Caveat Emptor – Raising Your Technology Market IQ

February 2013

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Freddye Silverman, HRIPVP Eastern Region,

Jeitosa Group International

Source credit is given No recommended products – vendor

neutral and not all products or providers in any category may be mentioned

Not a case study As always, find the best fit for your

requirements, environment and culture

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Level Setting

HCM Market Mania Overview Core HCM Recruiting Talent Management Time and Attendance Workforce Analytics Enterprise 2.0

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Agenda

How do you feel at a 250 booth vendor expo?

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Talent Management – Social Talent

Sourcing

Oracle

SelectMinds

Consulting

Appirio

Knowledge

Infusion

Talent Acquisition/Mg

mt

IBM

Kenexa

Talent Suite for Recruiting

Technomedia

Hodes IQ

eLearning

Skillsoft

Mindleaders

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Acquisition Activity(since May 2012)

Increase market share…move customers to a new product/platform

Eliminate a competitor Enhancement of functionality, e.g. LMS

buying another LMS Expansion of functional footprint, e.g. TM

Suites Chess game – market perception – Battle

of the Gladiators (SAP and Oracle)

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Why is a company acquired?

Why Acquire? IBM – Kenexa

Intersection of HR And Social Business

Kenexa ‘Techmall’ RapidHire – hourly

hiring Onboarding

Experience Compensation Mgmt CompAnalyst

2X Assess – multilingual capabilities for users and applicants

Social Learning Mgmt Mobile Feedback

Survey App Fit Compass –

identifies archetypes for company fit

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Complete the suite◦ Front-end recruiting – talent acquisition◦ Performance Management◦ Succession Planning◦ Compensation Management◦ Learning and Development

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Why Acquire? Technomedia-Hodes IQ

New to the HCM market◦ Strategy: carve out a space where social can thrive in the

enterprise◦ Mining the overlap between CRM (customer relationship

management) and talent management ◦ No core HCM…yet

Rypple acquisition◦ Spun it as performance management◦ In reality it is closer to ‘performance motivation’: corporate

goal-setting, feedback, recognition and coaching◦ Relaunching as ‘SuccessForce’ in a new HCM BU◦ Led by John Wookey, EVP and SAP/Oracle alum

Innovation could drive the market in a new direction

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Salesforce.com – (December 2011)

Social goal-setting, feedback and performance review system

Reviews unrelated to org chart and cost centers

Recognizes whom the employees work with and allows them to provide feedback to each other

Rebuilt, rebranded and extended version of Rypple

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Rypple > Work.com (September 2012)

Features include:◦ Private manager-employee coaching

workspace◦ Points-based rewards system that can be

tied to Amazon gift cards◦ iPad-based recruiting app that connects

hiring teams to interview schedules, candidate details, resumes and interview notes compiled by participants during the interview process

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Work.com

Workday◦ Still flying high, sales have tripled, successful IPO, evolving

to cloud-based ERP◦ Novelty is wearing off; you either love or hate the UI

(where’s the menu?)◦ A process-driven HCM does not work for all cultures◦ Intuitive??◦ Not making inroads outside the U.S. as quickly as hoped,

going back to the lab for some development◦ Functionality gap: no recruiting, learning or open analytics

solutions◦ Speculation: Social tools may come from integration with

Salesforce.com

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Core HCM Overview

SAP◦ Strong global product especially for payroll and advanced

analytics◦ SuccessFactors acquisition considered necessary and the only

way they could enter the SaaS/cloud market◦ CW: Integration, if it ever happens, is years away

Dayforce◦ Ceridian’s cloud strategy◦ North American functionality, global in the plan◦ Quick development cycle◦ Very strong time capture (for hourly population) and payroll

product included

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Core HCM Overview

Oracle◦ PSFT still has a very loyal base and is still being sold but

on a small scale◦ EBS still popular in Europe and selling◦ Fusion is real, has customers (on the small side)

Has a way to go to be considered a robust HCM Does have recruiting, learning, social networking, predictive analytics Coexists with existing PSFT and Oracle EBS solutions Techstack requirements are monstrous for on-premise installations –

very high TCO ◦ Investing heavily in Taleo, integration with Taleo

(primarily with Fusion) and analytics◦ CW: will be a very credible cloud-based vendor

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Core HCM Overview

Beware the numbers and client list spin:

e.g. Peugeot licensed PSFT in 2006 but have never

implemented it.

