Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
March, 2018
LEHRN 2018HCM and Finance Systems, Starting the Conversation:
Insights from Sierra-Cedar’s 20th Annual Systems Surveys
EmployeesService & Solution AreasApplication Services
Business Intelligence
Host & Managed Services
Infrastructure Services
Integration & Cloud Solutions
Research
Strategy
Training
Delivering industry-focused client success by providing consulting, technical, and managed services
for the deployment, management and optimization of next-generation applications and technology.
Industry FocusCommercial
Healthcare
Higher Education
Public Sector
Justice & Public Safety
Sierra-Cedar Fast Facts
Years of Leading
HR Systems Survey &
Thought Leadership
7 20 950+
5
2
Consulting
Projects
1,500+
Today’s Presenters
Richard George
VP Strategy Services
www.linkedin.com/pub/richard-
george/1/417/a42
Stacey Harris
VP Research & Analytics
@StaceyHarrisHR
www.linkedin.com/in/staceyharris
Sierra-Cedar 2017–2018 HR Systems Survey
Over 20 years of continuous data gathering
The most comprehensive survey in the industry:
● Strategy, Process, and Structure
● Administrative and Service Delivery Applications
● Workforce Management Applications
● Talent Management Applications
● BI/Analytics/Workforce Planning Applications
● Integration and Implementation
● Emerging Technologies and Innovations
● Vendor Landscape
● Workforce and HR Expenditures
● Workforce Usage and Perception
Participate in the 21st Annual Survey Download the 20th Annual White Paper
4
54%
23%
23%
High TechManu-
facturing
Other
Sierra-Cedar 2017–2018 HR Systems SurveyDemographics: All Respondents
5
Trans./Comm.
Utilities
Higher EdFinance Retail Ag. Mining.
Const.
15% 14% 13% 12%10% 10% 10% 9%
6%
Health
17.7 Million Employees/Contingents
Avg. number of Employees = 13,610
1,312Organizations
Industries
Top Performers
Organization Sizes and Types
6
Small<2,500
Medium2,500–10,000
Large10,000+
Talent-Driven
Data-Driven
AggregateSocially
Responsible
20 Years of Sierra-Cedar HR Systems Survey
7
0
200
400
600
800
1000
1200
1400
1600
1998 2001 2004 2007 2010 2013 2016
20 Years of HR Systems Survey Participation
Major HR Technology Initiatives Over 20 YearsThe Start’s, Stops, and Changes over 20 years of HR Technology
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Automated Service Delivery – Managers and Employees Initiatives
Re-engineering processes Initiatives
Interactive Voice Recognition (IVR) Mobile Kiosks, Mobile Phone Mobile Enablement
HR Portals
Web Self Service Web 2.0 Social Enablement
Self Service Metrics HR Metrics/Analytics BI/Workforce Analytics
Custom/Packaged Web Solutions Custom Licensed Packages Licensed SaaS Applications
Strategic SS Initiatives Talent Management Initiatives
Upgrade HRMS
SaaS Fully Cloud
HR Systems Strategy Initiatives
Workforce Management Initiatives
Workforce Planning
Mergers &
Acquisitions
20 YearsOf Major HR Initiatives
Major HR Technology Initiatives Over 20 YearsThe Start’s, Stops, and Changes over 20 years of HR Technology
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Automated Service Delivery – Managers and Employees Initiatives
Re-engineering processes Initiatives
Interactive Voice Recognition (IVR) Mobile Kiosks, Mobile Phone Mobile Enablement
HR Portals
Web Self Service Web 2.0 Social Enablement
Self Service Metrics HR Metrics/Analytics BI/Workforce Analytics
Custom/Packaged Web Solutions Custom Licensed Packages Licensed SaaS Applications
Strategic SS Initiatives Talent Management Initiatives
Upgrade HRMS
SaaS Fully Cloud
