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HRIS and cloud

  2. Business drivers from HR and IT perspective 2014-08-20 2 BUSINESS CASE
  3. Business needs Relevance Life cycle management of old legacy HR systems including local payroll and local HR systems Common situation in many companies. BPO is a viable option but not self-evident. ERP system without consolidated functionality for talent management Common variant of this which includes that an ERP system which is in place but lacks consolidated functionality for talent management Need for unified and global HR processes which are mutually reinforcing. Common situation in companies where stand alone solutions have been implemented. Need for all HR processes to interact and feed each other and use core data. For example - compensation management uses core people data and feeds into performance which in turn is the foundation for talent and succession. Consolidate IT systems in HR i.e. lower IT costs and more efficient IT management 3 BUSINESS AND IT MANAGEMENT NEEDS -TOGETHER ACT AS DRIVERS TOWARDS CONSOLIDATED SAAS SOLUTIONS
  4. Core HR system •Master register for employees •Basic data /Manager team structure •Basic HR processes Payroll including time, travel & expenses •Local vendors due to law requirements •Local due to integration with payroll Recruitment •Recruitment portal •CV database Performance Management •Goals •Performance review Learning •Training admin •Self service catalogue •e-learning portal •Certifications •Learning history One or more standalone talent modules Core HR People information (master) and basic people processes Country based (laws and regulations EXAMPLE HRIS ECOSYSTEM - ONE OR MORE NON CONSOLIDATED ISLANDS One or more stand alone talent modules Local country based payroll Talent/Succession • Talent review • Succession planning …Global ERP system Compensation • Salary revision • Job grading One or more local HR systems …. OR …
  5. EXAMPLE CONSOLIDATED SAAS ARCHITECTURE EXAMPLE VENDOR X WITH BOTH GLOBAL HR AND TALENT INTEGRATED WITH LOCAL PAYROLL Compensation management Global Core HR Consolidated view of all employees and organization •Provides access to all talent modules for all managers and employees Performance and Goals Succession Talent review Learning Recruitment Local payroll for different countries Access
  6. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Business value Compensation management New core HR system with basic people processes Performance management, talent review and succession planning Learning Recruitment STEP BY STEP PROJECT DESIGN POSSIBLE WITH MODULAR SYSTEM DESIGN Ongoing launch and training initiatives
  7. SAAS SOLUTIONS IN HR -REQUIREMENTS AND POSSIBILITIES 7  Can be part of CIO strategy where HR is a possible area for SaaS IT delivery  HR is not core business in terms of IT solutions  Compare with on premise costs  Mature and proven SaaS solutions are available today  Internal IT has problems with building and maintaining competence for small specialized areas such as HR  Less strain on internal IT resources with SaaS  Competence shift necessary in IT when we go for new internal platforms in lifecycle management  HR preparedness to adapt to best practice processes and rely on standard application configuration  Business case should focus on business value as well as lower TCO for HRIS
  8. 20/01/2015 8 TOTAL COST OF OWNERSHIP ON PREMISE -IN THEORYInitiallicenceinvestment 22%support 22%support 22%support 22%support 22%support Upgradeproject every3:rdyear Unit price TCO 5
  9. 20/01/2015 9 TOTAL COST OF OWNERSHIP ON PREMISE – IN PRACTICEInitiallicenceinvestment 22%support 22%support 22%support 22%support 22%support Lack of internal IT resources specialized in HRIS requires consultant support to use the vendors support correctly Consultant support Consultant support Consultant support Consultant support Consultant support There are often more major releases but the business cannot always manage projects for all versions. Frustration for the business to lag in functionality creates an upgrade pressure. In this case 2 major upgrades over a 5 year period. 2majorupgrades over5years 2majorupgrades over5years Unit price TCO 5 Internal SLA Internal SLA Internal SLA Internal SLA Internal SLA
  10. 20/01/2015 10 SAAS DELIVERY REWARDS CONSOLIDATION - THE MARGIN COST OF ADDING A MODULE IS LOWSaaSfeeforcore/first modulewhichincludes infrastructure (highpriceapprox70%) Add-on module1 (5-15%) Add-on module2 (5-15%) Margin cost for adding a new module is low. Alternative cost for Add-on module 2 is a new SaaS service provider relationship and possibly integration. AlternativeSaaS solutionforAdd-on module2(70%) Integration cost
  11. Functional area Consolidated SaaS solution Standalone solutions Consolidated solution X yearly SaaS fee N/A HR Core Included in consolidated solution X yearly SLA Payroll 0,5 X yearly SLA 0,5 X yearly SLA Compensation management Included in consolidated solution 0,5 X yearly SLA Performance Included in consolidated solution Manual process or 0,5 X for extra licenses in standalone solution. Talent review and succession Included in consolidated solution Manual process or 0,5 X for extra licenses in standalone solution. Learning Included in consolidated solution Manual process or 0,5 X for extra licenses in standalone solution. Potential yearly IT costs for HR 1,5 X 2 – 3,5 X 20/01/2015 11 BUSINESS CASE TCO POTENTIAL
