CEDARCRESTONE HR SYSTEMS SURVEY HIGHLIGHTS FOCUSING ON BI/ANALYTICS

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1 CEDARCRESTONE HR SYSTEMS SURVEY HIGHLIGHTS FOCUSING ON BI/ANALYTICS Date: November 20, 2013 Time: 1:00pm 2:00pm EST 10:00am 11:00pm PST Length : 1 hour, including Q&A visier Visier l analytic applications for people Page 1

2 Award-winning Workforce Analytics. Delivered in the cloud, for business users Founded in early 2010, by analytic industry veterans including former Business Objects CEO, John Schwarz About to release 12 th version of Visier Workforce Analytics, and recently launched Visier Workforce Planning Won both HR Executives Top HR Product, and named Awesome New Technology at HR Technology conference Used by amazing brands such as: visier l analytic applications for people Page 2

3 PRESENTER & MODERATOR Lexy Mar;n, Vice President, Research and Analy;cs, CedarCrestone Lexy Mar3n is responsible for its annual HR Systems Survey, now entering its 17th year. When not working on the survey, she works with organiza3ons worldwide providing HR systems strategy guidance. Projects begin with deep dive benchmarking from survey results. visier l analytic applications for people Dave Weisbeck, Chief Strategy Officer, Visier Dave Weisbeck leads the overall solu3ons success and strategy at Visier. Prior to joining Visier, Dave spent over 18 years in the informa3on management and analy3cs industry, which included 3me spent helping to build Crystal Decisions and Business Objects products and product strategy. Most recently Dave was the senior vice president and general manager responsible for Business Intelligence, Enterprise Informa3on Management and Data Warehousing at SAP. Page 3

4 CedarCrestone HR Systems Survey HR Technologies, Deployment Approaches, Value, and Metrics 16 th Annual Edition Lexy Martin Vice President, Research and Analytics CedarCrestone Twitter: #CCHRSurvey CedarCrestone, Inc. 2013

5 What the 16 th Annual CedarCrestone Survey Says About Key Trends and More Software as a Service (aka the Cloud ) Replacements hit tipping point. Analytics Social Adoption continues to increase and result in value. Mobile Integration/Unification The new Holy Grail that few reach without a Unified solution. User Satisfaction Newer products, later releases get higher scores. Improvement still needed! Plus: Vendor Choices, Expected Changes, User Experience Scores Service Delivery, Talent Management, Workforce Management, BI/Analytics HR Technology s Value from Statistical Analysis and from Top Performer Analysis Four Key Lessons and Where to Spend Your HR Technology Money 5

6 CedarCrestone HR Systems Survey Demographics 20M employees represented Average number of employees = 15,876 1,266 respondents 85% US, 6% EMEA, 5% Canada, 4% Australia/Asia and rest of world Size Large 10, % Medium 2,500 10,000 26% Small 200 2,500 48% No response.2% 13.5% 13.3% Consumer/ Other Mfgt. 15.3% Healthcare Financial Services Higher Ed./ Public Admin. 11.5% 6.1% High-tech Mfgt. 21.8% Other Services 3.6% Agriculture/ Mining/Construction 6.5% Retail Wholesale 8.4% Trans., Comm., Public Utilities 6

7 Major 2013 Initiatives Similar to 2012 and One Inflexion Point! Business process improvements and innovations Major Initiatives n=1,215 62% Talent management processes and automation 44% Service delivery improvements 40% HR systems strategy 33% Business intelligence/workforce metrics 33% Expanding HRMS to global operations (globals only) 26% Upgrade vs. Replacements: Inflexion Point Reached HRMS replacement Upgrade of HRMS 15% 14% +1% -3% 7

8 CedarCrestone Integrated and Unified HCM Application Blueprint FIN General Ledger, Purchasing, Budgeting, Travel & Expense Security Social, Collaboration, and Mobile Capabilities Vendor Management Workflow SCM Service Delivery/ Service Center HR Help Desk, Knowledge Mgt., Communications, Onboarding Portal Framework With Identity Management and Single Sign-on Self Service and Workflow Personal, pay and benefits data Promotions, transfers, salary actions Approvals and notifications Administrative Excellence Service Delivery Excellence Workforce Mgt. Excellence Talent Mgt. Excellence Performance/Workforce Optimization Excellence Core HRMS/ERP Foundation (Administrative Apps) Data for Roles and Competencies (Profile Mgt.), Payroll and Benefit Administration Workforce Management Time Record Management, Absence Management, Labor Scheduling, Labor Budgeting Workforce Optimization Workforce Planning, Workforce Analytics, Predictive Analytics Talent Management Recruiting, Performance/Learning/ Compensation/Succession Mgt., Career Planning/Dev. Competency Mgt. Business Intelligence Foundation Reporting/visualization and BI tools CRM SOA Backlog, Pipeline, Customer Satisfaction Electronic Content Management ETL Bus. Process Mgt. Project Costing, Contracts, Grants Projects 8

