25395 hcm spotlight

PowerPoint PresentationHuman Capital Management
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Market Overview
Questions and Answers
A business strategy that makes every worker a competitive asset
More than HR administration
Focuses on HR Programs to improve workforce efficiency, effectiveness, and productivity
Requires new processes, supported by leading HR technologies
Helps put into ACTION… “Our people are our most important asset”
Comply
Automate
Measure
Align
Workforce Excellence – should be the ultimate goal of the HR organization. Oracle believes that HR organizations must develop and execute a comprehensive HCM strategy, supported by leading technology and a committed HR leadership staff. The HCM model includes programs to improve efficiency, effectiveness, and productivity of the workforce.
We’ve all heard “Our people are our most important asset.” The HCM model puts those words to action. We believe that effective HCM strategy execution will separate the best firms from the rest over the next few years.
So, how do you get there?
There is a continuum of HCM execution that encompasses all organizations, and every firm is at a different place. HR technology plays a key role in enabling effective HCM, when accompanied by process redesign and proper change management activities. Oracle believes that an effective HCM strategy has four major components:
Comply
Automate
Streamline HR processes to reduce cycle time and cost by deploying self-service, shared services and/or outsourcing
Measure
Align
Improving efficiency, effectiveness and productivity by tying business objectives to the workforce
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Recruiting
Point
Solutions
Training
Point
Solutions
Home
Why is this happening? It’s no surprise, actually.
The typical HR department runs a patchwork of fragmented systems… multiple code bases, that need costly IT support… legacy applications that don’t talk to each other… home-grown systems and point solutions… each with integration and data consistency problems…
… which inevitably leads to inaccurate reporting… regulatory and compliance questions that too often wind up creating needless exposure…
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Salary
Changes
Transfers
Performance
Reviews
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people
Salary
Changes
Transfers
Performance
Reviews
*
Salary
Changes
Transfers
Performance
Reviews
*
Traditional HR
Human Capital Management
Adds to the bottom line
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Suitable for the work
Engaged/Committed
Flexible/Adaptive
Productive
HR’s manifesto: Develop and deliver programs that enhance these characteristics
The Bottom Line: Workforce excellence will drive business results
The Key: Executing a comprehensive human capital management (HCM) strategy
Workers that are:
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Top Management succession
Improving product innovations
9%
45%
24%
31%
25%
43%
12%
2003
28%
33%
31%
18%
28%
18%
22%
2008
Workforce excellence is not an HR objective, it’s a business imperative. Look at the results of a 2003 versus a 2008 survey conducted by the Conference Board – we are in an era where CEOs are increasingly concerned with building a more efficient and effective workforce and developing the talent of the organization. These highlighted areas are all about achieving workforce excellence. And if workforce excellence is a CEO priority, it should definitely be high on the list for HR.
*
Comply
Automate
Measure
Align
Workforce Excellence – should be the ultimate goal of the HR organization. Oracle believes that HR organizations must develop and execute a comprehensive HCM strategy, supported by leading technology and a committed HR leadership staff. The HCM model includes programs to improve efficiency, effectiveness, and productivity of the workforce.
We’ve all heard “Our people are our most important asset.” The HCM model puts those words to action. We believe that effective HCM strategy execution will separate the best firms from the rest over the next few years.
So, how do you get there?
There is a continuum of HCM execution that encompasses all organizations, and every firm is at a different place. HR technology plays a key role in enabling effective HCM, when accompanied by process redesign and proper change management activities. Oracle believes that an effective HCM strategy has four major components:
Comply
Automate
Streamline HR processes to reduce cycle time and cost by deploying self-service, shared services and/or outsourcing
Measure
Align
Improving efficiency, effectiveness and productivity by tying business objectives to the workforce
*
Comply
Automate
Measure
Align
*
“Save Cost & Time”
Comply
Automate
Measure
Align
The second component is Automate. This is where you streamline your HR processes through Employee and Manager Self Service to save cost and time.
