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Applied Analytics for HCM
Henner Schliebs
September 2012
© 2011 SAP AG. All rights reserved. 2
Predictions
Global Trends and Their Impact on Human Capital Analytics
Big Data
Mobil...
© 2011 SAP AG. All rights reserved. 3
Successful Human Capital Centric Organizations
Provide each role in your organizatio...
© 2011 SAP AG. All rights reserved. 4
Workforce Analytics (Data for HR)
© 2011 SAP AG. All rights reserved. 5
Talent Analytics (Data for the Business)*
1.Expanded definition of Talent Analytics....
© 2011 SAP AG. All rights reserved. 6
$10.66
Analytics - payback
High Performance Appliance
GRC EPM
BI
Predictive
Mobility...
© 2011 SAP AG. All rights reserved. 7
“Our executives want to see line charts, pie
charts, and bar charts. They will not l...
© 2011 SAP AG. All rights reserved. 8
Analytics: asking questions which provide better insight into how
people strategy le...
© 2011 SAP AG. All rights reserved. 9
Data Scientist – the sexiest job of the 21st century*?
...the most important qualifi...
© 2011 SAP AG. All rights reserved. 10
Supply of analysts
2018** 140,000 – 190,000** people with “deep analytical talent”
...
© 2011 SAP AG. All rights reserved. 11
Achieving competitive advantage through analytics
Source: “The Digital Transformati...
© 2011 SAP AG. All rights reserved. 12
Executives; Corporate Strategy
Craft and guide long term
workforce plan based
on gi...
© 2011 SAP AG. All rights reserved. 13
Extend your analytics capabilities where you want to be…
Sense & Respond Predict & ...
© 2011 SAP AG. All rights reserved. 16
Extend your analytics capabilities where you want to be…
Sense & Respond Predict & ...
Thank You!
Contact information:
Henner Schliebs
Analytics Solution Marketing
henner.schliebs@sap.com
@hschliebs
HR Analytics
HR Analytics
HR Analytics
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HR Analytics

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Analytics Solutions are needed for your "most valuable asset" as you know more about your machines than about your talents!

