Market Landscape for Work Management Software

Transcription

1 Market Landscape for Work Management Software Software is going to the cloud which has given rise to the emergence of SaaS replacing licensed software. And with SaaS democratizing software for the masses, new software applications are increasingly worker-centric as opposed to departmental or functional administration oriented. Work management software," a term popularized by Bill Kutik in 2011, combines social performance management with collaboration tools into existing finance, revenue, services delivery, HR, and industry solutions. Work management software commonly blends the line and integrates across functions including HR, Sales, and Finance. Common application focuses are: Revenue Management: Management across partner/marketing/sales/crm stage to sales performance management to client work management. Talent Management: From recruiting to employee management including the full employee work cycle from hire to retire/fire as well as career development and management. Workforce Management: Empowers the worker to perform better. While every company today requires technology to effectively manage, grow, and outperform the completion; growth and adoption of SaaS Work Management software is being driven by consumer oriented employees. The Future of Work: Adapt to Today s Workforce Work and the workforce are different today. Today s workforce is comprised of free agents, supertemps, Millenials, and the virtual workforce. For these groups work management is about leveraging the latest technology that fits into normal routines and behaviors to better perform. To employers work management is about management engagement. The days of paying for wasted hours is dwindling as the ability to measure, monitor, and recognize individual and team contributions near real-time is prevalent. The future of the work management software is being widely influenced by consumerism, globalism, and community centrism. The rise of consumerism and its impact on work management is everywhere from social to mobile to self-service. Technology today enables customers and employees to be much more engaged with their products and companies. We live in exciting times because the consumerization of technology has completely shifted the way to build a brand, acquire customers and grow a company. Every day companies around the world reinvent themselves to adapt to today s work. Regardless of industry, customers and employees are online.

2 Contact us for the complete report for any of these areas: I. Technology Applications a. Human Capital Management (HCM): Talent Management HRMS / HRIS b. Talent Acquisition Recruiting & Staffing Technology c. Workforce Management: HR Social Corporate Performance Management d. Career Management e. FAO (Finance and administration back-office) f. Industry Solutions for Healthcare, Professionals, Hospitality II. Outsourcing a. RPO b. FAO c. MSP / ITO d. Healthcare Finance Services / Healthcare IT e. HRO, PEO, ASO III. Global Landscape a. Payroll + HRMS / HRIS b. Talent Acquisition c. Workforce Management IV. Work Management Buyer's Guide V. Industry Resources for Work Management SaaS Market Adoption While SaaS is increasingly replacing licensed software, SaaS is also being adopted by small and medium organizations bringing enterprise capabilities to a much larger audience. In fact, the global market potential 1 for SaaS extends to every function and facet of business. SaaS is not always the best solution fit, but its high user adoption is far-reaching across organizational size, industry, and location. While the market for large companies 2 is saturated with executives debating the merits of adopting/upgrading to SaaS, the biggest market opportunity in the USA for SaaS is small business with more than a million registered businesses and the mid-market with 100,000 companies. It is understandable that the majority of businesses will opt for a SaaS model that they can pay on-demand for what they actually use. Top SaaS adoption drivers cited by buyers in 2012 include: Outgrowing our current system + The need to move to a SaaS model Need better reporting and data capture + Centralize data The limit to SaaS growth is based on business growth as deciding to implement new software still requires meaningful ROI because if the software solution does not directly tie to dramatic improvement in employee engagement, customer satisfaction, profitability or a major growth driver then it is not going to be a priority. SaaS adoption is increasing as the current growth rates of market leaders is outpacing licensed software, and the recent investment funding and M&A deal activity highlights more growth to come in the future. 1 $21B global market in 2012 (Gartner). 83% of all companies expect to adopt SaaS (IDC). HR systems growing at CAGR 8% to 22% depending upon module (Forrester). 2 In the United States, half of all employees work for large companies or government. There are only 25,000 large organizations with more than 10,000 employees headquartered in the United States.

