LEHRN 2018...March, 2018 LEHRN 2018 HCM and Finance Systems, Starting the Conversation: Insights from Sierra-Cedar’s 20th Annual Systems SurveysService & Solution Areas Employees

March, 2018

LEHRN 2018HCM and Finance Systems, Starting the Conversation:

Insights from Sierra-Cedar’s 20th Annual Systems Surveys

EmployeesService & Solution AreasApplication Services

Business Intelligence

Host & Managed Services

Infrastructure Services

Integration & Cloud Solutions

Research

Strategy

Training

Delivering industry-focused client success by providing consulting, technical, and managed services

for the deployment, management and optimization of next-generation applications and technology.

Industry FocusCommercial

Healthcare

Higher Education

Public Sector

Justice & Public Safety

Sierra-Cedar Fast Facts

Years of Leading

HR Systems Survey &

Thought Leadership

7 20 950+

5

2

Consulting

Projects

1,500+

Today’s Presenters

Richard George

VP Strategy Services

www.linkedin.com/pub/richard-

george/1/417/a42

Stacey Harris

VP Research & Analytics

@StaceyHarrisHR

www.linkedin.com/in/staceyharris

https://www.linkedin.com/pub/richard-george/1/417/a42

http://www.linkedin.com/in/staceyharris

Sierra-Cedar 2017–2018 HR Systems Survey

Over 20 years of continuous data gathering

The most comprehensive survey in the industry:

● Strategy, Process, and Structure

● Administrative and Service Delivery Applications

● Workforce Management Applications

● Talent Management Applications

● BI/Analytics/Workforce Planning Applications

● Integration and Implementation

● Emerging Technologies and Innovations

● Vendor Landscape

● Workforce and HR Expenditures

● Workforce Usage and Perception

Participate in the 21st Annual Survey Download the 20th Annual White Paper

4

http://www.sierra-cedar.com/sign-me-up/

http://survey.constantcontact.com/survey/a07e8n8k4zehozw7vhv/start

54%

23%

23%

High TechManu-

facturing

Other

Sierra-Cedar 2017–2018 HR Systems SurveyDemographics: All Respondents

5

Trans./Comm.

Utilities

Higher EdFinance Retail Ag. Mining.

Const.

15% 14% 13% 12%10% 10% 10% 9%

6%

Health

17.7 Million Employees/Contingents

Avg. number of Employees = 13,610

1,312Organizations

Industries

Top Performers

Organization Sizes and Types

6

Small<2,500

Medium2,500–10,000

Large10,000+

Talent-Driven

Data-Driven

AggregateSocially

Responsible

20 Years of Sierra-Cedar HR Systems Survey

7

0

200

400

600

800

1000

1200

1400

1600

1998 2001 2004 2007 2010 2013 2016

20 Years of HR Systems Survey Participation

Major HR Technology Initiatives Over 20 YearsThe Start’s, Stops, and Changes over 20 years of HR Technology

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Automated Service Delivery – Managers and Employees Initiatives

Re-engineering processes Initiatives

Interactive Voice Recognition (IVR) Mobile Kiosks, Mobile Phone Mobile Enablement

HR Portals

Web Self Service Web 2.0 Social Enablement

Self Service Metrics HR Metrics/Analytics BI/Workforce Analytics

Custom/Packaged Web Solutions Custom Licensed Packages Licensed SaaS Applications

Strategic SS Initiatives Talent Management Initiatives

Upgrade HRMS

SaaS Fully Cloud

HR Systems Strategy Initiatives

Workforce Management Initiatives

Workforce Planning

Mergers &

Acquisitions

20 YearsOf Major HR Initiatives


1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017




HR Portals





Upgrade HRMS

SaaS Fully Cloud



Workforce Planning

Mergers &

Acquisitions



1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017




HR Portals





Upgrade HRMS

SaaS Fully Cloud



Workforce Planning

Mergers &

Acquisitions



1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017




HR Portals





Upgrade HRMS

SaaS Fully Cloud



Workforce Planning

Mergers &

Acquisitions


Looking Back 20 Years, 1997 – 2017

Why Self Service Just Wouldn’t Work 20 Years Ago from HR:

Some organizations are still not sure whether to implement some of these

applications. For example:

● Benefit enrollment: “By keeping our benefit plans stable and standard, only [a small

percent] of our workforce needs benefit enrollment. It’s just not a high priority application.”

● Electronic paystub and benefit statements: “We will not provide these online because we

believe these services should go to the employee’s home for family review.”

