Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 1/26
Licensed for Distribution
Magic Quadrant for Cloud HCM Suites for 1,000+Employee EnterprisesPublished 9 November 2020 - ID G00463465 - 46 min read
By Analysts Jason Cerrato, Chris Pang, Jeff Freyermuth, Ron Hanscome, Sam Grinter, Ranadip
Chandra, Amanda Grainger, John Kostoulas, Helen Poitevin
Human capital management suites support core HR, payroll, talent management, workforce
management and HR service management. Application leaders in organizations with more
than 1,000 workers who are pursuing a cloud HCM strategy should use this research to
identify vendors for further evaluation.
Strategic Planning AssumptionsBy 2023, 60% of large enterprises will have invested in a major initiative to improve their manager
experience by automating administration of worker-related human capital management (HCM)
tasks.
By 2025, 60% of global midmarket and large enterprises will have invested in a cloud-deployed
HCM suite for administrative HR and talent management. However, they will still need to source
20% to 30% of their HCM requirements via other solutions.
Market Definition/DescriptionCloud human capital management (HCM) suites deliver functionality that helps organizations
attract, develop, engage, retain and manage their workforces. These solutions support a variety of
HCM capabilities (albeit to varying degrees based on the offering):
HR administrative functions (admin HR) — Include core HR (organizational, job and employee
data, employment life cycle transactions, employee, manager, and role-based self-service
access), benefits and payroll administration. This capability may also include environmental,
health and safety (EHS), grievance tracking, wellness or other value-added competencies.
■
HR service management (HRSM) — Includes personalized direct access to policy, procedure
and program guidance for employees and managers. It may also include integrated case
management, knowledge base, digital document management and virtual assistants
(chatbots).
■
Talent management (TM) applications — Include recruiting, onboarding, performance and
engagement management, compensation planning, career and succession planning, learning
and development, and workforce planning.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 2/26
HCM suites also provide reporting and data as needed by local and international regulations, and
most often include analytics and role-based dashboard capabilities. Reporting and analytics may
also be assisted by advanced technologies, such as artificial intelligence (AI) or natural language
processing (NLP). Transactional employee and manager self-service are now embedded as roles
in each supported HCM business process. Mobile access is a fundamental part of these
offerings. HR service management continues to appear as an embedded process in HCM suites,
including program or policy search, and employee case management.
User interface (UI) options for HCM suites continue to increase with the further incorporation
and/or integration of chatbots and/or virtual assistants. Chat integration allows users to perform
basic transactions or retrieve information without leaving their corporate chat windows. These
methods of retrieving HR information and performing transactions enable employees to complete
processes without actually logging in; they also deliver a more frictionless experience.
Overall user experience (UX) continues to be a leading selection criterion. As organizations
support workforces with ever-rising expectations of connectivity, in-person conversations with HR
administrators are being replaced by interactions with devices and applications. This shift to
digital HR administration drives the need for compelling and personalized UX, as applications
become the “face” of HR departments. HCM suites continue to support digital transformation
efforts by including highly visible and frequently used processes such as onboarding, training,
shift clock in/clock out, or reviewing pay stubs. HCM suites support several periodic (and
increasingly continual) processes, such as U.S. benefits open enrollment, performance
management and compensation planning. These processes require most of the employee
population to work through a complex, multistep process and involve conditional approval
workflows. Usability, process transparency and real-time analysis are critical.
HCM suites are used primarily to manage regular full-time and part-time employees. Increasingly,
vendors are adding functionality specific to manage and report on contingent and/or freelance
workers. However, most customers still use a vendor management system as their primary tool
for contingent worker administration to address billing, integration with provisioning systems and
related processes. Customer interest in using HCM suites to manage, or at least track, the
contingent workforce continues to increase. But most vendor pricing metrics are cost-prohibitive
for maintaining data on temporary workers. Additionally, some vendors’ organizational structures
do not easily lend themselves to temporary or matrixed relationships. Data privacy laws for
temporary workers may also influence where the data is stored for those workers.