3 Payroll Landscape Payroll Market Landscape Summary There are approximately 100 niche players with significant, meaningful revenues ($2M+ in annual recurring non pass-through / non-reseller revenues) plus four (4) major big players in payroll. While the payroll market for small businesses with less than 50 employees is highly competitive ( red ocean ) between the following vendor types: Internal Do it Yourself Software Big Four Payroll Providers Professional Employer Organizations (PEO s) Accountants, Bookkeepers and FAO 3 Outsourcers Banks (Wels Fargo) & Insurance (Fidelity) HR Outsourcers (HROs and ASOs) 500 service bureaus (mostly single location specific) The middle market is wide open as no nationwide dominant player exists. Regional payroll services and regional industry specific payroll and beyond service providers do exist in niches. Payroll Mid-Market Landscape 4 : Regional Payroll + Benefits Regional Payroll + HR Providers National Providers: Payroll Software l Sources: American Payroll Association, IPPA, Ephor Payroll Software Providers 5.database, LinkedIn. Payroll service bureaus are adding additional products/services. These Beyond payroll services include HR and other BPO services such as: a) HRMS features and functionality. B) FAO and other BPO services. C) Workforce management features such as Time and Attendance, Expense Management, work management, and social features. 3 Both FAO & F&A is abbreviated for Finance and Administration outsourcing solution providers. Scope of services vary widely among these providers. 4 Payroll Landscape does not include PEOs such as: TriNet, Insperity, EmpowerHR, AMCheck 5 For Payroll: Evolution, Millenium, ExecuPay For PEOs: Thinkware Inc Darwin, ISystems Evolution, Davison HR Pyramid, ExecuPay. For Time: NetTime Legiant, Cybershift, InfoTronics, WorkforceSoftware, AttendanceonDemand, NovaTime

4 Mid-Market FAO Outsourcing Service Providers & Software Implementation VARs FAO USA Market Landscape Non-Healthcare regional providers: The Future of 21 st Century Online Accounting. Payroll, HRO, Accounting, FAO, Global. The Leader in Back Office Services. AR, AP, GL, Payroll, HRO Cloud Finance and Accounting Solutions FAO, Global Information is Power. Payroll + GL Your Total Financial Solution. AP, AR, Payroll, GL, VBO, Project THE PREMIER U.S. BASED FINANCE AND ACCOUNTING OUTSOURCING FIRM FAO, Technology, Compliance Accounting Outsourcing Solutions. Certified Public Accountants & Advisors Payroll, Consulting, AP, AR, FL, FAO Outsourced F&A Accounting advisory plus outsourced bookkeeping *There are numerous other regional providers and point specific solutions. us at ephor[at]ephorgroup.com for a complete list. SaaS FAO Software Options: SaaS ERP Platform for Cloud Financials Intacct NetSuite Epicor Workday Company Description Intacct is the award winning cloud fin NetSuite is the industry's first and on ERP software provides a single Enterprise SaaS ERP SWOT Strengths: Customer Focus SMEs + Financial Services, Construction, Manufacturing, Retail SMEs Mid-market Organizations with 10k+ employees only as of 2012 Strengths: Customer Base # of clients Key Features/Values 8,000 10,000 20, PHP/Oracle technology Small business solution CPA and OEM channels Java/Oracle technology Small business solution VAR channel in flux Multiple products by industry and function, C#, VB.NET. Real-time flow and single UI between CRM Complete Suite of Business Management Services. Java/Oracle technology Strong financials, weak distribution, Newest SaaS public company and ERP and back Enterprise Solution Overview no CRM Good professional services edition New CEO for new life Moderately priced Good market share High growth; no profits High price; add-on charges Unclear channel New kid on the block Very few clients Deep venture funding Priced at the high end URL

