SAAS FOR THE SERVICE INDUSTRY

Transcription

1 SAAS FOR THE SERVICE INDUSTRY

2 SAAS FOR THE SERVICE INDUSTRY SUMMARY Does this sound familiar: You re thrilled to learn that your hiring manager found the perfect candidate for that senior job you ve had open. But somewhere between Des Moines and Omaha, your hiring manager lost her application and you lose her to your competition. If you re a leader in any part of the service industry, you know or will soon learn the downside of a talent management system that lives on your company s home-site computer system, usually as a mishmash of programs for your various HR needs. The various components of your talent management system usually don t communicate with each other, never mind allowing access to your important business applications when you re on the go. In a world that s increasingly fast-paced, in which employers and employees are moving beyond digital to the ever-connected mobile community, it s crucial that business owners and leaders in the restaurant, c-store, hospitality and retail industries have the HR tools they need to manage their people, when they need them. In today s evolving world, service industry managers and leaders need to find and engage the best people, save time and money doing that, and continue to comply with all necessary labor and payroll guidelines. And they need the tools to coordinate all of their organization s hiring, developing and managing efforts quickly, seamlessly and on the go, often while overseeing multiple locations. How is it possible to stay ahead of the competition and keep your data secure, organized and connected, while keeping costs down, remaining flexible and boosting ROI? The answer is a SaaS solution for talent management that is not only built to work from a laptop with an Internet connection but from an ipad or other mobile device as well. This paper from PeopleMatter explains in a nutshell what SaaS is and what it isn t, its primary benefits and features, and how a mobile, SaaS-based system is the perfect solution for the on-thego manager or leader who needs a fast, dependable, secure and fully integrated talent management solution. It s the best route to centralizing the life of HR in a decentralized work environment. SAAS 101: A BRIEF EXPLANATION OF SAAS AND CLOUD COMPUTING Before cloud computing and SaaS, the world of office technology was built exclusively on servers that sat in large closets or in the basement and were large enough to store all of an organization s data and various programs. These servers acted as the nerve center 1 White Paper: SaaS for the Service Industry

3 for the organization s network of desktop computers that employees used to access software programs that the organization had to pay exorbitant licensing fees to use or had to purchase outright and then had to store on the organization s servers. Bottom line: The organization had huge investments in hardware, software, IT staffing and upgrades, and large amounts of time spent on hardware and software implementation, training and maintenance. That was then. That was before cloud computing and SaaS changed the game, making huge servers in the basement obsolete for most companies, eliminating the need to license most software, and making powerful, complex, robust, secure and cost-effective software programs accessible not only to the smallest of business users, but also to the most complex and largest enterprise operations as well. Think of the difference in customer relationship management programs before the advent of SalesForce. Without a doubt, SaaS is becoming increasingly popular as a method of deploying software. Google, Salesforce.com and Amazon are among the forward-thinking companies that have set the stage for SaaS adoption. Popular solutions include payroll processing, Web-based , spam and malware filtering, customer relationship management programs, financial services and online order processing. If you have ever accessed your from a Web account, used itunes or taken advantage of GoogleMaps, you ve used a free SaaS program. If you have used Intuit s QuickBooks or are familiar with SAP Business ByDesign, you re familiar with two of the most popular fee-based SaaS programs. 1 Cloud computing is a simple concept and makes SaaS possible. It s Internet-based computing that makes software programs, business applications and data accessible from a user s computer or other device through a Web browser, on demand. All of the software programs and data are stored on servers in the cloud, a term that derives from the cloud drawing traditionally used to depict the Internet in computer network diagrams. The end user needs no knowledge of, expertise in or control over the technology that is in the cloud. POINTS TO CONSIDER According to the Gartner Group, SaaS for enterprise application markets will grow at a 17.7 percent annual compound rate through 2013, a growth rate nearly five times that of the total market. 2 Software as a Service (SaaS) is probably the most widely recognized form of cloud computing. In essence, SaaS is like a subscription-based or pay-as-you- go service. It gives a user access to a Web-based business application without buying or licensing any software and without needing to buy any hardware other than a computer or other Web-enabled device (like a smart phone). KEY FEATURES OF SAAS The most compelling features of SaaS solutions stem directly from their being Web-based and not being downloaded to the user s computer or mobile device. 1 SaaS Directory, 2 Gartner Group, Market Trends: Software as a Service, Worldwide, , Update, Nov. 2009, 2 White Paper: SaaS for the Service Industry