The midmarket demand for a global HR system of record (SOR) remains strong. The need to
operate in multiple countries with diverse regulatory, data access and privacy requirements has
become common even for enterprises in the 1,000- to 2,500-employee range. However, the total
number of countries involved is typically fewer than five, and populations outside corporate
headquarters are a small fraction of the total workforce. Global needs are relatively modest
Workforce management (WFM) — Includes absence management, time capture, time and
attendance evaluation, task/activities tracking, budgeting and forecasting, and scheduling.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 3/26
compared with those of large enterprises, and local payroll providers are most often used. A
robust and consistent repository of HR demographic, organizational and (sometimes) talent data
is viewed as necessary to provide total workforce analytics, streamline administration, expand
talent management opportunities and maintain compliance. As a result, this Magic Quadrant
evaluates how well each vendor satisfies HCM functions for large enterprise customers, as well
as midmarket enterprises with more than 1,000 employees. It also assesses geographic coverage
from product and operational standpoints.
Clients with a limited market presence outside their home region (e.g., North America or Europe)
may consider Niche Players or Challengers, due largely to their addressable market. In this
scenario, exercise one of the following options to derive a more accurate representation of vendor
capabilities:
Magic Quadrant
Use the online interactive Magic Quadrant and set the Geographic Strategy criterion to its
lowest weighting.
■
Review Critical Capabilities for Cloud HCM Suites for 1,000+ Employee Enterprises, which
contains six specific use cases for organizations, three of which have a more limited regional
focus:
■
Core HR plus talent HCM suite for larger global organizations (more than 5,000 workers)■
North American midmarket HCM suite (1,000 to 5,000 workers)■
Europe-headquartered midmarket HCM suite (1,000 to 5,000 workers)■
New: North American administrative compliance suite for hourly workers (with 1,000 to
2,500 workers)
■
North American administrative compliance suite for hourly workers (with 2,500+ workers)■
Asia/Pacific-headquartered midmarket and enterprise suites (more than 1,000 workers)■
Figure 1. Magic Quadrant for Cloud HCM Suites for 1,000+Employee Enterprises
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 4/26
Vendor Strengths and Cautions
This 2020 cloud HCM Magic Quadrant report utilizes vendor presentations, demos and surveys for
Gartner research and review. Additional scoring and analysis were conducted through Gartner
analyst product reviews, Gartner client inquiry data, Gartner Client Peer Insights data and external
social media analytics. Unless otherwise indicated, reported vendor customer counts are as of June
2020.
ADP
ADP is a Niche Player in this Magic Quadrant for its HCM suite, ADP Workforce Now.
Source: Gartner (November 2020)
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 5/26
ADP Workforce Now is primarily used by organizations that have 500 employees or fewer.
However, it does have approximately 2,000 customers with 1,000+ employees, with several as
large as 10,000+ employees. ADP Workforce Now offers features such as payroll, core HR, U.S.
benefits administration, recruitment, performance, time and labor, and analytics to North
American customers. The suite does not include features such as global benefits administration
or succession planning, but it does offer robust capability for WFM, compliance and analytics.
ADP’s roadmap continues to expand on mobile-first, guided interactions with access to data and
insights for users in the flow of work. The vendor will be integrating other ADP products such ADP
Standout for employee engagement.
ADP also offers its ADP Next Gen HCM for larger, more complex buyers. Next Gen HCM is a
teams-based HCM solution designed from the ground up with several advanced features.
However, the focus of our 2020 review is specific to Workforce Now.
Strengths
Cautions
Market focus: ADP Workforce Now received above-average scores for the features that are
most relevant to its customers and the markets in which they compete. ADP plays to its
strengths and is designing thoughtful solutions to challenging problems such as using
machine learning (ML) for time/labor and compensation compliance, and oversight across the
suite.
■
Partnership strategy: ADP scored highly in the strategic alliances category for the availability
and execution of its implementation and software partners. The vendor consistently offers one
of the largest partner ecosystems in the market.
■
Innovation: ADP Workforce Now offers advanced technology to help customers respond to
transformation and face new challenges post-COVID-19; for example, touchless time-clock
interfaces utilizing facial recognition, and an automated workflow for unemployment claims
and appeals management support. These advanced capabilities differentiate this solution from
other options at the smaller end of the 1,000+ employee market.
■
HRSM offering: ADP Workforce Now has improved some of its capability around HR help desk
and service delivery with recently added chatbot functionality, and electronic document
management and collection. However, it still scored below average for HR help desk and UX
relative to other suites reviewed in this Magic Quadrant.
■
Performance management offering: ADP Workforce Now offers performance and goals
management, and some of the product integrations and interfaces have improved. But it still
scored toward the bottom end for this module compared with other participating vendors’
solutions.
