The Forrester Wave™: Human Resource Management Systems, Q1 2012 Webinar

THE FORRESTER WAVE™: HUMAN RESOURCE MANAGEMENT SYSTEMS Q1 2012, WEBINAR

March 27, 2012

© 2012 Forrester Research, Inc. Reproduction Prohibited2

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.


Market trends and characteristics

The Forrester Wave™: Human Resource Management Systems, Q1 2012: Research process and results

Summary and recommendations

Agenda


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.


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


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


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


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


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


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:


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.





Agenda


HRMS Forrester Wave™ vendor selection criteria

Source: January 25, 2012, “The Forrester Wave™: Human Resource Management Systems, Q1 2012” Forrester report


Vendors and products evaluated



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


The Forrester Wave™: Human Resource Management Systems, Q1 2012



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.


Scoring summary: Current Offering

All scores are based on a scale of 0 (weak) to 5 (strong).



Scoring summary: Strategy and Market Presence


All scores are based on a scale of 0 (weak) to 5 (strong).


Mobile Technology Fuels Process Acceleration

June 2011 “Innovative Technologies Will Drive Enterprise Applications And ERP To A Bright New Future”





Agenda


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.


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.


[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

https://www.workday.com/landing_page/report_forrester_wave_lp.php?camp=70180000000oehX&campid=ussm_sl_no_hc_329