HR Systems Strategy Initiatives
Workforce Management Initiatives
Workforce Planning
Mergers &
Acquisitions
20 YearsOf Major HR Initiatives
Major HR Technology Initiatives Over 20 YearsThe Start’s, Stops, and Changes over 20 years of HR Technology
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Automated Service Delivery – Managers and Employees Initiatives
Re-engineering processes Initiatives
Interactive Voice Recognition (IVR) Mobile Kiosks, Mobile Phone Mobile Enablement
HR Portals
Web Self Service Web 2.0 Social Enablement
Self Service Metrics HR Metrics/Analytics BI/Workforce Analytics
Custom/Packaged Web Solutions Custom Licensed Packages Licensed SaaS Applications
Strategic SS Initiatives Talent Management Initiatives
Upgrade HRMS
SaaS Fully Cloud
HR Systems Strategy Initiatives
Workforce Management Initiatives
Workforce Planning
Mergers &
Acquisitions
20 YearsOf Major HR Initiatives
Major HR Technology Initiatives Over 20 YearsThe Start’s, Stops, and Changes over 20 years of HR Technology
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Automated Service Delivery – Managers and Employees Initiatives
Re-engineering processes Initiatives
Interactive Voice Recognition (IVR) Mobile Kiosks, Mobile Phone Mobile Enablement
HR Portals
Web Self Service Web 2.0 Social Enablement
Self Service Metrics HR Metrics/Analytics BI/Workforce Analytics
Custom/Packaged Web Solutions Custom Licensed Packages Licensed SaaS Applications
Strategic SS Initiatives Talent Management Initiatives
Upgrade HRMS
SaaS Fully Cloud
HR Systems Strategy Initiatives
Workforce Management Initiatives
Workforce Planning
Mergers &
Acquisitions
20 YearsOf Major HR Initiatives
Looking Back 20 Years, 1997 – 2017
Why Self Service Just Wouldn’t Work 20 Years Ago from HR:
Some organizations are still not sure whether to implement some of these
applications. For example:
● Benefit enrollment: “By keeping our benefit plans stable and standard, only [a small
percent] of our workforce needs benefit enrollment. It’s just not a high priority application.”
● Electronic paystub and benefit statements: “We will not provide these online because we
believe these services should go to the employee’s home for family review.”
● Workflow: “Work should not flow. We will take out multiple approval
levels and empower the manager to make the decision.”
● Skill management: “We want to do this, but cannot get agreement
on what skills should be included.”
12
CultureStrategy Technology
Key Themes for 2017–2018 Survey Results
Competition vs. Culture
HR Tech as a Leader
Risk and Security
Beyond the Cloud
Social ResponsibilityIntegration Strategies
Intelligent Platforms
Outcome-Focused HR
13
Personalization
Sierra-Cedar Finance Systems Survey Research
20 Years of Enterprise Systems Research
The 1st Annual Finance & Supply Chain Systems
Survey is based on requests from industry leaders
for insights:
● Finance System Strategy, Process, and Supporting
Structures
● Adoption of Core Financial Applications
● Adoption of Supply Chain Management Applications
● Adoption of Project and Grant Applications
● BI/Analytics/Financial Planning Applications
● Emerging Technologies and Innovations
Participate in the 2nd Annual Survey Download the 1st Annual White Paper
14
35%
27%
38%
Sierra-Cedar 2017–2018 Finance Systems SurveyDemographics: All Respondents
15
19% 19%15%
12%10% 10%
6% 5% 4%
6.6 Million Employees/Contingents
278Organizations
Industries
Avg. number of Employees = 29,500
High TechHealthManu-
facturing
Trans./Comm.
Utilities
Higher EdFinance Retail Ag. Mining.
Const.