5 HRMS Landscape for the Mid-Market HRMS 6 Landscape Mid-Market 7 Landscape 8 Exhibit 9 : *There are numerous other regional providers and point specific solutions. us at ephor[at]ephorgroup.com for a complete list. Does not include HRO 10 providers: 6 Driving HR SaaS Work Management is the demand for bundled (multi-process, multi-function) outsourced solutions such as Workforce Management (WFM) and Human Capital Management (HCM). These outsourcing solutions represent a large market due to limited overall penetration in the small & medium sized businesses (~50% of all business). In secondary and tertiary markets, enterprise providers with their bundled outsource service offerings are not present. With this unsatisfied demand, there is an opportunity for accelerated organic revenue growth (18%-22% per year). 7 The Business Case for SaaS HRMS Automation of manual processes and administration. Bring the efficiency of transactional processing from an average of $15 per transaction to a few dollars. Leap into 3rd generation HR compliance, governance and risk management practices. Tools that drive engagement, productivity, and performance against corporate goals. Social, mobile, and global features that work for today s workforce including embedded language, user preferences, regulatory compliance and more. Primary Benefits Replaces people dependent and paper-driven forms with HR technology and HR services model (shared services, single or multi-process HRO). Creates a unified platform; while replacing a fixed-cost model with a flexible cost model. Reduction in human error, manual errors. Improvement in labor costs and return on labor. 8 The market potential for SaaS HR solutions including human capital management and talent management is estimated to be $10B and growing at 18% CAGR 8 worldwide 8. The demand for SaaS HR solutions, may actually be greater as the use of mobile devices and tablets is accelerating the market appetite for adoption of SaaS applications and SaaS HR solutions are also being integrated with ERP and other work management applications. 9 HRMS Landscape Top Ten is focused on SaaS. Does not include upmarket products such as Oracle, SAP, Workday, or Lawson/Infor. HRMS does not include ERP vendors. HRMS vendors not including payroll directly with excluded. 10 HRO: UnicornHRO, ACS, Northgate, ExcellerateHRO. HRO SMB = CorbanOneSource, ZeroChaos, Infosynch, Tag, AccessPointHR, Sheakley, Qqest, IES, UnicornHRO, CPEhr, Northgate.

6 HR Social Corporate Performance Management Landscape Connected to HR Enabling technology requires an engaged and empowered team. CPM is the intersection of EPM 11 (employee performance management), BI (business intelligence), and Management Science (Management Best Practices). The 2012 consolidation in the HR talent management space has disrupted the market and created many opportunities. HR vendors now must choose to be an application that interfaces with ERP or payroll HRMS systems or other app delivery platform or be swept under the wave moving towards the Corporate Performance Management Landscape: Social software for teams. SalesForce.com company. Creator of Social Goals. The Social Performance Platform that works the way we do! Employee Engagement w/ KPI Dashboard Management. Cloud HR Company. Fully integrated talent management system based on Force.com. Teamwork Reimagined. Productivity Tools to focus on what matters, collaborate with your colleagues and be recognized for your achievements. A better way to get work done. Software for the People. Real Time 360 Feedback and Recognition Performance Reviews. Recognition Done Right! SaaS Employee Recognition Leader. The new face of workforce analytics. Source for CPM is the Ephor database. 12 Integrated Talent Management SaaS Platform. Inspiring Talent Management Business drivers of CPM include: Seamlessly integrate employee management with operations management. Employee Performance Management tools that drive engagement, productivity, and performance against corporate goals. Social, mobile, and global features that work for today s workforce including embedded language, user preferences, regulatory compliance and more. 11 EPM (Employee Performance Management), which is greater than a $1B worldwide market 11, as an example to show that the HR technology market continues to grow, consolidate and evolve, consider that EPM started as a stand-alone application and is now readily available as part of an ERP, part of an HRMS, or as a single application. In 2005, Gartner recognized 27 Performance Management Vendors. In 2009, by Ephor s count, there were 60 vendors with specialized industry solutions with active clients, but in 2011 there were only 17 remaining that had a significant number of clients. 12 PeopleMatter for the service industry.

