The German HR software market reached about EUR 1.3 billion in 2015 and is expected to grow to EUR 1.7 billion by 2020, driven by trends like the transition to cloud-based solutions. The market consists of seven segments, with administrative segments like employee data administration currently larger but growing slower than strategic segments like recruiting and talent management. A major trend is the strong expected growth of cloud-based solutions, from a 13% market share in 2015 to an estimated 86% by 2020. Growth is also supported by increasing demand from small and medium-sized enterprises.
- RingCentral (RNG) is a provider of cloud-based communications solutions for businesses, including voice, video, and text messaging.
- The analyst recommends buying RNG stock. Recent economic indicators point to a difficult investment environment due to market volatility.
- RNG's cloud-based model reduces costs for customers compared to traditional on-site software, and makes it easier for businesses to support mobile employees across locations.
Unlock your content, FirstSpirit, CMS, e-Spirit AG, Best-of-Breed, Internet, Intranet, Extranet, Management, CIO, CEO, CMO, Digital Marketing, Integration of third part technology, SEO, Analytics, Strategy, Customer Experience
Being Digital, Fast-forward to the Right Digital Strategy Fabio Mittelstaedt
Do my Company have the right Digital Strategy? Is it compelling enough to beat my competitors? Or to conquer the new digital customers from millenniums to baby boomers? Competing in a world shaped by digital technologies requires a fundamentally different approach to how strategies are developed and executed. 55% of business leaders admit that they do not yet have an enterprise-level digital strategy to support their corporate strategy. But there is a difference between developing some digital capabilities or being a digital lead in your industry. Digital disrupts business strategy. Business leaders must consider a new strategic approach.
The document discusses strategies for different players in the connected home market to succeed by focusing on the customer experience. It describes three emerging business models: 1) point solutions which are individual devices/services, 2) hubs which connect and control multiple solutions, and 3) connectivity providers which enable communication. To grow, point solutions must partner with hubs to offer more value, while hubs need to aggregate solutions and refine the user experience. Overall, the player that can deliver the best seamless customer experience across the connected home will dominate the market.
The document provides an overview of the technology/software/telecom industry and how Synergetics, a management consulting firm, has helped companies in this sector identify and achieve strategic business objectives through implementation projects. It discusses major changes in the industry such as the growth of cloud computing and subscription models. It then summarizes three implementation projects Synergetics conducted for established IT companies, helping them optimize processes and achieve significant cost savings and revenue increases.
The document discusses how technology investments are shifting from standalone point solutions to end-to-end solutions that span customer journeys. It notes that investments are moving through three phases - from an initial "dawning" phase where visionary firms experiment with point solutions, to an "awareness" phase where limitations of point solutions become clear, to an "acceptance" phase where most firms recognize the need for end-to-end solutions to remain competitive. Enterprise architecture professionals should help their firms address challenges in scaling end-to-end customer experiences through a business technology agenda.
This document summarizes trends in the transactional printing market from 2007-2012 based on interviews with 50 leading transactional printing providers. It finds that while the overall market is declining slightly, the use of color is growing significantly, especially for promotional "transpromo" applications. Full color output is expected to grow 38% annually, while monochrome declines 1% per year. It also discusses the increased impact of electronic delivery but notes that paper statements are still preferred by many. Key trends include more emphasis on color, electronic delivery, and using documents promotionally.
Konica Minolta IDC Solutions White PaperLarry Levine
Konica Minolta is transforming itself from a print and copy solutions provider to a provider of document solutions and services by:
1) Creating a vertically integrated solutions and services organization called EnvisionIT that provides targeted software and solutions.
2) Offering a software portfolio that targets key areas like security, document management, and workflow.
3) Providing managed print and IT services through acquisitions and programs like Optimized Print Services Enterprise Edition.
4) Finding success in both traditional print markets and new software and services markets.
- RingCentral (RNG) is a provider of cloud-based communications solutions for businesses, including voice, video, and text messaging.
- The analyst recommends buying RNG stock. Recent economic indicators point to a difficult investment environment due to market volatility.
- RNG's cloud-based model reduces costs for customers compared to traditional on-site software, and makes it easier for businesses to support mobile employees across locations.
Unlock your content, FirstSpirit, CMS, e-Spirit AG, Best-of-Breed, Internet, Intranet, Extranet, Management, CIO, CEO, CMO, Digital Marketing, Integration of third part technology, SEO, Analytics, Strategy, Customer Experience
Being Digital, Fast-forward to the Right Digital Strategy Fabio Mittelstaedt
Do my Company have the right Digital Strategy? Is it compelling enough to beat my competitors? Or to conquer the new digital customers from millenniums to baby boomers? Competing in a world shaped by digital technologies requires a fundamentally different approach to how strategies are developed and executed. 55% of business leaders admit that they do not yet have an enterprise-level digital strategy to support their corporate strategy. But there is a difference between developing some digital capabilities or being a digital lead in your industry. Digital disrupts business strategy. Business leaders must consider a new strategic approach.
The document discusses strategies for different players in the connected home market to succeed by focusing on the customer experience. It describes three emerging business models: 1) point solutions which are individual devices/services, 2) hubs which connect and control multiple solutions, and 3) connectivity providers which enable communication. To grow, point solutions must partner with hubs to offer more value, while hubs need to aggregate solutions and refine the user experience. Overall, the player that can deliver the best seamless customer experience across the connected home will dominate the market.
The document provides an overview of the technology/software/telecom industry and how Synergetics, a management consulting firm, has helped companies in this sector identify and achieve strategic business objectives through implementation projects. It discusses major changes in the industry such as the growth of cloud computing and subscription models. It then summarizes three implementation projects Synergetics conducted for established IT companies, helping them optimize processes and achieve significant cost savings and revenue increases.
The document discusses how technology investments are shifting from standalone point solutions to end-to-end solutions that span customer journeys. It notes that investments are moving through three phases - from an initial "dawning" phase where visionary firms experiment with point solutions, to an "awareness" phase where limitations of point solutions become clear, to an "acceptance" phase where most firms recognize the need for end-to-end solutions to remain competitive. Enterprise architecture professionals should help their firms address challenges in scaling end-to-end customer experiences through a business technology agenda.
This document summarizes trends in the transactional printing market from 2007-2012 based on interviews with 50 leading transactional printing providers. It finds that while the overall market is declining slightly, the use of color is growing significantly, especially for promotional "transpromo" applications. Full color output is expected to grow 38% annually, while monochrome declines 1% per year. It also discusses the increased impact of electronic delivery but notes that paper statements are still preferred by many. Key trends include more emphasis on color, electronic delivery, and using documents promotionally.
Konica Minolta IDC Solutions White PaperLarry Levine
Konica Minolta is transforming itself from a print and copy solutions provider to a provider of document solutions and services by:
1) Creating a vertically integrated solutions and services organization called EnvisionIT that provides targeted software and solutions.
2) Offering a software portfolio that targets key areas like security, document management, and workflow.
3) Providing managed print and IT services through acquisitions and programs like Optimized Print Services Enterprise Edition.