■
Depth of partnerships: Those seeking a complete HCM suite with advanced capabilities may
discover functionality gaps within ADP Workforce Now. ADP addresses those gaps through
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 6/26
Cegid (Meta4)
Cegid Meta4 is a Niche Player in this Magic Quadrant.
Cegid acquired Meta4 in September 2019, adding a suite of cloud HCM solutions — based on the
Meta4 PeopleNet platform, which has been rebranded as Cegid PeopleNet — to its diverse
product portfolio of HCM, ERP, accounting and retail software.
The Cegid PeopleNet solution delivers the full spectrum of HCM suite functions and has 1,800 live
customers, supporting over 22 million employee records. Most of its customers have between
2,500 and 25,000 employees. Robust core HR and WFM capabilities, as well as natively built
localized payroll for Southern Europe and Latin America, make the solution most suitable for
organizations in these regions.
Cegid Meta4 is currently making enhancements to its process automation and onboarding
functionality. Its product roadmap has a strong focus on incorporating AI/ML to improve UX,
contextualization, process efficiency and compliance.
Strengths
Cautions
its integrated solution marketplace, but not all of its partners are equal. To aid organizations,
ADP Marketplace offers interactive tools to provide guidance on identifying partners with the
right level of integration and the appropriate depth of functionality.
Market focus: Meta4 has an established presence in Southern Europe and Latin America, and a
strong track record in meeting the requirements of multicountry customers in those regions.
Such organizations often require complex configurations to address global and local legislative
and compliance requirements.
■
Customer support: Many of Meta4’s core customer base have presence in countries that have
been strongly affected by the pandemic. Meta4 responded to the crisis with timely facilitation
of remote training workshops to help its clients comply with sudden regulatory changes (for
example, furlough policies and tax exemption eligibility).
■
Product localizations: The expertise and experience of Meta4 in the countries in which it
operates helped accommodate the complex work regulations and time reporting mandates laid
out by the different governments for implementing strict lockdowns and easing protocols. The
solution also added the ability to register time and attendance of remote workers.
■
Innovation: Cegid Meta4 needs to keep pace with the continuing modernization of TM
functionality — specifically, its current lack of support for AI/ML use cases could result in the
solution falling behind the competition.
■
Geographic reach: Cegid Meta4’s placement as a Niche Player is largely due to Meta4’s historic
focus on targeted geographies and industries, compared with its competitors. This focus is
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 7/26
Ceridian
Ceridian is a Leader in this Magic Quadrant.
Ceridian has more than 4,400 customers live on its Dayforce product, with a strong concentration
of North American midmarket, hourly-based organizations using core HR, WFM, benefits, TM and
payroll.
In recent years, the vendor has increased its capability to serve multinationals headquartered in
North America by expanding its global footprint. Notable acquisitions supporting this initiative
include Excelity, an APAC-based payroll outsourcing provider, and RITEQ, an Australian WFM
vendor. Ceridian has added payroll localizations for the U.K., Ireland, Australia and New Zealand,
and has Mauritius, Mexico and Germany in development.
Strengths
Cautions
reflected in the vendor’s comparatively modest customer growth.
Marketing resources: Meta4 has primarily marketed to global companies headquartered in
Southern Europe and Latin America. Now, as a Cegid company, the increased capacity to
market and sell beyond that audience needs time to grow and provide results.
■
Market understanding: Ceridian scored above average in this category for strong execution and
a well-developed roadmap. With Dayforce HCM, it services its existing customer base well, has
functionality that aligns with customer requirements and, as it looks to expand and grow, has
added a global leadership team.
■
Market responsiveness: Ceridian demonstrated several new features built around helping
organizations increase their internal agility, such as assisting digital transformation by pulling
more value out of their HR data, enhancing HR service management and applying AI in
recruiting.
■
Innovation: Ceridian’s Dayforce Wallet capability offers employees access to their earned
wages on-demand. It also provides flexibility for organizations with increasingly complex
workforce requirements and various types of workers.
■
Geographic reach: As Ceridian looks to expand its global customer base, new payroll
localizations will likely take time to mature in order to generate mainstream adoption. Ceridian’s
clientele remain 95% North America based.
