cloud watch on hcm cloud solutions (january 2016)
TRANSCRIPT
Copyright © 2015 Capgemini Consulting. All rights reserved.
Cloud Watch on HCM Cloud Solutions CC India, Research January 2016 Summary Version
Copyright © 2016 Capgemini Consulting. All rights reserved.
Contents
Objective and approach
Sneak Peek at HCM Cloud
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
2
Copyright © 2016 Capgemini Consulting. All rights reserved.
Objectives, Approach and Context
§ Provide a single source of information on leading HR Cloud solution providers across the globe
§ Identify leading players across HRM SaaS functionalities
§ The study uses publicly available information sources:
– Company websites
– Text line searches
– Industry reports
– Analysts reports
§ Cloud computing is a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS)
§ Software as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet
§ SaaS is a growing phenomenon in the market and has made a successful penetration into mainstream Enterprise IT
§ Earlier, licensed on-premise software was the dominant deployment model in production, but with time, on premise vendors have also begun to offer SaaS based solutions
§ Coupled with the buyer side objective of reducing the cost of ownership, the SaaS revolution is bound for exclusive growth across all forms of a business
§ Globally, Capgemini helps many of its clients with the selection and implementation of Software as a Service solutions, and this document intends to provide a single source of truth about HR SaaS solutions currently available in the market, with a focus on the European market
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Version Status
Final
Authors
CC India, Research services
Delivered in
January, 2016
Objectives and Approach Context
Copyright © 2016 Capgemini Consulting. All rights reserved.
Contents
Objective and approach
Sneak Peek at HCM Cloud
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
4
Copyright © 2016 Capgemini Consulting. All rights reserved.
A sneak peek at HCM Cloud Market (1/2)
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§ Groupe ENGIE selected Oracle HCM to support the transformation of its worldwide HR operations
§ BAT selected SAP SuccessFactors to provide a single HRM solution across its global operations
§ Sky Betting & Gaming selected Workday’s unified suite of applications
§ Galveston Independent School District moved its Workforce Management Solution to the Kronos Cloud
VENDOR CORNER
§ Workday plans to expand its partnership with ADP
§ NGA Human Resources expanded its global partnership with SAP
§ Kronos and Cornerstone OnDemand announced a strategic alliance in the Cloud
§ Talentsoft and Trenkwalder entered a partnership
PARTNERSHIPS, ALLIANCES AND M&A’S
January, 2016
Copyright © 2016 Capgemini Consulting. All rights reserved.
A sneak peek at HCM Cloud Market (2/2)
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§ Gartner Magic Quadrant named Oracle a Leader in Talent Management Suites
§ Salesforce was named a Leader in Gartner’s 2015 Magic Quadrant for Social Software in the Workplace and Horizontal Portals
§ Kronos was named a Top Place to Work by The Boston Globe in its Largest Employers category
§ ADP was named a Talent Acquisition Leader by The Forrester Wave: Talent Acquisition Vendors
ANALYSTS SPEAK
January, 2016
§ 2016 AHRD International Research Conference in the Americas to be held on 18th - 20th February, 2016
in Jacksonville, Florida
§ The 12th Annual HR Summit will be held on 21st – 23rd March, 2016 at RACV Royal Pines Resort, Gold Coast
§ Human Resource Executive’s 19th Annual HR Technology Conference & Exposition to be held on 4th – 7th October, 2016
in Chicago (Proposals for presentations due 15th January, 2016)
EVENTS
>> Read More
>> Read More
>> Read More
Copyright © 2016 Capgemini Consulting. All rights reserved.
Contents
Objective and approach
Sneak Peek at HCM Cloud
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
7
Copyright © 2016 Capgemini Consulting. All rights reserved.