● Workflow: “Work should not flow. We will take out multiple approval

levels and empower the manager to make the decision.”

● Skill management: “We want to do this, but cannot get agreement

on what skills should be included.”

12

CultureStrategy Technology

Key Themes for 2017–2018 Survey Results

Competition vs. Culture

HR Tech as a Leader

Risk and Security

Beyond the Cloud

Social ResponsibilityIntegration Strategies

Intelligent Platforms

Outcome-Focused HR

13

Personalization

Sierra-Cedar Finance Systems Survey Research

20 Years of Enterprise Systems Research

The 1st Annual Finance & Supply Chain Systems

Survey is based on requests from industry leaders

for insights:

● Finance System Strategy, Process, and Supporting

Structures

● Adoption of Core Financial Applications

● Adoption of Supply Chain Management Applications

● Adoption of Project and Grant Applications

● BI/Analytics/Financial Planning Applications

● Emerging Technologies and Innovations

Participate in the 2nd Annual Survey Download the 1st Annual White Paper

14

https://www.sierra-cedar.com/research/annual-survey/

http://www.sierra-cedar.com/finance-sign-me-up/

http://survey.constantcontact.com/survey/a07e8n8k4zehozw7vhv/start

35%

27%

38%

Sierra-Cedar 2017–2018 Finance Systems SurveyDemographics: All Respondents

15

19% 19%15%

12%10% 10%

6% 5% 4%

6.6 Million Employees/Contingents

278Organizations

Industries

Avg. number of Employees = 29,500

High TechHealthManu-

facturing

Trans./Comm.

Utilities

Higher EdFinance Retail Ag. Mining.

Const.

Other

Strategy

Key Themes for This Year2017-2018 Finance & Supply Chain Systems Survey Results

Finance Technology

Emerging TechnologyDigital Transformation

16

Top 10 HR Technology InitiativesMajor Initiatives Haven’t Changed Dramatically in the last 5 Years

67%

40% 35% 35% 34%

19% 17% 17% 17% 16%

Bus. ProcImprovement

HR SystemsStrategy

TalentManagement

ServiceDelivery

BI/WorkforceMetrics

HR/AllSystems

Integrations

Mergers andAcquisitions

WorkforceManagement

MobileEnablement

SocialEnablement

1st Year Mergers & Acquisition

Made Top 10

Top 10 Major Finance Tech Initiatives for 2018Where are you spending 25% of your Resources?

43%

29%24%

20% 20% 19% 17% 16%13% 12%

UpgradeSystems

BusinessIntelligence

NewSystems

All SystemIntegrations

ReplaceSystems

ConsolidateSystems

WorkforcePlanning

SystemsStrategy

Mobile ExpandModules /Regions

Upgrades#1 Finance IT Initiative for 2018

28%

27%

11%

25%

11%

10%

11%

18%

16%

36%

44%

63%

No Plans Developing Rarely Updated Updated Regularly

Do you Have Enterprise System Strategies?Perception often leads to Priority Setting

19

ENTERPRISE FINANCE SYSTEMS STRATEGY

ENTERPRISE SUPPLY CHAIN SYSTEMS STRATEGY

ENTERPRISE HUMAN RESOURCES SYSTEMS STRATEGY

Are Enterprise Systems Strategies Important?25% Higher Business Outcomes w/Functional Enterprise Systems Strategies

20

Innovation Market Share Profitability Customer Sat Competitive

HR Systems Strategy No HR Systems Strategy

Finance Systems Strategy No Finance Systems Strategy

Supply Chain Systems Strategy No Supply Chain Systems Strategy

Business Outcomes Have They Declined or Improved in the Last 12 Months?

Imp

rov

ed

Neu

tral

Declin

ed

25%Higher

7%9%

7% 8% 8%10%

6% 7%4% 2%

7% 6%

13% 14% 14% 15%

20% 21% 22%24%

27%

34% 35% 35%

Benefits Payroll HRManagement

HR Generalist HR BusinessPartner

HR ITInfrastructure

WorkforceManagement

HR SystemSupport

TalentManagement

HR DataAnalytics

Recruiting Learning andDevelopment

27%

55%

IncreaseDecrease

Talent Issues Impact HR Hiring PlansWhat HR roles does your organization plan to increase or decrease this year?