■
Talent management offering: While Ceridian’s TM functionality has improved, some areas will
need additional enhancements (such as development plans and mentoring features) for the
vendor to compete more effectively against other Magic Quadrant Leaders and better match
the complex use cases of large global enterprises.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 8/26
Cornerstone OnDemand
Cornerstone OnDemand is a Niche Player in this Magic Quadrant.
Cornerstone OnDemand is best known as a leading global TM suite and learning management
system (LMS) vendor. Its inclusion as an HCM suite provider is the result of its expanding core HR
capability. This module has primarily been marketed in Europe, and only a small portion of its
current customers are headquartered in North America. Its core HR module has been growing in
adoption, with more than half of Cornerstone customers using six or more HCM modules.
For 2020, Cornerstone OnDemand’s HR suite will be enhanced with improved organization
visualization and modelling capabilities stemming from its acquisition of Saba Software in April
2020. With Saba onboard, the organization now services approximately 7,000 customers, totaling
75 million users across 180 countries. As Cornerstone OnDemand continues to build out the suite
and compete in this space, it is focused on client success and customer support, as well as
growing its global partner ecosystem.
Strengths
Cautions
Acquisitions: Ceridian’s acquisitions have yet to be fully integrated into the business. It remains
to be seen whether their stand-alone capabilities can enrich the Dayforce solution beyond
payroll.
■
Talent management: Cornerstone OnDemand was a frequent Leader in the now-retired “Magic
Quadrant for Talent Management Suites,” and it continues to be one of the highest evaluated
HCM suite vendors for the learning and performance management capability.
■
Sales execution: Cornerstone OnDemand has experienced a 13% year-over-year growth
combined with a strong, blended sales model and competitive pricing.
■
M&A strategy: In January 2020, Cornerstone OnDemand acquired Clustree. As a result, its
Career Planning module will benefit from the acquisition’s AI-driven skill analytics, as well as a
robust skills ontology for career support and analysis.
■
Gaps in the suite: Cornerstone OnDemand has a strong TM and talent acquisition focus, but
does not offer native payroll or benefits administration. The vendor offers a payroll API
connector and has developed a partner network of dedicated payroll providers.
■
Core HR capability: Cornerstone OnDemand demonstrated innovative approaches and
advanced capabilities in several TM areas of the HR suite. However, where it scored poorly
relative to other offerings was in the capability and innovation within its core HR module. Select
capabilities from the Saba acquisition will likely address some of the gaps beginning in 2021.
■
Integration: Although Cornerstone OnDemand offers documented APIs, customer feedback
and Gartner inquiry identified a need to improve integrations to external applications. As a
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 9/26
Infor
Infor is a Niche Player in this Magic Quadrant.
Infor provides an HCM suite that is used by customers in 78 countries, in addition to its ERP
offerings. It supports numerous large organizations, with 60% of its customers having between
1,000 and 10,000 employees. Infor has a large healthcare and manufacturing customer base, with
approximately 50% of its customers in these two industries. It also has a large customer base in
the public sector. Infor customers have a presence in approximately 50 countries, and just over
20% of its customers are headquartered outside of North America.
On its roadmap are several product updates including additional localizations for payroll, an
adaptive testing platform for talent, and some scheduling and prioritization features for WFM.
Strengths
Cautions
result, several customer experience measures in our research appeared as average or below
average when compared with other providers.
Vertical focus: Infor maintains strong industry vertical knowledge with specific developed
functionality for healthcare and manufacturing, and has added other industries year over year.
It has a strong industry channel strategy, with members of its various sales, consulting and
product teams dedicated to industry business lines.
■
Financial backing: In February 2020, Infor was acquired by Koch Industries, and Koch is the
largest user of Infor’s HCM suite, with 130,000 employees across 53 countries. Koch helps
make Infor well capitalized, as it looks to enhance its suite through development, partners and
potential M&A.
■
Customer focus: Infor demonstrated ways it is helping customers respond to the business
challenges of COVID-19 and digital transformation. For example, customers are increasingly
addressing virtual and remote work, and Infor scored above average for onboarding by enabling
organizations to design experiences for a variety of worker transitions. The module can also be
used for employment changes beyond initial employment, such as promotions and relocations
that may occur over the employee life cycle.
■
Talent management modules: Infor scored below average for multiple TM modules, including
succession and career planning. Compared with other vendors in this Magic Quadrant, its
functionality is basic and offers limited advanced modeling and planning.