4) Finding success in both traditional print markets and new software and services markets.
Roland berger automotive_landscape_2025_20110314lauri213
The document discusses trends in the global automotive industry out to the year 2025. It finds that sales and production capacity will dramatically shift to Asia, with China becoming a major hub. This shift could put 300,000 automotive jobs in Europe at risk. Electric vehicles may reach 10% market share by 2025, with hybrids capturing 40%, though internal combustion engines will still power half of new vehicles. Connected cars will also increase, though intelligent transportation solutions will still be largely visionary. Established companies must adapt to challenges from low-cost competitors, new technologies, and new business models like mobility services.
This document discusses strategies for managing large technology acquisitions, known as "megadeals". It analyzes 131 tech deals worth over $1 billion from the past 5 years. Megadeals fall into 4 categories: consolidation, capabilities extension, technology-driven market transformation, and going private.
The document outlines 7 challenges of megadeals and strategies to address them. The challenges include assigning accountability, relying on acquired management, properly valuing synergies, tailoring integration playbooks, and conducting sufficient due diligence. Cost synergies are generally more achievable than revenue synergies. Megadeals require distributing accountability, succession planning for acquired leaders, focusing on costs, customizing integration plans, and thorough vetting between
This document provides an overview of trends, drivers, and valuation metrics in the technology, media, and telecommunications (TMT) industry. It discusses how cloud computing, mobile technology, and social networks are converging and transforming the industry. Valuation of TMT companies has changed from using traditional discounted cash flow models to utilizing multiples of metrics like revenues, EBITDA, and free cash flows. The document analyzes sectors like media, communications chips, and storage and discusses company valuations and growth opportunities in these areas driven by developments in cloud, mobile, and social media.
Search Marketing in a B2B World - PPC and SEOMagnus Nilsson
Slides from my presentation held at SEM Konferansen in Oslo 2010. The session explored the major challenges facing B2B SEM, which makes it different to running a B2C campaign.
Brait SE acquired New Look Group Ltd from Apax Partners and Permira Advisers Ltd for £780 million. New Look is the second largest women's clothing retailer in the UK and had been growing its international presence, double digit EBITDA growth, and strong cash flow generation under Apax and Permira's ownership. The acquisition was financed through Brait's facilities and cash. Private equity activity in Central and Eastern Europe saw increased deal value and volume in 2015 compared to 2014, though overall M&A activity in the region declined. Political and economic challenges could impact future private equity investments in the region.
Evolving landscape of technology deals: Semiconductor Industry PwC
The document summarizes semiconductor industry M&A trends in 2014-2015. Key factors driving deals include slowing revenue growth from maturing markets and decreasing chip prices. This has increased consolidation as companies seek access to new markets and customers. The summary document also notes that rising development costs and need for hardware-software partnerships have increased complexity and costs for chipmakers.
Convergence Analysis of Regional Logistics Efficiency in Chinaijtsrd
This document analyzes the convergence of regional logistics efficiency in China from 2011 to 2018 using data envelopment analysis and convergence theory. The results show:
1) There is no absolute convergence trend nationwide or in eastern China, but the central and western regions show absolute convergence.
2) After controlling for factors like human capital, government intervention, industrial structure, conditional convergence is seen nationwide.
3) Improving human capital and reducing government intervention most promote convergence of logistics efficiency. This implies central and western regions can narrow the efficiency gap with eastern regions through appropriate policies.
2017 Top Issues Core Transformation - January 2017PwC
The document discusses trends in property and casualty insurance core system transformations. It notes that insurers are looking to extend core platforms to develop foundations for digital transformation and analytics to drive growth strategies. Insurers are also exploring greenfield and cloud-based approaches. Additionally, the next wave of transformations is expected to impact specialty insurers like E&S carriers as they seek to automate processes while empowering underwriters.
This document provides a summary of the global digital learning market opportunity report. It discusses key topics such as the size and growth of the global eLearning market, trends in mobile learning, social learning, and corporate MOOCs. The summary also highlights geographic differences, top growth drivers, and spending priorities within the learning and development industry. The global digital learning landscape is rapidly changing, driven by new technologies, workforce needs, and business goals requiring alignment of learning strategies.
The document discusses how IT will change between now and 2020 based on a study of over 150 chief information officers. It finds that demand for IT will significantly increase as digital technologies become more prevalent and disruptive. Companies will invest more in customer-facing IT systems and applications to drive sales. To meet this rising demand, IT organizations will need to focus on simplifying complex systems, increasing outsourcing, and addressing skills shortages. Forward-thinking companies will balance IT costs with business value to ensure they have the capabilities required for the digital future.
The document discusses collaboration trends based on a survey of 900 enterprises. Key findings include:
- Nearly 40% of organizations don't have a defined collaboration strategy. However, lines of business play a key role in defining strategies for 60% of organizations.
- Increasing sales is the second most important goal of collaboration strategies. However, few organizations measure success through return on investment.
- Collaboration has improved productivity and decision-making but many organizations fail to leverage it to improve competitiveness.
- Cloud-based collaboration is a strategic goal but few organizations currently rely on cloud services and adoption is expected to be gradual.
- Lines of business increasingly purchase and support their own collaboration technologies independently of IT departments.
1. How the digital economy relates to the digital business models?
2. What are digital business platforms and how they impact digital transformation?
3. Can Generation C transform your business?
An online survey of 96 IT decision makers from large enterprises and SMBs was conducted to understand their top technology priorities for 2014. The survey found that key business priorities like improving productivity and reducing expenses were top priorities across organization sizes. Most respondents said that specific company objectives would impact IT spending in 2014. The survey also found that hybrid cloud was of high interest among large enterprises, while software defined networking remains unclear to most. Information security and choosing the right technologies were among the top challenges cited.
2015-16 Global Chief Procurement Officer Survey - CPOCapgemini
Capgemini Consulting’s sixth Chief Procurement Officer (CPO) Survey examines Procurement Trends, Compliance Management, Advanced Analytics in Procurement, and the Total Supplier Experience. Since our last CPO Survey, much has changed. During the darkest economic hours, Procurement was called upon in many troubled organizations to stem costs in new and creative ways. For many Procurement executives, there was no longer the need to sell the value of its standard services (cutting costs). Instead, Procurement was being called upon as a partner to drive cost out across the organization, thus elevating Procurement executives into a highly visible role in the organization.
Software Industry Financial Report - AltQuest GroupMichael Herlache
About AltQuest Group
Software Industry Macroeconomics
Public Software Financial and Valuation Performance
Public SAAS Company Financial and Valuation Performance
Public Internet Company Financial and Valuation Performance
Software Industry M&A Market Update
The document discusses a market research report on the cloud ERP market. It provides an overview of the global cloud ERP market trends, segments, factors influencing growth, and key players. The cloud ERP market is segmented based on component, business function, organization size, vertical, and region. Some of the advantages of cloud ERP discussed are lower upfront costs, ease of use, and scalability. The cloud ERP market is expected to grow due to factors such as increased adoption by SMEs and demand for operational efficiency.