SaaS◦ Frequent releases (Workday every 4 months)◦ Some clients can’t keep up with that pace

On-premise◦ The sting of de-support◦ Forced off of a popular release for one less so

I.T.◦ Web services knowledge gap even at the large

enterprise level◦ SOA components needed for enterprise scale delivery

– difficult and training is needed

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Pain Points

Core HCM

Systems of Record Systems of Engagement ERP-type systems we

rely on to run our business (financial, manufacturing, CRM, HR)

Must be ‘correct’ and ‘integrated’ so all data is consistent

Designed for people that have no choice but to use them

Systems used directly by employees for employees (email, collaboration, social networking and learning)

They engage employees Organize, shape and drive

the business, people and process

Complement systems of record, don’t replace them

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SOR – biggest problem with LMS, performance management or talent system is that employees don’t use it.

Adoption factor is very low, leads to inconsistent data and suboptimized promises

Transition from SOR to SOE – newer apps like Fusion, Silk Road, Workday look and act very different

Towers Watson survey of 628 HR Orgs – why consider Workday?◦ 58% said because of its user interface (the engagement

factor)

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SOR vs SOE

Source: Josh Bersin, Bersin blog

Systems of Record were designed in the last century, largely defined by ‘time and motion’ principles

Employees were asked to bring their bodies to work and leave their brains at home

Three primary factors of innovation and competition are time, process and collaboration – addressed by Systems of Engagement

New era of internet, mobile, Cloud, etc asks employees to bring their brains to work andleave their bodies at home.

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SOR vs SOE

Source: Josh Bersin, Bersin blog

“Technologize the Process, Humanize the Experience.”

Sue Marks, CEO, Pinstripe, Inc.

Of 250 vendors, a high percentage were related to recruiting

Recorded video interviews are the latest add-on as well as ‘super-parsing’ powers

Differentiators were not obvious, so how do products stand out?

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HRTech Expo

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Marketing…and the Name GameBroadbe

an getTalent GooodJob

HireAbility.com

Hire-Intelligence

HireIQ Hireology HireVue HR

SmartInnovate

CV

JIBE JobApp Jobvite Montage nowHIRE

Recruitics

SelectMinds

sparkHire

Talemetry TalentBin

TalentCircles

TalentWise Terefic TweetMyJ

obs.comwillbeHir

ed

Work4labs.com (thru

Facebook)Wowzer

Search Engine Optimization Online Assessments Resume parsing Video - recordable Mobile Applications Social Media

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Recruiting Technology Components

MySammy - productivity measurement software which measures the computer activity of employees. ◦ Designed to help companies determine how employees are spending their time and

assist in setting up individual goals for employees to improve their productivity. ◦ Works with company’s internet security.

RoundPegg - –quantifiably track company culture to make better hires and keep employees engaged◦ CulturePegg – track culture, alignment and ROI◦ HirePegg – custom interview guides to hire for culture fit◦ TeamPegg – leadership guides based on team sub-culture◦ EngagePegg – Track engagement and get custom reports to re-engage based on

culture

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Interesting HCM Market Entries

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What is a Talent Management Suite?

Talent Acquisition

Onboarding

Performance Management

Learning Management

Compensation Management

Career Development

Succession Planning

Workforce Planning

Ancillary Software, e.g. HR TMS Jobs

SkillSurvey –Prehire 360

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Who’s left in the Pure Play Talent Management Space?(May 2012)

Silk Road Life Suite

KeneXa

Saba

SuccessFactors - building out Employee Central

SumTotal – bought Softscape Taleo – inherited via Oracle SilkRoad – now building out Heartbeat

(bought from Emportal in 2009)

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Talent Mgmt + HRMS - Payroll

No competitors left for Kronos – all had been acquired

New generation of products ePay Systems ReportTime

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Time Management: Time Capture,Time Tracking,Scheduling, Time and Attendance

SHRM is trying to develop investor metric standards to help investment industry determine the value of human capital and report on it easily a la FASB

Companies would disclose all costs re hiring, retention and training of employees and contingents plus detailed info re company organization and staffing

Create a formula for spending on human capital plus data metrics for talent retention, leadership depth, leadership quality and employee engagement.

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Workforce Intelligence - Metrics & Analytics

HR community has pushed back – SHRM should drop the effort.

Concern: ◦ no use to investors◦ data could be used by companies seeking to

acquire, raid talent or apply competitive pressure Open to second comment period; if support is

lacking, SHRM will discontinue the initiative

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Workforce Intelligence - Metrics & Analytics

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Analytics

• Founded in 2010 by BI experts including John Schwarz,

former CEO of Business Objects

• Based in Vancouver and San Francisco

• Cloud-based application

• Core workforce metrics

• Predictive analytics

• Access/Measure/Predict/Share

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Visier Metrics and Dashboard

“Remove the HR data smog” Cloud-based analytical platform Multiple sources

◦ Internal (ERP, CRM, Talent Mgmt, eLearning…)◦ External (benchmarking data, regional UI rates...)

