iProCon Insight - Latest Thinking

Trends in HR Technology: from the HR Tech Europe conference in Amsterdam

iProCon Ltd. - Sunday, November 06, 2011
Considering last week's HR Teach conference in Amsterdam:
A few clear trends, some really good news, and some of the same old problems leave me boarding the plane back to London in a positive mood and looking forward to interesting new challenges. Here are the trends:

1) HR Analytics is high on the agenda and technology like in memory analytics are now gaining track to provide actual user outcomes. Latest software offers a lot, but many companies still struggle to get the data ready and ask the right questions.

2) SaaS in HR is a fact now. It is changing the market and Workday's entry into continental Europe seems another strong driver of change to me. However, whilst it may cut implementation time by more than 50%, the challenges in integration, process and change don't go away with SaaS. There is a risk of a good trend suffering, because expectations are set too high with senior execs believing a Could based HRIS as almost plug-and-play just as the Dropbox app on their iPhones – a belief they might be forgiven listening to the sales pitches of some vendors. We also see various approaches to SaaS. Oracle, as always boasts to be the top player, but doesn’t seem to be ready for pure multi-tenancy SaaS, whilst SAP looks almost too modest when announcing changes coming with Career on demand. Most established SaaS vendors coming from one specific process (like recruitment) try to broaden their base, whilst other niche players often rebrand traditional hosting solutions as SaaS without changing much.

3) User experience is a big topic. Some of the new SaaS vendors set new standards for better user interfaces and traditional vendors follow. But the most intuitive user interfaces and "gamification" approaches will not drive adoption, unless users understand what their contribution to the organisation as a whole is, and what's in it for them. Technology, strategy and communication need to come together.

4) The most eye-catching trend probably was the integration of social media into Human Capital Management. This is really only just starting and we'll see quite a few surprises, positive as well as negative ones, along the way. Talent attraction and selection are obvious applications, as are internal communications and knowledge sharing, but there is more in it. As off today, social media applications in HR are mostly stand alone with slim, if any, interfaces to established HR systems. HRIS vendors start making efforts to integrate social media, but we may just as well see platforms like Linkedin pushing vendors of recruitment software out of business. At the moment, it feels all a bit chaotic. Some organisations see it as just another way for pushing information from the top down their hierarchies and they'll probably fail. But the potential is huge. Watch this space!

SAP to shake up the HR SaaS market?

iProCon Ltd. - Monday, August 15, 2011
The announcements and first reactions we hear about SAP Career on Demand really got us excited. At long last this seems to be a solution which is 100% SaaS and based on cutting edge technology and user interfaces as well as incorporating the world of social media in a new way. Being cynical, you might say: this solution has everything you wouldn't have expected from SAP - let's hope it still has got the good stuff you would expect from them.

Well, it is all new and we don't know yet how well the solution is really going to work - the proof will be in the pudding. What is already clear however is:
  • SAP hasn't slept through the wake-up call, but used the time for some serious new green-field development. 
  • They made a very clever move by addressing those fields SaaS based competitors like Workday or SuccessFactors could best use to enter SAP's customer base. With SAP talent management and performance management often not yet used, let alone loved, very much, competitors could sell their solutions to go alongside the stronger SAP products in Payroll and Core HR. If Career on Demand does what it is promising, it will become much harder to tempt a SAP customer away from the German vendor.

Click here for interview on SAP Career on Demand with David Ludlow.

We are looking forward to watching how SAP on Career Demand develops and how competitors respond.

Enterprise SaaS solution: Workday HCM

iProCon Ltd. - Friday, July 15, 2011

Many clients are currently asking for more information about Software as a Service to remove some fog and get a better view of what’s going on in the cloud. We therefore decided to run a new series of blog articles providing an overview on SaaS solutions as well as tips for managing integration and change around SaaS implementations. The articles will be in no particular order and we are starting with Workday HCM today, only because our team has come across it a lot in projects and discussions recently, so it sat on my mind, when I started writing. So check out our Workday HCM article here.

Will HR SaaS make traditional vendors' offering more diverse?

iProCon Ltd. - Monday, June 27, 2011
When hearing "SaaS", most people think "higher standardisation", and "out of the box solution". Within the constraints of whatever configuration the SaaS solution allows, this is usually right. Multi tenancy usually enforces a common code base and doesn't allow custom development, while making upgrades faster and less painful, and quite often also making the configuration, as far as allowed, more straightforward than in traditional single tenancy ERP solutions.

However, the demarcation line between SaaS and "traditional" vendors is blurring. SAP, Oracle, and others are rushing onto the bandwagon to get their own SaaS solutions out, proving the success of the concept. However, looking closely at what's on offer in HR/HCM, using SAP as an example, you find that your first port of call is not the omnipresent vendor from Walldorf, Germany, but some of their more innovative (or just bolder) partners. SAP HCM SaaS comes packaged as "exalerate" (from Exaserv), "tHRive" (offered by ROC), "euHReka" (by NorthgateArinso),...

They all have in common that they use SAP HCM as a foundation but add their own elements, most notably web based and mobile user interfaces. It is difficult to see how purely SaaS the end product really is and many argue that the core product, as not designed to be SaaS, will never be a perfect SaaS solution. But that's not the question we want to ask here.
What we find interesting is: how will SAP HCM - and other solutions in a similar situation - develop as SaaS? Will it vanish as an anonymous engine hidden behind the brands and UIs of powerful partners, with marketing execs in Walldorf taking a leaf out of Intel's book and try to get at least a "SAP inside" sticker onto those products?

Will SAP prevail as the driver of the solution, but clients looking for SaaS need to choose between various slightly different packages adding nothing more, but confusion? Or will we get to a point, where each reseller adapts their user interface, pre-configuration, add-on developments, and service models to a certain segment of clients, e.g. an industry or company size? With this thought, there is actually a glimpse of hope that the current confusion will eventually lead to added value for clients, as they will find real industry solutions - not just modules covering a tiny part of the enterprise or half-heartedly pre-configured templates suffering from too small a customer base. Products with market shares as large as Oracle's or SAP's can definitely cope with some segmentation, particularly when the core product stays the same and industry based SaaS solutions are offered on top - in co-existance with the pure traditional model for those, who still prefer to be 100% in control and change their system wherever they want to.

Of course, there's always the option that SAP themselves will start late, but thoroughly, and overtake the partner solutions offering a better SaaS of their own and making the multitude of current variations obsolete. This has happened before with other add-ons and service models.

So, there are a few scenarios where SaaS based partner solutions could drive traditional ERP vendors to - what are you expecting?
 




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