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SuccessFactor's new software features will help clients resolve human resources problems
SuccessFactor's new software features will help clients resolve human resources problems
SuccessFactor's new software features will help clients resolve human resources problems
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SuccessFactor's new software features will help clients resolve human resources problems


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  • 1. TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C . TBR EVENT PERSPECTIVE SuccessFactors’ new software features will help clients resolve human resources problems SuccessFactors SuccessConnect 2013 Las Vegas; Oct. 9–11, 2013 Author: Matt Healey (, Principal Analyst TBR Perspective SuccessFactors, an SAP company, held its annual SuccessConnect conference in Las Vegas from Oct. 9, 2013, to Oct. 11, 2013. Technology Business Research Inc. (TBR) believes SuccessFactors, as the application edge of SAP’s cloud strategy, is well positioned to drive overall revenue opportunity for SAP in CY14. TBR anticipates SuccessFactors new features will be well received by the market, as they address problems faced by large enterprises. Specifically, we believe Onboarding, Talent Book or Live Slides (name TBD), and human resources analytics capabilities will be best received, as they have the broadest application to challenges faced by HR departments. The integration of traditional on-premises solutions with cloud-delivered solutions will provide customers with choices for an approach to deployment. Migration will take time, resulting in a need for traditional on-premises software, which is critical as the number of customers deploying software in the cloud increases. The features introduced and demonstrated at SuccessConnect can be valuable, but it is important for customers to note that Human Capital Management (HCM) is intrinsically a human resources problem. Technology can help address some of the concerns by highlighting problem areas, but reducing voluntary terminations, increasing employee satisfaction and positively effecting productivity requires commitment by line managers and supervisors, as they are often most directly responsible for these issues. New Software Features SAP demonstrated several new features and enhancements at SuccessConnect. The first featured product was Onboarding. In a large enterprise, the process of onboarding new employees is a very difficult task. The new
  • 2. TBR employee is coming into an organization with which they are not familiar and getting used to systems and processes with which they have no experience. Failure of a large organization to manage this critical period smoothly can result in lower initial employee productivity in the best case and early voluntary termination in the worst case. Often the early voluntary termination occurs within the first year. In this case, the time, effort and money spent recruiting that employee is wasted and the company must start the process over. SuccessFactors aims to smooth this process by providing a comprehensive, Onboarding, which gives an overview of the onboarding process and can be accessed by the new employee. TBR believes the new module will be valuable for large organizations with complicated onboarding processes. The second new feature is tentatively named Talent Book or Live Slides (name pending GA announcement). This module address the concerns associated when HR and line managers need to provide a review of their teams to management. In large organizations, often this is done by developing a series of PowerPoint slides that detail the accomplishment of the employees in a group or team. These slides are then either printed or sent digitally to management for review. This is a highly inefficient process that SuccessFactors hopes to streamline with the new software. The final feature improves HR capabilities. Analytics has become an evolving trend throughout the software landscape. As the amount of data that is collected increases, the ability to predict trends has improved and now extends throughout the entire enterprise. From an HR perspective, the ability to gain a greater understanding of employee turnover, productivity, employee satisfaction and the impact of that satisfaction on the customers is improving. This capability is being incorporated into SuccessFactors software, improving enterprises’ ability to move from reactive to proactive analytics. Insight into employee behavior based on performance reviews, social media, demographics and more can help managers determine the probability of events before they occur and decide a course of action to correct problems before they harm the organization. TBR believes this capability will be valuable to enterprises looking to move to a data-driven approach to HCM. The Value of Choice in Delivery Options In addition to the previously mentioned features, SuccessFactors stressed the ability of clients to utilize cloud delivery to consume the software. TBR believes it is critical for software vendors to offer their clients cloud and traditional on-premises options, as different customers in different regions, industries or sizes have different needs. In many cases, customers are going to want to extend their software capabilities through cloud-based solutions. However, it is also important for software vendors to realize that they still have a significant number of clients with traditional on-premises deployments. These customers may be in environments where cloud delivery is not practical due to lack of robust public infrastructure, such as some emerging markets, or may be in industries with strict privacy and data residency requirements. Regardless of the reason, these customers will continue to want to leverage the new features and capabilities. Can Technology Truly Solve a Human Resources Problem? TBR believes the new features available to customers are positive, but customers must realize the limitations of the software when deploying HCM solutions. Simply installing the Onboarding application is not going to immediately solve attrition problems, improve initial productivity, or address high first-year voluntary turnover. Applying analytics to better measure the impact of low employee morale on customers will not boost employee
  • 3. TBR morale. However, this software can highlight problems and areas prime for improvement. This is clearly the first step, but it is only the first step. The areas identified need dedicated follow up to realize the benefits of the software. Line managers, supervisors and executive managers need to commit to addressing the problem areas, which can be a difficult and painful process for managers. SAP will need to ensure that customers realize the capabilities and limitations of the software to be truly successful in this market. Event Summary SuccessFactors held SuccessConnect at the Venetian hotel and convention center in Las Vegas from Oct. 9, 2013 to Oct. 11, 2013. The theme of the event was “Because tomorrow won’t look like today.” The event featured demonstrations of new features and capabilities of the HCM software portfolio, customer testimonials and SuccessFactors’ future road map. Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. For more information please visit ©2013 Technology Business Research Inc. This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.