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Phenix Management Int'l - www.pmihrm.com 1
Back to the Future of HR
Leveraginge-HR
Al Doran, CHRPPhenix Management Int’l
Phenix Management Int'l - www.pmihrm.com 2
Question:
• Bank tellers
• 8 track machines
• Beta format videotapes
• IBM selectric typewriters
• Switchboard operators
What do these items have in common:
Phenix Management Int'l - www.pmihrm.com 3
Answer:
They have all been changed or replaced by new technology
Phenix Management Int'l - www.pmihrm.com 4
Today’s Agenda
Why Bother with e-HR ?
What is e-HR Anyway?
How do I leverage my investment in HRMS?
• Utilizing Technology
for Workforce Management
Phenix Management Int'l - www.pmihrm.com 5
Providing HR Content and Transaction Delivery to all stakeholder groups (internal & external) using a common delivery interface, open interoperable systems and standard network transport. e-HR incorporates best of breed software supported by an ERP backbone HR system.
Defining e-HR
Phenix Management Int'l - www.pmihrm.com 6
What is the new technology in HR?
24 / 7 access Includes automation and
workflow Advances with HRMS,
Imaging and call centers Internet
• Mixture of computer, software and system changes
• Response to changing needs of employees
Phenix Management Int'l - www.pmihrm.com 7
Why Technology?
Reduce Costs
HR Metrics – Headcount
Instant Access – Real Time
Business Decisions and Communications
Global Economy
Phenix Management Int'l - www.pmihrm.com 8
•The payback on these investments is 25% to 30% cost reductions—some from headcount reductions and some from printing and distribution cost reductions.
•Respondents further report ROI of 100% within 12 to 18 months, along with improved service levels, better decision making, and increased employee satisfaction.
•Companies who report they are successful with self service have the highest (HR) ratio (1/106) followed by those reporting somewhat successful (1/99), and those who report they are less than successful (1/60).
Source: The Hunter Group's 1998-1999 Human Resources Self-Service Survey
Why Do Clients Want e-HR Anyway…
Phenix Management Int'l - www.pmihrm.com 9
Automation: Measures of Success -Demonstrable ROI
Quantitative Results Achieved: North America
Cost per transaction
Cycle time
Headcount changes
ROI/payback
Employee satisfaction
Inquiries to service center
Usage
Intangibles
Results Averages
Average 43% reduction in 2003 plus 7% more in 2004
Average 50% reduction reported in 2003/04
Average 37% reduction in HR staff
Average 1.8 years payback in 2003
Average 50% improvement in 2003 plus 10% in 2004
Average 43% reduction in 2003/04
Steadily increasing, up to 100% in some firms
Better information, data quality and user experience
Source: Cedar 2003/2004 Workforce Technologies Surveys
Phenix Management Int'l - www.pmihrm.com 10
What Are The Quantitative Results You've Achieved Through Your HR Self-Service Initiatives?
