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Cloud Watch on HCM:Cloud Solutions

January 2016

1. Objective and approach

2. Sneak Peek at HCM Cloud Market

3. HCM Cloud Solution Footprint

4. HCM Market Overview

5. Contact Details

Table of content

Cloud Watch on HCM : Cloud Solutions | January 2016

• Cloud computing is a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS)

• Software as a Service (SaaS) is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet

• SaaS is a growing phenomenon in the market and has made a successful penetration into mainstream Enterprise IT

• Earlier, licensed on-premise software was the dominant deployment model in production, but with time, on premise vendors have also begun to offer SaaS based solutions

• Coupled with the buyer side objective of reducing the cost of ownership, the SaaS revolution is bound for exclusive growth across all forms of a business

• Globally, Capgemini helps many of its clients with the selection and implementation of Software as a Service solutions, and this document intends to provide a single source of truth about HR SaaS solutions currently available in the market, with a focus on the European market

Context

Version Status

Final

Delivered in

January, 2016

• Provide a single source of information on leading HR Cloud solution providers across the globe

• Identify leading players across HRM SaaS functionalities

• The study uses publicly available information sources:

– Company websites – Text line searches

Objectives and Approach

– Industry reports – Analysts reports

3

• The study is updated four times a year



Sneak peek at HCM Cloud Market

• Groupe ENGIE selected Oracle HCM to support the transformation of its worldwide HR operations

• BAT selected SAP SuccessFactors to provide a single HRM solution across its global operations

• Sky Betting & Gaming selected Workday’s unified suite of applications

• Galveston Independent School District moved its Workforce Management Solution to the Kronos Cloud

• Workday plans to expand its partnership with ADP

• NGA Human Resources expanded its global partnership with SAP

• Kronos and Cornerstone OnDemand announced a strategic alliance in the Cloud

• Talentsoft and Trenkwalder entered a partnership

• Gartner Magic Quadrant named Oracle a Leader in Talent Management Suites

• Salesforce was named a Leader in Gartner’s 2015 Magic Quadrant for Social Software in the Workplace and Horizontal Portals

• Kronos was named a Top Place to Work by The Boston Globe in its Largest Employers category

• ADP was named a Talent Acquisition Leader by The Forrester Wave: Talent Acquisition Vendors

• 2016 AHRD International Research Conference in the Americas to be held on 18th - 20th February, 2016 in Jacksonville, Florida

• The 12th Annual HR Summit will be held on 21st – 23rd March, 2016 at RACV Royal Pines Resort, Gold Coast

• Human Resource Executive’s 19th Annual HR Technology Conference & Exposition to be held on 4th – 7th October, 2016 in Chicago (Proposals for presentations due 15th January, 2016)

VENDOR CORNER

PARTNERSHIPS, ALLIANCES AND M&A’S

EVENTS

ANALYSTS SPEAK

4

Read More

Read More

Read More

http://www.ahrd.org/?page=2016_conf_central

http://www.hranzsummit.com/

http://www.hrtechnologyconference.com/speak.html


HCM Cloud Solution Footprint

HCM SaaS solutions can be categorized into Core HR, Workforce, Talent, Learning, Recruitment Management

and Compensation & Benefits

Core HR

HCM Solutions (Cloud & Mobile)

Compensation & Benefits

Workforce Management

Talent Management

Learning Management

Recruitment management

Employee Records

Organizational structures

Payroll

Compliance

Salary and wage structure

Employee Engagement

Benefit Administration and enrollment

Jobs and positions

Time reporting

Performance Management

Leadership Development

Learning Course Administration

Content Management

Professional Certification

Social and Informal Learning

Mobile Learning

Collaboration

(Strategic) Workforce Planning

Bonus Programs

Wellness

Base Salary Administration

Stock and Long Term Incentives

Retirement and Savings

Market Pricing and Equity

Commissions

Employee Recognition

Sourcing and Social Recruitment

Diversity & Compliance

Applicant Evaluation

Requisitions

Onboarding

Candidate Engagement

Mentoring

Competency Management

Goal Management

Succession Planning

Career Planning

Talent Review

Retention Management

Attendance

Paid Time Off

Absence Management

Productivity Analysis

Labor Cost Distribution

Workforce scheduling and assignments

Sources: Embrace Future Trends To Deliver HRM Business Impact, Forrester 2014; CC India Analysis

5

Core HR




Core HR Solutions

Core HR

Vendor Landscape

Description Vendor Example

Kronos Workforce Ready for simplified payroll process

Tre

nds

Employee Records Payroll

Salary and wage structure

Jobs and positions Employee Engagement Compliance

Organizations are moving towards integrated cloud base core HR solutions in an effort to boost collaboration and there by driving better business outcomes

