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NGA Human Resources confidential. All rights reserved.
In this webinar we identify the growing demand for cloud
based HR services and the challenge of managing and
maintaining this. We provide an understanding of the
longer-term impact of maintaining cloud applications and
the why application maintenance is so critical for
business success.
The Secret toCloud HR Success? Happy Apps!
Recorded Webinar
NGA Human Resources confidential. All rights reserved.
Welcome
Raul Camacho
Cloud Application Services
Global Director
Pete Tiliakos
Principal Analyst
2
NGA Human Resources confidential. All rights reserved.
5 Big Challenges That Companies Face With Application Management
4
Talent
Compliance
Adoption
Integration
Speed of
Innovation
© 2017 by NelsonHall.
Pete.Tiliakos@nelson-hall.com5NelsonHall Proprietary – Not for distribution without permission
Adoption of cloud HR platforms continues to drive market growth for cloud based HR services
8%
44%
14%
35%
Cloud HR Market Share by Service Type
Consulting
Implementation
AMS
BPaaS
• The global cloud based HR services market is estimated to be $15.2bn in 2016 – growing at ~6.3% CAAGR to over $20.6bn by 2021
• Implementation accounts for the largest portion at ~44%
• AMS services is seeing highest growth rate at ~11.7% CAAGR –nearly double all other services
© 2017 by NelsonHall.
Pete.Tiliakos@nelson-hall.com6NelsonHall Proprietary – Not for distribution without permission
The need for a more “future proof”, SaaS based HR platform is pressing, and for many organizations its the kernel for achieving the HR transformation desired
HR operating model transformation
• Catalyst for standardization of HR processes across business lines
• Single, global HCM platform providing access to real-time HR data
• Enhanced employee experience and engagement features
Improved cost structure & efficiencies
• Lower, more predictable cost to operate
• Costs shift to subscription based (OPEX) vs. large investment (CAPEX)
Flexibility and scalability
• Rapid deployment and ROI realization
• Automated upgrades
• Ease of adding modules
Key Drivers for Cloud HCM Adoption
© 2017 by NelsonHall.
Pete.Tiliakos@nelson-hall.com7NelsonHall Proprietary – Not for distribution without permission
Top drivers for cloud based HR services arrangements include:
Cloud Based HR BPaaS Drivers
1. Streamline and standardize existing HR processes to a more manageable model
2. Allows HR to return focus to strategic business initiatives 3. Improved user experience4. Improved compliance and risk management5. Lack of time, skills, or expertise to operate internally in a HR cloud
environment6. Agility/ability to support a mobile workforce7. Data-driven decision-making through embedded analytics8. Provides a SaaS based subscription cost model for predictable HR
operating costs
© 2017 by NelsonHall.
Pete.Tiliakos@nelson-hall.com8NelsonHall Proprietary – Not for distribution without permission
As cloud based HR platform adoption has grown, early adopters and new buyers are seeking support to optimize their investment, but most lack the skill to do so in house
✓ Cloud HCM buyers need to optimize configuration of cloud systems to achieve the full value of their investment, and maintain peak performance
✓ Cloud technology is far more dynamic and “intelligent” than its legacy predecessors, leading organizations to the realization that they lack the skill and resources internally to maintain cloud systems properly
✓ Supporting a cloud system, (most likely) isn’t core to their business and is best left to providers with proven experience in implementing, optimizing and maintaining a more
TREND
Application management services (AMS) is the highest growing cloud HR service line at ~11.7% CAAGR – nearly double all other cloud services
As a result…
• Cloud AMS has become a leading gateway service for HR BPaaS providers
• 70% of vendors offer AMS as a standalone service
• 40% of vendors offer AMS to support multiple platforms
DRIVER
© 2017 by NelsonHall.
Pete.Tiliakos@nelson-hall.com9NelsonHall Proprietary – Not for distribution without permission
NelsonHall: Cloud Based HR Services NEAT (SuccessFactors)
NGA Human Resources confidential. All rights reserved.
“If you want to achieve the real value of cloud,
you need to take advantage of the continuous
innovation that it offers.”
Why Application Maintenance is Critical For Business Success
10
Quality of user and system support
Internal Drivers
End user satisfaction, improved employee productivity
Reliable & standardized
processes, policies &
procedures
Skilled
resources,
pool of
experts
Key metrics
&
SLA’s
Business applications performance
Business performance cost effective transparent predictable
Multi-skilled
team,
HR & IT
experience
Guaranteed
legislative
compliance
NGA Human Resources confidential. All rights reserved. 11
In A Digital World
Every Minute Counts For Your
Business!
When you are not maximizing innovation and
new features, you are missing out on
opportunities for efficiency improvement
across your HR process landscape.
Maximum application performance requires
life-long maintenance.
Copyright NGA Human Resources. All rights reserved. 12
Get The Most Out of Your HR Services In The Cloud
1Ensure adequate
room for change
management
2Know how to
handle complex
integrations
3 Establish proper
roles and ensure
system security
4Focus on
improving end
user adoption
5Have the skills
to ensure
compliance
Copyright NGA Human Resources. All rights reserved.