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Leverage HCM info enterprise-wide
Comply
Automate
Measure
Align
“Measure” needs to be at the heart of the HCM model and your HR organization. The HR function needs to become information-driven, so that decisions can be made based on data and analysis instead of politics and emotion.
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Productive
Comply
Automate
Measure
Align
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HCM Business Process in Action
An HCM Strategy also needs core business processes to provide a foundation for execution. In your HR organization, you are focused on each of these key areas and supporting HCM technology is key for you to be more efficient and effective.
Plan / Attract / Onboard – are the key processes to identify what talent is needed, finding/selecting the talent and bringing them into the organization.
Assess / Design / Develop – focuses on understanding the skill gaps and needs of the workforce, designing the best programs to address the workforce needs and developing the workforce to ensure they are equipped to carry out the objectives to meet business goals.
Optimize / Track / Monitor – are the administrative processes that encompass tracking the workers (I.e., who are they, where are they working, what is their job/position, etc.) and their work and life changes (I.e., job transfers, address changes, marriage, etc.). These routine processes should be monitored to ensure the HCM business processes are running efficiently.
Plan / Incent / Reward – is developing the right compensation plans to incent the workforce and distributing the rewards.
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Source: Gartner Dataquest, 2005
Combined HCM/LMS Market Forecast
05-09 CAGR: 7.5% 16.7%
Chart3
NAS
EMEA
Japan
APAC
LAD
2007 Forecast Revenue by Region - HCM
906
695
57
90
42
Sheet1
New License Revenue by Software Subsector, 2002-2009 (Millions of Dollars)
2002
2003
2004
2005
2006
2007
2008
2009
Table 1-2
E-Learning Suite and Management System Software New License Revenue, Regional Forecast, 2002-2008 (Millions of Dollars)
Region
2002
2003
2004
2005
2006
2007
2008
2009*
Source: Gartner Dataquest (September 2004)
* 2009 added by Ron, extrapolation of each region at 2003-2008 CAGR
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
Sheet3
Chart4
NAS
EMEA
Japan
APAC
LAD
360
120.4
17.2
22.1
10.5
Sheet1
2002
2003
2004
2005
2006
2007
2008
2009
Table 1-2
Region
2002
2003
2004
2005
2006
2007
2008
2009*
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
Sheet3
0
0
0
0
0
Chart2
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
HCM
LMS
1533.337119878
379.1
1664.4067768852
448.2
1789.2372851516
531.2
1905.5377086864
619.4
2031.3093928345
721.6
Sheet1
2002
2003
2004
2005
2006
2007
2008
2009
Table 1-2
Region
2002
2003
2004
2005
2006
2007
2008
2009*
2002
2003
2004
2005
2006
2007
2008
2009
Source: AMR Research, 2005
2002
2003
2004
2005
2006
2007
2008
2009
Table 1-2
Region
2002
2003
2004
2005
2006
2007
2008
2009*
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
906
695
57
90
42
Sheet3
NAS
EMEA
Japan
APAC
LAD
360
120.4
17.2
22.1
10.5
HCM
LMS
Flat
35
High (23%)
Lower (5%)
Moderate (15%)
Average (10%)
2002
2003
2004
2005
2006
2007
2008
2009
Table 1-2
Region
2002
2003
2004
2005
2006
2007
2008
2009*
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
2002
2003
2004
2005
2006
2007
2008
2009
906
695
57
90
42
Sheet3
NAS
EMEA
Japan
APAC
LAD
360
120.4
17.2
22.1
10.5
HCM
LMS
Flat
35
High (23%)
Lower (5%)
Moderate (15%)
Avg (10%)
Focus Shifts from Efficiency to Performance
“Strategic human capital management (HCM) applications have moved to the forefront of application priorities, replacing the prior focus on core transactional systems and employee self-service. The recognition of the need to align business and individual performance goals, along with better tools to accomplish this, is driving HCM investments in many companies.”