RUN powered by ADP HR and Payroll Solution

Licensed on-premise software remains the dominant deployment model in production with SaaS based solutions for Core HR segment solutions

SuccessFactors ‘Employee Central’ enables global HR teams to focus on creating strategic value for the business by streamlining processes and providing access to information that supports faster decision-making

The Solution provides simple payroll, and employee time-tracking services along with services like job description templates, job applicant screening, employee handbook development

Companies need to move away from information silos to unified Core HR systemsSolutions must centralize the HR management throughout the life cycle of employees

Sources: Embrace Future Trends To Deliver HRM Business Impact; HRMS World: Traditional Models clash With Next-Generation Processes And Technology; CC India Analysis

Cloud based payroll solution for small business

Focus on full technology integration

Benefit Administration and enrollment

Organizational structures

Completeness / Strength of the offering;


Workforce Management Solutions (WFM)


Vendor Landscape


Tre

nds

Automated work force tools and analytics are helping organizations to achieve better output and improve efficiency

End - to - End system for Workforce Analytics – Workday

SaaS adoption continued to grow, as the leading vendors have now begun to offer both on-premise and SaaS solutions

Online Time Clocks and Solutions - ADP

Organizations are adopting analytics in their HR departments like talent and recruitment which facilitates easier report creation and opportunity to address business challenges

Organizations are adopting automated time and attendance process to achieve better output on critical initiatives of productivity, availability of resource, data accuracy and compliance

Sources: New trends in workforce solutions; Factiva; Kronos Workforce Mobile; CIO.com; Automated time and Attendance; ADP solution; CC India Analysis

Workforce Analytics

Automated Time and Attendance process

Paid Time O�

Productivity Analysis Labor Cost Distribution

Attendance Time reporting Absence Management

Workforce scheduling and assignments

6




Learning Management


Talent Management



Talent Management Solutions

Talent Management

Vendor Landscape


Tre

nds

Performance Management Goal Management

Competency Management

Succession Planning Talent Review

Organizations are leveraging predictive analytics solutions to retain talent, this in turn ensures cost savings and better performance of the organization as a whole

Cornerstone on demand – CornerstoneLanguage Quality – Microsoft Silverlight

The market for talent management software is expected to grow from $5.2 bn in 2014 to $11.3 bn by 2019

Workday Insights Analytics – Workday

Gamification drives higher employee engagement, boosts productivity and encourage healthy planning

Organizations are increasingly using predictive analytics solutions to predict which employee is going to quit, they also try to ascertain the reasons and come up with strategies to retain the talent and recruitment

Sources: Global Human Capital Trends; HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; Talent Management Solutions based on Big Data; Gamification; PeopleFluent – Press release; CC India Analysis

Gamification in Talent Management

Talent Retention through predictive analytics

Career Planning

Retention Management

Learning Management Solutions

Learning Management

Vendor Landscape


Tre

nds

Gamified eLearning and mobile enabled learning are major trends in improving employee engagement and learning experience

In Learning Management, the SaaS model currently accounts for 45% of its product revenues

SuccessFactors LMS along with its suite of mobile apps offers at-a-glance learning thereby allowing employees to complete the learning courses from a mobile device anytime

Gamification in eLearning has shown more realistic learning experience potential using virtual and augmented reality resulting in employees intrinsic motivation towards achievement and recognition

LMS1 providers are implementing mobile functionalities and are using HTML5 to make their websites mobile accessible

Sources: SuccessFactors website; Saba’s website ; Gamified e-learning ; CC India Analysis Note: 1. Learning Management Solutions

Gamified eLearning

Mobile enabled Learning and Bring Your Own Device (BYOD)

Content Management

Social and Informal Learning Professional Certification

Learning Course Administration

Leadership Development Mobile Learning

CollaborationMentoring

SuccessFactors workforce Analytics – SAPPeopleFluent advanced analytics reporting and enhanced mobile experience

SAP SuccessFactors Learning modules with Gamification features

7



Compensation & Benefits Solutions

Vendor Landscape


Tre

nds

Base Salary Administration

Bonus Programs

Employee Recognition

Retirement and Savings

Compensation & Benefits solution vendors are providing solutions to their customers based on pay-for-performance

Workscape added performance to its Compensation & Benefits capabilities

SaaS penetration in the Compensation and benefits function has gained momentum and contributes 52% of this segment’s product revenues

Workday introduced new planning , budgeting and forecasting application to unify real-time finance and HR data

With more companies adopting pay-for-performance, vendors are providing solutions to help companies align goals and reward programs for their workforce

The financial management tool or application allows creation, collaboration, and taking action on budgets and forecasts to optimize business growth

Sources: HRM Solutions: Traditional Models clash With Next-Generation Processes And Technology; CC India Analysis