21

39%

22%

18%20%

13% 13%16%

11% 12% 12%

7%11%

6%3%

16%19%

23% 24% 25%28% 29%

31%

40%43% 43%

50%

Time &Expense

Payables Accountants Receivables Inventory Procurement Cash/Treasury

Billing Assets ITInfrastructure

Projects Reporting/Analytics

Tomorrow’s Finance is Focused on Analytics & ITWhat roles does your organization plan to increase or decrease this year?

22

IncreaseDecrease

HybridsMove ONLY TM or WFM apps to Cloud

Rip & ReplaceMove everything all at onceto the Cloud

Parallel/PatchworkCombination Licensed and Cloud Solutions

Hosting/OutsourceSingle Tenant, or BPO

Multiple Pathways to an HR Tech TransformationTodays State of Replacing HR Technology

23

ReactiveFocused

Hig

h R

isk

Lo

w R

isk

Current State

Hosting/OutsourceSingle Tenant, or BPO

Rip & ReplaceMove everything all at onceto the Cloud Future Plans

ReactiveFocused

Hig

h R

isk

Lo

w R

isk

HybridsMove ONLY TM orWFM apps to Cloud

PatchworkReplace asLicense Ends

ParallelCombo Licensed andCloud Solutions

Multiple Pathways to an HR Tech TransformationFuture State of Replacing HR Tech, 26% Fewer Orgs Planning Transformation

24

Reactive

HR Technology Transformations Slowing Down

2016 2017

73%

58%

% of Orgs Planning to Transform Their HR Tech Environment

26%Fewer Orgs Planning HR

Technology

Transformation Efforts

On Premise HostedSaaS

22%

13%

20%

21%

36%

57%

48%

55%

37%

WFM

2017–2018 HR System Deployments by SizeOrganizations Under 2,500 Employees are Pretty Much There

26

17%

11%

14%

17%

22%

42%

49%

55%

24%

Payroll

17%

10%

7%

16%

27%

45%

55%

55%

39%

HRMS

11%

9%

13%

9%

14%

22%

70%

78%

78%

TMS

Higher HR Cloud Adoption = More Needs Met?

27

32%

25%20% 22%

27%

14% 16% 14%

Payroll HRMS WFM TMS

Our HR Systems AlwaysMeets Our Needs

High Cloud Low Cloud

Core Financial Applications Carefully Moving Away from On Premise Applications

28

10%

14%

17%

36%

43%

10%

17%

15%

27%

59%

Outsourced

In House

SaaS

Hosted

LicensedOnpremise

Core Finance Deployments

Today

12 Months

32%unsure of deployment model in

the next 12 months!

Still Evaluating

Note these do no equal 100% because they include organizations with multiple deployment models

27%

57%

21% 20%

12 Months of Finance System PlansUpgrades Continue as the Primary Improvement Tool in All Size Orgs

29

19%33%

15%26%

27%45%

23%9%

New Systems Upgrade Systems Replace Systems Consolidate Systems

Top Five Gaps in Current Core Financial SystemsNumber One Gap is Reporting Issues

30

28%

12% 11% 10% 9%

ReportingTools

IntegrationIssues

Out ofMaintenance

SlowProcessing

Lack ofFunctionality

What are the Major Gaps in Your Current CoreFinancial Applications?

1

2

3

4

5

6

7

8

9

Who Manages the Payroll Function?Organization Type Plays a Major Role in Payroll Management

31

25% 27%

41%

55%52% 54%

30% 30%

21%16%

26%

13%2% 3% 4% 2%

Government Nonprofit Private Public

Where is Your Payroll Function Managed?

Human Resources Finance Function Combo of HR & Fin Other Business/Function

Achieving Outcomes Compared to DeploymentSaaS Core Financial Deployment Aligns with 15% Higher Business Outcomes

32

Innovation Market share Profitability Customer sat Competitive

SaaS Hosted LoP Outsourced

Business Outcomes Have They Declined or Improved in the Last 12 Months?

Imp

rov

ed

Neu

tral

Declin

ed

15%Higher

58%50%

43%38%

33% 30%

20% 17% 16%12% 11%

ComplianceRisks

ManageHR Costs

EmployeeRetention

Engagement WorkforceReadiness

AttractingTalent

Productivity WorkAssignment

CustomerSatisfaction

Improvennovation

CompetitiveAdvantage

What Are You Currently Using HR BI to Accomplish?

