read More on Pg 47
>> Read More on Pg 74
EVENTS
Learning Technologies Conference & Exhibition, organised by Kenexa to be held on 29th-30th January, 2014
in Olympia 2, London, UK
HR Directors Business Summit to be held on 4th-5th February, 2014 in The ICC, Birmingham, UK
Human Resource Summit 2014 will be held in Barcelona from 8th-10th October, 2014
>> Read More
>> Read More
>> Read More
Copyright © 2013 Capgemini Consulting. All rights reserved.
6
- 8. HCM SaaS solutions can be categorised into Core HR, Workforce, Talent, Learning,
Recruitment Management and Compensation & Benefits
HCM Cloud Solution Footprint
Base Salary
Administration
Bonus Programs
Commissions
Employee Records
Payroll
Benefit
Administration and
Enrolment
Salary and wage
structure
Jobs and positions
Employee
Engagement
Compliance
Organisational
structures
Absence
Management
Time reporting
Workforce
scheduling and
assignments
Attendance
Productivity Analysis
Paid Time Off
Labor Cost
Distribution
Employee
Performance
Competency
Management
Goal Management
Succession Planning
Career Planning
Wellness
Talent Review
Core HR
Stock and Long Term
Incentives
Retirement and
Savings
Employee
Recognition
Market Pricing and
Equity
(Strategic) Workforce
Planning
Applicant Evaluation
Requisitions
Diversity & Compliance
Sourcing and Social
Recruitment
Candidate
Engagement
Compensation
& Benefits
Recruitment
management
HCM
Solutions
(Cloud &
Mobile)
Workforce
Management
Talent
Management
Learning
Management
Onboarding
Leadership
Development
Learning Course
Administration
Content
Management
Mobile Learning
Mentoring
Collaboration
Social and Informal
Learning
Retention
Management
Professional
Certification
Source: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2012; CC India Analysis
Copyright © 2013 Capgemini Consulting. All rights reserved.
8
- 9. Organizations tend to integrate social networking activities to leverage Core HR data
activities to drive best-in-class business results
Core HR Solutions
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”
Employee Records
Payroll
Benefit
Administration and
Enrolment
Salary and wage
structure
Jobs and positions
Employee
Engagement
Compliance
Organisational
structures
Trends
Description
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
Companies need to move away
Focus on full
technology
integration
Completeness /
Strength of the
offering;
from information silos to unified
Core HR systems
Solutions must centralize the HR
management throughout the life
cycle of employees
Vendor Example
Infor’s HCM app fosters collaboration
by displaying social networking
activities and documents from within
the people tracking software
Core HR
HCM
Solutions
(Cloud &
Mobile)
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
Vendor Landscape
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/
Copyright © 2013 Capgemini Consulting. All rights reserved.
9
- 10. WFM consolidation will continue to occur in the vendor/provider market through
partnerships and acquisitions across the industries
Workforce Management Solutions
Workforce
Management
“SaaS adoption has slowly started to evolve, as the leading vendors have
now begun to offer both on-premise and SaaS solutions”
Time reporting
Absence
Management
Attendance
Workforce scheduling
and assignments
Paid Time Off
Productivity Analysis
Trends
Description
Strong demand for
Mobile Workforce
Management
(WFM)
Mobile WFM helps increase employee
Completeness /
Strength of the
offering;
Vendor Example
Kronos licensed WFM solutions
responsiveness and decision-making
speed
Increase in demand to enable employees
to work when mobile
Expanding application breadth through
Expansion of
applications
through
acquisitions
organic development and acquisition,
with increasing vertical industry focus
Consolidation will continue in the vendor
market
Labor Cost
Distribution
HCM
Solutions
(Cloud &
Mobile)
Workforce
Management
to more than 250,000 employees
across a wide variety of industries
Kronos acquisition of healthcare
WFM provider API Healthcare
Corporation
RedPrairie acquired all-commerce
solutions provider Escalate Retail
Vendor Landscape
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
Copyright © 2013 Capgemini Consulting. All rights reserved.
10
- 11. Need to provide integrated talent management solutions and enhanced charting and
visualization are the key trends in talent management
Talent Management Solutions
Talent
Management
“58% of the products revenues from Talent Management solutions are via
SaaS based solutions”
Employee
Performance
Competency
Management
Goal Management
Succession Planning
Talent Review
Career Planning
Retention
Management
Talent Management
systems market is
rapidly integrating
through vendor
consolidation
Enhancing charts
and visualization
capabilities
Completeness /
Strength of the
offering;
Vendor Example
Most users are now looking for a toolset
Trends
Description
Oracle Fusion HCM), SAP (Employee
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
Talent management vendors will
continue to enhance charting and
visualization capabilities in their product
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
HCM
Solutions
(Cloud &
Mobile)
Talent
Management
Workday's faceted search
integration with n-Box and
‘active’ organization charts in
multiple vendor offerings
Vendor Landscape
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;
Copyright © 2013 Capgemini Consulting. All rights reserved.