Munich Re has established Digital Partners to engage with insurtech startups through partnerships, investments, and acquisitions. Digital Partners focuses on distribution and provides capital, products, analytics, and back office technology to partner companies. Munich Re has partnered with or invested in nine insurtech companies to date, including Blink which offers flight disruption insurance and Bought By Many which uses collective buying power to offer tailored insurance policies. Munich Re aims to learn from and support disruptive insurtech partners in order to capture new opportunities from the changing insurance landscape.
Today’s fast-paced modern business landscape demands that businesses deliver responsive, engaging experiences across multiple touchpoints and at all stages of a customer’s journey. To be able to meet these needs, organizations must now make Digital Asset Management (DAM) a strategic business priority.
Since the outset of digital publishing in the 1990s, digital libraries have housed brand images, text and graphics accessible through basic search features and early metadata indexing. But now everything is digital; online buyer research and digital marketing dominates, and eCommerce rules. So digital libraries have exploded in volume and usage. But enterprise can no longer organize their vast libraries of content using ad hoc point solutions or simple tools like email and spreadsheets.
This presentation will discuss how the management of digital assets has now become mission-critical to most organizations. It explains how to set up a strategic DAM project and how to consider the right technology partner.
Business Process Management Software (BPM) Market Statistics, 2016 to 2024Signitech
The business process management (BPM) software market is anticipated to witness significant growth on account of growing demand for business process automation.
Roland berger automotive_landscape_2025_20110314lauri213
The document discusses trends in the global automotive industry out to the year 2025. It finds that sales and production capacity will dramatically shift to Asia, with China becoming a major hub. This shift could put 300,000 automotive jobs in Europe at risk. Electric vehicles may reach 10% market share by 2025, with hybrids capturing 40%, though internal combustion engines will still power half of new vehicles. Connected cars will also increase, though intelligent transportation solutions will still be largely visionary. Established companies must adapt to challenges from low-cost competitors, new technologies, and new business models like mobility services.
This document discusses strategies for managing large technology acquisitions, known as "megadeals". It analyzes 131 tech deals worth over $1 billion from the past 5 years. Megadeals fall into 4 categories: consolidation, capabilities extension, technology-driven market transformation, and going private.
The document outlines 7 challenges of megadeals and strategies to address them. The challenges include assigning accountability, relying on acquired management, properly valuing synergies, tailoring integration playbooks, and conducting sufficient due diligence. Cost synergies are generally more achievable than revenue synergies. Megadeals require distributing accountability, succession planning for acquired leaders, focusing on costs, customizing integration plans, and thorough vetting between
This document provides an overview of trends, drivers, and valuation metrics in the technology, media, and telecommunications (TMT) industry. It discusses how cloud computing, mobile technology, and social networks are converging and transforming the industry. Valuation of TMT companies has changed from using traditional discounted cash flow models to utilizing multiples of metrics like revenues, EBITDA, and free cash flows. The document analyzes sectors like media, communications chips, and storage and discusses company valuations and growth opportunities in these areas driven by developments in cloud, mobile, and social media.
Search Marketing in a B2B World - PPC and SEOMagnus Nilsson
Slides from my presentation held at SEM Konferansen in Oslo 2010. The session explored the major challenges facing B2B SEM, which makes it different to running a B2C campaign.
Brait SE acquired New Look Group Ltd from Apax Partners and Permira Advisers Ltd for £780 million. New Look is the second largest women's clothing retailer in the UK and had been growing its international presence, double digit EBITDA growth, and strong cash flow generation under Apax and Permira's ownership. The acquisition was financed through Brait's facilities and cash. Private equity activity in Central and Eastern Europe saw increased deal value and volume in 2015 compared to 2014, though overall M&A activity in the region declined. Political and economic challenges could impact future private equity investments in the region.
Evolving landscape of technology deals: Semiconductor Industry PwC
The document summarizes semiconductor industry M&A trends in 2014-2015. Key factors driving deals include slowing revenue growth from maturing markets and decreasing chip prices. This has increased consolidation as companies seek access to new markets and customers. The summary document also notes that rising development costs and need for hardware-software partnerships have increased complexity and costs for chipmakers.
Convergence Analysis of Regional Logistics Efficiency in Chinaijtsrd
This document analyzes the convergence of regional logistics efficiency in China from 2011 to 2018 using data envelopment analysis and convergence theory. The results show:
1) There is no absolute convergence trend nationwide or in eastern China, but the central and western regions show absolute convergence.
2) After controlling for factors like human capital, government intervention, industrial structure, conditional convergence is seen nationwide.
3) Improving human capital and reducing government intervention most promote convergence of logistics efficiency. This implies central and western regions can narrow the efficiency gap with eastern regions through appropriate policies.
2017 Top Issues Core Transformation - January 2017PwC
The document discusses trends in property and casualty insurance core system transformations. It notes that insurers are looking to extend core platforms to develop foundations for digital transformation and analytics to drive growth strategies. Insurers are also exploring greenfield and cloud-based approaches. Additionally, the next wave of transformations is expected to impact specialty insurers like E&S carriers as they seek to automate processes while empowering underwriters.
This document provides a summary of the global digital learning market opportunity report. It discusses key topics such as the size and growth of the global eLearning market, trends in mobile learning, social learning, and corporate MOOCs. The summary also highlights geographic differences, top growth drivers, and spending priorities within the learning and development industry. The global digital learning landscape is rapidly changing, driven by new technologies, workforce needs, and business goals requiring alignment of learning strategies.
The document discusses how IT will change between now and 2020 based on a study of over 150 chief information officers. It finds that demand for IT will significantly increase as digital technologies become more prevalent and disruptive. Companies will invest more in customer-facing IT systems and applications to drive sales. To meet this rising demand, IT organizations will need to focus on simplifying complex systems, increasing outsourcing, and addressing skills shortages. Forward-thinking companies will balance IT costs with business value to ensure they have the capabilities required for the digital future.
The document discusses collaboration trends based on a survey of 900 enterprises. Key findings include:
- Nearly 40% of organizations don't have a defined collaboration strategy. However, lines of business play a key role in defining strategies for 60% of organizations.
- Increasing sales is the second most important goal of collaboration strategies. However, few organizations measure success through return on investment.
- Collaboration has improved productivity and decision-making but many organizations fail to leverage it to improve competitiveness.
- Cloud-based collaboration is a strategic goal but few organizations currently rely on cloud services and adoption is expected to be gradual.
- Lines of business increasingly purchase and support their own collaboration technologies independently of IT departments.
1. How the digital economy relates to the digital business models?
2. What are digital business platforms and how they impact digital transformation?
3. Can Generation C transform your business?
An online survey of 96 IT decision makers from large enterprises and SMBs was conducted to understand their top technology priorities for 2014. The survey found that key business priorities like improving productivity and reducing expenses were top priorities across organization sizes. Most respondents said that specific company objectives would impact IT spending in 2014. The survey also found that hybrid cloud was of high interest among large enterprises, while software defined networking remains unclear to most. Information security and choosing the right technologies were among the top challenges cited.