Other
Strategy
Key Themes for This Year2017-2018 Finance & Supply Chain Systems Survey Results
Finance Technology
Emerging TechnologyDigital Transformation
16
Top 10 HR Technology InitiativesMajor Initiatives Haven’t Changed Dramatically in the last 5 Years
67%
40% 35% 35% 34%
19% 17% 17% 17% 16%
Bus. ProcImprovement
HR SystemsStrategy
TalentManagement
ServiceDelivery
BI/WorkforceMetrics
HR/AllSystems
Integrations
Mergers andAcquisitions
WorkforceManagement
MobileEnablement
SocialEnablement
1st Year Mergers & Acquisition
Made Top 10
Top 10 Major Finance Tech Initiatives for 2018Where are you spending 25% of your Resources?
43%
29%24%
20% 20% 19% 17% 16%13% 12%
UpgradeSystems
BusinessIntelligence
NewSystems
All SystemIntegrations
ReplaceSystems
ConsolidateSystems
WorkforcePlanning
SystemsStrategy
Mobile ExpandModules /Regions
Upgrades#1 Finance IT Initiative for 2018
28%
27%
11%
25%
11%
10%
11%
18%
16%
36%
44%
63%
No Plans Developing Rarely Updated Updated Regularly
Do you Have Enterprise System Strategies?Perception often leads to Priority Setting
19
ENTERPRISE FINANCE SYSTEMS STRATEGY
ENTERPRISE SUPPLY CHAIN SYSTEMS STRATEGY
ENTERPRISE HUMAN RESOURCES SYSTEMS STRATEGY
Are Enterprise Systems Strategies Important?25% Higher Business Outcomes w/Functional Enterprise Systems Strategies
20
Innovation Market Share Profitability Customer Sat Competitive
HR Systems Strategy No HR Systems Strategy
Finance Systems Strategy No Finance Systems Strategy
Supply Chain Systems Strategy No Supply Chain Systems Strategy
Business Outcomes Have They Declined or Improved in the Last 12 Months?
Imp
rov
ed
Neu
tral
Declin
ed
25%Higher
7%9%
7% 8% 8%10%
6% 7%4% 2%
7% 6%
13% 14% 14% 15%
20% 21% 22%24%
27%
34% 35% 35%
Benefits Payroll HRManagement
HR Generalist HR BusinessPartner
HR ITInfrastructure
WorkforceManagement
HR SystemSupport
TalentManagement
HR DataAnalytics
Recruiting Learning andDevelopment
27%
55%
IncreaseDecrease
Talent Issues Impact HR Hiring PlansWhat HR roles does your organization plan to increase or decrease this year?
21
39%
22%
18%20%
13% 13%16%
11% 12% 12%
7%11%
6%3%
16%19%
23% 24% 25%28% 29%
31%
40%43% 43%
50%
Time &Expense
Payables Accountants Receivables Inventory Procurement Cash/Treasury
Billing Assets ITInfrastructure
Projects Reporting/Analytics
Tomorrow’s Finance is Focused on Analytics & ITWhat roles does your organization plan to increase or decrease this year?
22
IncreaseDecrease
HybridsMove ONLY TM or WFM apps to Cloud
Rip & ReplaceMove everything all at onceto the Cloud
Parallel/PatchworkCombination Licensed and Cloud Solutions
Hosting/OutsourceSingle Tenant, or BPO
Multiple Pathways to an HR Tech TransformationTodays State of Replacing HR Technology
23
ReactiveFocused
Hig
h R
isk
Lo
w R
isk
Current State
Hosting/OutsourceSingle Tenant, or BPO
Rip & ReplaceMove everything all at onceto the Cloud Future Plans
ReactiveFocused
Hig
h R
isk
Lo
w R
isk
HybridsMove ONLY TM orWFM apps to Cloud
PatchworkReplace asLicense Ends
ParallelCombo Licensed andCloud Solutions
Multiple Pathways to an HR Tech TransformationFuture State of Replacing HR Tech, 26% Fewer Orgs Planning Transformation
24
Reactive
HR Technology Transformations Slowing Down
2016 2017
73%
58%
% of Orgs Planning to Transform Their HR Tech Environment
26%Fewer Orgs Planning HR
Technology
Transformation Efforts
On Premise HostedSaaS
22%
13%
20%
21%
36%
57%
48%
55%
37%
WFM
2017–2018 HR System Deployments by SizeOrganizations Under 2,500 Employees are Pretty Much There
26
17%
11%
14%
17%
22%
42%
49%
55%
24%
Payroll
17%
10%
7%
16%
27%
45%
55%
55%
39%
HRMS
11%
9%
13%
9%
14%
22%
70%
78%
78%
TMS
Higher HR Cloud Adoption = More Needs Met?