Task Manual Cost Self Service Cost % SavedView benefit profile $6.00 $.50 92%Access policy handbook $4.00 $1.00 75%Change home address $10.00 $2.00 80%Provide 401(k) statement $50.00 $.60 99%View paycheck $3.00 $.50 83%Job posting $8.00 $.50 94%View skill profile $1.50 $.50 67%Employee change action $12.00 $4.00 67%
Source: The Hunter Group's 1998-1999 Human Resources Self-Service Survey
The Numbers Speak For Themselves…
Phenix Management Int'l - www.pmihrm.com 11
Key FindingsRecent CedarCrestone Survey
Workforce technologies and service delivery approaches growth enable HR transformation All workforce technologies use continue to grow Outsourcing usage is growing Organizations blend high-touch and high-tech service delivery
Results are significant Transaction and compliance cost reductions of 25% to 75%
Success factors A solid business case Business process improvement Change management
Phenix Management Int'l - www.pmihrm.com 12
CedarCrestone HCM Blueprint
Self Service Transactions • Native ERP • Third-party Vendors
Self Service Transactions • Native ERP • Third-party Vendors
HR KnowledgebaseHR Knowledgebase
Portal FrameworkPortal Framework
Identity Management• Single Sign-onIdentity Management• Single Sign-on
Help Desk• Call Tracking• Case Management
Help Desk• Call Tracking• Case Management
Strategic HCM Apps • Recruiting• Competency Mgmt• Learning Mgmt• Compensation Mgmt• Performance Mgmt
Strategic HCM Apps • Recruiting• Competency Mgmt• Learning Mgmt• Compensation Mgmt• Performance Mgmt
SCM
CRM
FIN Core HRMS/ERP foundationData for Roles, Personalization,
Position Mgmt
Core HRMS/ERP foundationData for Roles, Personalization,
Position Mgmt
Data WarehouseData Warehouse
AnalyticsAnalytics
Performance Excellence
Service Delivery Excellence
Administrative Excellence
CedarCrestone HCM Blueprint
Phenix Management Int'l - www.pmihrm.com 13
All Applications Grow In UseMany Up 50% or More
Trend in Application Usage, Budgeted, and Planned Worldwide
Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey
0% 20% 40% 60% 80% 100%
2004
2005
Measure/Plan Talent
2004
2005
Strategic HR Applications
2004
2005
Manager Productivity Applications
2004
2005
Employee Productivity Applications
In Use
Budgeted within Next 12 Months
Planned for Next 36 Months
Phenix Management Int'l - www.pmihrm.com 14
Outsourcing Will Increase
#27: HR Outsourcing Components: Processes, Technology, and People – Worldwide
Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey
0% 20% 40% 60% 80% 100%
Processes – Today
Processes – 12 months from now
Technology – Today
Technology – 12 months from now
People – Today
People – 12 months from now
0 Not outsourced, will never be outsourced
1 Not outsourced today or for next 12 months, but may be someday
2 Partially outsourced
3 Fully outsourced
Phenix Management Int'l - www.pmihrm.com 15
Years to Achieve Payback Faster than Expected with Most Solutions
Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey
YearsAchieved Years to Not Yet When
Years in ROI Achieve Achieved Payback isPlace % Payback ROI Expected
YearsAchieved Years to Not Yet When
Years in ROI Achieve Achieved Payback isPlace % Payback ROI Expected
Core HR Record Keeping System
HR Management System
HRMS Upgrade
Service Delivery Solutions and Applications
Call Center Technologies
Employee Self Service
Manager Self Service
Time and Attendance
Strategic HR Applications
Web-based Recruiting
Web-based Learning Management (excludes content)
Performance Management (appraisals, goal alignment)
Succession Planning
Compensation Management
Measurement Solutions and Applications
Data Warehouse (for HR)
Workforce Analytics (including scorecard)
6.6
1.8
3.4
2.7
2.3
5.5
2.4
2.4
3.9
2.5
3.3
3.5
1.4
35%
24%
16%
42%
31%
36%
22%
15%
28%
9%
24%
29%
11%
3.1
1.1
1.1
1.3
1.2
1.6
1.6
2.5
1.6
1.0
1.7
2.1
0.6
22%
27%
18%
20%
31%
18%
24%
18%
17%
17%
18%
20%
21%
4.1
2.4
1.9
2.3
2.4
1.2
1.8