2015-16 Global Chief Procurement Officer Survey - CPOCapgemini
Capgemini Consulting’s sixth Chief Procurement Officer (CPO) Survey examines Procurement Trends, Compliance Management, Advanced Analytics in Procurement, and the Total Supplier Experience. Since our last CPO Survey, much has changed. During the darkest economic hours, Procurement was called upon in many troubled organizations to stem costs in new and creative ways. For many Procurement executives, there was no longer the need to sell the value of its standard services (cutting costs). Instead, Procurement was being called upon as a partner to drive cost out across the organization, thus elevating Procurement executives into a highly visible role in the organization.
Software Industry Financial Report - AltQuest GroupMichael Herlache
About AltQuest Group
Software Industry Macroeconomics
Public Software Financial and Valuation Performance
Public SAAS Company Financial and Valuation Performance
Public Internet Company Financial and Valuation Performance
Software Industry M&A Market Update
The document discusses a market research report on the cloud ERP market. It provides an overview of the global cloud ERP market trends, segments, factors influencing growth, and key players. The cloud ERP market is segmented based on component, business function, organization size, vertical, and region. Some of the advantages of cloud ERP discussed are lower upfront costs, ease of use, and scalability. The cloud ERP market is expected to grow due to factors such as increased adoption by SMEs and demand for operational efficiency.
Munich Re has established Digital Partners to engage with insurtech startups through partnerships, investments, and acquisitions. Digital Partners focuses on distribution and provides capital, products, analytics, and back office technology to partner companies. Munich Re has partnered with or invested in nine insurtech companies to date, including Blink which offers flight disruption insurance and Bought By Many which uses collective buying power to offer tailored insurance policies. Munich Re aims to learn from and support disruptive insurtech partners in order to capture new opportunities from the changing insurance landscape.
Today’s fast-paced modern business landscape demands that businesses deliver responsive, engaging experiences across multiple touchpoints and at all stages of a customer’s journey. To be able to meet these needs, organizations must now make Digital Asset Management (DAM) a strategic business priority.
Since the outset of digital publishing in the 1990s, digital libraries have housed brand images, text and graphics accessible through basic search features and early metadata indexing. But now everything is digital; online buyer research and digital marketing dominates, and eCommerce rules. So digital libraries have exploded in volume and usage. But enterprise can no longer organize their vast libraries of content using ad hoc point solutions or simple tools like email and spreadsheets.
This presentation will discuss how the management of digital assets has now become mission-critical to most organizations. It explains how to set up a strategic DAM project and how to consider the right technology partner.
Business Process Management Software (BPM) Market Statistics, 2016 to 2024Signitech
The business process management (BPM) software market is anticipated to witness significant growth on account of growing demand for business process automation.
IDC: The Next Steps in Digital TransformationSOA PEOPLE
This document summarizes findings from a survey of small and mid-sized businesses regarding their digital transformation efforts and technology investments. Some key findings include:
- Customer acquisition, revenue growth, and efficiency were top priorities.
- Companies have significantly increased their use of applications like collaboration software, CRM, and ecommerce in recent years.
- Most companies saw their technology investment expectations met or exceeded.
- Decisions involve both senior management and IT, with more IT influence in larger companies.
- Companies prefer off-the-shelf solutions that can be gradually integrated over customized or disruptive approaches.
This document discusses the growing trend of companies moving their ERP systems to cloud-based models. It provides an overview of the different types of cloud models (infrastructure as a service, platform as a service, software as a service) and highlights the key benefits driving companies' decisions to adopt cloud ERP, including lower costs, faster deployment, flexibility and scalability. Market analysis is presented on the projected growth of cloud-based software and infrastructure spending. The document also briefly discusses open source ERP solutions and the increasing popularity of the software as a service model for ERP.
The document discusses how increased digitization is putting pressure on businesses to be more agile and innovative with their IT. It describes how Platform as a Service (PaaS) is evolving from a technical layer to a full-fledged business system that can accelerate the development and deployment of new applications. Specifically, PaaS provides standardized, scalable services that lines of business can use to quickly test and implement new ideas without technical expertise. The document also gives examples of how PaaS is enabling innovations in industries like retail through applications for mobile marketing, data analytics from sensors, and more integrated software ecosystems.
[Europe merge world tour] PAC Importance of Embedded SoftwarePerforce
The document discusses IT trends in the manufacturing industry in Germany. It finds that IT-driven processes have reached a high level of maturity in Germany. Top priorities for CIOs include increasing the value of IT, improving efficiency, and managing price pressure. Emerging technologies like cyber-physical systems, machine-to-machine communication, and ubiquitous intelligence are driving developments in embedded software. These trends are significant for the economy and supported by a diverse supplier landscape.
This document discusses the combination of cloud computing and business intelligence (BI). It begins by noting the low adoption rate of BI applications in the cloud, around 3% according to Gartner and Forrester. It then examines three sub-segments where the cloud is gaining traction for BI: performance management applications, departmental BI applications, and enterprise BI/big data. For performance management, the cloud is appealing due to the competitive EPM market and the functional department focus of many applications. Departmental BI in the cloud is succeeding for applications like web analytics where data is sourced externally. Enterprise BI/big data in the cloud may disrupt the field through elastic databases, changed economics, and new communicative functionality to integrate external data.
Breaking the deadlock for LOW-CODE on the Dutch market | Swatantra KumarSwatantra Kumar
This document discusses low-code development platforms and their adoption in the Dutch market. It notes that low-code platforms enable non-technical or citizen developers to build applications visually with little coding. Major low-code platform providers like Mendix and OutSystems have seen significant adoption in the Netherlands. The document outlines four common uses for low-code platforms: innovation, customer engagement, operational efficiency, and legacy modernization. It also lists several key advantages of low-code platforms, such as rapid development, ease of use, integration capabilities, and scalability.
Cloud based plm market demand, industry sizeकिरण सोनवणे
The document summarizes a report on the global cloud-based PLM market. It is expected to register a 15% CAGR during 2020-2027 due to benefits like improved communication and cost reduction. The COVID-19 pandemic is also boosting demand. Major players are acquiring other firms to maintain their market position and drive growth. The market is segmented by components, technologies, applications, organization size, and end users. North America has significant opportunities due to end user impact. Key players profiled include Siemens, Dassault Systemes, Oracle, PTC, and Autodesk.
Gartner's top 10 strategic technology trends for 2013 could have major impacts over the next three years. The trends reflect increasing impacts of mobile, social, cloud and information technologies. The trends include 1) mobile devices and apps, 2) personal cloud, 3) the internet of things, 4) hybrid IT and cloud computing, 5) strategic big data, 6) actionable analytics, 7) mainstream in-memory computing, 8) integrated ecosystems, 9) enterprise app stores, and 10) cloud computing and hybrid IT driving future IT models. Adopting these trends presents both opportunities and challenges for organizations.