4 1. External hosting and data storage. This frees up huge amounts of space on the user s computer compared with traditional HR solutions. It also eliminates the need for IT training or additional hardware and, as mentioned above, is what makes the program and data available from any computer or other device that is Web-enabled. 2. External software ownership, development, maintenance, updating and monitoring. The SaaS vendor performs all software enhancements and makes all updates automatically. The vendor performs all maintenance, with little or no down time for the user. In addition, all improvements are automatically available to the end user without the need for manual upgrades. 3. Pay-as-you-go in one form or another. SaaS solutions are generally subscription-based. They don t require licensing fees, software purchases or hosting fees. You basically pay for what you need. 4. Mobile applications on a variety of operating systems. Because of their Web-based access and vendor-hosted technology, SaaS solutions are much more practical than traditional enterprise solutions for the new mobile working environment. Many of the most powerful SaaS solutions have applications designed specifically to allow users to use most, if not all, of the program s features from a smart phone or other Web-enabled device. 5. Constant monitoring and testing for system reliability and security. A SaaS program from a reputable and qualified vendor is constantly being monitored and tested, with all necessary redundancies in place to ensure data safety. CLOUD COMPUTING THAT ISN T SAAS To fully appreciate the advantages of SaaS technology, it s important to understand the basics of at least two other types of cloud computing and how they differ from a true SaaS solution in terms of benefits and potential cost. ASP and Thin Client Software. An ASP (Application Service Provider) is a third-party entity that manages and distributes software-based services and solutions to customers across a wide-area network from a central data center. Because an ASP offers application services from a central data center, its applications require users to install programs called thin client software (for example, Microsoft Windows 2000 Terminal Services and Citrix MetaFrame). These programs are necessary to do part of the computing that the ASP solution provides. So, an ASP is, again, very much like the traditional system of computing, even though the applications are accessed via the Web. 3 White Paper: SaaS for the Service Industry

5 The greatest difference between SaaS and its related technologies of ASP and thin client software is that SaaS solutions are completely Web-based, with all necessary software hosted by the vendor. Another major difference is that SaaS providers design their programs for all of their clients yielding economies of scale that benefit the end user by keeping costs down. WHY SAAS FOR SERVICE INDUSTRY RECRUITING, HIRING AND ONBOARDING? What we are hearing from our clients throughout the service sector is that recruiters, hiring managers and others involved in talent management are looking for a simple solution with solid functionalities that are easy to acquire, easy to implement and easy to use, said Nate DaPore, president and CEO of PeopleMatter. In brief, the four primary reasons that SaaS makes sense for talent management in the service industry are: 1. Lower costs upfront and in the long term 2. Continuous access to the newest technology, including apps 3. Scalability, flexibility and support to meet changing needs 4. Uniquely applicable for mobile devices POINTS TO CONSIDER What we are hearing from our clients throughout the service sector is that recruiters, hiring managers and others involved in talent management are looking for a simple solution with solid functionalities that are easy to acquire, easy to implement and easy to use. Nate DaPore, president and CEO of PeopleMatter LOWER COSTS UPFRONT AND IN THE LONG TERM For business leadership in the restaurant, c-store, hotel, hospitality and retail industries, SaaS offers powerful, fully featured talent management software for recruiting, hiring and onboarding with lower costs and a higher return on investment compared with other options, such as ASPs and thin client software. With SaaS, short-term savings come with pay-as-you-go pricing, no licensing fees and no need for new hardware. The result is reduced upfront costs for software and supporting hardware. In addition, with a quality SaaS vendor, the user receives supporting professional services to deploy and manage the program. Over the long term, a SaaS user reduces costs because their organization requires no further IT investment, no software maintenance or update fees, and no need for an on-site server. Economies of scale also help keep costs lower for the end user compared with traditional solution systems. A SaaS provider applies the experiences of all of its users to develop the most optimal updates to the program for the entire community of users. The cost for continuous program optimization is spread among all of the users and doesn t fall only on a single client with a unique, stand-alone system. Support is also easier and faster with SaaS for the same reasons. The SaaS provider can, for example: 4 White Paper: SaaS for the Service Industry

