THE FORRESTER WAVE™: HUMAN RESOURCE MANAGEMENT SYSTEMS Q1 2012, WEBINAR
March 27, 2012
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Today’s Speakers
Amy WilsonVice President, HCM Product StrategyWorkday Twitter: @awils
Paul HamermanVice President and Principal AnalystForrester Research, Inc.Twitter: @paulhamerman
#workday @workday
Join us on Twitter to tweet your thoughts or questions during the webinar.
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Market trends and characteristics
The Forrester Wave™: Human Resource Management Systems, Q1 2012: Research process and results
Summary and recommendations
Agenda
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Rampant vendor consolidation in HR applications
Oracle < Taleo < Learn.com, Cytiva, Vurv, Jobpartners, Worldwide Compensation, etc.
SAP < SuccessFactors < Jobs2Web, Plateau, Inform, CubeTree
SumTotal < Geolearning, Cybershift, Accero, Softscape
Infor < Lawson, Enwisen < Workbrain
Kenexa < Outstart, Salary.com, Brassring
Acquisitions primarily driven by expansion across the 4 pillars of talent
management: recruiting, learning, performance/talent, compensation
More recently, acquisitions are merging Talent with core HRMS
Acquisitions put a premium on SaaS as a delivery model. SAP and Oracle
paid 11x and 6x times annual revenues, respectively.
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Best-of-breed vendors have consolidated around the four pillars of talent management
Source: April 26, 2010, “The Four Pillars Of Talent Management” Forrester report
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SaaS is becoming the default deployment model in HRM applications
Source: September 24, 2010, “HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology” Forrester report
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Subscriptions/SaaS gaining momentum in HRMS as licensed software is replaced
Source: September 24, 2010, “HRM Solutions: Traditional Models Clash With Next-Generation Processes And Technology” Forrester report
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Comparing Cloud Hosted versus SaaS for HRM
Deployment characteristic Cloud (Hosted) SaaS
Tenancy Customer-specific instance Multitenant
Maturity of software Mature to legacy Mature and evolving
Hosting model Dedicated application
instance, shared computing resources
Shared application and infrastructure
Payment model Upfront license, recurring sw
maintenance and managed services
Subscription, all-in
Updates and upgrades Vendor-managed, but
customer chooses upgrade timing
Vendor-determined, more frequent, less effort for customers
Customization Configure and customize Configure, extend via native
cloud tools
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Most organizations juggle many applications to manage HR processes
Besides the core HR management system(s), how many systems are in place for HR processes like recruitment, performance management, compensation, benefits, and time and attendance?”
Base: 67 HR and IT professionals familiar with either their organizations’ MDM or HRM systems(percentages do not total 100 because of rounding)
Source: August 2011 Global Employee Master Data Management Online Survey
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Best-of-breed solutions: Should you supplement your core system?
Advanced requirements dictate sophisticated solutions in areas such as
learning management, recruiting, and time and attendance.
Industry-specific needs call out for point solutions (e.g., workforce
scheduling, incentive compensation plans).
The point solution can be rapidly deployed as SaaS and integrated to the
core system.
Supplement your core HRMS with point solutions when:
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Business, societal, and technology trends influence the management of human capital
A volatile global economy influences employment and retention practices.
Businesses want more relevant talent and performance processes.
Companies face the challenges of a changing workforce, including age
diversity, remote workers, international and contingent workers.
Social collaboration is rapidly influencing HR process strategies.
Mobile technology reinvents employee engagement and empowerment.
SaaS becomes the HRM deployment method of choice for point solutions
and, increasingly, for core HR systems.
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Market trends and characteristics
The Forrester Wave™: Human Resource Management Systems, Q1 2012: Research process and results
Summary and recommendations
Agenda
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HRMS Forrester Wave™ vendor selection criteria
Source: January 25, 2012, “The Forrester Wave™: Human Resource Management Systems, Q1 2012” Forrester report
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Vendors and products evaluated
Source: January 25, 2012, “The Forrester Wave™: Human Resource Management Systems, Q1 2012” Forrester report
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HRMS Wave Process and Timeline
June - July 2011 Aug. – Sept. 2011 Oct. 2011 Nov. 2011 Jan 2012
Qualify andInvite
Vendors
Kick-offMeeting
ConductProductDemos
Wave Scoring
WaveGoesLive
Doc.Creation
Final Revisions
VendorsComplete Question-
naires
Review andEditing
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The Forrester Wave™: Human Resource Management Systems, Q1 2012
Source: January 25, 2012, “The Forrester Wave™: Human Resource Management Systems, Q1 2012” Forrester report
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HRMS solutions advance in flexibility and usability
Role-based designs obsolete the notion of self-service:
– Managers and employees are primary users, alongside HR pros.
Usability and configuration advance using process and hierarchy
visual paradigms.
Analytics become embedded within the application.
Business users (i.e., HR process owners) assume responsibility for
managing the system.
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Scoring summary: Current Offering
All scores are based on a scale of 0 (weak) to 5 (strong).
Source: January 25, 2012, “The Forrester Wave™: Human Resource Management Systems, Q1 2012” Forrester report
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Scoring summary: Strategy and Market Presence
Source: January 25, 2012, “The Forrester Wave™: Human Resource Management Systems, Q1 2012” Forrester report
All scores are based on a scale of 0 (weak) to 5 (strong).
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Mobile Technology Fuels Process Acceleration
June 2011 “Innovative Technologies Will Drive Enterprise Applications And ERP To A Bright New Future”
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Market trends and characteristics
The Forrester Wave™: Human Resource Management Systems, Q1 2012: Research process and results
Summary and recommendations
Agenda
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Summary thoughts on The Forrester Wave™
Each HRMS vendor evaluated has a sweet spot, depending on customer
size, footprint, integration requirements, and deployment preference.
– Large multinationals have fewer options.
Software-as-a-service (SaaS) is gaining momentum rapidly.
– Beware that hosted/subscription is not the same as SaaS. Look closely at the updating model and tenancy architecture.
Key areas of product differentiation among HRMS offerings include:
– International HR and payroll.
– Talent management, learning, and recruitment.
– Time and attendance.
– Deployment model (SaaS, on-premises, hybrid).
– Technology architecture.
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HRMS vendor selection tips
Build your evaluation and selection process around scripted
demonstrations rather than cumbersome RFPs.
Leverage The Forrester Wave™ framework and results in your screening
and selection.
Don’t obsess on getting everything from a single vendor — consider best-
of-breed solutions in some areas (recruitment, time and attendance,
learning).
Carefully assess total ownership costs over a seven- to 10-year time
frame. This allows comparison of SaaS versus hosted/on-premises.
Don’t customize.
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[email protected] D. Hamerman
[email protected]: @paulhamermanwww.forrester.com
Amy [email protected]: @awilswww.workday.com
Read the Forrester Research Report The Forrester Wave™: Human Resource Management Systems, Q1 2012
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