Cloud Watch on HCM applications - Capgemini

Transform to the power of digital

Cloud Watch on HCM applications

Ronald van den Berg

19 september 2012

Contents

Vendor Landscape

Market trends

Cloud Watch

2

Copyright © 2012 Capgemini Consulting. All rights reserved.

3

Cloud solutions will become in 3 years the default model for HCM solutions for large enterprises

• The "traditional" HRMS” are now off the Hype Cycle, and a lot of the new license spending is going to a new wave of vendors.

• Cloud solutions are no more a hype and become faster than expected

• The HRMS Market Has A Moderate Growth Rate, But SaaS Is Growing Faster • SaaS revenue is growing, nearly twice as fast as the HRM application market as a whole


There is a momentum for acquisitions…


Capgemini developed the Cloud Watch for HCM..

Contents

Vendor Landscape

Market trends

Cloud Watch

6


Firms evaluating both Cloud solutions, as well as traditional options

Traditional

Often, differences in business benefits, flexibility, are as important, if not more important than

costs, when comparing options

Cost - Large upfront cost, typically cheaper in the

long run

Flexibility - More flexible customization options but

typically more difficult, expensive, & time-

consuming to them

Business benefits – Lost opportunity cost as

upgrades take longer to be deployed

Cost - Cheaper upfront, typically more expensive

in the long run

Flexibility - Easier to implement but limited

customization options

Business benefits – Automatic upgrades &

shorter deployment cycle

Cloud


Cloud solutions offers a lower cost of ownership over On-premise in the short-run (< 3 years)

When cost of upgrades are taken into consideration in the long-run, the break-even point for On-Premise

becomes much cheaper than Cloud solutions (for a given cycle)

SaaS. One time transition hit then simple Linear increment for subscription payments

On Premise. Big hit for licensing, hardware and transition. Then low cost of maintenance Until next cycle

cost

time


While HR Cloud solutions has certain benefits, issues related to customization, security & unplanned upgrade cycles can affect the choice of adoption

Concerns HR Cloud solutions

No customizations

Security

Fixed planning for upgrades


• Expontial growth on Cloud solutions, almost 16%

• Stable, light decrease, for on-premise solutions

Subscription based HRM solutions market with an exponential growth of 15.65% is predicted by 2014

10

Subscription1 revenue to Licensed revenue

0

1,000

2,000

3,000

4,000

5,000

6,000

2010 2011 2012 2013 2014

15.65%

Subscription License

-3.38%

Growth rate of license and subscription fee in HRMS, Forrester Research , 2010-2014


Talent management is expected to have higher growth with 16.5 percentage where Workforce Management (mobile) will be the future growth.

11

Global HCM applications growth in USD mn

Applications 2010 2011 2012 2013 2014 CAGR

Learning Management 482.76 526.21 563.04 602.45 644.62 7.9%

Compensation & Benefits 835.32 902.14 965.29 1032.86 1094.83 7.0%

Talent Management 636.85 738.74 864.33 993.98 1192.78 16.5%

Recruitment Management 986.65 1055.72 1150.73 1231.28 1329.79 8.0%

Workforce Management 1497.52 1572.4 1635.3 1717.06 1785.74 5.4%

Core HRMS 4348.32 4739.67 5118.84 5477.16 5915.33 8.2%


Mobile HR has potential to add value through all layers of the organization…..

Executive ► Exception Handling

Access to key HR metrics

Navigate the Org. Chart

HR Business Partner ► Information on call

Employee data and analytics

HR Reports and KPI’s

Meeting preparation and follow up

Manager ► Efficiency and Insight

Workflow approvals

Team Information

Selected HR Processes

Employee ►Efficiency and Engagement

“Every-day” transactions (requests, Time Entry, Pay Slip, Team Calendar, Employee Lookup)

Know the HR process and data stakeholders - Where is the most value derived from mobile access?

3,49

3,54

3,68

3,76

Reduce manualtransactions

Improveengagement

Improve interaction

Improve employeeefficiency

Empower workers to do their work at any time from anywhere on any device

Increase workflow response times with alerts and notifications

Deliver the insight people need to make better decisions in the moment

Increase the adoption of HR processes to better leverage the investment in back-end HR system

Note: On a scale of 1 to 5, respondents in a survey of 230 organizations rated these as their most important goals in using mobile HR apps – Source: Aberdeen Group

....and organizations expect to benefit from improved employee efficiency, interaction, engagement, reduced manual transactions etc.

Benefits from Implementing Mobile HR

Contents

Vendor Landscape

Market trends

Cloud Watch

13


Workforce management

HRMS SaaS can be categorized into core HRMS, compensation & benefits, talent, learning, recruitment and workforce management

HRMS SaaS Solution blueprint

14

HRMS Solution

HRMS Solutions (Cloud & Mobile)

Learning management

Recruiting management

Compensation & benefits

Talent management

Core HRMS

Payroll Employee

records Salary

administration Compliance

Jobs & Positions Shared & self

service

HR Analytics

Time &

Attendance

Absence

management

Workforce

scheduling

Performance

Succession

planning

Career planning

Goals

Organisation

charting

Competency

management

Course

management

Virtual

classroom

Mentoring Learning content

management Applicant

tracking

Sourcing

On-boarding

Social recruiting/

networking Strategic Workforce

planning

Pay-for-

performance

Stock based and

deferred

compensation

Incentive

compensation

Market

comparisons

Benefits

administration

Enrollment &

communication


Learning management has made the transition from on-premise solutions to Cloud and leading vendors indicate new deals coming in are heavily weighted to Cloud