6 Make one update across the entire program for all customers, rather than having to perform a separate update for each customer. Perform more frequent upgrades that benefit all of their customers because upgrades are made program-wide, not client-by-client. CONTINUOUS ACCESS TO THE NEWEST TECHNOLOGY, INCLUDING APPS A SaaS provider rolls out program enhancements and updates across its entire platform, so all of its clients benefit from having constant access to the newest technology and innovations. The result is that with SaaS, smaller organizations and organizations that don t want to mess with IT and hardware hassles have access to high-end solutions that they might not otherwise be able to afford. Innovations are continuously being provided to SaaS users with no system downtime, no need for any installation and minimal, if any, training. That includes Application Programming Interfaces (APIs or apps ) that are continuously coming to market. Just as there are apps for smart phones, a growing market exists for apps for the staffing and recruiting aspect of talent management demands for the service industry. The typical SaaS provider offers applications specifically designed to be hosted and delivered over the Internet to many customers [and] as a result, the providers can create and offer value-added features, which would be expensive in the ASP model, according to the Web site SearchCIO.com, a resource of technology management strategies for the enterprise CIO. [With SaaS] each customer gets its own instance of the application, but the provider still achieves economies of scale because of the simpler application scenario. SCALABILITY, FLEXIBILITY AND SUPPORT TO MEET CHANGING NEEDS All of the issues described so far point to why SaaS can provide a faster response to a client s growth. With this growth comes expanding needs. The right SaaS vendor provides users the option to immediately with the flip of a virtual switch tap into more power and more features and functionality. Also, because the SaaS vendor is able to make all of its features available across its entire platform and is Web-based, leading SaaS vendors take advantage of the nature of the technology to encourage user input and communication. This, in turn, furthers and speeds up development of enhancements, fixes and new features to meet the changing needs among the users and in their working culture. The best SaaS providers today recognize and have responded to 5 White Paper: SaaS for the Service Industry

7 how their technology has caused a shift in customer expectations. Top SaaS providers typically provide some level of support with subscriptions purchased. UNIQUELY APPLICABLE FOR MOBILE DEVICES A recent study commissioned by Sybase, the mobile software developer, found that smart phone users want better access to data when on the move. Of the 2,443 U.S.-based respondents, 70 percent said they were able to access less than 10 percent of their work data. More than 72 percent said they have less than 10 percent of their company s applications (spreadsheet apps, CRM and ) on their mobile phone. 3 This desire to have mobile access to key business applications is heightened by the nature of talent management in the service industry a world of increasingly mobile and decentralized workforces. Because of its Web-based access and vendor-hosted technology, SaaS is much more practical than ASP or legacy solutions for this new environment. ASP and legacy solutions are more centralized, more static and simply don t work in today s changing business environment, and especially in the highly decentralized world of convenience stores, retail and hospitality. The mobile environment demands greater access to applications via the Web and to well-featured SaaS applications, ensuring that leaders and managers work as efficiently and effectively as possible. A SaaS solution for talent management that also has a mobile device application actually replicates much of the same functionality as the program that s run on the user s personal computer or laptop, including instant access to applicant tracking system data, constant connectivity with candidates and recruiters, connectivity with the payroll and other HR functions, analytics and reporting. SaaS also allows smaller service-industry businesses to costeffectively make their software applications more accessible to more staff members at more sites, as well as possibly provide applications to their own customers and business partners. SECURITY OF SAAS Security concerns are often cited as among the greatest hurdles to implementing SaaS. ITWorld.com, a resource and reference Web site for the IT community, identifies four basic areas of concern: 1. Data center security 2. Application security 3. User security 4. Certifications 4 3 Sybase, Sybase Study Reveals That U.S. Consumers #1 Reason for Using Apple ipad, Other Tablet Devices is for Working on the Go, March 23, 2010, 4 Martha Young, Security Concerns in the SaaS Environment, January 2009, ITWorld.com, com/saas/60464/security- concerns-saas-environment. 6 White Paper: SaaS for the Service Industry