5.0
4.0
3.0
3.3
2.9
3.0
#33: In-house Solutions: Payback Achieved/Payback Expected – Worldwide
Phenix Management Int'l - www.pmihrm.com 16
Service Delivery Applications
#12: Service Delivery Applications Usage and Source – Worldwide
UsageUsage
In UseIn Use
Simple Management Reporting
Time Management Self Service
Benefits-related Self Service
Employee Self Service
Pay-related Self Service
Total Benefit Statements
HR-oriented Help Desk
Manager Self Service
Simple Management Reporting
Time Management Self Service
Benefits-related Self Service
Employee Self Service
Pay-related Self Service
Total Benefit Statements
HR-oriented Help Desk
Manager Self Service
74%
62%
62%
60%
57%
46%
42%
34%
74%
62%
62%
60%
57%
46%
42%
34%
Budgeted for Next
12 Months
Budgeted for Next
12 Months
11%
11%
13%
17%
15%
12%
5%
21%
11%
11%
13%
17%
15%
12%
5%
21%
Within Next 36 Months
Within Next 36 Months
6%
11%
16%
16%
13%
16%
3%
21%
6%
11%
16%
16%
13%
16%
3%
21%
SourceSource
Home-grownHome-grown
SoftwareLicensedSoftwareLicensed OutsourcedOutsourced
20%
15%
10%
11%
8%
18%
40%
21%
20%
15%
10%
11%
8%
18%
40%
21%
56%
69%
49%
73%
66%
30%
29%
57%
56%
69%
49%
73%
66%
30%
29%
57%
1%
5%
32%
4%
14%
38%
8%
4%
1%
5%
32%
4%
14%
38%
8%
4%
BlendedBlended
22%
10%
9%
12%
12%
14%
22%
17%
22%
10%
9%
12%
12%
14%
22%
17%
Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey
Key FindingsRecent CedarCrestone Survey
Workforce technologies and service delivery approaches growth enable HR transformation All workforce technologies use continue to grow Outsourcing usage is growing Organizations blend high-touch and high-tech service delivery
Results are significant Transaction and compliance cost reductions of 25% to 75%
Success factors A solid business case Business process improvement Change management
www.pmihrm.com
All Applications Grow In UseMany Up 50% or More
Trend in Application Usage, Budgeted, and Planned Worldwide
Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey
0% 20% 40% 60% 80% 100%
2004
2007
Measure/Plan Talent
2004
2007
Strategic HR Applications
2004
2007
Manager Productivity Applications
2004
2007
Employee Productivity Applications
In UseBudgeted within Next 12 MonthsPlanned for Next 36 Months
www.pmihrm.com
www.pmihrm.com
* = Gartner estimates
Source: Gartner (February 2008)
Figure 1. Licensed Customer Share for Companies With More Than 10,000 Employees
* = Gartner estimates
Source: Gartner (February 2008)
Years to Achieve Payback Faster than Expected with Most Solutions
Source: CedarCrestone 2005 Workforce Technologies/Service Delivery Approaches Survey
Years
Achieved Years to Not Yet When
Years in ROI Achieve Achieved Payback is
Place % Payback ROI Expected
Years
Achieved Years to Not Yet When
Years in ROI Achieve Achieved Payback is
Place % Payback ROI Expected
Core HR Record Keeping SystemHR Management SystemHRMS Upgrade
Service Delivery Solutions and ApplicationsCall Center TechnologiesEmployee Self ServiceManager Self ServiceTime and Attendance
Strategic HR ApplicationsWeb-based RecruitingWeb-based Learning Management (excludes content)Performance Management (appraisals, goal alignment)Succession PlanningCompensation Management
Measurement Solutions and ApplicationsData Warehouse (for HR)Workforce Analytics (including scorecard)
6.61.8
3.42.72.35.5
2.42.43.92.53.3
3.51.4
35%24%
16%42%31%36%
22%15%28%9%
24%
29%11%
3.11.1
1.11.31.21.6
1.62.51.61.01.7
2.10.6
22%27%
18%20%31%18%
24%18%17%17%18%
20%21%
4.12.4
1.92.32.41.2
1.85.04.03.03.3
2.93.0
#33: In-house Solutions: Payback Achieved/Payback Expected – Worldwide
www.pmihrm.com
Phenix Management Int'l - www.pmihrm.com 21
HR Skill sets are Changing
Hiring organizations will no longer consider applicants without technology skills
The days of the data entry clerk, clerk typist or pure “secretary” are gone
When the CEO asks “What is my cost per…”, you can’t say “we don’t track it”
Technology is changing all jobs!