20%

64%

What Are you Accomplishing with HR BI/Analytics#1 Outcome Organizations are Achieving Today is Risk Mitigation

n = 681

33

46%

27%

Workforce Planning RealitiesTop Performing Orgs, 70% More Likely to Conduct Workforce Planning

34

23%of all organizations are conducting

Enterprise Workforce Planning

41%

24%

TopPerforming

Not TopPerforming

Do You Conduct Enterprise Workforce Planning

32%

20%20%

13%

10%5%

Primary Function Leading Workforce Planning Efforts

HR Strategy

Business Strategy

Talent Management

Finance

Recruiting

Other

Integrated Data Sources for HR AnalyticsLow Cloud Environments More Likely to Include Financial Data

35

80%

65%54%

11%

24%

10% 6%

61%

37% 36%

9%

28%

13% 9%

Core HR TM WFM Benchmarking Financials Operations Sales/CRM

Which of the following are Integratedfor HR Analyses?

Low CloudHigh Cloud

17%

10%

18%35%

20%

Enterprise Integration Strategy?

Yes, updated regularly

Yes, rarely updated

In development

No Strategy

Unknown

2017 Integration Strategies Matter in HR 47% of Orgs Have No Standard Approach to HR Technology Integration

36

3%

9%

18%

22%

47%

Other

Integration platform

Into core HR

Into TM Suite

Case by Case/None

Approach to Integrating HR Technology

20%Organizations have a Major

Initiative to Improve Integrations

62

22

5

18

Average Number of Integration Touch Points Between HR and

Non-HR Systems

Do You Need an Enterprise Integration Strategy?

37

21% Higher business outcome ratings

when organizations have an

Enterprise Integration Strategy

over those without a strategy

Enterprise Integration Strategymore aligned with Business Outcomes

than Change Management,

Cloud Technology, Data Analytics,

and Talent Management efforts.

Data Privacy & Protection StrategiesIs Effective Good Enough in Data Privacy Processes?

8%

48%

34%

9%

Data Privacy Process Maturity

Transformational Effective Efficient No process/Manual

Those with an

Integration Strategy

2Xmore likely to be

Transformational in Data

Privacy Processes

46%

11%

15%

14%

14%

Enterprise Risk/Cyber Security StrategyIncludes HR Systems

Yes, updated regularly

Yes, rarely updated

In development

No Strategy

I Don't Know

Its 2017, Do You Have an HRIT Security Strategy? 70% of Top Outcome Organizations Regularly Update a Risk/Security Strategy

39

70%of organizations in our

Top 10% of Outcomes

have one!

Regularly Updated Risk/Security IT Strategy What Do They Do Differently?

40

66%

34%36%

64%

Yes No

Multi-factor Authentication for HR Systems

72%

28%36%

64%

Yes No

Remote Wipe Technologyfor Mobile Devices

22% 27%

51%

12% 14%

74%

Select Groups Everyone No Policy

Bring Your Own Device Policy

Strategy

No Strategy

49% 52% 55% 59% 59% 60% 61%70% 71%

76%21%

25%14%

27% 22% 25% 20%

16% 14%11%

31%23%

31%

15% 19% 15% 19%14% 16% 13%

High Tech Healthcare AMC Financial TCPU Retail/Wholesale

Services Manu-facturing

PublicAdmin

HigherEducation

No Policy Select Groups Everyone

Bring Your Own Device Policy By Industry

41

22%

7%

28%

13%

11%

5%

40%

75%

Top and Not Top Cloud Mobile Use

No Plans Evaluating Budgeted for 12 Months In Use Today

Mobile Enabled HR and Cloud Applications High Cloud Organizations More Likely to Have Mobile Enabled HR

42

● Today, top Finance Applications

being used in Mobile

Environments:

– Finance Analytics (48%)

– Travel and Expense (48%)

– Inventory Management (45%)

● Next 12 months, over 60% of

organizations plan to enable

these applications:

– Finance Analytics

– Travel and Expense

– Inventory Management

– General Ledger

– Asset Management

– Billing

– Purchasing

Mobile-Enabled Finance Applications

43

Top Barriers to Going Mobile in Finance

● Security

● Privacy

● Cost and Resources

● Determining Need

● Finance System Limitations

44

Emerging Technologies in Finance Infrastructure and Platforms Slightly Higher than HR

Finance Function Using

Today 12 Months Evaluating No Plans

PaaS (Platform as a Service) 16% 5% 25% 54%

IaaS (Infrastructure as a Service) 21% 9% 24% 46%

45

Emerging Technologies in Human Resources 27% Increase in Use Today over Last Year