27
32%
25%20% 22%
27%
14% 16% 14%
Payroll HRMS WFM TMS
Our HR Systems AlwaysMeets Our Needs
High Cloud Low Cloud
Core Financial Applications Carefully Moving Away from On Premise Applications
28
10%
14%
17%
36%
43%
10%
17%
15%
27%
59%
Outsourced
In House
SaaS
Hosted
LicensedOnpremise
Core Finance Deployments
Today
12 Months
32%unsure of deployment model in
the next 12 months!
Still Evaluating
Note these do no equal 100% because they include organizations with multiple deployment models
27%
57%
21% 20%
12 Months of Finance System PlansUpgrades Continue as the Primary Improvement Tool in All Size Orgs
29
19%33%
15%26%
27%45%
23%9%
New Systems Upgrade Systems Replace Systems Consolidate Systems
Top Five Gaps in Current Core Financial SystemsNumber One Gap is Reporting Issues
30
28%
12% 11% 10% 9%
ReportingTools
IntegrationIssues
Out ofMaintenance
SlowProcessing
Lack ofFunctionality
What are the Major Gaps in Your Current CoreFinancial Applications?
1
2
3
4
5
6
7
8
9
Who Manages the Payroll Function?Organization Type Plays a Major Role in Payroll Management
31
25% 27%
41%
55%52% 54%
30% 30%
21%16%
26%
13%2% 3% 4% 2%
Government Nonprofit Private Public
Where is Your Payroll Function Managed?
Human Resources Finance Function Combo of HR & Fin Other Business/Function
Achieving Outcomes Compared to DeploymentSaaS Core Financial Deployment Aligns with 15% Higher Business Outcomes
32
Innovation Market share Profitability Customer sat Competitive
SaaS Hosted LoP Outsourced
Business Outcomes Have They Declined or Improved in the Last 12 Months?
Imp
rov
ed
Neu
tral
Declin
ed
15%Higher
58%50%
43%38%
33% 30%
20% 17% 16%12% 11%
ComplianceRisks
ManageHR Costs
EmployeeRetention
Engagement WorkforceReadiness
AttractingTalent
Productivity WorkAssignment
CustomerSatisfaction
Improvennovation
CompetitiveAdvantage
What Are You Currently Using HR BI to Accomplish?
20%
64%
What Are you Accomplishing with HR BI/Analytics#1 Outcome Organizations are Achieving Today is Risk Mitigation
n = 681
33
46%
27%
Workforce Planning RealitiesTop Performing Orgs, 70% More Likely to Conduct Workforce Planning
34
23%of all organizations are conducting
Enterprise Workforce Planning
41%
24%
TopPerforming
Not TopPerforming
Do You Conduct Enterprise Workforce Planning
32%
20%20%
13%
10%5%
Primary Function Leading Workforce Planning Efforts
HR Strategy
Business Strategy
Talent Management
Finance
Recruiting
Other
Integrated Data Sources for HR AnalyticsLow Cloud Environments More Likely to Include Financial Data
35
80%
65%54%
11%
24%
10% 6%
61%
37% 36%
9%
28%
13% 9%
Core HR TM WFM Benchmarking Financials Operations Sales/CRM
Which of the following are Integratedfor HR Analyses?
Low CloudHigh Cloud
17%
10%
18%35%
20%
Enterprise Integration Strategy?
