summary of capgemini cloud watch on hcm solutions q3 2012

Transform to the power of digital

Cloud Watch on HCM applications

Summary version November 2012

Copyright © 2012 Capgemini Consulting. All rights reserved.

A sneak peek at SaaS industry (1/2)

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Workday rolled out the latest version of its human resources and finance cloud service >> Read More

Cornerstone announced significant enhancements to its talent acquisition solution >> Read More

Lumesse launches comprehensive on-demand learning content service >> Read More

ADP unveiled its next-generation ADP Workforce Now® cloud-based platform for midsize organizations >> Read More

Korn/Ferry and SuccessFactors establish strategic partnership to develop solutions >> Read More

Peoplefluent expands integration with LinkedIn Recruiter >> Read More

IBM to acquire Kenexa to Bolster Social Business Initiatives >> Read More

Halogen Software and SHL partnered to provide Talent and Assessment Solutions >> Read More

November, Q3, 2012

Partnerships, alliances and M&As

Vendor corner


A sneak peek at SaaS industry (2/2)

3

November, Q3, 2012

Kronos received the NorthFace ScoreBoard Award from the Omega Management Group for excellence in customer satisfaction for 2011 >> Read More

ADP ranked 68, up 19 spots from last year on Forbes’ List of World’s Most Innovative Companies >> Read More

Silkroad named as a finalist in the 4th Annual 2012 Golden Bridge awards for SaaS/Cloud computing >> Read More

Ceridian has been named to leading strategy and consulting firm LAROCQUE's #HRWins 2012 HR Companies to Watch program >> Read More

Kenexa to unveil its fall 2012 lineup of new HR technology products during the 15th annual HR Technology Conference & Exposition in Chicago >> Read More

Meta4 to showcase their Global SaaS HR solution at the international HR Tech Europe 2012 conference >> Read More

SumTotal announced the opening of new EMEA headquarters in Reading, U.K >> Read More

Events and awards

Analysts speak


Workforce management

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

HRMS SaaS Solution blueprint

4

HRMS Solution

Source HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; CC India Analysis;

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 & deferred compensation

Incentive compensation

Market comparisons

Benefits administration

Enrollment & communication


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

Learning management

5

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; The Forrester Wave: Talent Management: Learning, 2011;

Vendor Landscape

Description Vendor Example

New Players in Learning

management

Talent management solution vendors are looking to enter learning management market

SuccessFactors is moving toward an informal learning offering through its recent acquisition of Jambok

Lumesse developed a learning platform via its acquisition of ExecuTRACK

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

Cornerstone OnDemand, Plateau, and Saba had built performance solutions and now have robust integrated offerings

SumTotal added performance solutions through acquisition of Softscape

Tren

ds

Course management

Virtual classroom Mentoring Learning content

management


HRMS Solution


Learning management



Talent management

Core HRMS

Learning management

“The SaaS model currently accounts for 45% of product revenues in Learning Management”

Completeness/Strength of the offering;

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

http://www.workday.com/

http://peoplefluent.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

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


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

Recruiting Management

6

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011;


HRMS Solution


Learning management



Talent management

Core HRMS


Market consolidation

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

Kenexa acquired BrassRing, Cerdian acquired RSI, Sumtotal acquired Softscape and Cybershift

Growth of installed bases of the

existing players

Many vendors have made acquisitions for intellectual property, advanced technology, and increase of customer base

Oracle acquired Taleo to provide a richer recruiting application

Applicant tracking

Sourcing On-boarding Social recruiting/

networking


Strategic Workforce planning

Vendor Landscape

Tren

ds

“Forrester estimates that 83% of the recruitment solutions market is deployed via SaaS”





http://www.meta4.com/



http://www.humanwavecloud.com/index.php?id=118


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


7

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Hype Cycle for Human Capital Management Software, Gartner-2011; The Four Pillars Of Talent Management, Forrester Research, 2010;

Vendor Landscape


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

Workscape added performance to its compensation & benefits capabilities & positioned as an integrated player

Salary.com added performance-based talent management solutions via internal development

Mergers & Acquisitions

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

Examples include Kenexa acquiring Salary.com and ADP's acquisition of Workscape

Tren

ds Workforce

management

HRMS Solution


Learning management



Talent management

Core HRMS


“SaaS Penetration in the compensation and benefits function has gained momentum and is currently 52% of the market ”

pay-for-performance

Stock based & deferred compensation

Incentive compensation

Market comparisons

Benefits administration

Enrollment & communication








Mobile based workforce management (WFM), retailers & public sector industries relying on WFM solutions to improve productivity are some of the trends in the space


8

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Workforce management software, SearchCRM.com product directory, 2009; Factiva;


HRMS Solution


Learning management



Talent management

Core HRMS


Strong demand for Mobile WFM

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

Kronos - Licensed to more than 250,000 employees across a wide variety of industries

Demand for WFM solutions in retail

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

Reflexis claims that it has signed 30 new clients in retail over past 1 year

Increasing instances of public sector usage

WFM

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

Boulder county implements Kronos WFM to control labor costs, minimize compliance risk, and improve productivity


Vendor Landscape

Tren

ds

“SaaS adoption has slowly started to evolve, as the leading vendors offer both on-premise and on-demand”

Time & Attendance

Absence management

Workforce scheduling








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

Core HRMS

9

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011;


HRMS Solution


Learning management



Talent management

Core HRMS

Core HRMS

Vendor Landscape

“Mainstream adoption of SaaS based core HRMS has a long way to go with about 18% revenue contribution”


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

Vendors are improving their depth through acquisitions

- Oracle acquired Taleo - SAP acquired Successfactors

Outsourcing vendors and ERP vendors are introducing mobile

HR apps

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

Introduces new benefits and flexible spending account functionality to its ADP mobile solutions application

Tren

ds

Payroll Employee

records Salary

administration Compliance

Jobs & Positions Shared & self

service HR Analytics









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


10

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns With Talent Management, Forrester Research, 2011 ; The Talent Management Suite Market Emerges , Gartner Research, 2011;

Vendor Landscape


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 organisation and also collaboration and connectivity

Provides a new breed of HRIS software which is social open and measurable

Integrating challenges with Core HRMS

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

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

NA

Tren

ds Workforce

management

HRMS Solution


Learning management



Talent management

Core HRMS

Talent management

“58% of total revenue from talent management is through SaaS solutions”

Performance Succession planning

Career planning

Goals

Organisation charting

Competency management









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Ronald van den Berg

Competence Cluster Leader Digital HR

Principal Consultant People & Perfomance

Mob : +31 (0)6 - 15030294

Secretary : +31 (0)30-6898844

Mail to : [email protected]

Tim van der Wal

Business Development and Sales

Managing Consultant People & Performance

Mob: +31 6 1503 0286

Secretary : +31 (0)30-6898844

Mail to : [email protected]

mailto:[email protected]



summary of capgemini cloud watch on hcm solutions q3 2012

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