HCM SaaS solutions can be categorized into Core HR, Workforce, Talent, Learning, Recruitment Management and Compensation & Benefits
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HCM Cloud Solution Footprint
Learning Management
HCM Solutions (Cloud & Mobile)
Core HR
Workforce Management
Talent Management
Compensation & Benefits
Recruitment management
Employee Records Payroll Benefit
Administration and enrollment
Salary and wage structure
Jobs and positions Employee Engagement Compliance Organizational
structures
Time reporting Workforce
scheduling and assignments
Attendance Productivity Analysis
Paid Time Off Labor Cost Distribution
Absence Management
Performance Management
Goal Management
Career Planning
Competency Management
Succession Planning
Talent Review
Retention Management
Leadership Development
Learning Course Administration
Content Management Mobile Learning
Mentoring Collaboration Social and Informal Learning
Professional Certification
Bonus Programs
Commissions
Stock and Long Term Incentives
Employee Recognition
Base Salary Administration
Wellness
Retirement and Savings
Market Pricing and Equity
(Strategic) Workforce Planning
Requisitions
Sourcing and Social Recruitment
Candidate Engagement
Applicant Evaluation
Diversity & Compliance
Onboarding
Sources: : Embrace Future Trends To Deliver HRM Business Impact, Forrester 2014; CC India Analysis
Copyright © 2016 Capgemini Consulting. All rights reserved.
HCM Solutions (Cloud & Mobile)
Core HR
Organizations are moving towards integrated cloud base core HR solutions in an effort to boost collaboration and thereby driving better business outcomes
Core HR Solutions
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Core HR
Vendor Landscape
Licensed on-premise software remains the dominant deployment model in production with SaaS based solutions for Core HR segment solutions
Description Vendor Example
Cloud based payroll solution for small business
§ The Solution provides simple payroll, and employee time-tracking services along with services like job description templates, job applicant screening, employee handbook development
§ RUN powered by ADP HR and Payroll Solution § Kronos Workforce Ready for simplified payroll process
Focus on full technology integration
§ Companies need to move away from information silos to unified Core HR systems § Solutions must centralize the HR management throughout
the life cycle of employees
§ SuccessFactors ‘Employee Central’ enables global HR teams to focus on creating strategic value for the business by streamlining processes and providing access to information that supports faster decision-making
Tren
ds
Completeness / Strength of the
offering;
Employee Records Payroll Benefit
Administration and enrollment
Salary and wage structure
Jobs and positions Employee Engagement Compliance Organizational
structures
Sources: Embrace Future Trends To Deliver HRM Business Impact; CC India Analysis; HRMS World: Traditional Models clash With Next-Generation Processes And Technology; www.hrmsworld.com; http://www.elfinancierocr.com
Copyright © 2016 Capgemini Consulting. All rights reserved.
Automated work force tools and analytics are helping organizations to achieve better output and improve efficiency
Workforce Management Solutions (WFM)
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Time reporting
Workforce scheduling and assignments
Attendance
Productivity Analysis
Paid Time Off
Labor Cost Distribution
Absence Management
Workforce Management
SaaS adoption continued to grow, as the leading vendors have now begun to offer both on-premise and SaaS solutions
Vendor Landscape
Completeness / Strength of the
offering;
Sources: New trends in workforce solutions; CC India Analysis; Factiva; Kronos Workforce Mobile; CIO.com; Automated time and Attendance; ADP solution
Description Vendor Example
Workforce Analytics
§ Organizations are adopting analytics in their HR departments like talent and recruitment which facilitates easier report creation and opportunity to address business challenges
§ End - to - End system for Workforce Analytics – Workday
Automated Time and Attendance process
§ Organizations are adopting automated time and attendance process to achieve better output on critical initiatives of productivity, availability of resource, data accuracy and compliance
§ Online Time Clocks and Solutions - ADP Tren
ds
HCM Solutions (Cloud & Mobile)
Workforce Management
Copyright © 2016 Capgemini Consulting. All rights reserved.