Yes, updated regularly
Yes, rarely updated
In development
No Strategy
Unknown
2017 Integration Strategies Matter in HR 47% of Orgs Have No Standard Approach to HR Technology Integration
36
3%
9%
18%
22%
47%
Other
Integration platform
Into core HR
Into TM Suite
Case by Case/None
Approach to Integrating HR Technology
20%Organizations have a Major
Initiative to Improve Integrations
62
22
5
18
Average Number of Integration Touch Points Between HR and
Non-HR Systems
Do You Need an Enterprise Integration Strategy?
37
21% Higher business outcome ratings
when organizations have an
Enterprise Integration Strategy
over those without a strategy
Enterprise Integration Strategymore aligned with Business Outcomes
than Change Management,
Cloud Technology, Data Analytics,
and Talent Management efforts.
Data Privacy & Protection StrategiesIs Effective Good Enough in Data Privacy Processes?
8%
48%
34%
9%
Data Privacy Process Maturity
Transformational Effective Efficient No process/Manual
Those with an
Integration Strategy
2Xmore likely to be
Transformational in Data
Privacy Processes
46%
11%
15%
14%
14%
Enterprise Risk/Cyber Security StrategyIncludes HR Systems
Yes, updated regularly
Yes, rarely updated
In development
No Strategy
I Don't Know
Its 2017, Do You Have an HRIT Security Strategy? 70% of Top Outcome Organizations Regularly Update a Risk/Security Strategy
39
70%of organizations in our
Top 10% of Outcomes
have one!
Regularly Updated Risk/Security IT Strategy What Do They Do Differently?
40
66%
34%36%
64%
Yes No
Multi-factor Authentication for HR Systems
72%
28%36%
64%
Yes No
Remote Wipe Technologyfor Mobile Devices
22% 27%
51%
12% 14%
74%
Select Groups Everyone No Policy
Bring Your Own Device Policy
Strategy
No Strategy
49% 52% 55% 59% 59% 60% 61%70% 71%
76%21%
25%14%
27% 22% 25% 20%
16% 14%11%
31%23%
31%
15% 19% 15% 19%14% 16% 13%
High Tech Healthcare AMC Financial TCPU Retail/Wholesale
Services Manu-facturing
PublicAdmin
HigherEducation
No Policy Select Groups Everyone
Bring Your Own Device Policy By Industry
41
22%
7%
28%
13%
11%
5%
40%
75%
Top and Not Top Cloud Mobile Use
No Plans Evaluating Budgeted for 12 Months In Use Today
Mobile Enabled HR and Cloud Applications High Cloud Organizations More Likely to Have Mobile Enabled HR
42
● Today, top Finance Applications
being used in Mobile
Environments:
– Finance Analytics (48%)
– Travel and Expense (48%)
– Inventory Management (45%)
● Next 12 months, over 60% of
organizations plan to enable
these applications:
– Finance Analytics
– Travel and Expense
– Inventory Management
– General Ledger
– Asset Management
– Billing
– Purchasing
Mobile-Enabled Finance Applications
43
Top Barriers to Going Mobile in Finance
● Security
● Privacy
● Cost and Resources
● Determining Need
● Finance System Limitations
44
Emerging Technologies in Finance Infrastructure and Platforms Slightly Higher than HR
Finance Function Using
Today 12 Months Evaluating No Plans
PaaS (Platform as a Service) 16% 5% 25% 54%
IaaS (Infrastructure as a Service) 21% 9% 24% 46%
45
Emerging Technologies in Human Resources 27% Increase in Use Today over Last Year
Workforce Using
Today 12 Months Evaluating No Plans
PaaS (Platform as a Service) 14% 3% 17% 65%
46
Workforce Using
Today 12 Months Evaluating No Plans
IaaS (Infrastructure as a Service) 16% 3% 13% 67%
Emerging Technologies in Finance Robotic Process Automation and Block Chain Here First
47
Finance Function Using
Today 12 Months Evaluating No Plans
Robotic Process Automation (RPA) 13% 5% 13% 69%
Block Chain Technology 10% 7% 19% 63%
48
How Does Blockchain Work
• Technology
• Regulation