Pace of change will accelerate
Phenix Management Int'l - www.pmihrm.com 22
Strategic Issues
Cultural
Cost and efficiency
Maintenance and support
Data integrity
Lead / lag
Integration and interfaces
Privacy and access
Phenix Management Int'l - www.pmihrm.com 23
A Brief History
• 1950 - 1960
• 1960 - 1970
• 1970 - 1980
• 1980 - 1990
• 1990 – 2000
• 2000 - 2010
Batch Data Processing
Large Scale Mainframe Oriented
Personal Computing
Lans/Wans
Distributed Computing - Internet
Interconnected Environments
Payroll
Personnel Systems
Database Systems - 4th GL
Client Server
Web Enabled Applications
Best Of Breed Integration
Decade Environment HRMS
Phenix Management Int'l - www.pmihrm.com 24
Evolution -Application Technology
MainframeApplicationsMainframe
Applications
Client-ServerApplicationsClient-ServerApplications
InternetApplications
InternetApplications
Service Oriented
Applications
Service Oriented
Applications
Phenix Management Int'l - www.pmihrm.com 25
HR System
Payroll
Time Management
HR Data Warehouse/Mart
LegacySystems
Components Of e-HR
HR Communities Of Interest
Mid
dlew
are
WebRecruiting
Cor
pora
te P
orta
l
HR
Por
tal
MSS
ES
SWeb
TrainingOutsourced
HR Functions
Pos
itio
n M
gmt
Thi
rd P
arty
Rep
orti
ng
Workflow & Business Rules DirectoryTransactions & Information Flows Within a TCP/IP Web Environment
Phenix Management Int'l - www.pmihrm.com 26
Intranet ApplicationsReal time communications with employees
Newsletters
Job posting
Training
Employee data to managers
Sign up events, training, etc
Polls and surveys
Policies online
Forms
Benefits enrollment
Phenix Management Int'l - www.pmihrm.com 27
Internet Applications for HR
Company home pages
Webcruiting
Employment searching and applications
Professional associations online
Research
Phenix Management Int'l - www.pmihrm.com 28
Main Trends Driving HCM
Increased linkage to business objectives
Growing focus on skills, competencies and knowledge
Tighter link between performance and pay
Multifaceted organizational development
Succession and leadership development
Raising workforce productivity
Rise in Healthcare Costs
Measuring Contribution of Human Capital
Certifications / Compliance
Phenix Management Int'l - www.pmihrm.com 29
Day to Day changes
All areas affected
Staffing
Training
Legal
•HRMS•Compensation•Benefits
Phenix Management Int'l - www.pmihrm.com 30
Staffing
WorkflowTestingElectronic job posting and internal applicationsSkill set trackingApplicant flow and trackingResume scanning
• Electronic requisitions, postings etc.