Organizations are leveraging predictive analytics solutions to retain talent, this in turn ensures cost savings and better performance of the organization as a whole
Talent Management Solutions
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Performance Management Goal Management Career Planning
Competency Management Succession Planning Talent Review Retention
Management
Talent Management
The market for talent management software is expected to grow from $5.2 bn in 2014 to $11.3 bn by 2019
Vendor Landscape
Completeness / Strength of the
offering;
Sources: Global Human Capital Trends; HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; Talent Management Solutions based on Big Data; Gamification; CC India Analysis, PeopleFluent – Press release;
Description Vendor Example
Gamification in Talent Management
§ Gamification drives higher employee engagement, boosts productivity and encourage healthy planning § Cornerstone on demand – Cornerstone
§ Language Quality – Microsoft Silverlight
Talent Retention through predictive analytics
§ Organizations are increasingly using predictive analytics solutions to predict which employee is going to quit, they also try to ascertain the reasons and come up with strategies to retain talent and recruit new staff
§ Workday Insights Analytics – Workday § SuccessFactors workforce Analytics – SAP § PeopleFluent advanced analytics reporting and enhanced mobile
experience
Tren
ds
HCM Solutions (Cloud & Mobile) Talent
Management
Copyright © 2016 Capgemini Consulting. All rights reserved.
Gamiefied eLearning and mobile enabled learning are major trends in improving employee engagement and learning experience
Learning Management Solutions
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Leadership Development
Learning Course Administration
Content Management
Collaboration Social and Informal Learning
Professional Certification
Mobile Learning
Mentoring
Learning Management
In Learning Management, the SaaS model currently accounts for 45% of its product revenues
Vendor Landscape
Completeness / Strength of the
offering;
Description Vendor Example
Gamified eLearning
§ Gamification in eLearning has shown more realistic learning experience potential using virtual and augmented reality resulting in employees intrinsic motivation towards achievement and recognition
§ SAP SuccessFactors Learning modules with Gamification features
Mobile enabled Learning and Bring Your Own Device (BYOD)
§ LMS1 providers are implementing mobile functionalities and are using HTML5 to make their websites mobile accessible
§ SuccessFactors LMS along with its suite of mobile apps offers at-a-glance learning thereby allowing employees to complete the learning courses from a mobile device anytime
Tren
ds
Note:1. Learning Management Solutions Sources: SuccessFactors website; Saba’s website ; Gamified elearning ; CC India Analysis
HCM Solutions (Cloud & Mobile)
Learning Management
Solutions
Copyright © 2016 Capgemini Consulting. All rights reserved.
Recruiting technology is now gravitating toward mobile enabled recruiting, with social media referrals to identify the right candidate from the entire pool
Recruitment Management Solutions
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(Strategic) Workforce Planning Requisitions Sourcing and Social
Recruitment Candidate
Engagement
Applicant Evaluation Diversity & Compliance Onboarding Talent Pools
Recruitment management
83% of the product revenues1 of recruitment solutions market was contributed by SaaS based solutions
Vendor Landscape
Completeness / Strength of the
offering;
Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions) Sources: http://www.hrtechnews.com; SuccessFactors website; Hype Cycle for Human Capital Management Software; CC India analysis
Description Vendor Example
Growth of social media referrals
§ The solution providers are allowing employees to make referrals through social network accounts such as Facebook and LinkedIn
§ SuccessFactors Recruitment Execution offers social-media/employee referral tool as part of its recruiting product § The system suggests people known to the employees using their
Facebook and Linkedin contacts
Social recruiting and sourcing are becoming the major channels for HCM
§ Using social media, companies are changing the way to promote opportunities, as well as tap into employees personal and professional networks for talent acquisition
§ SilkRoad is enabling crowdsourcing activities by offering collaboration via social portals for recruiting talent
Tren
ds
HCM Solutions (Cloud & Mobile) Recruitment
management
Copyright © 2016 Capgemini Consulting. All rights reserved.