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HR Analytics

  1. 1. Applied Analytics for HCM Henner Schliebs September 2012
  2. 2. © 2011 SAP AG. All rights reserved. 2 Predictions Global Trends and Their Impact on Human Capital Analytics Big Data Mobility Velocity of decision making Information explosion  Explosion of employee data with no end in sight  Information is everywhere but trapped in organizational silos or unstructured in the web  Harder to filter valuable insights out from all the noise  End of the gut decision – fact based business decisions are now expected Enterprise in your pocket  Revolution in user experience raises the bar for professional applications on mobile devices  Ubiquitous access on any device is the expectation among business users  Fact-based decision making takes place everywhere, information must be available at the point of interaction to support every decision Need for speed  User perceptions change at the speed of thought – how can I capture that knowledge and react now  Conditions can change on a dime, need to adapt and respond instantly  Must make real-time course corrections to influence the outcome of in-flight activities
  3. 3. © 2011 SAP AG. All rights reserved. 3 Successful Human Capital Centric Organizations Provide each role in your organization with relevant information that enable the workforce to better support sustainable growth They do it by: Providing deep HR metrics insights Placing analytics in context with business processes Aligning strategic decisions with the overall business plan Result: Efficient “use” of the workforce Better business decisions Exceptional employee / manager service experience
  4. 4. © 2011 SAP AG. All rights reserved. 4 Workforce Analytics (Data for HR)
  5. 5. © 2011 SAP AG. All rights reserved. 5 Talent Analytics (Data for the Business)* 1.Expanded definition of Talent Analytics. Acknowledging the pivotal October 2010 HBR article, “Competing on Talent Analytics,” the definition of „talent analytics‟ can be expanded to include innate characteristics about the people doing the work. 2.Analyze Talent with Performance Data. For people analytics to yield the greatest insight for the business, talent data should be analyzed in conjunction with all other enterprise performance data. Instead of bringing analytic talent into HR (as Google does), the IIA advocated for bringing talent analytics to the business. 3.People are Both People and Numbers. While the concept of viewing employees as a number had been taboo; Greta pointed out everyone has a height and a weight. Employees can be both a person AND a number. *Greta Roberts, Faculty IIA
  6. 6. © 2011 SAP AG. All rights reserved. 6 $10.66 Analytics - payback High Performance Appliance GRC EPM BI Predictive Mobility Cloud Collaboration Predictive 0.1 increase in engagement among employees 100,000 in the store‟s annual operating income Nucleus Research HBR – Tom Davenport “competing on Talent Analytics
  7. 7. © 2011 SAP AG. All rights reserved. 7 “Our executives want to see line charts, pie charts, and bar charts. They will not look at anything more fancy.” Oil and gas, Brazil “Less is more as it goes to UI. This means that there should not be an info overload, or busy screens” Services, Germany “Trending is more important than values.” High tech, Canada “The starting point of an analytical task must be a business question.” Food processing, USA “Give me more intelligence so that it is predictive and contextual.” Consumer goods, USA “We plan to hire 600 employees in China but we didn’t realize we lack managers to onboard all of them.” Consumer goods, USA “External benchmarks only add value if they are correct and flexible.” Services, Germany “Our Regional Vice Presidents need to compare to each other.” Food processing, USA What we hear from customers
  8. 8. © 2011 SAP AG. All rights reserved. 8 Analytics: asking questions which provide better insight into how people strategy leads to better business results Lack credible data that business trustsDon’t know how to measure workforce efficiency and business impact HR lacks analytics skills & culture Business managers don‟t use workforce analytics HR OPERATIONAL HR STRATEGIC BUSINESS STRATEGIC BUSINESSIMPACT
  9. 9. © 2011 SAP AG. All rights reserved. 9 Data Scientist – the sexiest job of the 21st century*? ...the most important qualifications for these positions are not academic degrees, certifications, job experience or titles. Rather, they seem to be the soft skills: a curious mind, the ability to communicate with non-technical people, a persistent -- even stubborn -- character and a strong creative bent.... “ “ Computerworld – big data, big jobs? - *HBR – Tom Davenport ?
  10. 10. © 2011 SAP AG. All rights reserved. 10 Supply of analysts 2018** 140,000 – 190,000** people with “deep analytical talent” 1,500,000** people capable of analyzing data in ways that enable business decisions **McKinsey Global Institute research …the professionals we see that are successful come from the quantitative side," he says. "They know enough about the technology but they aren't running the technology. They rely on IT to give them the tools… according to Jack Phillips, CEO of the IIA. “ “
  11. 11. © 2011 SAP AG. All rights reserved. 11 Achieving competitive advantage through analytics Source: “The Digital Transformation of People Management, Oxford Econoimics, Spring 2012 Embrace the transition to strategic thinking and driving business results. Says Bob Bennett of FedEx Express, “If our HR strategies do not link to that business strategy, then we‟re not supporting the company the way we need to be supporting it.” 0 10 20 30 40 50 60 HR does not perform data analytics. HR analytics are not shared broadly outside the HR department. HR provides key analytics across the enterprise that support and drive the business forward. HR provides analytics to a few departments as requested. Industrial Emerging Source: Oxford Economics, Q11 % of respondents Which of the following statements best describes the use of HR analytics at your firm? “ ”
  12. 12. © 2011 SAP AG. All rights reserved. 12 Executives; Corporate Strategy Craft and guide long term workforce plan based on given information Finance; Controlling; Budgeting Give input regarding financial figures and receives insights for midterm financial planning regarding the workforce €$¥ HRBP HR Business Partner Consult with Business Units based on workforce intelligence and drives action plans as final deliverable from the process HR HR HR HR Administration; HR Functions Recruiting, Staffing, Talent Management and other HR functions support fulfillment of workforce action plans HCM Analytics consumers by role Stakeholders across the organization √x Middle Managers; Line Managers Execute on strategic plans and manage organizational performance to assure strategic objectives are reached timely and efficiently MGR Employee Needs contextual HR data to better perform HR Analyst Needs ad-hoc capabilities to do sophisticated analysis and planning
  13. 13. © 2011 SAP AG. All rights reserved. 13 Extend your analytics capabilities where you want to be… Sense & Respond Predict & Act Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Generic Predictive Analytics Predictive Modeling Optimization What happened? Why did it happen? What will happen? What is the best that could happen? CompetitiveAdvantage Analytics Maturity The key is unlocking data to move decision making from sense & respond to predict & act
  14. 14. © 2011 SAP AG. All rights reserved. 16 Extend your analytics capabilities where you want to be… Sense & Respond Predict & Act Raw Data Cleaned Data Standard Reports Ad Hoc Reports & OLAP Generic Predictive Analytics Predictive Modeling Optimization What happened? Why did it happen? What will happen? What is the best that could happen? CompetitiveAdvantage Analytics Maturity The key is unlocking data to move decision making from sense & respond to predict & act SuccessFactors Workforce Analytics SAP Predictive Analysis
  15. 15. Thank You! Contact information: Henner Schliebs Analytics Solution Marketing henner.schliebs@sap.com @hschliebs

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