Cloud Watch on HCM applications

(1)

Transform to the power of digital

Cloud Watch on HCM applications

(2)

A sneak peek at SaaS industry (1/2)



Workday rolled out the latest version of its human resources and finance cloud service

>> Read More



Cornerstone announced significant enhancements to its talent acquisition solution

>> Read More



Lumesse launches comprehensive on-demand learning content service

>> Read More



ADP unveiled its next-generation ADP Workforce Now® cloud-based platform for midsize organizations

>> Read More



Korn/Ferry and SuccessFactors establish strategic partnership to develop solutions

>> Read More



Peoplefluent expands integration with LinkedIn Recruiter

>> Read More



IBM to acquire Kenexa to Bolster Social Business Initiatives

>> Read More



Halogen Software and SHL partnered to provide Talent and Assessment Solutions

>> Read More

November, Q3, 2012

Partnerships, alliances and M&As

Vendor corner

(3)

A sneak peek at SaaS industry (2/2)

November, Q3, 2012



Kronos received the NorthFace ScoreBoard Award from the Omega Management Group for excellence in customer

satisfaction for 2011

>> Read More



ADP ranked 68, up 19 spots from last year on Forbes’ List of World’s Most Innovative Companies

>> Read More



Silkroad named as a finalist in the 4th Annual 2012 Golden Bridge awards for SaaS/Cloud computing

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

Ceridian has been named to leading strategy and consulting firm LAROCQUE's #HRWins 2012 HR Companies to Watch

program

>> Read More



Kenexa to unveil its fall 2012 lineup of new HR technology products during the 15th annual HR Technology

Conference & Exposition in Chicago

>> Read More



Meta4 to showcase their Global SaaS HR solution at the international HR Tech Europe 2012 conference

>> Read More



SumTotal announced the opening of new EMEA headquarters in Reading, U.K

>> Read More

Events and awards

Analysts speak

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Workforce

management

HRMS SaaS can be categorized into core HRMS, compensation & benefits, talent, learning,

recruitment and workforce management

HRMS SaaS Solution blueprint

HRMS Solution

Source HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; CC India Analysis;

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Payroll Employee records Salary administration Compliance Jobs & Positions Shared & self

service HR Analytics Time & Attendance Absence management Workforce scheduling Performance Succession planning Career planning Goals Organisation charting Competency management Course management Virtual classroom Mentoring Learning content management Applicant tracking Sourcing

On-boarding Social recruiting/ networking Strategic Workforce

planning

Pay-for-performance

Stock based & deferred compensation Incentive

compensation Market comparisons Benefits

administration

Enrollment & communication

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Learning management has made the transition from on-premise solutions to SaaS and

leading vendors indicate new deals coming in are heavily weighted towards SaaS

Learning management

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; The Forrester Wave: Talent Management: Learning, 2011;

Vendor Landscape

Description Vendor Example

New Players in Learning management

 Talent management solution vendors are looking to enter learning management market

 SuccessFactors is moving toward an informal learning offering through its recent acquisition of Jambok

 Lumesse developed a learning platform via its acquisition of ExecuTRACK

Learning point solution vendors have built or acquired

performance capabilities

 As learning has become more central to employee

development, vendors have responded by expanding their solutions' existing functionality and adding performance management to it

 Cornerstone OnDemand, Plateau, and Saba had built performance solutions and now have robust integrated offerings

 SumTotal added performance solutions through acquisition of Softscape

Tr

e

n

d

s

Course

management Virtual classroom Mentoring

Learning content management

Workforce

management

HRMS Solution

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Learning

management

“The SaaS model currently accounts for 45% of product revenues in

Learning Management”

Completeness/Strength of the offering;

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Recruiting management solutions have a fair bit of SaaS based solution providers prevalent

in the market

Recruiting Management

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011;

Workforce

management

HRMS Solution

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Market consolidation

 Acquisitions in the applicant tracking system (ATS) area mean fewer vendors and cater to the needs of both enterprise and SMB customers

 Kenexa acquired BrassRing, Cerdian acquired RSI, Sumtotal acquired Softscape and Cybershift

Growth of installed bases of the

existing players

 Many vendors have made acquisitions for intellectual property, advanced technology, and increase of customer base

 Oracle acquired Taleo to provide a richer recruiting application Applicant

tracking Sourcing On-boarding

Social recruiting/ networking

Recruiting

management

Strategic Workforce planning

Vendor Landscape

Tr

e

n

d

s

“Forrester estimates that 83% of the recruitment solutions market is

deployed via SaaS”