■
Workforce planning offering: Infor’s workforce planning capability scored poorly compared
with the Leaders in this Magic Quadrant, due to the vendor’s focus on labor scheduling rather
than on other advanced capabilities. Additionally, portions of its workforce planning capability
are tied to enterprise performance management modules that sit outside of the HCM suite.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 10/26
Kronos (UKG)
Kronos is a Niche Player in this Magic Quadrant for its HCM suite, Kronos Workforce Ready.
Kronos, best known for its global strength in WFM solutions, merged with Ultimate Software in
April 2020. Together, these organizations form the newly named Ultimate Kronos Group (UKG).
Kronos Workforce Ready is an admin HCM solution focused on small and midsize businesses.
Post-merger, it is likely to continue to target organizations with less than 2,500 employees due its
strong adoption and experience in the lower midmarket. Workforce Ready has approximately
3,800 customers. The solution is best suited for North America midmarket organizations with
hourly workforces in manufacturing, healthcare or retail. Kronos added approximately 800 new
customers to Workforce Ready in 2019. It also grew its international presence, with 20% of
customers now based outside of North America.
The product’s future roadmap includes payroll localization for the U.K. and Canada, and global
payroll aggregation in 2020.
Strengths
Cautions
Partner strategy: Gartner client inquiry revealed some challenges with finding global qualified
implementation partners and third-party providers. Infor has added some service partners to
address this, but its partner ecosystem still lags that of Leaders in this Magic Quadrant.
■
Total cost: Kronos provides strong total cost of ownership (TCO) value for midmarket
organizations, from a natively built suite that satisfies hourly — and some global — workforce
needs. Its HCM solution is primarily designed to be implemented and maintained by small IT or
HR departments.
■
Integration with Ultimate: Due to the merger, Kronos has now integrated Ultimate Software’s
PeopleDoc HR document management, workflow and help desk capabilities with Workforce
Ready, significantly improving its HR service management capabilities.
■
Customer support: Kronos Workforce Ready’s postimplementation “hypercare” period includes
live chat support with experts and not just automated, script-based query resolution. Kronos
also offers live-chat support for all customers, resulting in shorter response times and positive
measures of customer satisfaction.
■
Product gaps: Given its HCM focus on midmarket organizations with complex hourly
workforces, Workforce Ready is less suitable for organizations with more-complex TM and
analytics requirements.
■
Talent modules maturing: Several new use cases — such as high-volume recruiting,
personalized career pathing and talent pool management — have been added into the TA and
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 11/26
Oracle
Oracle is a Leader in this Magic Quadrant.
Oracle Cloud HCM is a robust and global HCM offering with no major gaps that continues to build
capability, delivering enhancements across the suite over the last 12 months. Updates this year
include configurable user transactions using HCM Experience Design Studio and enhanced digital
assistant interactions. Oracle also provides a collaborative community for customer support, with
over 55,000 members and thousands of interactions per month. Oracle has seen significant
customer growth in financial services and the public sector. Additionally, more than 50% of its
customers deploy both Oracle Cloud HCM and Oracle Cloud ERP. Gartner estimates that more
than 3,400 customers have purchased Oracle’s Global HR module as of May 2020 (more than
2,050 are estimated to be live).
For the second year, Oracle maintains its position as one of the top two vendors for both
customer experience and overall product/service.
Strengths
Cautions
TM module. However, maturity is needed for the above features to see broad adoption in the
customer base.
Geographic reach: Kronos has seen double digit growth in EMEA and AUS markets, but it’s still
heavily focused on North America, with 80% of its customers headquartered there.
■
Customer support: In 2020, users found a variety of Oracle resources, functionality and user
groups extremely helpful to address HR technology challenges and use-case opportunities due
to COVID-19. Customers had the ability to share best practices, templates, system
configurations and use cases from other customers through Oracle webinars and training
sessions.
■
Business model: Oracle has delivered 98% of features against its 2019-2020 product roadmap.
The vendor is equipped with significant resources and has a business model that delivers
global scale with localized expertise.
■
Innovation: Oracle has invested heavily in improving and expanding its mobile capabilities. It
now has over 200 transactions that managers and employees can complete using a mobile
device, supporting its high scores for UX.
