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The Talent Management Technology Debate: ERP versus Best of Breed
The Talent Management
Technology Debate: ERP versus
Best of Breed
Host of these Best of Breed solutions. In This key action in a recruitment process
Welcome to the great debate over IT this model, software is hosted by the is far more critical to the overall effec-
Solutions for Talent Management. Today vendor and it’s the same application tiveness of recruiting than functionality
we will be talking to Tauna Jecmen, the functionality that is available to all of like job cards and search agents. The
Talent Management lead for Accenture’s the customers. other key factor impacting functional-
Human Capital Management Solutions ity is the vendor’s product road map.
One of the things many organizations
who will be giving us an insight into Host
Accenture’s perspective and the com- really like about Best of Breed solutions
That is very interesting Tauna. is the frequency of the enhancements
parative benefits of two approaches What should organizations con-
to effective talent management: ERP to the application, but prospective
sider when they are looking at Talent buyers often feel or realize that in the
(Enterprise Resource Planning Solutions) Management Solutions?
and Best of Breed Software. Software-as-a-Service model, you have
to accept the enhancement; you don’t
Tauna Jecmen have the option to not upgrade.
Most organizations find themselves
Thank you for joining us today. in a classic debate between HR and Host
IT, where HR is primarily making Tauna, it’s clear that functionality is not
Tauna Jecmen their decisions based on functional- necessarily as simple of a consideration
Offering Lead for Talent Management ity and thus they are looking to Best as it first appears. What complicates
of Breed solutions and IT’s main the HR technology landscape criteria?
Well HR technology has really come a
concern is maintenance in trying
long way in a very short period of time.
to leverage existing technology and
If you look at the markets for core HR, Tauna Jecmen
thus they are typically choosing the
so traditional HR management systems,
ERP Solutions, but it’s really not that Well in the HR technology landscape
it’s very mature with the ERP Solutions
easy. Functionality and HR Technology space, I would look at 3 main points to
like SAP and Oracle as the clear winners
landscape are two considerations that consider about the landscape - integra-
from the application perspective. The key
have many many layers and additional tion, implementation effort and appli-
trend though that we are seeing is that
factors that complicate the picture. cation support.
the definition, especially for global orga-
nizations of core HR is changing, payroll
is out and talent management is in. Host Let’s take Integration first. Integration
is clearly essential to successful tal-
It seems like comparing functionality
ent management solutions and we
If you look at Accenture’s top ten larg- of one solution to another would be
are not just talking about Integration
est client projects currently underway in fairly simple, why is it complicated?
from one function to another like
the Human Capital Management space, from Compensation to Performance
seven out of those ten includes some Tauna Jecmena Management for pay for performance
element of talent management that def- The focus on functional require- but also integration with the core HR
initely was not the case ten years ago. ments is often and mistakably on the data, so, employee, organization, job
The fundamental point is that HR isn’t bells and whistles of an application, data. ERP Solutions clearly have an
first and foremost about payroll anymore instead of where organizations should advantage when it comes to integration
and talent management functions like be focusing. They should be focusing with the core HR data, though you do
performance management and learning on the ease of use of primary actions see more and more Best of Breed solu-
are really viewed as strategic impera- of a process and in order to make tions offering talent management suites
tives. In the talent management space it clear by what I mean by primary that provide the integration between
the market is flush with technology actions of a process let’s take the the Talent functions and potential
solutions for most areas within talent recruitment process as an example. options for integration with core data.
management especially if you are look- One of the key actions of the recruit- IT organizations need to have a strategy
ing at learning recruitment and perfor- ment process is the ease with which a for how to accomplish the needed inte-
mance management. You have a classic hiring manager can create a requisi- gration when Best of Breed applications
David and Goliath situation where major tion. Can she select from a drop down are involved.
ERP vendors are in competition with list a position that has already been
much smaller Best of Breed vendors. approved for fulfillment? Does that Second, timely implementations are
position already come pre-populated obviously a goal for many IT projects
While there is a lot of debate, there is with a job definition or the require- and not just to please business stake-
no clear victor. The debate is also fuelled ments for that particular position? holders to offer key costs low. With
by the emergence of Software-as-a- Software-as-a-Service model it’s almost
Service as the primary model for delivery always a given but it will require less
time to implement a Best of Breed solu- important on the functionality topic to
tion and an ERP Solution. From a total remember the impact of integration on
cost of ownership perspective however, functionality. In a highly advanced solu-
organizations do need to consider the tion, integration of core data, including
perpetual annual license fees. talent data, is a vital attribute.
Third, let’s look at application sup- For essential areas that is the talent
port. Either there’s a historical tension management functions that are essen-
between HR and IT to put it lightly. Most tial to core HR, but are not necessarily
HR organizations that offer Software-as- where rich functionality is required, ERP
a-Service handling solutions find them- Solutions are typically the most appro-
selves longing for the day where they priate choice. And then for basic areas
once walked downstairs or across the that’s talent management functions
hall to their IT department for support. that are required by the organization at
In the software-as-a-service model, the a minimum level, organizations really
HR team now is often working directly should focus first on leveraging their
with the vendor typically via a portal or existing ERP Solution.
a 800 number to try and troubleshoot
and resolve any critical issues. HR orga-
nizations really often need to develop And just one final point, organizations
greater technical competency in order really ever need process excellence in
to effectively communicate with the every talent management function.
Host Thank you for sharing these insights
It doesn’t sound like there is a clear with us Tauna.
answer to ERP versus Best of Breed
debate. What advice would you give Tauna Jecmen
to an organization considering a talent Thank you very much for allowing me
management implementation? to provide my perspective. It’s always
fun to discuss the ERP versus the Best
Tauna Jecmen of Breed debate.
It’s imperative for organizations to have
a clear understanding of talent manage- Host
ment and the role it’s going to play in
And with that I would like to now
their overall HR strategy. They need to close this podcast and thank you all for
be brutally honest about their current listening. To find out more about our
technology and brutally honest about Human Capital Management Solutions,
their level of sophistication they need please visit www.accenture.com/hcm.
for each one of the talent manage-
ment areas. I encourage organizations
to understand the strategic importance
of the individual talent management
functions and then to use a three-tiered
categorization to help define the type
of technology support that is going to
be required, and those three tiers being
strategic, essential or basic.
For strategic areas, those talent manage-
ment functions where the organization
has deemed them to be critically impor-
tant to the business strategy, organiza-
tions should really look first at Best of
Breed Solutions that typically are going
to offer richer functionality. Again, it’s