7 Recruitment Technology Landscape for Talent Acquisition Recruiting Technology Landscape including erecruitment Software: One world. One future. One Solution. EMPact Hire Expectations. Talent Drives Performance. Hiring Made Easy Recruiting Software Social Applicant Tracking System Platform. Talent Generation Solutions Powered by the People! Recruiting Solutions Global Leader in Talent Management Solutions. Applicant Tracking in the Cloud. Automate Your Hiring Process Your source for applicant tracking, recruiting, and staffing solutions. Social Recruiting Automation Where Finance Gets Hired. Financial + Banking. Healthcare Recruiting Software. RecruitBetter Inspiring Talent Management (formerly MrTed + Stepstone) Beeline from Adecco Staffing Software + Payroll Staffing and Recruiting Software. On Target. On Demand. Sources: ERE.net, Workforece.com, The ATS Guide, Ephor database. *There are numerous other regional providers and point specific solutions. us at ephor[at]ephorgroup.com for a complete list.

8 Career Management Technology Landscape Social 13 Recruiting, Networking & Career Management Technology Landscape: World s Largest Professional Network. 161m professionals. 2m companies. Career Networking on Facebook. The #1 professional network on FaceBook. 25m professionals 3 million jobs 20,000 internships Professional networking made easy. 135m members 200 countries World s Largest Goal Setting Community. 3m people. Job Matching Career Networking on Facebook. Career Management Software Business social network career community for top young professionals. 900k professionals. World s best online marketplace for freelance talent. 350k professionals 13 Top Social Media Sites =

9 Global Landscape for Technology Tools, & Outsourcing Solution Providers Communities continue to be built around digital highways. Did you know? Nordic countries and Singapore top the global networked readiness list for infrastructure 14 (Europe has 11 countries in the top 20). There is 130% 15 mobile adoption in South East Asia compared to 80% in the United States. The Networked Readiness Index measures the degree of information and communication technologies (ICT) for competitiveness. While the USA and much of Europe faces a decade forecast for slow growth, much of Asia and select regions in the Americas and Middle East are looking to match growth with demand. Regardless of the economic state, there is a gap of technically skilled and mid level workers across the globe which highlights the opportunity for both technology and HR to develop and empower employees. Research shows that a 10 percent increase in mobile phone penetration is associated with a 1 percent growth in GDP. Opportunity to Leap the Chasm. Regional work attributes such as technology adoption, infrastructure readiness, regulatory requirements, and business customs will largely impact investments and growth. Leaping the chasm for technology and HR processes suggests that more ready communities with high degrees of technology infrastructure will be early adopters of Business-Centric HR Solutions and accelerate HR transformation to transition to workforce management & talent HCM (human capital management). Historically, there was reluctance to slaughter the sacred cow, but survival will force the shift either you are integral part of the fabric or you are outsourced. Rolf Kleiner, Chief Innovation Officer Kelly Services. 14 The Global Information Technology Report from INSEAD. 15 The Global Information Technology Report from INSEAD.

10 Aligning HR Technology with the Business Strategy is Critical to Performance The majority of implementations deployed have failed to realize their ROI business case potential because of costs and fit, but also because of poor strategy. Selecting the best fit HR technology that matches an organizations culture, requirements, and strategy is paramount to realizing the ROI benefits. Technology evaluation and implementation that starts with the business requirements and outcomes needed have higher return on investment. Licensed software HR technology focused on transactional initiatives: compliance and risk management, and administrative automation which limits the ROI value-proposition to one of labor arbitrage. SaaS HR and work management software is being driven by and for endusers Talent Management is a business process not a technology. Talent management is not human resources, it is a business process. If you separate HR and the business, into silos or data warehouses it s HARD to bring them back together. Jason Averbrook debating with Gartner s Jim Holincheck SaaS Usability Driving Adoption The consumer of HR technology is no longer the human resources department. The consumer is the workforce. With advances in portal capabilities, self-service features, single sign-on to connect many disparate software and applications plus embedded intelligence, the fact is that the average enterprise will plug in multiple systems plus future software and tools plus the latest Apps as they are available. If you have $1 to invest in HR technology, is it better to invest it in developing and improving capabilities and competencies for the workforce (i.e. the majority of the employees) or invest in streamlining administration. The Impact: Technology designed for the workforce and not for the HR department; that is what defines success today. The deployment and usability of the technology is more important that the features and functionality. Garry E. Meier, HCM and BPO services investor and advisor.