■
Frequent releases: Oracle’s pace of feature functionality upgrades and releases has sometimes
created a challenge for organizations. Customer comments are split between appreciating the
pace of enhancements and being challenged with keeping up with testing, deploying new
features and training.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 12/26
SAP
SAP is a Leader in this Magic Quadrant.
Sap SuccessFactors is SAP’s designated HCM cloud platform. The solution supports localization
and compliance (including benefits, payroll and HR) across 99 countries and is localized for
payroll in 46 countries. It is entirely available via public cloud. Since the last iteration of this
research, SAP has made concerted efforts to improve its customer support services and
resources. It has held customer adoption and empowerment events and expanded its 24/7
support model with 500+ support engineers across 15 global locations. SAP SuccessFactors
positions its HCM suite as a human experience management (HXM) suite. Its focus on journey
mapping and “moments that matter” is embedded in process workflows.
Strengths
Cautions
Module adoption: Customer data pertaining to mobile usage showed lower adoption for
modules such as Learning and Career Planning. These are areas that are targeted for
enhancement, but capability today may lag some more specialized vendors.
■
WFM planning and analytics: Oracle scored above average in most categories. However,
capabilities for which it was seen as just average or below include WFM, workforce planning
and analytics. Gartner clients and Oracle Cloud HCM customers have also suggested these as
areas for further enhancement. Oracle appears to be addressing those areas with its new
Fusion Analytics Warehouse, an offering released just as this research was concluded.
■
Geographic strategy: SAP scored highest of all evaluated vendors for its global capabilities. It
is clearly one of the most capable, globally sold and deployed vendors. SAP SuccessFactors
supports local best practices and compliance in 99 countries (46 for payroll). It delivered 2000+
regulatory and compliance updates over the last year.
■
Performance management: SAP received some of the highest scores in this review for
performance management and goal setting. It was previously listed as a Leader in the now-
retired “Magic Quadrant for Talent Management Suites,” and its experience and capability
continue as part of the full HCM suite.
■
Talent suite: SAP SuccessFactors received top scores across every module of prehire and
posthire TM applications. It scored above average for recruiting, onboarding, career and
succession planning, and compensation planning.
■
Module capability: SAP SuccessFactors customers demonstrate above-average levels of full
suite adoption. But some of its modules received just average scores compared with other
vendors in this report, including benefits administration and reporting. Additionally, WFM,
workforce analytics and planning are adopted less often.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 13/26
Talentsoft
Talentsoft is a Niche Player in this Magic Quadrant.
Talentsoft is best known as a European TM suite vendor, with more than 2,200 clients operating in
130 countries, as of May 2020. With the addition of Talentsoft Hub, the vendor now has core HR
functionality to expand into a full HCM suite option. The majority of its customers have between
1,000 and 10,000 employees. Talentsoft services organizations across Europe, APAC and EMEA.
It supports customers in the financial services, professional services and manufacturing
industries.
In response to COVID-19, Talentsoft has supported customers through an e-learning platform,
some expanded access to services and features, and further integration through collaborative
work tools such as MS Teams.
Strengths
Vertical depth: SAP SuccessFactors has some features/product integrations that may lend
themselves well to certain industries/verticals, such as Validated Learning, recently added high-
volume recruiting capabilities, and integration with SAP Fieldglass for managing contingent
WFM. However, compared with some other HCM vendors evaluated, vertical product alignment
is not as deep.
■
Complexity and reporting: From a technical product capabilities perspective, SAP
SuccessFactors continues to have challenges associated with integrating disparate acquired
architectures, such as complex implementations, release absorption and reporting. In
response, SAP SuccessFactors has recently delivered a new consolidated reporting platform,
has moved to two releases per year, and is making progress on its intelligent enterprise
initiatives and using more of the SAP technology stack.
■
Talent management: Talentsoft is a well-established TM vendor and has previously been rated
as a Visionary in the now-retired “Magic Quadrant for Talent Management Suites.” In this
review, the strength of its learning and performance management capabilities continue to score
high in comparison with other vendors.
■
Innovation: Talentsoft provides several technology features that compete well with the larger
vendors covered in this report, including designing around skills, skill analytics and enhanced
learning. It has also rebuilt its data model and made some acquisitions to help accelerate these
efforts. Talentsoft offers one of the deepest integrations with Microsoft collaboration tools to
help with autoscheduling of performance reviews and interview appointments. It also offers a
growing marketplace of partners to extend its solution.