This document provides an overview of the Magic Quadrant for Customer Communications Management Software published by Gartner in January 2017. It evaluates 15 featured CCM providers, assessing their strengths and capabilities. The market for CCM tools is evolving from static printed outputs to dynamic on-demand communications across multiple channels. Application leaders should use this report to help assess the best CCM solution for their organization.
Market momentum for Cloud BI has been announced already a couple of time. But today seems the right time, with the market opening up to three BI sub-segments. In order of maturity : performance management applications ; departmental BI applications t; and enterprise BI and big data.
This white paper looks at those different marlets, highlights their benefits and painpoints and presents the different players.
The document discusses how IT infrastructure is changing to adapt to new business priorities in the digital age. It introduces the "HEROES" framework for the future of IT infrastructure, which focuses on hybrid cloud architectures, edge computing, robotic process automation, obsolescence of old IT, and enterprise security. Artificial intelligence will be integrated across all areas of the framework and fundamentally change how organizations procure and consume IT infrastructure over the next five years.
Cloud Computing technology is a critical enabler of the Industrial Revolution 4.0. As the new Industry Revolution starts the ignition, cloud computing is effectively supporting the developments on the Internet of Things (IoT), automation, and robotics.
The document provides an overview of HR shared services and how it enables HR transformation. It discusses how HR shared services involves transitioning administrative HR roles to a specialist function in order to allow HR to focus more on strategic activities. Setting up an HR shared services center aims to reduce costs, increase quality, and drive efficiency through process standardization, centralization, and leveraging expertise. Outsourcing transactional HR activities to a shared services center can deliver cost savings, access to skills and technology not otherwise available, improved governance, risk management and operating performance with commitments to on-time delivery.
- Forrester evaluated 18 leading CRM suite solutions against over 500 criteria to assess their suitability for large organizations. The solutions were grouped into leaders, strong performers, and a single contender.
- Oracle Siebel and SAP were found to still offer the most complete solutions for large enterprises, though other leaders like Salesforce.com and Microsoft are gaining ground with more flexible, quicker to implement solutions.
- While the leaders are challenged by strong performers like Oracle E-Business Suite and PeopleSoft CRM suited for ERP customers, as well as BPM-focused solutions from Chordiant, Pegasystems and Sword Ciboodle, the crowded market provides many choices for buyers to consider.
The document evaluates 18 leading CRM suite solutions for large organizations based on 516 criteria related to the vendors' current offerings, strategies, and market presence. It finds that Oracle Siebel and SAP still offer the most complete solutions for large enterprises, though other Leaders like Salesforce.com, Microsoft, and RightNow are gaining ground with more flexible options. The evaluation also identifies Strong Performers like Oracle E-Business Suite, Pegasystems, and Sword Ciboodle that bring specific strengths in areas like analytics, customer service, and business process management. The report aims to help business professionals choose between the various options for meeting their organizations' CRM needs.
Hampleton Enterprise Applications M&A Report, September 2014Rachel Muzyczka
Hampleton’s Enterprise Applications report is a must read report for any CxO or shareholder of a company in this fast developing sector of our industry. The report covers the period January 2012 through June 2014 and analyses the deal activity over the last five semi-annual periods.
The trailing thirty month median EV/S ratio for Enterprise Applications targets was 2.9x while the trailing median EBITDA multiple over the same period was 14.6x.
Keynote address channel middle east 2013Meera Kaul
The document discusses recent trends in IT spending and opportunities in the Middle East region. It notes that after a period of stagnation, businesses have regained confidence and begun reinvesting in IT. This has provided opportunities for small and medium IT companies to resume revenue growth. Key areas seeing investment include security, storage, virtualization, and analytics. Government initiatives are also driving IT education. Overall, the sentiment in the region is bullish as backlogs are cleared. The document identifies opportunities for channels partners in areas like SMB solutions, infrastructure, open source, cloud computing, mobility, security, and addressing skills shortages.
- Audi views big data as playing a central role in helping the company achieve its goal of becoming the leading premium brand.
- Audi is pursuing big data projects across its entire value chain, from development to production to after-sales, to generate added value for customers through the intelligent analysis and interpretation of data.
- The company already has business intelligence capabilities but is enhancing areas like data management and analytics to incorporate new sources of big data like vehicle sensor data.
1. A comprehensive guide to reinventing companies
Mastering the
Transformation Journey
2015
THINK
ACT
March2016
The HR software market looks to 2020
Reach for the cloud
BEYOND MAINSTREAM
2. THE BIG
3
2 THINK ACT
Reach for the cloud
100
interviews conducted with decision makers
and experts from HR software vendors.
page 3
EURO 1.7 BN
is the expected volume of the German HR software
market by 2020.
page 4
86%
till 2020 is the predicted growth of the
strongest driver in the market: the transition
to cloud based solutions.
page 6
4MAJOR TRENDSARE SHAPINGTHE MARKET
P.4
3. THINK ACT
Reach for the cloud
3
What is going on in the
world of HR software?
Do you understand the
market situation well
enoughto makethe right
software purchases?
Roland Berger conducted over 100 interviews with de-
cision makers and experts from HR software vendors
and customers focusing on the four key features of the
HR software market: Market size and growth, compet-
itive environment, customer behavior and market
trends. Add in a raft of primary and additional second-
ary research and the result is a comprehensive, quanti-
tative market model.
This report will enable vendors to sharpen their
view of the market and adjust their business model ac-
cordingly, for instance by increasing their focus on
smaller customers and specific verticals. In case you
are a customer, this report will dramatically improve
your understanding of the current market situation
and thus enable you to make the right purchase deci-
sions for your HR software.
3
"Cloud will come
no matter what, the
question is only how
long it will take the
majority of com-
panies to adopt it"
GLOBAL TRANSPORTATION PLAYER,
VP GLOBAL HR TRANSFORMATION
4. 4 THINK ACT
Reach for the cloud
Seven product segments
make up a German HR
software market worth
EUR 1.3 bn today.
FOUR MAJOR TRENDS SHAPING THE MARKET
The market described above is shaped by four major
trends. Increasing HR software budgets provide future
potential for investments and innovation. The switch
from on-premise to cloud based solutions is evidently
taking off and substantially driving growth in this area.
Simultaneously, this raises concerns about data securi-
ty & privacy, which must be taken into consideration –
especially in German companies with strong works
council co-determination rights. These concerns are
intensified by German companies having an emotional
preference for cloud based data to be hosted in Germa-
ny, even though the entire European Union could be
considered from a regulatory perspective.
For HR software customers, this implies the need
to consciously assess the state of their HR software
landscape. New technologies and offerings in a com-
petitive market environment may provide less costly
solutions to existing or as-yet unsolved problems. For
HR software vendors, it becomes crucial to respond
strategically and sustain their competitive advantag-
es, e.g. via M&A activities. All things considered, both
sides need to actively prepare to reach for the cloud.