  12. Effect Quantifiable Values Controlled workflow for managers and HR The manual excel based process is replaced with a controlled workflow with monitoring and audit trail capabilities. X less hours spent Quality Lower risk Efficient administration X less FTE Effectiveness Improved reporting X less FTE Effectiveness Quality Common process which avoid risk of extra costs due to process inefficiency for example: salary increases due to local, non-aligned manual processes with lack of decision support.. X Potential less cost increase Effectiveness Quality 20/01/2015 12 OTHER BUSINESS CASE EFFECTS
  14. Setting up SaaS based IT management 2014-08-20 14 LESSONS LEARNED
  15. INTERNAL SLA FOR CLOUD 15  Internally more generic IT services not specialized HRIS competence is still needed in an internal SLA  Integrations and file transfer  Network  Security  Technical application management (i.e. deeper technical knowledge about Fusion configuration)  Make the most of the SLA with the SaaS vendor i.e. set up efficient system administration  Vendor support portal  Named account manager for ongoing dialogue  Customer networks both supported by vendor and bi-lateral  Customer advisory board  SaaS does not remove the need for internal system specialists and experts  On the contrary! In-house specialist who can reconfigure and adapt business process configuration creates capability to respond to business needs and drive HR process alignment.  Secure support from third party application consultants when needed
  16. THE SELECTION AND EVALUATION PARADOX 16 Current solution Proposed solution Theoretical ideal We spend to much comparing this • Data privacy • Disaster recovery • Service availability • Integrations • etc. Legal requirements ...when we should consider this
  17. Security  Architectural review  Penetration tests  Rights to perform penetration tests  Regular third party test reports  ”Large vendor advantage”  Process audit reports  Rights to inspect premises 17 Data privacy  No data outside EU including disaster recovery  Named data centre  List of sub-contractor entities  Bound by same conditions as Vendor  Use EU model clauses for data management outside EU  Vendor should comply to all local legislation as a contract clause  Adherence agreements between company and other legal entities CLOUD – SECURITY – DATA PRIVACY Data processing agreement External part Company Other legal unit Adherence agreement Data processing agreement Sub-contractor
  18. GOVERNANCE/REVIEW MATRIX 18 What Who How When Penetration tests Third party or internal department Separate agreement with vendor is always required On suspicion or major architectural changes. Review third party security reports Third party conducts test. Vendor delivers tests to customers for review Regular basis i.e. yearly Review third party process audit reports Third party conducts audit. Vendor delivers audit report to customers for review Regular basis i.e. yearly List of sub-contractor entities Vendor keeps an updated list and report changes to customer. When changes occur Inspect premises Customer staff or third party Visit datacentres Follow legislation on personal data integrity Customer and vendor´s joint responsibility Follow updates and proposals for changes in legislation. Prepare actions within customer organization or vendor delivery. Continuous Vendor follow up Customer vendor management Vendor meetings to inform and possibly align strategies
  19.  Quick implementation possibilities in system requires flexible implementation partners…with  ….step-by-step approach with agile thinking and successive deliveries  “Large vendor advantage” i.e. they can deliver on extensive security and data processing requirements.  Competence build up in business necessary to keep up with new features and versions 19  Plenty of initial bugs in new systems  Secure configuration/admin services directly via support without large implementation project.  Have vendors align with partners so customers can have solution SLA:s and knowledge about co-existence and integrations.  Make sure best practice processes are in place – not just a bunch of functionality  You select a vendor not only a solution…trust on that vendors ambition and capability to be in the frontline.  Internal support  Top management support  IT strategy support  Cooperation with risk, legal and compliance etc.  Lack of understanding and resistance in some parts of IT can exist even with management support THINGS TO CONSIDER
  20.  Fredrik Rexhammar  edit-edit-public_profile 1/20/2015 20 WANT TO KNOW MORE?

Notes de l'éditeur

  1. Each step can be implemented stand-alone i.e. there is no implicit commitment to move to next step The timetable for moving to next step must be owned by customer and based on business priorities The business cases for each step must “stand on their own”