11
- 12. Over time, there have been rising need for customization in learning management to
adapt to the end users’ preferences
Learning Management Solutions
Learning
Management
“In Learning Management, the SaaS model currently accounts for 45% of its
product revenues”
Leadership
Development
Learning Course
Administration
Content
Management
Mobile Learning
Mentoring
Collaboration
Social and Informal
Learning
Professional
Certification
Description
Trends
An interface that can be
Need for Personal
Learning
Environment
(PLE)
Gamification in
Workplace
Learning
Completeness /
Strength of the
offering;
manipulated to meet end-user’s
needs and preferences
Know learners’ interests and gaps
in knowledge and skills and
proactively suggest new
information courses
Global game-based learning
market reached $1.2 billion in
2011. and is estimated to more
than double to $2.5 billion by 2015
Vendor Example
Saba provides Personalized Learning
HCM
Solutions
(Cloud &
Mobile)
Experience through
Domain-specific portals - Access related
companies and organizations within
each vertical
Highly configurable user interface and
user-defined graphical navigation
Learning
Management
Peoplefluent released its Workforce
Explorer iPad app which includes a first
of its kind gamification functionality,
called “Workforce Explorer Challenge
Vendor Landscape
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
Copyright © 2013 Capgemini Consulting. All rights reserved.
12
- 13. 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
Recruitment
management
“83% of the product revenues of recruitment solutions market was
contributed by SaaS based solutions”
(Strategic) Workforce
Planning
Requisitions
Sourcing and Social
Recruitment
Talent Pools
Applicant Evaluation
Diversity & Compliance
Trends
Description
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
Video interviews and video resumes
Video, Bigdata
and Analytics on
the rise
Completeness /
Strength of the
offering;
will be on the forefront
Help parse applicant information and
predict those who are likely to be
stellar performers
Candidate
Engagement
Onboarding
Vendor Example
Kenexa provides its applicant
tracking system trough its product,
Kenexa 2x BrassRing
SilkRoad provides ATS in its SilkRoad
OpenHire product
HCM
Solutions
(Cloud &
Recruitment Mobile)
management
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
Vendor Landscape
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
Copyright © 2013 Capgemini Consulting. All rights reserved.
13
- 14. 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
Compensation &
Benefits
“SaaS penetration in the Compensation and benefits function has gained
momentum and contributes 52% of this segment’s product revenues
Base Salary
Administration
Bonus Programs
Commissions
Stock and Long Term
Incentives
Employee Recognition
Wellness
Retirement and
Savings
Market Pricing and
Equity
Description
Trends
Compensation
vendors leverage
pay-forperformance
Compensation specialists leverage
the link between rewards and
performance
There have been significant
Mergers &
Acquisitions
Completeness /
Strength of the
offering;
mergers and acquisitions in the
compensation market during the
past few years
Vendor Example
Workscape added performance to its
Compensation & Benefits capabilities
Compensation
& Benefits
HCM
Solutions
(Cloud &
Mobile)
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
Vendor Landscape
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
Copyright © 2013 Capgemini Consulting. All rights reserved.
14
- 16. Want to know more?
Please get in touch with:
Ronald van den Berg
Peter Speleers
Andreas Stålbäck
Principal Consultant People & Performance
Mob: +31 (0)6 – 15030294
Secretary: +31 (0)30-6898844
Mail to: ronberg@capgemini.com
Practice Manager HCM Technology
Transformation Services
Consultant
Tim van der Wal
Hannele Koskenmäki
Mårten Nilsson
Principal Consultant People & Performance
Mob: +31 6 1503 0286
Secretary: +31 (0)30-6898844
Mail to: Tim.vander.wal@capgemini.com
Managing Applications Consultant
Consultant
Mob: +358405108973
Mail to:
hannele.koskenmaki@capgemini.com
Mob: + 46 702925957
Mail to: marten.nilsson@capgemini.com
Lysette Kampman
Hugo Ruiz
Ronan How
Managing Consultant People & Performance
Mob: +31 6 29560779
Secretary: +31 (0)30-6898844
Mail to: Lysette.Kampman@capgemini.com
Managing Consultant
UK HR Cloud Lead
Mob: 0034-647746053
Mail to: hruizlop@capgemini.com
Mob: +447891158643
Mail to: ronan.how@capgemini.com
Mob: +3227081666
Mail to: peter.speleers@capgemini.com
Mob: + 46703395607
Mail to: andreas.stalback@capgemini.com
Agra Fernando
HCM Consultant
Mob: +49151402504 60
Mail to: agra.fernando@capgemini.com
Copyright © 2013 Capgemini Consulting. All rights reserved.
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