15

Vendor Landscape

Learning management

Point application

Suite of application

HRMS Solutions


Learning management



Talent management

Core HRMS

Trends

New Players in Learning management

Talent management point solution vendors look at the learning market. By example acquistion of Jambok by Succesfactors

Learning point solution vendors have

built or acquired performance capabilities

As learning has become more central to employee development, vendors have responded by expanding their solutions' existing functionality and adding performance management to it

http://www.sumtotalsystems.com/index.html


Recruiting management solutions have a fair bit of Cloud based solution providers prevalent in the market

16

HRMS Solutions


Learning management



Talent management

Core HRMS

Trends

Market consolidation

Acquisitions in the applicant tracking system (ATS) area mean fewer vendors and offers to the needs of both enterprise and SMB customers

Growth of installed bases of the existing

players

Many vendors have made acquisitions for intellectual property, advanced technology, and increase of customer base. By example Oracle acquires Taleo

Vendor Landscape

Recruitment

management

Point application


http://www.google.co.in/imgres?imgurl=http://www.capabilitydevelopmentaps.com/images/logos/peoplestreme-logo.jpg&imgrefurl=http://www.capabilitydevelopmentaps.com/media_endorsers.php&usg=__VDtv8coxiig9nfb5z4DT8vWEzsE=&h=26&w=170&sz=9&hl=en&start=2&zoom=0&tbnid=Z_2kSkd1UkrXiM:&tbnh=15&tbnw=99&ei=5AAgTu6vLYLqrAfExKSVBg&prev=/search?q=PeopleStreme+logo&hl=en&sa=X&tbm=isch&prmd=ivnsu&itbs=1


Compensation & benefits tools become a component of broader talent management suites and there have been significant mergers & acquisitions in the market

17

Vendor Landscape

Compensation and benefits

Point application


HRMS Solutions


Learning management



Talent management

Core HRMS

Trends

Compensation vendors leverage pay-for-performance

Compensation specialists leverage the link between rewards and performance

The link between performance and compensation is at least as strong as the link between performance and learning

Mergers & Acquisitions

There have been significant mergers and acquisitions in the compensation market during the past few years


Demand for mobile based WFM, retailers and public sector industries relying on WFM solutions to improve productivity are some of the trends in workforce management space

18

Vendor Landscape


Point application


HRMS Solutions


Learning management



Talent management

Core HRMS

Trends

Strong demand for Mobile WFM

There is an upsurge in adoption of mobile based workforce management solution

Demand for WFM solutions in retail

Growing demand for WFM in retail industry, it is estimated to have a CAGR of 3% till 2015

Increasing instances of public sector usage

WFM

Counties and other departments are extensively relying on WFM solution to streamline utilisation

http://www.workplacesystems.com/index.shtml


Only new generation software vendors throng the Cloud based core HRMS market and are slowly seeing acceptance in the market

19

HRMS Solutions


Learning management



Talent management

Core HRMS

Vendor Landscape

Core HRMS

Point application


Trends

HRMS Footprints Gain In-Depth Talent, Analytics, And Global Capabilities

Although the overall breadth of HRMS application suites has not evolved significantly over the past several years, their depth of functionality has improved in several areas

Outsourcing vendors and ERP vendors are

introducing mobile HR apps

Outsourcing and ERP vendors are introducing mobile HR capabilities to their clients

http://www.workday.com/

http://www.meta4.com/



Integration challenges with Core HRMS, growing importance of social talent management are the key trends in Talent management

20

HRMS Solutions


Learning management



Talent management

Core HRMS

Trends

Growing importance of social talent management

Organisations that want to be at the forefront must move their HR practices into social media age now

An organisation's social HR strategy reflects its culture, it can enhance productivity within an organisaiton and also collaboration and connectivity

Integrating challenges with

Core HRMS

More than 35% of organizations are not integrating their talent management applications with their core HRMS applications, according to our customer reference surveys

Lack of usage of an integrated talent management suite is the main reason for integration challenges

Vendor Landscape

Talent management

Point application



http://www.workday.com/

http://www.google.co.in/imgres?imgurl=http://www.wfcresources.com/VendorDirectory/Vendor logos/CeridianLogo.jpg&imgrefurl=http://www.wfcresources.com/VendorDirectory/Vendors.htm&usg=__oLfSEC0k1PZVDdfkAPaNfcUKfTk=&h=90&w=120&sz=3&hl=en&start=5&zoom=1&tbnid=NLqopR5CCOSLuM:&tbnh=66&tbnw=88&ei=rf4jTv3sPMzRrQfou-WrBw&prev=/search?q=ceridian&hl=en&sa=X&tbm=isch&prmd=ivns&itbs=1


Summary

Watch the strategy of cloud vendors

The Cloud Watch can help you out

Ontdek wat Core HR in de Cloud voor uw organisatie kan betekenen

Meld u nu aan voor een van de ontbijt/lunch-sessies die wij in samenwerking met SuccesFactors organiseren:

5 oktober: 8.00 uur, Utrecht, Capgemini

8 november: 12.00 uur, Ouderkerk a/d Amstel, restaurant Lute

21


22

Documents

Cloud Watch on HCM applications - Capgemini