11 Work Management Buyer s Guide Historically, the cost to implement, manage, and utilize licensed software has inhibited the routine use of these systems by the masses. Licensed software rollouts (non-saas systems) additionally require mass coding customization to fit workflow processes. End-user adoption has been limited due to the expense of implementation and customization. Historically to date, HR technology capabilities have outpaced the adoption and use. In fact, the majority of implementations deployed have failed to fully utilize the entire suite of features due to the complexity of both deployment and the use of these systems. Today s SaaS market leaders are known for: The Best Service Deployment. Adoption can be employee driven when on-demand features and apps are prevalent. On-demand means SaaS Self-Service is provided for free or at a low-priced monthly fee with additional features, modules, and apps able to be purchased/used as needed. Criteria Feature/Fact 1. Vendor Credibility # of Customers Added Per Year with SaaS Notable Clients Notable Partners Financial Stability 2. Client Fit Verticals Local Offices 3. Technology Solution Fit SaaS multitenant scalable platform with Workflow, Real-time Reporting, CRM. Configurability Scalability Ease of Interoperability (Integration) What vendors are integrated? Performance Management (see PM Feature Comparison) Business Management Reporting Global Capabilities Talent Management ERP (Enterprise Resource Planning) 4. Sizzle Features - What are the sizzle features? Compensation Planning, Baseball Card WOW Sizzle Feature #1 Contact a professional to put together a specific ROI assessment for your organization. WOW Sizzle Feature #2 5. Cost and Implementation Time/Resource Estimates - What is the ROI? What are the Pricing Model Results? How many projects do they start but not complete? Do they publish Methodology S (S- What is the philosophy of )? the company? Does the process align Analytics and Reporting - What daily,? weekly and monthly reports and metrics Cost-Benefit Analysis? C? Setup Time Implementation Time to Implement Core Training Time and Costs Monthly Average Cost Total Cost Average Per Client for 3 Years ROI Expectations SaaS Performance Management Provider A Provider B Provider C Application Providers HR Consulting Services Y - Enteprise Y - E & SMB Nothing beyond implementation support. Performance Management Y - Enteprise Y - E & SMB Y - Enteprise Goals Management Y - Enteprise Y - E & SMB Y - Enteprise Collaboration Y - Enteprise Y - E & SMB Y - Enteprise Automated Workflow Y - Enteprise Y - E & SMB Y - Enteprise Employee Self Service Y - Enteprise Y - E & SMB Y - Enteprise Manager Self Service Y - Enteprise Y - E & SMB Y - Enteprise Best Practices Templates, Competencies Y - Enteprise Y - E & SMB N Templates for Metrics/Dashboard Y - Enteprise Y - E & SMB Y - Enteprise Learning Management System Y - Via Partners Y - E & SMB Y - Enteprise Training Content Y - Via Partners Y - E & SMB N Succession Y - Enteprise Y - E & SMB Y - Enteprise Surveys Y - Enteprise Add-On Y - E & SMB Y - Enteprise Communications Y - Enteprise Y - E & SMB Y - Enteprise Org. Chart Y - Enteprise Y - E & SMB Y - Enteprise Career Management N Y - E & SMB Y - Enteprise Talent Management Y - Enteprise N Y - Enteprise