9 Spending Outlook for HR Technologies Essentially Similar to 2012, but with a Few More Large Organizations Reporting an Expected Decrease Spending Plans for Next Year by Employer Size 49% Large 40% 11% 46% Medium 49% 5% } +4% Increase Stay the same Decrease Small 4% 41% 55% 9

10 SaaS is the Dominant Deployment Approach for Talent Management Talent Management Deployment Approach 38% SaaS subscription-based 46% Licensed software on premise 24% 27% Combinations 16% 14% Licensed software hosted 12% 11% In-house developed/bespoke Outsourced (process and software) 6% 5% 1% 1% Today 12 Months 10

11 Now the HRMS Application is Trending Towards SaaS Don t Forget Though that Licensed On Premise Still Leads Core HRMS Application Deployment Only Licensed software on premise 38% 52% Licensed software hosted SaaS subscription-based Combinations 17% 13% 20% 6% 12% 33% } 107% } 63% In-house developed/bespoke 3% 2% Today Outsourced (process and software) 3% 2% 12 Months 11

12 While 55% of Respondents Report They Will Not Move to a SaaS HRMS, Why Will 45%? n=1,231 1 Reasons for Moving to a New SaaS Core HRMS n=556 Improved user experience for employees, managers, as well as HR 69% 2 Best practice functionality 58% 3 Easier upgrades (New) 55% 4 Eliminates dependence on IT (New) 49% 5 Faster time to implement and achieve value 45% 6 Reduces need for internal infrastructure 44% 7 Reduces total cost of ownership 35% 8 Predictable ongoing costs 29% 9 Ease to "go global" (New) 28% Improving the User Experience Continues as #1 Reason to Move 12

13 Why Not? New Concerns Identified 1 Concerns About Moving to a New SaaS Core HRMS n=577 Concerns about service and support 57% (New) 2 Integration complexities 54% Inability to customize Security/data privacy Loss of control over systems/data Functionality not specific for our industry (New) Concern about vendor lock-in Inability to control timing of release (New) 51% 40% 33% 28% 27% 25% 9 Lack of global functionality (New) 11% 13

14 SaaS Value Propositions: A SaaS HRMS Takes 1/3 rd the Staff Overall to Deploy/Support Core Impact of HRMS Deployment Type on HRIT/IT Headcount Overall n=423 Headcount Licensed software on premise Licensed software hosted SaaS subscriptionbased 14

15 SaaS Takes Less Time to Deploy, Yielding Faster Time to Benefit Length of Time for New HRMS Deployments n=648 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Licensed On Premise = 14.6 months Licensed Hosted = 11.0 months SaaS = 8.4 months Time for New Deployment for an HRMS by Size of Organization in months Large Medium Small Licensed On Premise Licensed Hosted SaaS 15

16 Three Year Adoption Outlook The Same Three Areas Continue to Show Strongest Projected Growth Three-year Application Outlook Administrative 92% 94% Service delivery 44% 72% 64% Workforce management 43% 60% In Use Today Talent management 52% 76% In Use within 3 Years Social media tools 33% 69% 109% BI (reporting and tools) 44% 69% Workforce analytics/planning 14% 46% 229% 16

17 Business Intelligence/Tools/Analytics Adoption Many Parts or Not? Business Intelligence Tools/Reporting HR warehouse 52% 11% 11% 25% Operational/multidimensional reporting 51% 13% 11% 24% HR scorecard 33% 19% 17% 31% Automated distribution of reports (push) 29% 14% 14% 44% Middleware 28% 11% 13% 48% Analytics and Planning Workforce analytics 18% 13% 19% 50% Strategic workforce planning 12% 10% 23% 56% Predictive analytics 11% 10% 21% 58% In Use Budgeted for Next 12 Months Within Next 36 Months No Plans/Not Aware 17