• Consortiums
– Hyperledger
– Ethereum
Blockchain
● A “hyped” technologies
● Extends & changes processes
● Promises to lower costs, speed execution, more secure – transactions
● Barriers
– Requires a high capacity, high throughput, low latency
– Creating standards, fees for use
– BC/DR, business continuity & disaster recovery
– “Adjustments” to existing systems, integrations, reporting
49
Intelligent Systems Building BlocksThe Emergence of Active Technology – Requires Your Input
Workforce Using
Intelligent Systems Building Blocks Today 12 Months Evaluating No Plans
Artificial Intelligence 40% Feel It is Valuable to Extremely Valuable
Predictive Analytics 76% Feel It is Valuable to Extremely Valuable, 29% Doing Something
Machine Learning 3% 2% 22% 73%
Sentiment Analysis 6% 4% 15% 75%
Wearable/RFI (IoT) 8% 1% 9% 82%
Benchmarking Databases 20% 5% 24% 52%
5 Questions When Buying Emerging AI ToolsKnow Your Risk, Options, and Regulations
● Tell me about your views on product liability?
● How do we make changes to the data?
● What happens when we turn “it” off?
● Do we own what the machine learned from us?
How do we take that data with us?
● What are the startup costs, resources and supervision?
How much will it take to train?
Top Performing Talent Driven Data Driven
The Important Questions: Outcomes and Impact Top Performers, Talent-Driven, Data-Driven, and Socially-Driven Organizations
Top Quartiles
• Revenue/Employee
• Profit/Employee
• OIG (1 year)
• Return on Equity
• Mature Career Planning
• Succession Mgmt
• Metric Outcomes⁃ Employee engagement
⁃ Workforce readiness
⁃ Retention risks
⁃ Top talent
• Mature Workforce
Analytics
• 3+ Metrics
• 20%+ Managers/BI
• 3+ Data Sources
52
Decisions based on
Performance
Decisions based on
Talent
Decisions based on
Data
• Diversity
• Family Leave
• Flexible Schedules
• Wellness
• Engagement
Decisions based on
Social Responsibility
Socially Responsible
Achieving Outcomes Requires FocusTalent, Data, and Socially Driven Organizations Achieve Best Outcomes
53
TD DD Social TP Agg
Talent Outcomes HR Outcomes Business Outcomes
Imp
rov
ed
Neu
tral
Declin
ed
3%Higher
8%Higher
14%Higher
14%Higher
What We Couldn’t Fit In Today!
54
HR Tech Adoption Trends by Vendor – See Who’s Acquiring New
Clients.
New Insights in Recruiting Technology, BI/Analytics, Learning, and
Workforce Management.
Vendor Specific Client Averages and Client Feedback on Vendor
Satisfaction Data
New Insights on Implementation and Maintenance practices,
timelines, updates, work assignments
Lots of extra Industry, Size, and Organization Type Breakouts of
our traditional data.
Thank you!
55
Visit Sierra-Cedar Website Get Full Survey Details and Sign Up To Participate Next Year!
56
www.Sierra-Cedar.com/annual-survey
Having a career passion for enabling technology for HR, I am
drawn to the unbiased, objective nature of the Sierra-Cedar
HR Systems Survey White Paper. It serves as my voice to the
vendors in terms of what we need and where we want to go at
Dell. The benchmarking component is also vital in validating
the technology and making the case for investment.
Karen CaveneyGlobal HR Business Architecture & Technology
Dell
Why Organizations Participate?
57
Why Organizations Participate?
58
The Sierra-Cedar HR Systems Survey White Paper is one of
the main sources I use to keep my finger on the pulse of the
HR Technology industry. The trending data and future
landscape analysis is extremely valuable—I’m not sure I could
effectively do my job or remain a thought leader in the industry
without it.
Joe AlmodovarSenior Director Global Business Systems
AT Kearney