Compensation vendors leverage pay-for-performance

Real time financial solution

Commissions Stock and Long Term Incentives

Market Pricing and Equity


Wellness



Recruitment Management Solutions

Vendor Landscape


The system suggests people known to the employees using their Facebook and Linkedin contacts

Tre

nds

(Strategic) Workforce Planning

Requisitions

Talent Pools Diversity & Compliance

Recruiting technology is now gravitating toward mobile enabled recruiting, with social media referrals to identify the right candidate from the entire pool

SuccessFactors Recruitment Execution offers social-media/employee referral tool as part of its recruiting product

83% of the product revenues1 of recruitment solutions market was contributed by SaaS based solutions

SilkRoad is enabling crowdsourcing activities by offering collaboration via social portals for recruiting talent

The solution providers are allowing employees to make referrals through social network accounts such as Facebook and LinkedIn

Using social media, companies are changing the way to promote opportunities, as well as tap into employees personal and professional networks for talent acquisition

Sources: Hype Cycle for Human Capital Management Software; CC India analysis Note: 1 Includes product revenues (i.e., licenses, maintenance, and subscriptions)

Growth of social media referrals

Social recruiting and sourcing are becoming the major channels for HCM

Sourcing and Social Recruitment

Candidate Engagement

Applicant Evaluation


Onboarding



8



Riding on high adoption level of HCM solutions, Global HCM applications market is expected to have a positive growth in the next five years

• Global HCM applications market is expected to grow at a CAGR of 8.2% over the period 2013-2018 from $10.4bn in 2013 to $15.4bn in 2018

• Streamlining of human resource operations is one of the key factors contributing to the market growth

• The future global HCM market would be driven by CORE HR & Compensation segments in both Americas & EMEA markets

• The fastest growing segment (CAGR of 10%) is compensation management, which is the newest and smallest in terms of revenue

• Administrative HCM solutions has high level of industry adoption compared to other solutions

• Large organizations continue to be the biggest adopters of HCM applications

• The HCM Solutions vendors are increasingly adopting mobile enabled processes, HR shared services and embedded analytical solutions to their HCM solutions

• Companies are leveraging mobile apps to ‘appify’ their HR tools, to offer employees seamless services, that can be accessed quickly and easily

• Organizations are leveraging predictive analytics to hire smarter, this helps them to cut down on recruitment costs, increase retention and boost performance

GLOBAL HCM APPLICATION MARKET

HCM APPLICATION ADOPTION LEVEL

EMERGING TECHNOLOGIES

9

HCM Market Overview

93%

66%58% 55%

39%

49%

95%

84%75%

80%

59%55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% In Use Today In Use Within 3 Years

Administrative Service Delivery Workforce Management

Talent Management

BI / Analytics Social Media tools

HRM application SaaS adoptionThree-Year Adoption Outlook ( n=1,204 )

Social Media and Workforce Optimization has highest forecasted adoption growth over the next three years

Want to know more?

Erik Koningen | Netherlands Managing Consultant HR TransformationMob: +31 6 2954 1848 [email protected]

Please get in touch with

Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2016 Capgemini. All rights reserved.

Rightshore® is a trademark belonging to Capgemini

Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.

Find out more at: www.capgemini-consulting.com

Franjola Timmermans | Netherlands Principal Consultant HR TransformationMob: +31 6 1190 2267 [email protected]

Ronald van den Berg | Netherlands Principal Consultant HR TransformationMob: +31 6 1503 0294 [email protected]

Jan Redmond | USA Managing Solution ArchitectMob: +14695837374 [email protected]

Peter Speleers | Belgium Practice Manager HCM Technology Transformation ServicesMob: +3227081666 [email protected]

Marsa Laukkoski | Finland Senior Applications Consultant Mob: +358406736493 [email protected]

Valery Smague | FrancePrincipal Consultant Apps Two Mob: +33 680 620 672 [email protected]

Klaus Eckey | Germany Managing Consultant SAP HCMMob: +49 151 4025 0080 [email protected]

Jose Luis Navarro Sanchez | SpainHRBP Director SpainMob: +34 620 024 499 [email protected]

Carl Peter Wallin | SwedenSenior Applications Consultant Mob: +46 727265225 [email protected]

Jonas Bjärkäng | SwedenEngagement DirectorMob: +46 70 9409417 [email protected]

Graham Dibble | UK Principal Applications Consultant Mob: +44 870 195 1137 [email protected]

Ronan How | UK Senior Applications ConsultantMob: +447891158643 [email protected]

Documents

Cloud Watch on HCM - Capgemini · Cloud Watch on HCM: Cloud Solutions ... • Salesforce was named a Leader in Gartner’s 2015 Magic Quadrant for Social Software in the ... applications