Paul Hamerman - Forrester
Jan. 6, 2006
Link to Report
Chosen by 9 of the top 10 Fortune 50
Chosen by 65 of the top Fortune 100
40+ Years of Human Capital Management Experience
Mature functionality
Deployed by:
Unmatched Viability
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8500+ Customers Worldwide
70M+ People Managed
Cross-sell Approach:
Core HR, Time & Labor, Payroll and Self-Service HR to Oracle Financials, CRM installed base
Recruiting Solutions and Learning Management to any
Up-sell Approach:
Tougher sell = Compensation solutions to Core HR installed base
Titles:
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Lawson: Vertically focused in healthcare, retail and some public sector
Tier 2 core HR vendors
Ultimate Software: Robust functionality, lower price point
Best Abra: Strong in the small mid-market
Microsoft: Fragmented product set, new version pushed off
Employease: Hosted only model
Niche providers – compete in specific functional areas
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SAP: Oracle HCM has competitive functionality and global capabilities; SAP delivers more country localizations; Oracle HCM is more extensible and upgradeable application; Oracle HCM has deeper functionality with recruiting, performance and learning
Versus Tier 2:
For mid-market, Oracle HCM has deeper functionality (i.e., talent management, self service) and more configuration options for growing firms
Versus Outsourcers:
Play on functionality limitations, loss of control of data and processes, and ‘nickle & dime’ pricing
Versus Niche Providers – play the integration & viability cards
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Diversified Financials
Specialty Retailers
General Merchandisers
Food Services
Aerospace & Defense
GM – uses both Oracle and PSFT HCM
JDE HCM Customers: Manpower, Viacom, Merck are a few examples.
197.psd
HCM Calendar – 60+ NA Events in FY’06 Q3/Q4!
Fusion HCM Presentation
Join this community to stay updated on Oracle HCM!
HCM References
Recorded Reference Calls
Oracle HRMS
PeopleSoft HCM
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Key Take-Aways
Human Capital Management is PRIORITY to the CEOs you sell to
Oracle HCM Applications are #1 in the HCM Marketplace
You have a strong opportunity to sell the strategic applications to existing customers: recruiting, performance management and learning
There are Marketing resources for YOU:
Global HCM Professional Community – see the latest HCM assets, sales presentations, marketing calendar, etc.
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Next 2 Wednesdays at 10:00 a.m. Pacific
22 Feb: How does Talent Management fit into the HCM Picture?
1 Mar: Fusion HCM: What you should tell your customers
Link to Register and Listen to Replays: http://ouweb.us.oracle.com/custom/global/scm_spotlight.html#1
PeopleSoft HCM 8.9 – A Smart Upgrade – RECORDING
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Top Questions
Q: Do we compete effectively with our HCM applications in the Small-Medium Business market?
A: Yes – It’s important to understand that our HCM applications are used by customers of all sizes and industries. Example: FILA (500 ees) – Oracle HRMS
Q: Why would a customer take PeopleSoft HCM 8.9 / 9.0 now instead of waiting for Fusion?
A: Early Fusion Apps to be released in 2008 – most customers will want to stay current with maintenance and take advantage of fundamental business processes. Few customers will be early adopters.
NAS
51%
EMEA
39%
Japan
3%
APAC
5%
LAD
2%
NASEMEAJapanAPACLAD
NAS
68%
EMEA
23%
APAC
4%
LAD
2%
Japan
3%
NASEMEAJapanAPACLAD
Incentive MgmtComp planning, incentivesFastest (26%)
Talent Acq/recruitingRecruiting, workforce acquisition, contingent laborLower (5%)
Workforce DevE-learning, succession planning, career planningModerate (15%)
Workforce MgmtScheduling & optimization, T&A, Leave adminAverage (10%)
Prof Svcs Automation (PSA)Forecasting, project management, billingHigh (24%)
HCM Revenue Segments - 2004
HCMLMS
Asset Intensive
Financial Services
Mfg & Distribution
NAS
68%
EMEA
23%
APAC
4%
LAD
2%
Japan
3%
NASEMEAJapanAPACLAD
NAS
51%
EMEA
39%
Japan
3%
APAC
5%
LAD
2%
NASEMEAJapanAPACLAD

25395 hcm spotlight

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