Workforce Using


PaaS (Platform as a Service) 14% 3% 17% 65%

46

Workforce Using


IaaS (Infrastructure as a Service) 16% 3% 13% 67%

Emerging Technologies in Finance Robotic Process Automation and Block Chain Here First

47

Finance Function Using


Robotic Process Automation (RPA) 13% 5% 13% 69%

Block Chain Technology 10% 7% 19% 63%

48

How Does Blockchain Work

• Technology

• Regulation

• Consortiums

– Hyperledger

– Ethereum

Blockchain

● A “hyped” technologies

● Extends & changes processes

● Promises to lower costs, speed execution, more secure – transactions

● Barriers

– Requires a high capacity, high throughput, low latency

– Creating standards, fees for use

– BC/DR, business continuity & disaster recovery

– “Adjustments” to existing systems, integrations, reporting

49

Intelligent Systems Building BlocksThe Emergence of Active Technology – Requires Your Input

Workforce Using

Intelligent Systems Building Blocks Today 12 Months Evaluating No Plans

Artificial Intelligence 40% Feel It is Valuable to Extremely Valuable

Predictive Analytics 76% Feel It is Valuable to Extremely Valuable, 29% Doing Something

Machine Learning 3% 2% 22% 73%

Sentiment Analysis 6% 4% 15% 75%

Wearable/RFI (IoT) 8% 1% 9% 82%

Benchmarking Databases 20% 5% 24% 52%

5 Questions When Buying Emerging AI ToolsKnow Your Risk, Options, and Regulations

● Tell me about your views on product liability?

● How do we make changes to the data?

● What happens when we turn “it” off?

● Do we own what the machine learned from us?

How do we take that data with us?

● What are the startup costs, resources and supervision?

How much will it take to train?

Top Performing Talent Driven Data Driven

The Important Questions: Outcomes and Impact Top Performers, Talent-Driven, Data-Driven, and Socially-Driven Organizations

Top Quartiles

• Revenue/Employee

• Profit/Employee

• OIG (1 year)

• Return on Equity

• Mature Career Planning

• Succession Mgmt

• Metric Outcomes⁃ Employee engagement

⁃ Workforce readiness

⁃ Retention risks

⁃ Top talent

• Mature Workforce

Analytics

• 3+ Metrics

• 20%+ Managers/BI

• 3+ Data Sources

52

Decisions based on

Performance

Decisions based on

Talent

Decisions based on

Data

• Diversity

• Family Leave

• Flexible Schedules

• Wellness

• Engagement

Decisions based on

Social Responsibility

Socially Responsible

Achieving Outcomes Requires FocusTalent, Data, and Socially Driven Organizations Achieve Best Outcomes

53

TD DD Social TP Agg

Talent Outcomes HR Outcomes Business Outcomes

Imp

rov

ed

Neu

tral

Declin

ed

3%Higher

8%Higher

14%Higher

14%Higher

What We Couldn’t Fit In Today!

54

HR Tech Adoption Trends by Vendor – See Who’s Acquiring New

Clients.

New Insights in Recruiting Technology, BI/Analytics, Learning, and

Workforce Management.

Vendor Specific Client Averages and Client Feedback on Vendor

Satisfaction Data

New Insights on Implementation and Maintenance practices,

timelines, updates, work assignments

Lots of extra Industry, Size, and Organization Type Breakouts of

our traditional data.

Thank you!

55

Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year!

56

www.Sierra-Cedar.com/annual-survey

http://www.Sierra-Cedar.com/annual-survey

Having a career passion for enabling technology for HR, I am

drawn to the unbiased, objective nature of the Sierra-Cedar

HR Systems Survey White Paper. It serves as my voice to the

vendors in terms of what we need and where we want to go at

Dell. The benchmarking component is also vital in validating

the technology and making the case for investment.

Karen CaveneyGlobal HR Business Architecture & Technology

Dell

Why Organizations Participate?

57

http://www.dell.com/

Why Organizations Participate?

58

The Sierra-Cedar HR Systems Survey White Paper is one of

the main sources I use to keep my finger on the pulse of the

HR Technology industry. The trending data and future

landscape analysis is extremely valuable—I’m not sure I could

effectively do my job or remain a thought leader in the industry

without it.

Joe AlmodovarSenior Director Global Business Systems

AT Kearney

https://www.atkearney.com/

Documents

LEHRN 2018...March, 2018 LEHRN 2018 HCM and Finance Systems, Starting the Conversation: Insights from Sierra-Cedar’s 20th Annual Systems SurveysService & Solution Areas Employees