Compensation & Benefits solution vendors are providing solutions to their customers based on pay-for-performance
Compensation & Benefits Solutions
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Bonus Programs Commissions Stock and Long Term Incentives
Employee Recognition
Base Salary Administration
Wellness Retirement and Savings
Market Pricing and Equity
Compensation & Benefits
SaaS penetration in the Compensation and benefits function has gained momentum and contributes 52% of this segment’s product revenues
Vendor Landscape
Completeness / Strength of the
offering;
Sources: HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; CC India Analysis
Description Vendor Example
Compensation vendors leverage pay-for-performance
§ With more companies adopting pay-for-performance, vendors are providing solutions to help companies align goals and reward programs for their workforce
§ Workscape added performance to its Compensation & Benefits capabilities
Real time financial solution
§ The financial management tool or application allows creation, collaboration, and taking action on budgets and forecasts to optimize business growth
§ Workday introduced new planning, budgeting and forecasting application to unify real-time finance and HR data Tr
ends
HCM Solutions (Cloud & Mobile)
Compensation &
Benefits
Copyright © 2016 Capgemini Consulting. All rights reserved.
Contents
Objective and approach
Sneak Peek at HCM Cloud
Market
HCM Cloud Solution
Footprint
HCM Market Overview
Contact Details
15
Copyright © 2016 Capgemini Consulting. All rights reserved.
Executive Summary
Riding on high adoption level of HCM solutions, Global HCM applications market is expected to have a positive growth in the next five years
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HCM Application Adoption Level
Emerging Technologies
Global HCM Application Market
Overview
§ Global HCM applications market is expected to grow at a CAGR* of 8.2% over the period 2013-2018 from $10.4bn in 2013 to $15.4bn in 2018 § Streamlining of human resource operations is one of the key factors contributing to the market growth § The future global HCM market would be driven by CORE HR & Compensation segments in both Americas &
EMEA markets § The fastest growing segment (CAGR of 10%) is compensation management, which is the newest and smallest
in terms of revenue
§ Administrative HCM solutions has high level of industry adoption compared to other solutions
§ Large organizations continue to be the biggest adopters of HCM applications
§ The HCM Solutions vendors are increasingly adopting mobile enabled processes, HR shared services and embedded analytical solutions to their HCM solutions
§ Companies are leveraging mobile apps to ‘appify’ their HR tools, to offer employees seamless services, that can be accessed quickly and easily
§ Organizations are leveraging predictive analytics to hire smarter, this helps them to cut down on recruitment costs, increase retention and boost performance
Note:*Compound Annual Growth Rate
Copyright © 2016 Capgemini Consulting. All rights reserved.
Contents
Objective and approach
Sneak Peek at HCM Cloud
Market
HCM Cloud Solution
Footprint
HCM market Overview
Contact Details
17
Copyright © 2016 Capgemini Consulting. All rights reserved.
Please get in touch with:
Want to know more?
18
Ronald van den Berg Principal Consultant HR Transformation Mob: +31 6 1503 0294 Mail to: [email protected]
Franjola Timmermans Principal Consultant HR Transformation Mob: +31 6 1190 2267 Mail: [email protected]
Erik Koningen Managing Consultant HR Transformation Mob: +31 6 2954 1848 Mail to: [email protected]
Peter Speleers Practice Manager HCM Technology Transformation Services, Mob: +3227081666 Mail to: [email protected]
Marsa Laukkoski Senior Applications Consultant Mob: +358406736493 Mail to: [email protected]
Jonas Bjärkäng Engagement Director Mob: +46 70 9409417 Mail to: [email protected]
Carl Peter Wallin Senior Applications Consultant Mob: + 46 727265225 Mail to: [email protected]
Graham Dibble Principal Applications Consultant Mob: +44 870 195 1137 Mail to: [email protected]
Klaus Eckey Managing Consultant SAP HCM Mob: +49 151 4025 0080 Mail to: [email protected]
Ronan How Senior Applications Consultant Mob: +447891158643 Mail to: [email protected]
Jan Redmond Managing Solution Architect Mob: +14695837374 Mail to: [email protected]
Valery Smague Principal Consultant Apps Two Mob: +33 680 620 672 Mail to: [email protected]
Jose Luis Navarro Sanchez HRBP Director Spain Mob: +34 620 024 499 Mail to: [email protected]