The German HR software market reached EUR 1.3 bn
in 2015 and will hit EUR 1.7 bn by 2020. Although
growth is being achieved in all seven product seg-
ments, it is stronger in the strategic HR segments (re-
cruiting, performance & talent management, learning
& development and employee collaboration & engage-
ment) than in the administrative HR segments (em-
ployee data administration, compensation & benefits,
workforce management). Accompanying strong growth
from small and medium-sized enterprises (SMEs),
cloud based solutions make a significant contribution
to relative growth, despite being inhibited by various
factors including data security and privacy aspects.
The competitive environment has proven to be rather
consolidated in the administrative HR segments, while
the strategic HR segments remain at a fairly low con-
solidation level. For the latter in particular, this is driv-
en by many micro players developing their niches be-
sides large players with global reach such as the
industry primus SAP/SuccessFactors. To access dis-
persed markets such as the SME segment, system inte-
grators provide an alternative indirect route to market.
Regardless of the segment, customers are focused on
product quality (in this case a mix of usability, flexibil-
ity and integration) and consider price only after their
quality requirements have been fulfilled.
5. THINK ACT
Reach for the cloud
5
The German HR software market reached a volume of
about EUR 1.3 bn in 2015 and is expected to grow an-
nually by approximately 5% to total some EUR 1.7 bn
by 2020. A
The market can be broken down into three admin-
istrative HR product segments, employee data admin-
istration (EDA), compensation & benefits (including
payroll), and workforce management (WFM). Further-
more, there are four strategic HR product segments,
namely recruiting, performance & talent management,
learning & development, and employee collaboration &
engagement. B
The administrative HR segments have a tendency
to show lower growth than the strategic segments
while currently still accounting for a larger share of the
market. The slower growth is primarily attributable to
customers being reluctant to switch HR software ven-
dors, thus creating product life cycles of 7-10 years.
This immobility is driven by the high customization
level that is required to handle the present complexity,
the interdependencies with other systems, the high
sensitivity of processed data and the importance for
the going concern of the company.
IMPORTANT GROWTH DRIVERS
The most common growth drivers mentioned by our
interviewees include the gradual but ever more certain
transition to cloud based software, the strong growth
among small and medium-sized enterprises (SMEs), as
well as several industry verticals experiencing elevated
growth rates, including retail.
The strongest growth driver in the market is the
transition from on-premise (licensed) software to
cloud based solutions (or Software as a Service – SaaS).
With an expected per annum growth rate of approxi-
mately 13% in 2014-2020, the segment will be worth
around EUR 600 m in 2020. In contrast, the on-premise
segment is expected to grow only at about 2% annually
in the same time frame, reaching a total volume of
some EUR 1.1 bn. C
Market sizing and
growth: Administrative
HR segments are larger
in size but lower in
growth than strategic
HR segments.
6. THINK ACT
Reach for the cloud
6
ABOVE AVERAGE GROWTH RATE TO BE
EXPECTED
German HCM software market 2014-20 [EUR bn]
A MAJOR GROWTH DRIVER IS CLOUD BASED
HR SOFTWARE
German HCM software market by deployment type,
2014-20 [EUR bn]
SEVEN SEGMENTS MAKE UP THE HR MARKET
German HCM software market by product segment,
2015 [%]
DEMAND FOR NEW SOFTWARE IS ESPECIALLY
STRONG IN THE GERMAN "MITTELSTAND"
German HCM software market by customer segment,
2014-20 [EUR bn]
A
C
B
D
2014
2014
1.2
1.2
0.3
0.3
0.6
0.9 1.0
1.1
2015
2015
1.3
1.3
2020
2020
24%
Employee data
administration
23%
Workforce
management
17%
Recruiting
13%
Learning &
development
11%
Performance &
talent management
4%
Employee collaboration
& engagement
9%
Payroll, compensation
& benefits
1.7
1.7
CAGR
+5%
+11%
+86%
Source: Roland BergerHCM = Human Capital Management
Administrative segments Strategic segments
Cloud On-premise
2014
1.2
0.4
0.4
0.7
0.8
0.9
1.0
2015
1.3
2020
1.7
+16%
+55%
SME Large
7. THINK ACT
Reach for the cloud
7
DEEP DIVE ON PAYROLL
To illustrate the effects of the growth drivers discussed
above and how they manifest themselves individually
in each market segment, we looked more closely at the
payroll segment.
The payroll segment in question excludes the busi-
ness process outsourcing (BPO) share of the market,
and is expected to grow by about 4% per annum in
2014-2020 to reach a volume of around EUR 148 m in
2020.
The cloud influence described above holds true for
payroll, its cloud based software share being fairly
small (approximately 7% in 2015) but growing more
strongly than the on-premise segment (approximately
7% vs. 4% per annum in 2014-2020). The above-men-
tioned factors limiting cloud adoption can be applied
to payroll as well. Complexity plays an especially im-
portant role in payroll: Dozens of updates on federal
legislation concerning payroll calculations, a variety of
collective and union agreements and many different
employee groups contribute to system complexity.
This complexity can only be met with a high level of
customization, one aspect still better catered for by
on-premise solutions and hence substantially limiting
the influence of cloud based solutions' growth.
In terms of customer size, the SME segment is ex-
pected to grow by about 5% per annum in 2014-2020
(vs. the LE segment with approximately 3% annual
growth in the same time frame). Growth can be real-
ized by penetration gains from pen & paper as well as
payroll outsourcing customers. SMEs seem to prefer
best-of-breed solutions providing tailored systems
with a higher standardization level, in keeping with the
cloud advantages mentioned previously. The increas-
ing scale of cloud adoption also drives a shift toward a
larger share of the market realized with service and
maintenance contracts.
Currently significantly smaller, the share of cloud
based solutions is driven first by the unclear legislative
situation regarding data security and privacy, and sec-
ond by the large market share occupied by administra-
tive HR software, which has an inherently lower cloud
adoption rate.
Lower upfront investment in IT infrastructure and
more innovative technology that enables products in-
cluding self-service and mobile features are furthering
the growth of the cloud segment. The rather standard-
ized cloud solutions, customizable only via parametri-
zation, represent a good fit for SME companies with
lower complexity and less need for customization.
However, there are also inhibiting factors, such as the
abolition of the "safe harbor" agreement. While this
may change the way in which cloud based solutions are
realized, it does not jeopardize the momentum of the
trend.
A strong source of growth is the German SME cus-
tomer segment, the fabled "Mittelstand", encompass-
ing companies with fewer than 1,000 employees. This
segment is expected to grow at about 9% per annum in
the period 2014-2020, reaching a volume of approxi-
mately EUR 710 m in 2020. This stands in contrast to
the large enterprise segment (LE), expected to grow by
some 3% yearly to around EUR 990 m in 2020.
Even though the majority of employees in Germany
work in the SME segment, its HR software market is
smaller due to the lower penetration level overall and
less suitable products in some areas (historic domi-
nance of complex and highly customized on-premise
solutions).
SMEs are growing faster now because they can
leverage shorter and simpler decision processes as well
as less complex company structures. They have a lower
need for (global) IT harmonization and can thus un-
dertake smaller projects in distinct parts of their HR
software landscape. Enabled by the cloud trend, they
tend to do so by choosing best-of-breed providers that
ensure a balanced range of standardized and cloud
based software, which simultaneously provides indus-
try and company size specific functionality. D
Industry verticals exhibit growth rates ranging be-
tween about 4-6% annually in the period 2014-2020.