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Compensation & benefits tools become a component of broader talent management

suites and there have been significant mergers & acquisitions targets in the market

Compensation & benefits

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Hype Cycle for Human Capital Management Software, Gartner-2011; The Four Pillars Of Talent Management, Forrester Research, 2010;

Vendor Landscape

Compensation vendors leverage

pay-for-performance

 Compensation specialists leverage the link between rewards and performance

 The link between performance and compensation is at least as strong as the link between performance and learning

 Workscape added performance to its compensation & benefits capabilities & positioned as an integrated player

 Salary.com added performance-based talent management solutions via internal development

Mergers & Acquisitions

 There have been significant mergers and acquisitions in the compensation market during the past few years

 Examples include Kenexa acquiring Salary.com and ADP's acquisition of Workscape

Tr

en

d

s

Workforce

management

HRMS Solution

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Compensation

& benefits

“SaaS Penetration in the compensation and benefits function has gained

momentum and is currently 52% of the market ”

pay-for-performance

Stock based & deferred compensation Incentive compensation Market comparisons Benefits administration Enrollment & communication Completeness/Strength of the offering;

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Mobile based workforce management (WFM), retailers & public sector industries relying

on WFM solutions to improve productivity are some of the trends in the space

Workforce management

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Workforce management software, SearchCRM.com product directory, 2009; Factiva;

Workforce

management

HRMS Solution

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Strong demand for Mobile WFM

 There is an upsurge in adoption of mobile based workforce management solution

 Kronos - Licensed to more than 250,000 employees across a wide variety of industries

Demand for WFM solutions in retail

 Growing demand for WFM in retail industry, it is estimated to have a CAGR of 3% till 2015

 Reflexis claims that it has signed 30 new clients in retail over past 1 year

Increasing instances of public sector usage

WFM

 Counties and other departments are extensively relying on WFM solution to streamline utilisation

 Boulder county implements Kronos WFM to control labor costs, minimize compliance risk, and improve productivity

Workforce

management

Vendor Landscape

Tr

e

n

d

s

“SaaS adoption has slowly started to evolve, as the leading vendors offer

both on-premise and on-demand”

Time & Attendance Absence management Workforce scheduling Completeness/Strength of the offering;

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Only new generation software vendors throng the SaaS based core HRMS market and are

slowly seeing acceptance in the market

Core HRMS

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns with Talent Management, Forrester Research, 2011;

Workforce

management

HRMS Solution

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Vendor Landscape

“Mainstream adoption of SaaS based core HRMS has a long way to go with

about 18% revenue contribution”

HRMS Footprints Gain In-Depth Talent, Analytics, And Global

Capabilities

 Although the overall breadth of HRMS application suites has not evolved significantly over the past several years, their depth of functionality has improved in several areas

 Vendors are improving their depth through acquisitions

- Oracle acquired Taleo

- SAP acquired Successfactors

Outsourcing vendors and ERP vendors are introducing mobile

HR apps

 Outsourcing and ERP vendors are introducing mobile HR capabilities to their clients

 Introduces new benefits and flexible spending account functionality to its ADP mobile solutions application

Tr

en

d

s

Payroll Employee records Salary administration Compliance Jobs & Positions Shared & self

service HR Analytics

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Integration challenges with Core HRMS, growing importance of social talent management

are the key trends in Talent management

Compensation & benefits

Source: HRM Solutions: Traditional models clash with next generation processes and technology, Forrester Research, 2010; Recruitment Aligns With Talent Management, Forrester Research, 2011 ; The Talent Management Suite Market Emerges , Gartner Research, 2011;

Vendor Landscape

Growing importance of social talent

management

 Organisations that want to be at the forefront must move their HR practices into social media age now

 An organisation's social HR strategy reflects its culture, it can enhance productivity within an organisation and also collaboration and connectivity

 Provides a new breed of HRIS software which is social open and measurable

Integrating challenges with Core HRMS

 More than 35% of organizations are not integrating their talent management applications with their core HRMS applications, according to customer reference survey

 Lack of usage of an integrated talent management suite is the main reason for integration challenges

 NA

Tr

en

d

s

Workforce

management

HRMS Solution

HRMS

Solutions

(Cloud &

Mobile)

Learning

management

Recruiting

management

Compensation

& benefits

Talent

management

Core HRMS

Talent

management

“58% of total revenue from talent management is through SaaS solutions”

Performance Succession _planning

Career planning Goals Organisation charting Competency management Completeness/Strength of the offering;

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