Pre-built connectors to some leading HCMs Proprietary Mercer content from surveys &

research Pre-defined metrics Bundled with consulting services (a la Doublestar)

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Analytics- Mercer

cFactor Workforce: global workforce management solutions w/ embedded social media, real-time collaboration tools, HR metrics

cFactor Communications: unified platform to reach entire org, common brand and message in multiple languages and across multiple jurisdictions, advanced analytics to measure impact

cFactor Communities: flexible, enterprise-grade social solutions to fit various environments and cultures to support corporate initiatives

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cFactor

Regardless of the chosen tool, it must be used by a skilled craftsman in order to extract true value and

meaning

Avalanche of data from disparate sources Need to harness this data and use it to produce more

meaningful results Problems in all functional areas

◦ Recruiting: measure time to hire but not quality of hire

◦ Benefits: measure what employees choose but not whether the choices are understood or if plans are well-utilized

◦ Learning/training – inadequate measures of competency, mastery and subsequent usage in the workplace

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The Big Data Challenge

Source: Lowell Williams, HR Executive

435 business and I.T. execs surveyed – only 37% familiar with concept

Need for ‘data scientists’/ specialized Hadoop Distributed File System (HDFS)

Typical uses◦ Retail – buying trends of customers◦ Healthcare – plan and claim data◦ Ancestry.com◦ Military

Not every company can or should use Big Data

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The Big Data Challenge

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Enterprise 2.0

23% - percent of recent college graduates who wouldn’t take a job if they weren’t allowed to make or receive personal telephone calls (Adecco Group NA)

30% - percent of people born after 1980 who feel anxious if they can’t check Facebook every few minutes (Larry Rosen, iDisorder: Understanding Our Obsession with Technology and Overcoming its Hold on Us.)

46% - percent of people 18-24 who would rather have access to the Internet than access to their own car (The Gartner Group)

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Technology impacting culture/ Culture impacting technology

Consumerization of software a la Facebook LMS software is almost as mobile as recruiting

apps UpMo – social talent management provider

◦ Talent Marketplace – designed to accelerate pace of filling open roles with internal talent

◦ Uses algorithms to match current employees to open opportunities, gain visibility into skills and talents of existing workforce

◦ Patent-pending algorithms use social feedback and employee-provided career goals and interests

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Social and Mobile Trends

Peoplefluent: Workforce Explorer app for iPad◦ Designed to leverage use of gamification for

training and self-learning◦ Generates custom questions for line managers

based on specific data in categories like performance, compensation, flight risk, employment history

◦ If they don’t know the answer, can receive a tip and search for answer

◦ Free

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Gamification

Cloud-based Software On its way to becoming a

standard Workday has legitimized the use

of the cloud for ERP applications. Created an upsurge of replacement discussions globally

Almost all talent management vendors are in the cloud now

Typically large companies replace core systems every 7-10 years, sometimes sooner if new technology architectures are developed

Changing vendors/technology strategies is expensive – question ROI of making switch

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Capterra.com Filter by platform, number of users, features, number of employees, location, budget List produced displays paid advertisers first, followed by complete list of all vendors in

smaller print Comparehris.com

Complete tool, view scored list of products closely matching listed needs Learn the capabilities of listed systems Determine needs by weighting importance of each feature or option View Detailed Comparison Screens View pre-recorded Demos Vendors pay to be included – not full market discovery

Technology Evaluation Center Respond to series of questions to determine requirements Can do functionality only or also include technology requirements Must do your homework before using the tool in order to get a valid answer – incorrect

requirement responses lead to incorrect conclusions Research and advisory firms

Gartner ‘magic quadrant’ Forrester Aberdeen IDC Ventana

Vendor websites Interactive product demos Can get a good sense of design and navigation

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Software Market Information

The HR Technologist (Bryon Abramowitz, KI) The Human Capitalist (Jason Corsello – Cornerstone on

Demand) Naomi Bloom – ‘In Full Bloom’ Steve Boese on HR Technology – RIT professor

(steveboese.squarespace.com) Ahmed’s Universe (Ahmed Limam, Independent global HR

technologist) Analyst blogs (Bersin, Gartner, Forrester) Use RSS feeds for easy access LinkedIn – HR Technology groups Twitter Filter the facts from the buzz

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Blogs and Conversations

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Final thoughts

Beware the anorexic organization…

Questions or Comments?freddye.silverman@jeitosa.com

443-956-0656

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