In manufacturing, for example, the trend toward
greater specialization and Industry 4.0 creates the
need for industry specific solutions to cover unique
requirements.
8. THINK ACT
Reach for the cloud
8
The competitive environment in the administrative HR
segments is perceived as being highly consolidated
with a few established players and a variety of very
small micro players.
Digitization took a hold in these administrative HR
segments first, resulting in greater maturity than stra-
tegic HR segments, with industry leaders able to claim
dominant market positions. The textbook example,
SAP, has a strong presence in the LE segment and pro-
vides an all-in-one solution. It services the highest
complexity levels on a global basis and is highly cus-
tomizable. Despite the resulting good fit to companies'
individual requirements, customization simultaneous-
ly creates a lock-in effect: Any switch of providers would
render substantial previous spending wasted.
The competitive environment does, however, have
to be analyzed on a segment by segment basis, since
few players excel in all areas. The payroll segment, for
example, has one of the highest anticipated consoli-
dation rates; as much as 65-90% of the market is ca-
tered for by the top 10 players. The early establish-
ment of the market, particularly long product
replacement cycles, high complexity driven by the lo-
cal variations in the nature of the subject, and fre-
quent updates favor the establishment of large play-
ers. Simultaneously, this environment opens up
niches in industry vertical sub-segments, which can
be covered by small micro players providing schedul-
ing solutions in the workforce management segment
for hospitals as part of the healthcare sector. E
The perspective on strategic HR segments turns out
to be inverted – consolidation seems to be rather low.
Here, medium-sized and small players compete in the
market with a strong technology focus, offering prod-
ucts with self-service and mobile features. The shorter
product life cycle in combination with lower upfront
investments, shorter contractual obligations, more
standardized interfaces and data models reduces risk
and allows for less expensive provider switches. Cus-
tomers of all sizes have to deal with the consequences
of demographic change and the lack of qualified labor,
which serve to put more pressure on related HR soft-
ware segments such as talent & performance manage-
ment and recruiting. E
Regardless of whether the subject in question is the
administrative or the strategic segment, system inte-
grators are essential market participants in the com-
petitive arena. They provide an indirect alternative to
the conventional direct sales channel. For HR software
providers, they can thus offer an attractive way to reach
the customer, which is a very interesting proposition
especially in a small and fragmented customer seg-
ment. From a customer perspective, system integrators
provide a neutral counterpart offering specialized ex-
pertise and able to help navigate through the market.
Competitive environ-
ment: Market shaped by
a fewlarge players and a
varietyofmicro players.
9. THINK ACT
Reach for the cloud
9
EMPLOYEE DATA
ADMINISTRATION
RECRUITING
SAP
Oracle
PeopleSoft
Workday
Sage
SAP/SuccessFactors
Persis
IBM
Umantis
Lumesse
PERFORMANCE
& TALENT
MANAGEMENT
LEARNING &
DEVELOPMENT
EMPLOYEE
COLLABORATION
& ENGAGEMENT
SAP/SuccessFactors
Lumesse
Umantis
Talentsoft
Cornerstone
SAP/SuccessFactors
Persis
Sage
Umantis
NetDimensions
IBM
Jive
Microsoft
SAP
Salesforce
Top players
Top players
Consolidation
level
Consolidation
level
Allegion
SAP
ATOSS
Kaba
Isgus
SAP
P&I
Datev
Sage
ADP
PAYROLL WORKFORCE
MANAGEMENT
Source: Roland Berger assessment based on more than 100 interviews with decision makers and experts from HR software vendors and customers between
November and December 2015 – enriched with a raft of primary and additional secondary research and background information.
E
TOP MARKET PLAYERS AND
CONSOLIDATION PER SEGMENT
Administrative HR segment
Strategic HR segment
10. THINK ACT
Reach for the cloud
10
The ease of initial implementation presents a final hy-
giene factor ("How long will implementation take,
what manpower is needed on my side and what will it
cost me?"). F
Apart from these key purchasing criteria, it is com-
mon to establish customer loyalty via a trust based re-
lationship. For customers to decide in favor of a HR
software vendor, especially in the administrative seg-
ment, a trust based relationship is essential. Its inten-
sity increases over the long product lifetime and conse-
quently presents itself as an advantage if a vendor
switch should be on the cards.
Such switches usually take place in specific situa-
tions, e.g. when a company has outgrown their existing
systems in terms of employee numbers, when the busi-
ness model has changed and introduced new require-
ments or when the old and new systems are no longer
in harmony with one another.
The decision process customers run through is
normally driven by HR, which defines its specific needs
together with IT. Depending on the software segment
concerned, adjacent functions may be included, e.g.
the finance function in the case of payroll. As soon as
a tender comes into question, the procurement office
can be brought into play. The works council and data
protection officer need to be involved throughout the
process as well. Final decisions are usually made by an
executive committee.
Customers in the HR software market behave in a way
that appears to be consistent across all industries. This
can ultimately be condensed into key purchasing crite-
ria that guide customers' buying decisions.
First, customers determine what constitutes prod-
uct quality for them, what level is required to serve
their purpose, before seeking out vendors able to
meet these requirements. For most customers, prod-
uct quality is a mix of usability ("Can my employees
use it efficiently and with little or no training?"), flex-
ibility ("Can it cover the level of complexity we need?")
and integration ("Can we integrate it seamlessly via
interfaces?").
As soon as the product quality criterion is ful-
filled, customers proceed to the next one in line,
namely service & maintenance quality ("Can I easily
get in touch and how well and how fast do they re-
solve issues?").
Assuming the first two criteria are sufficiently well
met, the price factor comes into play. Despite being
ranked third, price is of the utmost importance and
plays a pivotal role in strategic HR segments where
many vendors compete against one another. Converse-
ly, price becomes obsolete as a criterion as soon as
companies are "locked in" by highly customized
on-premise systems that simply cannot be switched, a
phenomenon that occurs more often in the adminis-
trative HR segment.
Customer behavior:
Product quality, service
quality, price and ease
ofimplementation.
11. THINK ACT
Reach for the cloud
11
F
KEY PURCHASING CRITERIA
THAT GUIDE CUSTOMERS' BUYING
DECISIONS.
In the German HR software market
KEY PURCHASING
CRITERIA
Usability for operative
end users
Flexibility via
customization and
covered complexity
Integration possibilities
and connectivity/
interfaces
Service & maintenance
quality
Price attractiveness to
customers
Ease of implementation
(e.g. time, investment)
PRODUCTQUALITY
PERCEIVED CUSTOMER
IMPORTANCE
Low
Low
Low
Low
Low
Low
High
High
High
High
High
High
12. THINK ACT
Reach for the cloud
12
Throughout our interview series, HR software custom-
ers and vendors indicated a variety of underlying driv-
ers in the market. We condensed four major trends
that were consistently of relevance, and which seem to
have an extraordinary influence on the market envi-
ronment.
