cloud watch on hcm applications - capgemini
TRANSCRIPT
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
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Copyright © 2012 Capgemini Consulting. All rights reserved.
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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
Copyright © 2012 Capgemini Consulting. All rights reserved.
There is a momentum for acquisitions…
Copyright © 2012 Capgemini Consulting. All rights reserved.
Capgemini developed the Cloud Watch for HCM..
Contents
Vendor Landscape
Market trends
Cloud Watch
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Copyright © 2012 Capgemini Consulting. All rights reserved.
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
• 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
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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
Copyright © 2012 Capgemini Consulting. All rights reserved.
Talent management is expected to have higher growth with 16.5 percentage where Workforce Management (mobile) will be the future growth.
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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%
Copyright © 2012 Capgemini Consulting. All rights reserved.
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
Workforce management
HRMS SaaS can be categorized into core HRMS, compensation & benefits, talent, learning, recruitment and workforce management
HRMS SaaS Solution blueprint
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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
Copyright © 2012 Capgemini Consulting. All rights reserved.
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
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Vendor Landscape
Learning management
Point application
Suite of application
HRMS Solutions
Workforce management
Learning management
Recruiting management
Compensation & benefits
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
Recruiting management solutions have a fair bit of Cloud based solution providers prevalent in the market
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HRMS Solutions
Workforce management
Learning management
Recruiting management
Compensation & benefits
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
Suite of application
Copyright © 2012 Capgemini Consulting. All rights reserved.
Compensation & benefits tools become a component of broader talent management suites and there have been significant mergers & acquisitions in the market
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Vendor Landscape
Compensation and benefits
Point application
Suite of application
HRMS Solutions
Workforce management
Learning management
Recruiting management
Compensation & benefits
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
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
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Vendor Landscape
Workforce management
Point application
Suite of application
HRMS Solutions
Workforce management
Learning management
Recruiting management
Compensation & benefits
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
Copyright © 2012 Capgemini Consulting. All rights reserved.
Only new generation software vendors throng the Cloud based core HRMS market and are slowly seeing acceptance in the market
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HRMS Solutions
Workforce management
Learning management
Recruiting management
Compensation & benefits
Talent management
Core HRMS
Vendor Landscape
Core HRMS
Point application
Suite of 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
Copyright © 2012 Capgemini Consulting. All rights reserved.
Integration challenges with Core HRMS, growing importance of social talent management are the key trends in Talent management
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HRMS Solutions
Workforce management
Learning management
Recruiting management
Compensation & benefits
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
Suite of application
Copyright © 2012 Capgemini Consulting. All rights reserved.
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
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Copyright © 2012 Capgemini Consulting. All rights reserved.
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