Phenix Management Int'l - www.pmihrm.com 31
Staffing, con’t
Applicants filing out job applications on terminals
Webcruiting
Relocation info Internet
Company home pages
Electronic resumes
Employment verification
Employee orientation
Phenix Management Int'l - www.pmihrm.com 32
Winning the War for Talent
Be an Employer of ChoiceUnderstand Demographic changesMake every employee a recruiterStreamlining the process
Phenix Management Int'l - www.pmihrm.com 33
Winning the War for TalentCheaper to retain than hireWhy people stay: Career growth and
development Challenging and
meaningful work Flexible HR processes
Why people leave Poor leadership and
communications Better opportunities
Creative compensationand rewards
Phenix Management Int'l - www.pmihrm.com 34
The Workforce is Shrinking
Phenix Management Int'l - www.pmihrm.com 35
Shrinking Around the World
1
A Shrinking Workforce
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Russia
Italy
Japan
Spain
Sou
th K
ore
a
Germ
any
Chin
a
Neth
erl
an
ds
Fra
nce
Sou
th A
fric
a
UK
Canada
Austr
alia
Bra
zil
Mexic
o
US
India
1970-2010 2010-2050
Projected Change in Working Age Population (15-64) 2010-2050
Phenix Management Int'l - www.pmihrm.com 36
Workforce Gap
Phenix Management Int'l - www.pmihrm.com 37
Flexible Business Processes
Recruiting Example
BudgetCheck
AuthorizeNew Hire
BackgroundCheck
SelectCandidate
Assess Candidates
ConductInterviews
ContactCandidates
FilterCandidates
CollectApplications
Post Job toCo Website
Post JobSpecification
Create JobSpecification
Create JobRequisition
3rd party check via Web Services
Post to Job Board:
ExtendOffer
Phenix Management Int'l - www.pmihrm.com 38
Training Training is more accessible, faster and can be adapted to different learning styles
Immediate feedback
Pre-post testing
Maximize software / systems investment with training
Rapid advances, ongoing learning
On line course enrollment
Education / Skill set tracking on HRMS
Phenix Management Int'l - www.pmihrm.com 39
Distance LearningWhat is distance learning? Satellite Link Internet Online Technology Video Links
It’s not just for mail order diplomas 55% of regionally accredited universities offer
some type of technology based distance learning Reduce costs
Phenix Management Int'l - www.pmihrm.com 40
People: Skills Development
Geography
Leader
Geography
Leader
ManagerManager
FunctionalLeader
FunctionalLeader
Provide Ease-of-Use Development ToolsHelp People Operate
in a More Complex Matrix World
Talent and Skills Development
Ca
ree
r P
lan
nin
g
Re
wa
rds
Performance ManagementPerformance Management
Phenix Management Int'l - www.pmihrm.com 41
Legal Issues
Is Email “mail”?Privacy LegislationUniform enforcement of policyLibel Email is legally “discoverable” and may be recovered even after “deleted”Establish clear policy and communicate frequently
• Laws not keeping pace with technology
Phenix Management Int'l - www.pmihrm.com 42
Workforce ComplianceManage and mitigate risk across the organization
Enable legal, regulatory, and statutory compliance, globally
Document and track critical business processes
Ensure global process accuracy and consistency
Develop training to ensure compliance
Deliver a single version of the truth for all global workforce information
Provide HR transaction auditability
Leverage global HCM presence
Phenix Management Int'l - www.pmihrm.com 43
Comply: Raising Awareness via LMS
Phenix Management Int'l - www.pmihrm.com 44
Scheduled Sessions / Activities
Webcast – Live &
Recorded
Assignment / Tasks
QuizTests /
Assessment
Web-BasedContent /
Self-paced
Learning Components
= Multi-Modal Delivery
Activities
Multi-Modal Delivery
Comply: Raising Awareness via LMS
• Supports complex learning models
• Enables multiple forms of verification
• Easy Administration
Phenix Management Int'l - www.pmihrm.com 45
HRMS
Single source of employee data Staffing issues (vacancy, approvals, hiring dates) Sharing of data Reporting Data access Skill set tracking Applicant tracking Data analysis
Better, faster, more accurate data Data securityFeeds to finance, budget, payroll, security, etcCustomized reports
• Comprehensive data
Phenix Management Int'l - www.pmihrm.com 46
Second Generation HRMS
User friendly
Web enabled
Employee self service and workflow enabled
Open enterprise architecture
Addresses global workforce
Modular
Multiple vendor products
Integrated solutions
Phenix Management Int'l - www.pmihrm.com 47
The Challenge: Reinvent the
Information Environment
Access to information is difficult
o Simple reports and rosters not readily availableo Relating fragmented information to form
conclusions and drive decisions often labor intensive
o Analysis frequently requires manual collection and subjective interpretation