HR SOFTWARE BUDGETS
The overall software budgets of German companies are
expected to increase going forward, driven by trends
such as digitization. Correspondingly, German HR
software budgets are expected to remain stable or in-
crease. Major motivators seem to be the aging software
landscape as well as investments in the talent pipeline.
HR software budgets are primarily funded by HR,
though infrastructure relevant budgets from IT and
corporate level may also come into play.
For the HR software market this substantiates the
expected growth. Customers of HR software will have
to ask themselves where to invest the resources at their
disposal, e.g. in renewing old systems or extending the
scope of current applications. Vendors of HR software
will need to minimize customers' reservations about
making the investment, e.g. by providing a track record
of successful implementations with seamless and fast
implementation.
CLOUD ADOPTION
Generally, usage of cloud computing is increasing im-
mensely across verticals and customer segments in
Germany, even though the overall level still remains
below that of pioneers such as the UK and the US. The
same holds true for the HR software market: Cloud
adoption is increasing strongly, albeit with limited ab-
solute effect as yet due to the small basis upon which
the trend is building.
As mentioned above, growth is driven by the vari-
ous advantages of cloud based solutions: Lower up-
front investments, lower switching costs, higher stan-
dardization with improved connectivity via interfaces/
Market trends:
Increasing HR software
budgets are invested
in cloud solutions in the
face of data security
concerns.
13. THINK ACT
Reach for the cloud
13
DATA HOSTING
One aspect closely related to data protection con-
cerns the data hosting location. In light of the general
data security situation, which is fraught with distrust
and legal uncertainty, German companies have a
strong, rather emotional tendency to prefer data host-
ing in Germany. This is the case even though from a
regulatory perspective, data hosting in any country of
the European Union would be feasible.
Certainly in the wake of the abolition of the "safe
harbor" agreement, data hosting outside of the Euro-
pean Union is perceived as highly undesirable and
does not represent an option for most German com-
panies. Regulation of data handling via standard EU
contractual clauses or processor binding corporate
rules cannot bridge this security gap and is generally
perceived as insufficient.
"Data trustee" models, following the Microsoft
and Deutsche Telekom example, may become a new
trend: Here, companies originating from outside of
Germany use a Germany based data hosting provider
and voluntarily renounce all access to their own data.
This prevents any third party access that could possi-
bly be enforced by the foreign company's national
government.
From the customer perspective, EU hosting loca-
tions other than Germany should also be considered.
From a vendor perspective, hosting in Germany will
always be perceived as an advantage against competi-
tors with non-German hosting.
standardized data models, and new technological fea-
tures. Simultaneously, factors like the sensitive nature
of HR data combined with data security and privacy
issues and the limited customization via parametriza-
tion inhibit the trend's effect.
For HR software customers, this implies the need
for sound decision making between on-premise and
cloud based solutions in all relevant segments. For
vendors of HR software, this, in turn, creates the ne-
cessity to provide cloud based HR software solutions,
with or without on-premise solutions – the latter op-
tion seems feasible in the strategic HR segment, while
a dual offering may suit the administrative segment
better.
DATA PROTECTION
Data protection is a highly topical issue for HR in Ger-
many and needs to be addressed appropriately when
discussing HR software. Beyond HR itself, the German
situation is unique owing to two institutions installed
by the BDSG ("Bundesdatenschutzgesetz" or Federal
Data Protection Act) and BetrVG ("Betriebsverfassungs-
gesetz" or Works Constitution Act):
1. Works council: Employee representation with the
mandate to compensate for the uneven distribution of
power between employer and employee. Every German
company with more than five employees can have a
works council and it is likely to have co-determination
rights regarding the introduction or change of any HR
software solutions.
2. Data protection officer: An internal or external offi-
cer whose purpose is to ensure adherence to the BDSG
and other data protection legislation. The officer has to
control and work toward the successful implementa-
tion of the BDSG and other related legislation; howev-
er, the data protection officer has information and par-
ticipation rights only.
What this implies for HR software customers is the
need for timely involvement of the relevant parties; as
far as the works council is concerned, it involves clearly
identifying motives and goals to help establish com-
promises. HR software vendors can help here, for in-
stance by ensuring full software functionality even
without certain critical features, providing informa-
tion tailored to the works council's demands, etc.
14. THINK ACT
Reach for the cloud
14
If you are a customer you might want to review your
existing HR software landscape, looking for new solu-
tions that add value and bring cost savings potential.
New features and capabilities, which were thus far
out of reach or financially unattractive will provide
your buyers with software solutions that will help you
become more effective and cost efficient. Cloud based
solutions are becoming more and more attractive for
SMEs due to lower complexity and higher value from
standardized products. Cloud solutions provide cus-
tomers with the added flexibility that comes from a
standardized process and data model. This enables
you to switch providers more easily, thereby putting
you as customers in a stronger buying position.
The cloud is out there. Reach for it.
If you are a HR software vendor, you might want to
focus on developing a unique value proposition by
concentrating on certain customer segments and spe-
cific verticals.
The growing market will increase competition
among vendors who will try to differentiate on quality
and technological levels. This will trigger innovation
and may bring new software forward, solving as-yet
unaddressed problems or improving existing solu-
tions. Established HR software vendors will be chal-
lenged by new entrants with new cloud based innova-
tive solutions. Defining clear response strategies to
ensure a sustainable market position will be key. The
priority has to be on ensuring a sustainable competi-
tive advantage that creates a unique customer value
proposition. Vendors can either grow organically or
pursue M&A activities targeting one of the evolving
small players.
Cloud providers will need to address data protec-
tion issues including the hosting location of cloud
based data. This involves aspects such as the early and
well prepared involvement of works councils, as well as
sustainable data hosting solutions, possibly using the
new "data trustee" model.
Conclusion and
recommendation:
Customers and vendors
need to prepare to
develop into the cloud.
15. ABOUT US
15THINK ACT
Reach for the cloud
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THINK:ACT CONTENT
IT outsourcing involves more
than IT
IT outsourcing often feels like a
lottery where you are always drawing
the wrong number. While it should be
a guaranteed win, more often than
not you turn out to be the loser. That
is why many managers who
outsource IT operations feel
deceived. Often they are right. Worse
still, to a large extent they only have
themselves to blame. But there is a
better way to make sure that firms
can get what they want.
THINK:ACT SPECIAL:
CLOUD ECONOMY
The path to new business models
Social networks are simply the
most obvious manifestation of a
trend in which ever-larger parts
of our personal lives are shifting
online. Business networking is also
gradually making the transition to
virtual reality. This transformation
has a huge amount of business
potential. We call it the cloud
economy: an environment in which
companies can use new technology
to harvest huge quantities of online
user data and integrate it into their
business models.
Roland Berger, founded in 1967, is the only leading global
consultancy of German heritage and European origin.
With 2,400 employees working from 36 countries, we have
successful operations in all major international markets. Our
50 offices are located in the key global business hubs. The
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