18 Primary Deployment Model Today is Still Excel! Analytics/Planning Deployment Model Today Excel/custom 50% Platform BI solutions 20% Embedded analytics 14% Specialist BI tools 10% Dedicated solution 7% 18

19 BI Sources and Workforce Analytics Usage Business Intelligence Sources 22% 9% 40% HR Management Systems Talent Management 14% 15% Workforce Management Financials How Workforce Analytics are Used Business planning 61% Measuring performance against business goals 48% Workforce forecasting 47% 19

20 BI/Analytics Adoption: Most Organizations Are At Least Able to Pull Data for Reporting of Metrics. Few Have Integrated Data Available to Managers. BI WFA BI Delivery Approach We can pull data for reports 92% We can provide dashboards (metrics) 44% We have the data to compare to external benchmarks 43% Our data and analytics are only available (used by) IT, HRIT, analysts Our data and analytics are available "real time" Our data and analytics capabilities are available for direct access by managers We integrate data from financials, customer-facing data sources, and operational systems to provide correlations We have contextual embedded analytics (in HRMS or TM solution) We use consulting resources/specialists for higher-level analytics We are doing predictive modeling 26% 25% 15% 15% 14% 8% 6% 20

21 Regardless of Deployment Approach, Organizations Plan to Increase Manager Access Managers with BI Direct Access 40% 35% 34% 23% 16% 18% Licensed software on premise Licensed software hosted Today 12 Months SaaS subscriptionbased 21

22 Value of HR Technologies from Statistical Analysis More BI Technologies Linked to Top Talent Retention and to Improved Competitive Advantage Top Performers with more HR technologies, especially Business Intelligence r=.36 Better Retention of Top Talent r=.24 Achieve Competitive Advantage How are Top Performers leveraging technology to retain top talent? Where should you spend money? They use HR business intelligence and get that data into the hands of managers for best practice workforce decision making. 22

23 Lessons Learned from 16 th Annual Survey Lesson #1: Get the basics right and keep it simple Lesson #2: Invest in more HR technologies Lesson #3: Make talent management a priority Lesson #4: Put technology into the hands of your employees and managers especially BI 23

24 Lesson #4: Put Technology into the Hands of Your Employees and Managers Especially BI Average Employee Use of Direct Access Services Managers with Access to BI Tools Top Performers Not Top Performers Top Performers 28% Not Top Performers 18% 64% 55% 24

25 Q&A Visier visier l l analy3c analytic applica3ons applications for people for people Page 25

26 Where to Go for More Information for survey report Sign up for survey updates on our website: 26

27 Where to learn more 2013 Survey Report - The State of Workforce Analytics and Planning Download these reports, on- demand webinars and more: hrp:// Survey of over 400 U.S.-based employers regarding their workforce analytics & planning practices, preferences and future plans. Crea;ng the Business Case for Workforce Analy;cs A framework for quan7fying the value of workforce analy7cs, and techniques to gain buy- in from stakeholders ebook: The Defini;ve Guide to Workforce Analy;cs: A Prac;cal Guide for Today s HR Professional Addi;onal reports and on- demand videos on: Case Studies Use of Predic;ve Analy;cs 5 Myths and Truths of Workforce Analy;cs Going from HR Metrics, to HR Analy;cs And others From building the business case to successful workforce analy7cs implementa7ons in one handy ebook. visier l analytic applications for people Page 27

28 THANK YOU Contact us at or Request more informa3on at hwp:// and see first hand how Visier can help you to make bewer decisions for your workforce. Visier visier l l analy3c analytic applica3ons applications for people for people Page 28

29 Please Download the CedarCrestone Report for more info! Vendor solutions in use and planned for core HRMS and integrated talent management Comparative annual expenditure data for SaaS and licensed HRMS solutions Value-chain factor analysis Shows that social, mobile, and workforce management applications yield not only key HR outcomes but business outcomes. Key service delivery trends System consolidation and shared service center increases leading to transformation Emerging technologies adoption: Gamification and Big Data Check out the latest IHRIM Wire for detail on point solution vendors and detail application adoption. 29

30 A CedarCrestone Service

31 Benchmark Service: Application Dashboards Sample Customer Benchmark Analysis Your Organization Sample dashboard that compares you to others in your industry, of your size, to the top quartile in your industry, or to overall industry top performers. It should be the starting place of any update to your HR systems strategy. Contact for pricing. 31

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