o Information highly secured
Phenix Management Int'l - www.pmihrm.com 48
The Challenge: Reinvent the Information Environment
Complex data and process administrationo Administration of data frequently
people- and time-intensiveo HR Managers often handle all data
change requestso No effective means to track status of
changes o Iterative processing of information
produced inconsistent results
Phenix Management Int'l - www.pmihrm.com 49
The Needs of the Employee
I need information to:
o Manage my worko Manage my careero Manage my life and healtho Manage my moneyo Make informed decisions
Phenix Management Int'l - www.pmihrm.com 50
o Support the work of my teamo Support the careers of my
employeeso Support others in managing their
life eventso Reward my organizationo Make informed decisions and help
others to do the same
The Needs of the Manager
I need information to:
Phenix Management Int'l - www.pmihrm.com 51
o Develop and evaluate employee programs
o Analyze and report on compensation
o Analyze and report on organizational effectiveness
o Develop policies and procedures
o Develop strategic recommendations
The Needs of the HR Professional
I need information to:
Phenix Management Int'l - www.pmihrm.com 52
Effective Human Capital Management Requires an Integrated Approach
Human Capital
Practices
• Candidate selectionCandidate selection
• Leadership profile Leadership profile
• Succession planSuccession plan
• RecruitmentRecruitment• Resource libraryResource library• Candidate selectionCandidate selection
• Performance appraisalPerformance appraisal• Individual developmentIndividual development• Performance history Performance history
• Career road mapsCareer road maps• Competency modelsCompetency models• Development course Development course
offeringsofferings
• Org structureOrg structure• Work flowWork flow• Job ArchitectureJob Architecture
• CompensationCompensation• BenefitsBenefits• RecognitionRecognition
Phenix Management Int'l - www.pmihrm.com 53
The “Killer Apps” for HRMS
MSS
ES
S• Huge Paybacks• Repositions HR• Drives data integrity and
responsibility
• MSS requires workflow and position management more than straight ESS
• Remove unnecessary approvals
Phenix Management Int'l - www.pmihrm.com 54
Employee Self Service75-80% of all data is “employee owned”Employee is responsible for data accuracyEmployee has access to information and can change fieldsUse IVR, Intranet and Internet to access“Error proof” itGraphicsMake it interesting and easy to useCall Center optionsDirect access to forms
Phenix Management Int'l - www.pmihrm.com 55
Manager Self Service
Allows access control by person, position or span of control
Automated performance review notification
Promotion
Pay increase
Employee actions - hiring, transfers, terminations
Phenix Management Int'l - www.pmihrm.com 56
Self service examplesTransaction based events Birth, death, new hire, promotion, marriage
Open enrollment pension changes and balance inquiryBenefit statementsPension estimatesSend question to HRHR policy manualsSign up for company picnicOpinion survey
Phenix Management Int'l - www.pmihrm.com 57
The Portal for the Employee – All About Me
Employees access the portal through the Company intranet (@KO)
Features include:
• My Career
• My Life
• My Money
• My Health
• My Workplace
Phenix Management Int'l - www.pmihrm.com 58
The Portal for the Manager – Manager’s Toolbox
Workflow automatically reminds managers of pending, “in process,” or closed transactions and those requiring additional action
Phenix Management Int'l - www.pmihrm.com 59
Full employee data profile
Clicking on Name provides a full picture of employee data
Home
Employee Profile
Phenix Management Int'l - www.pmihrm.com 60
Freeform data entry is minimized
Clearly identifies the employee to be transferred
Standardized values are selected from drop-down
pick lists
Critical information is defaulted
SAP Manager Self-Service
Home
Phenix Management Int'l - www.pmihrm.com 61
Reports using SAP BW
Employee lists are driven from organizational data structure inside SAP HR
No user ID or password prompt
All reports download to Excel
Phenix Management Int'l - www.pmihrm.com 62
Job Posting (PeopleClick)Internal and External
postings use same engine
Home
Phenix Management Int'l - www.pmihrm.com 63
Total Compensation
Doe, LisaDoe, Lisa0000748500007485
Thomson, HarryThomson, Harry00012550001255
Doe, LisaDoe, Lisa0000748500007485
Thomson, HarryThomson, Harry00012550001255
Manager inputs recommendations and can track vs. budget/funding pool
Can analyze pay vs. performance consistency
Home
Phenix Management Int'l - www.pmihrm.com 64
Is ERP Dead or is it just sleeping…?
