Cloud Watch on HCM applications - Capgemini


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SAP Forum
19 september 2012, ’s-Hertogenbosch

Experience Tour

Ronald van den Berg
Competence Cluster Leader People & Performance | Digital HR, Capgemini Consulting

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Cloud Watch on HCM applications - Capgemini

  1. 1. Cloud Watch on HCM applicationsRonald van den Berg19 september 2012 Transform to the power of digital
  2. 2. Contents Vendor Landscape Market trends Cloud Watch 2
  3. 3. Cloud solutions will become in 3 years the default model for HCM solutions for largeenterprises • 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. 3
  4. 4. There is a momentum for acquisitions… Copyright © 2012 Capgemini Consulting. All rights reserved.
  5. 5. Capgemini developed the Cloud Watch for HCM.. Copyright © 2012 Capgemini Consulting. All rights reserved.
  6. 6. Contents Vendor Landscape Market trends Cloud Watch 6
  7. 7. Firms evaluating both Cloud solutions, as well as traditional options Traditional Cloud  Cost - Large upfront cost, typically cheaper in the  Cost - Cheaper upfront, typically more expensive long run in the long run  Flexibility - More flexible customization options but  Flexibility - Easier to implement but limited typically more difficult, expensive, & time- customization options consuming to them  Business benefits – Automatic upgrades &  Business benefits – Lost opportunity cost as shorter deployment cycle upgrades take longer to be deployed Often, differences in business benefits, flexibility, are as important, if not more important than costs, when comparing options Copyright © 2012 Capgemini Consulting. All rights reserved.
  8. 8. Cloud solutions offers a lower cost of ownership over On-premise in the short-run (< 3years)cost On Premise. Big hit for licensing, hardware and transition. Then low cost of maintenance Until next cycle SaaS. One time transition hit then simple Linear increment for subscription payments timeWhen 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) Copyright © 2012 Capgemini Consulting. All rights reserved.
  9. 9. 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.
  10. 10. Subscription based HRM solutions market with an exponential growth of 15.65% ispredicted by 2014 Subscription1 revenue to Licensed revenue • Expontial growth on Cloud solutions, Growth rate of license and subscription fee in HRMS, Forrester Research , almost 16% 2010-2014 • Stable, light decrease, for on-premise 6,000 solutions 5,000 15.65% 4,000 3,000 2,000 -3.38% 1,000 0 2010 2011 2012 2013 2014 License Subscription Copyright © 2012 Capgemini Consulting. All rights reserved. 10
  11. 11. Talent management is expected to have higher growth with 16.5 percentage whereWorkforce Management (mobile) will be the future growth. 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. 11
  12. 12. Mobile HR has potential to add value through all layers of the organization…..Know the HR process and data stakeholders -Where is the most value derived from mobile access? Benefits from Implementing Mobile HR  Empower workers to do Improve employee Executive ► Exception Handling 3,76 their work at any time efficiency  Access to key HR metrics from anywhere on any  Navigate the Org. Chart device  Increase workflow HR Business Partner ► Information on call Improve interaction 3,68 response times with alerts  Employee data and analytics and notifications  HR Reports and KPI’s  Deliver the insight people  Meeting preparation and follow up Improve need to make better Manager ► Efficiency and Insight 3,54 decisions in the moment engagement  Workflow approvals  Increase the adoption of  Team Information HR processes to better  Selected HR Processes leverage the investment in Reduce manual 3,49 back-end HR system Employee ►Efficiency and Engagement transactions  “Every-day” transactions (requests, Time Entry, Pay Slip, Team Calendar, Employee Lookup) 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. Copyright © 2012 Capgemini Consulting. All rights reserved.
  13. 13. Contents Vendor Landscape Market trends Cloud Watch 13
  14. 14. HRMS SaaS can be categorized into core HRMS, compensation & benefits, talent, learning,recruitment and workforce management HRMS SaaS Solution blueprint Course Virtual management classroom Learning content Applicant Mentoring Performance Goals management tracking Sourcing Succession Organisation planning charting On-boarding Learning Social recruiting/ management networking Competency Strategic Workforce Career planning management Talent planning Recruiting management HRMS management Solutions HRMS Solution (Cloud & Core HRMS Mobile) Compensation Payroll & benefits Pay-for- Stock based and Employee deferred performance compensation records Salary Workforce administration management Compliance Incentive Market compensation comparisons Jobs & Positions Shared & self Time & Attendance Benefits Enrollment & service administration communication HR Analytics Absence Workforce management scheduling Copyright © 2012 Capgemini Consulting. All rights reserved. 14