NGA Cloud AMS Service Capabilities
13
Application
Management
Services
Release Management
• Management, Implementation
and Testing of New Releases
and Enhancements
• Refresh Management
• Yearly Roadmap plan
Application Maintenance
• Corrective, Adaptive and Preventive
• All Configuration; Provisioning, XML,
Advanced Reporting Tools, Boomi, HCI
• ITIL Processes Framework
Configuration Changes
• Catalogue of pre-priced
Change Requests
• Ad-hoc Change Requests
Security Management
• Management of Application
Security
• Role Based Permissions
Business Continuity Management
• Continuity Planning and Disaster
Recovery Support in line with
approved plans
Documentation Maintenance
• Technical & configuration document updates
Processing Support
• Support and Management
of Automated Processes
• Execution of agreed mass
data updates
• Execution of agreed
routine reports
Integration and Performance Monitor
• Monitoring and Troubleshooting Data
mapping and 3rd party integration issues
• Web Performance Monitoring and
Reporting
User Support
• Technical and Operational
Support
• Navigation Support
Automation
SLA
commitmentCompliance
Application
Management
Services
Copyright NGA Human Resources. All rights reserved.
Full Featured vs Lightweight
Our proposal is based on a holistic and flexible approach:
14
Full Featured Contract
Expert Allocation
Application Management Services (AMS) including SLA, penalties, responsibility matrix, with full statement of work definition.
Application Management Services (AMS) lightweight pay per use entry point contract, including certified resources under best commercial effort policy to fit all budgets.
Copyright NGA Human Resources. All rights reserved. 15
Life After Go-Live!
“Happy Apps are the success of your digital journey it’s all about how you handle your HR apps. Make sure you get the strategy right – it will help you to manage complexity and minimize business risks and reduce costs”
Raul Camacho
Director Cloud Support Services,
NGA Human Resources
NGA Human Resources confidential. All rights reserved.
International Reinsurance Group Produces Costs Saving of 30%
16
With ~ 1,100 employees operating
in 13 countries, this company
needed to upgrade its existing
legacy SAP HR system and
harmonize its mix of payroll
systems globally.
• Implementation of SuccessFactors Employee Central and Core
HR processes, including Employee Central Payroll, Talent
Management, time-off, and timesheets
• Additional integration consulting services
• Application management services for the SuccessFactors suite and integration ongoing maintenance
S
O
L
U
T
I
O
N
• Replaced the legacy on-premise HR system with a cloud based
SuccessFactors HCM platform globally
• Consolidated and upgraded payroll technology globally
• Achieved 30% savings on annual hosting and application
maintenance cost
R
E
S
U
L
T
S
NGA Human Resources confidential. All rights reserved.
International Industrial Cabling Group Improves Business Processes
17
With ~ 26,000 employees
operating in 30 countries, this
company needed to harmonize HR
processes across divisions and
countries, move to a single source
of truth for HR, remove double
data entry and resolve integration
into a unique HR platform for all
employees, with an end-to-end
support experience.
• Implementation of SuccessFactors for Core HR and Talent
Management including Recruitment and Performance and Goals
• Change Management for employee adoption
• Data integration between local payroll and all HR legacy systems
• Application Management Services for the full SuccessFactors suite
including integration, release management and ongoing change
management
• XtendHR Apps deployed for case management
S
O
L
U
T
I
O
N
• One fully integrated HR support experience to better serve HR
strategy, HR business and focus on HR processes
• Benefit from ongoing alignment and optimization of all major HR
processes
• Facilitate global/local reporting and enable accurate HR data
collection and monitoring
• Business management recognition for the quality of the services
delivered by HR
R
E
S
U
L
T
S
NGA Human Resources confidential. All rights reserved.
International Industrial Group Harmonizes Global Support Processes
18
With ~ 80,000 employees operating
in 70 countries, this company
needed to harmonize their global
support processes including
release management for Employee
Central, case tools, and guaranteed
Service Levels. Real-time
monitoring and timely responses.
• Application management services including application support and
enhancement services
• Use of standardized HR processes, tools, and metrics
• Tailored services aligned to master service agreements and
governance
• NGA XtendHR Case Management Central SAP Cloud Platform
extension
S
O
L
U
T
I
O
N
• Transition activities completed on time
• Steady state phase according to SLA’s
• Increased employee adoption based on continuous enhancement
of localized platform functionality and training
• Integrations working
• All in the same platform
• HR Global support model optimization
R
E
S
U
L
T
S
Copyright NGA Human Resources. All rights reserved.
Flexible and Extensible Application Management Services for Your Unique Business Needs
Start where you want
Extend where you need
Core HR
Recruiting
Performance
Learning
Onboarding
Analytics
Compensation
<your extensions and new apps here>
Payroll
Succession
<your analytics and reports here>
<your integrations here>
19
Copyright NGA Human Resources. All rights reserved.
Find Out More
The 5 Most Overlooked Elements when Managing HR in the Cloud
Download:
http://resources.ngahr.com/
5-most-overlooked-
elements-when-managing-
hr-cloud
Learn more, visit: http://resources.ngahr.com
Application Management Services for Workday
Download the brochure:
http://resources.ngahr.com/application-
management-services-workday
Application Management Services for SuccessFactors
Download the brochure:
http://resources.ngahr.com/cloud-application-
management-successfactors
NelsonHall NEAT Report Cloud-Based HR Services SAP SuccessFactorsDownload: http://resources.ngahr.com/nelsonhall-neat-report-cloud-based-hr-services-sap-successfactors
21
Pete Tiliakos
Principal Analyst, NelsonHall
Pete.Tiliakos@nelson-hall.com
Raul Camacho
Cloud Application Services Global Director, NGA Human Resources
Raul.Camacho@ngahr.com
More Questions? Contact us.
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