HR System
Payroll
Time Management
Pos
itio
n M
gmt
• Database system is critical
• Provides the core functionality
• Integration of core system reduces cost of ownership and maintenance costs
• Key to data integrity
“The System of Record”
Position Management allows Role-based personalization
Phenix Management Int'l - www.pmihrm.com 65
What does the Future hold?
Dramatic shift away from data input and maintenance toward data interpretationShift to technology applications for most employee needs, questionsIncreased outsourcingMore demands on HRShorter time framesCall center operationsHighly customized communications
Phenix Management Int'l - www.pmihrm.com 66
Future (con’t)
Portable employee communicationsLinkage with cellular, digital and PC systemsTraining on-line vs. classroomHR as champion of changeWork / Life issues will be prominentMore employees working remotelyInstant access to data by management
Click on name and it happens (phone dials, approval granted, transmission)
Phenix Management Int'l - www.pmihrm.com 67
Through the looking glass…C
orpo
rate
Por
tal
HR
Por
tal
• Transactions & content (applications?)• Single sign on and authorization• Single interface – common look & feel• Intuitive (Web-like)• Connects internal & external• Push & Pull content• Personalized for me & my roles• Customizable (within limits) to my interests• Organized by event & process not
department
Typical Web Based Application
www.pmihrm.com
Typical Webserver Interface
www.pmihrm.com
So what are our options in 2008?
Traditional Web based Hosted internally
Need IT support around the clock You own the servers Ongoing cycle of major upgrades
And,
www.pmihrm.com
New Options
Not on your serversASPSaaSHosted
www.pmihrm.com
What is SaaS?
Software as a service (SaaS) is a model of software delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client. SaaS is a model of software delivery rather than a market segment; it assumes the software is delivered over the internet. Software can be delivered using this method to any market segment, from home consumers to corporations. The term "SaaS" was coined by John Koenig for the SDForum Software-as-a-Service Conference in March of 2005 and has become the industry adopted reference term, clarifying and replacing the earlier terms "On-Demand" and ASP (Application Service Provider).
www.pmihrm.com
Drivers for SaaS
Everyone has a computer
Applications are standardized
Many SaaS providers allow a wide range of customization within a basic set of functions.
A specialized software provider can target a global market
Web systems are reliable enough
Security is sufficiently well trusted and transparent
www.pmihrm.com
Drivers continued
Availability of enablement technology
Wide Area Network's bandwidth has grown drastically
Lower total cost of ownership
Focus on core business and not IT
www.pmihrm.com
SaaS – Gartner Definition
The application is owned, delivered, and managed remotely by one or more providers
The application is based on single set of common code and data definitions which are consumed in a one-to-many model by all contracted customers at any time.
The application is licensed on pay-per-use or subscription basis
www.pmihrm.com
Gartner on SaaS
With the SaaS approach, the client is responsible for the business process, but the provider is responsible for the technology and its support. As discussed above, the application runs at the provider's facility and is based on common set of code and data definitions consumed by customers in a one-to-many model. In addition, SaaS providers use a subscription revenue model.
www.pmihrm.com
Workday model
On-Demand
On-demand is quickly becoming recognized as the delivery model of choice for business applications. There is no hardware, software, middleware, database or business intelligence tool to buy, install, maintain, and upgrade. IT resources can be redeployed to focus on business innovation and value rather than customization and maintenance.