8 The best SaaS providers in the market discuss each of these areas with their customers, demonstrating how their SaaS solution is as secure, and frequently more secure, than what an internal IT department can provide, ITWorld s Martha Young writes. A bold statement, I know, but SaaS implementations are more secure than on-premise solutions. The SaaS data center is secure because it s accessible from only two points: the front end, where the client accesses their data, and the back end, used by the SaaS provider for maintenance and management. By contrast, an on-premise server or data center can be accessed by anyone with the ability to tap into the system, from any computer on the system. According to several IT bloggers, rogue employees and lost laptops are the primary sources of data loss and theft. Working in the cloud removes the laptop issue and even the smart phone issue, Young says. SaaS applications are secure because well-designed SaaS technology goes beyond the standard password-access methods. They include encryption of the password, logging the number of attempts to log on, and even encryption of fields, text and attachments. POINTS TO CONSIDER The best SaaS providers in the market discuss each of these areas with their customers, demonstrating how their SaaS solution is as secure, and frequently more secure, than what an internal IT department can provide. Martha Young, ITWorld User security is stronger with SaaS compared with traditional systems because identity management is maintained in the user s directory access protocols. Permissions and denials are controlled by the user s administrator, and the directories can be inside the organization s firewall, at the SaaS provider s site, or in a third location. Finally, constant monitoring and testing of the system by the SaaS provider ensures that it s running without errors and that security is not breached. Certifications authenticate that a SaaS provider meets certain industry standards for auditing and monitoring its system. One of the most recognized SaaS certifications is SAS 70 Type II. It s an auditing standard developed by the American Institute of Certified Public Accountants, for organizations to demonstrate that they have adequate controls and safeguards when they host or process data belonging to their customers. 5 In addition, the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 make SAS 70 audit reports even more important to the process of reporting on the effectiveness of internal control over financial reporting, the Web site SAS70.com says. 5 SAS70.com, 7 White Paper: SaaS for the Service Industry

9 ITWorld s Young states the importance of SAS 70 certification this way: This certification is highly comprehensive, includes regular audits to retain certification and covers just about everything you can think of regarding operating a business in the cloud. The SAS 70 Type II certification ensures comprehensive change management documentation (including at the application level), backup and recovery requirements, disaster recovery requirements, physical level security requirements of the data center including access and mirrored data centers. A SaaS provider that has taken the time to obtain SAS 70 Type II certification is serious about its business. However, despite the ground that certifications cover, they don t necessarily guarantee that a SaaS solution is optimally managed. For example, SAS 70 certification tests the policies and procedures that a SaaS provider has put into place. But since no industry standards exist as of yet for policies and procedures specifically for SaaS talent management solutions, even if the provider is SAS 70-certified, the vendor is only as good as its policies. POINTS TO CONSIDER 50 percent of HR executives plan on having a SaaS-based core HR administration application in place by the end of FUTURE TRENDS FOR SAAS IN THE SERVICE INDUSTRY According to research by Plateau Systems and Saugatuck Technology, nearly 40 percent of HR executives surveyed plan to implement SaaS for one or more core HR systems before the end of 2011, and nearly 50 percent plan on having SaaS-based, core HR administration applications in place by the end of Simply considering the demand for mobile applications in general makes a case for the potential growth and adoption of SaaS to make recruiting, staffing and onboarding more efficient and cost-effective. In the Sybase study, for example, 67.6 percent of respondents replied that doubling the information and apps available on their mobile phones would make them more productive and better at their jobs. Imagine a world in which you have location-based hiring apps nifty little widgets sitting right on your corporate career Web site. A potential candidate who has a meal at one of your restaurants or checks into one of your hotels or shops at a convenience store in your franchise is immediately alerted via his smart phone that the location has a job opening he might be interested in. Imagine a world of real-time rewards for your employees, no matter where they work, where their manager happens to be, or where you are. Imagine a world of social media linked to HR needs and services for your organization. Imagine a hiring manager at a franchise location immediately notified by an app on his smart phone about a potential job applicant who s posted a résumé on a job board. 6 Plateau Systems, Global Survey Shows HR Moving to SaaS Applications to Meet Business Challenges, HR Executives Want Service Put Back Into SaaS, print. jsp?id= &lang=e1 8 White Paper: SaaS for the Service Industry

10 The combination of personal apps with mobile computing technology all centered and made possible by a SaaS solution for HR opens a whole new world of faster, more effective decisionmaking and business transactions for leaders in the restaurant, C-store, hospitality and retail industries, thanks to: External hosting and data storage External software ownership, development, maintenance, updating and monitoring Pay-as-you-go without licensing fees Mobile applications on a variety of operating systems Constant monitoring and testing for system reliability and security The potential for SaaS solutions for talent management in the service industry seems boundless. Whether for mobile devices, laptops or personal computers, SaaS talent management solutions are likely to evolve with even more superior candidate management features and employee management tools, including onboarding, regulation compliance and more. ABOUT THE PEOPLEMATTER INSTITUTE The PeopleMatter Institute (PMI) is the thought leadership source for PeopleMatter, the HR industry and service-focused organizations worldwide. PMI provides extensive research and education tools to help businesses and individuals understand, manage and motivate their most important asset: their people. Access the PeopleMatter Institute on the Web at CONNECT To learn more about how PeopleMatter s suite of online HR tools can help your business, visit PeopleMatter 466 King Street Charleston, SC White Paper: SaaS for the Service Industry