  15. 15. 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 Trends Learning management  Talent management point solution vendors look at the learning market. Talent Recruiting New Players in By example acquistion of Jambok bymanagement management Learning management Succesfactors HRMS SolutionsCore HRMS  As learning has become more Compensation Learning point central to employee development, & benefits solution vendors have vendors have responded by built or acquired Workforce expanding their solutions existing management performance functionality and adding capabilities performance management to it Vendor Landscape Point application Learning management Suite of application Copyright © 2012 Capgemini Consulting. All rights reserved. 15
  16. 16. Recruiting management solutions have a fair bit of Cloud based solution providers prevalent in the market Trends Learning management  Acquisitions in the applicant tracking Talent Recruiting system (ATS) area mean fewer vendorsmanagement management Market consolidation and offers to the needs of both enterprise HRMS and SMB customers SolutionsCore HRMS Compensation  Many vendors have made acquisitions for & benefits Growth of installed intellectual property, advanced Workforce bases of the existing technology, and increase of customer management players base. By example Oracle acquires Taleo Vendor Landscape Point application Recruitment management Suite of application Copyright © 2012 Capgemini Consulting. All rights reserved. 16
  17. 17. Compensation & benefits tools become a component of broader talent managementsuites and there have been significant mergers & acquisitions in the market Learning management Trends Talent Recruitingmanagement  Compensation specialists leverage the management link between rewards and performance HRMS  The link between performance and Solutions Compensation vendors compensation is at least as strong as the leverage pay-for-performance link between performance and learningCore HRMS Compensation & benefits Workforce management  There have been significant mergers and acquisitions in the compensation Mergers & Acquisitions market during the past few years Vendor Landscape Point application Compensation and benefits Suite of application Copyright © 2012 Capgemini Consulting. All rights reserved. 17
  18. 18. Demand for mobile based WFM, retailers and public sector industries relying on WFMsolutions to improve productivity are some of the trends in workforce management space Learning management Trends Talent Recruitingmanagement  There is an upsurge in adoption of mobile management Strong demand for based workforce management solution HRMS Mobile WFM SolutionsCore HRMS  Growing demand for WFM in retail Compensation Demand for WFM & benefits industry, it is estimated to have a CAGR of solutions in retail 3% till 2015 Workforce management  Counties and other departments are Increasing instances of extensively relying on WFM solution to public sector usage streamline utilisation WFM Vendor Landscape Point application Workforce management Suite of application Copyright © 2012 Capgemini Consulting. All rights reserved. 18
  19. 19. Only new generation software vendors throng the Cloud based core HRMS market and are slowly seeing acceptance in the market Learning management Talent Trends Recruitingmanagement management  Although the overall breadth of HRMS HRMS application suites has not evolved Solutions HRMS Footprints Gain In- significantly over the past several years, their Depth Talent, Analytics,Core HRMS Compensation depth of functionality has improved in several And Global Capabilities & benefits areas Workforce management Outsourcing vendors and  Outsourcing and ERP vendors are introducing ERP vendors are mobile HR capabilities to their clients introducing mobile HR apps Vendor Landscape Point application Core HRMS Suite of application Copyright © 2012 Capgemini Consulting. All rights reserved. 19
  20. 20. Integration challenges with Core HRMS, growing importance of social talent management are the key trends in Talent management Learning management Trends Talent  Organisations that want to be at the forefront must Recruiting Growing move their HR practices into social media age nowmanagement management importance of  An organisations social HR strategy reflects its HRMS social talent culture, it can enhance productivity within an Solutions management organisaiton and also collaboration and connectivityCore HRMS Compensation & benefits  More than 35% of organizations are not integrating their talent management applications with their core Workforce Integrating HRMS applications, according to our customer management challenges with reference surveys Core HRMS  Lack of usage of an integrated talent management suite is the main reason for integration challenges Vendor Landscape Point application Talent management Suite of application Copyright © 2012 Capgemini Consulting. All rights reserved. 20
  21. 21. 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 Copyright © 2012 Capgemini Consulting. All rights reserved. 21
  22. 22. Copyright © 2012 Capgemini Consulting. All rights reserved. 22