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Key difference between SaaS and traditional on-site a applications
Software-as-an-application
User pays up-front for a perpetual license, usually based on the “potential
use” of a server (as measured by MIPS, for example), the numbers of users,
plus ongoing maintenance fees.
A dedicated instance of the software is installed on a PC or server (or those of
the user’s hosting provider).
Users are responsible for deployment, operation, and maintenance of the IT
infrastructure required for the application.
Users are responsible for upgrading the software as vendors issue
new releases.
Users are responsible for ensuring the software will continue to operate as
their computing environment changes.
Users are responsible for configuring software to meet specific vertical or
other business
Software-as-a-Service
Users’ fees are “pay-as-you-go” based on appropriate metrics, such as:
• per seat per month
• per transaction
• per software module
• other metrics and/or combination of the above
The software is managed and maintained by the SaaS provider (or the
vendor’s hosting partner).
For SaaS users the “hoster” is responsible for the IT infrastructure.
SaaS vendors upgrade the software automatically as new features and
functionality are developed.
SaaS vendors (or hosting partners) manage changes to the computing
environment.
SaaS applications are highly configurable and are designed to integrate with
existing applications and infrastructure.
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Benefits of new tools such as SaaS
Software as a Service (SaaS) for Payroll and HR Management
Allows users Internet access to management tools online -- without warehousing and manual retrieval
Guaranteed 98 percent up-time
Remote disaster recovery centers
Compliance with all federal/state laws and regulations
hosting to eliminate expensive servers, licensing and technical allocations
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Benefits
Benefit to the Client For the client, there are low upfront costs. Executive
teams, and Company Boards, desire to outsource critical functions that are not deemed part of the organizations’ “core business” address the corporate need to focus on core business. In particular for the HR space the perception of HR as a “cost center”, rather than a strategic partner in the organization – and makes a contrary vote all the more difficult.
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Trends in SaaS – October 2008
The use of software as a service (SaaS) among small-to-medium businesses is on the rise, according to a report by Access Market International Partners (AMI-Partners). The market intelligence firm surveyed various businesses, defining small businesses as having one to 99 employees and medium ones at 100 to 999 employees.
The study, covering the year 2007, found that 21 percent of small businesses (SBs) and 31 percent of medium businesses (MBs) use SaaS, which are double the rates found in 2004. Adoption of SaaS was spurred by cost factors and ease of use, according to the report. Moreover, businesses are requiring software solutions that are easy to implement and maintain. The lack of infrastructure costs enabled by a SaaS solution can be a benefit too.
MBs were the largest adopters of SaaS, spending six times as much as SBs http://adtmag.com/article.aspx?id=22208
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In conclusione-Hr is greater than the sum of it’s parts (Gestalt)Each of the parts can contribute independentlyHR is a custodian of data – not an ownere-Hr is not defined as “What we sell”e-Hr requires process re-design, change management, organization alignment and a “big picture” view – it is not a technology solutione-Hr will enable HR to add measurable value to the organization and transform the function
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Extended functionality via best of breed working with ERP
WebRecruiting
WebTraining
• Best of breeds will always offer leading edge• Integration with ERP tables & fields a must• Integration with third parties a must• Global deployment to those who need access
OutsourcedHR Functions
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A Little Caution is a Good Thing…
Putting a web front end onto bad systems and processes only advertises the world how bad your systems and
processes really are.
Dr. Michael Hammer
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Questions?
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Some HRMS Web Sites
HRMSP www.hrmsp.orgIHRIM www.ihrim.orgPhenix www.pmihrm.comHRMS Book www.hrmsbook.comwww.knowledgeinfusion.com/ www.hrtechconference.com Workforcewww.workforcetools.com Magazine www.workforceonline.com
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Further questions:
Al Doran 416-505-6204
www.hrmsbook.com
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