■
Partnership strategy: Although Talentsoft’s core HR capabilities are new, formal partnerships
and supported integrations are in place with global payroll and scheduling application vendors.
This enables it to provide additional breadth of administrative and WFM functionality, as well as
payroll services.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 14/26
Cautions
Ultimate Software (UKG)
Ultimate Software is a Leader in this Magic Quadrant.
Ultimate Software merged with Kronos in April 2020, and the two companies form the newly
named Ultimate Kronos Group (UKG).
Ultimate Software’s cloud HCM suite, UltiPro, had more than 6,850 clients as of May 2020. The
majority of UltiPro customers have between 1,000 and 2,500 employees, but some are as large as
25,000 employees. UltiPro customers tend to be in financial and professional services, healthcare
and manufacturing. The product is well-suited to midmarket and larger North-America-based
multinational corporations that have most of their workforce in the U.S. and pockets of employees
in other countries.
Continuing Ultimate’s “people first” focus, its product roadmap is full of suite enhancements
aimed at user experience, adaptability, adoption and productivity.
Strengths
Cautions
Core HR emerging: Core HR is an emerging offering in Talentsoft’s portfolio, so it will require
time and continued investment to mature.
■
HRSM strategy: Talentsoft’s current features for HR help desk and service delivery are very
basic. The system also provides basic workflow capability.
■
Geographic reach: Talentsoft has customers operating in 130 countries, but these are
predominantly headquartered in Europe. The vendor is striving to increase its presence in
certain markets, such as North America, through partner networks and continuing to innovate
and add functionality.
■
Implementations: Ultimate’s services capability and customer experiences with
implementation and deployment continue to be highly rated by customers. In predominantly
targeting midmarket North American customers, the vendor can focus its efforts on delivering
new capabilities that are affordable and ready for its customers.
■
Expanding suite: Ultimate has been responding to the needs of its customers by continually
adding features for voice of the employee (VoE), HRSM document management, AI and ML. It
also works to help organizations get as much out of the full HCM suite as possible.
■
Innovation: Ultimate continues to deliver product enhancements using ML and sentiment
analysis via its Xander technology. It has also expanded capability for suite extensibility and
been able to pull in third-party system data for reporting.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 15/26
Workday
Workday is a Leader in this Magic Quadrant.
Workday targets global midsize and large organizations with its HCM suite. Notable
enhancements this year include expanded use cases and efforts around skills analytics,
enhanced employee profiles, credentials and developing an internal talent marketplace. As of May
2020, more than 3,200 organizations had purchased Workday HCM, with more than 650 new
customers year over year. Workday’s efforts around the Skills Cloud have driven several of its new
enhancements. Its ML-powered Skills Foundation assists with planning, predicting and employee
experience, and currently has 400 live customers.
In response to COVID-19, Workday launched a customer information center, added additional
reporting capability and hosted executive roundtables.
Strengths
WFM and learning: UltiPro has no major gaps, but where it scored lowest relative to other
Leaders’ solutions in this review are for its more limited workforce planning and learning
capabilities. Based on the needs of the organization, UltiPro learning often requires
enhancement through partners.
■
Geographic reach: Ultimate is working to expand sales, services and support outside of North
America, but these efforts are still in the early stages. Currently, its UltiPro system only
supports 15 languages and some HR localizations still need time to mature.
■
Workforce analytics: UltiPro’s workforce analytics capability has received high customer
satisfaction over time, but functionality still lags that of some of the other Leaders in this
Magic Quadrant.
■
Partnership strategy: Workday takes a more active role in managing its implementation and
software partners and enforces high standards for certifications and experience. Its partner
network includes more than 11,000 certified consultants, 90+ software partners and 50+
recruiting point solution partners.
■
Analytics and reporting: Workday scored the highest in several categories including workforce
planning, workforce analytics and reporting. It continues to advance its capabilities in these
areas with investments in Workday Prism Analytics and People Analytics.
■
Market responsiveness: Responding to customer feedback, Workday has improved its
Recruiting module with an enhanced Recruiting Hub for better navigation and user experience.
The module handles multiple worker types, includes embedded insights and now supports
automation and mass actions for high-volume recruiting. Customer adoption has steadily
increased, and Workday has continued to expand its partner ecosystem with several Workday
Ventures partners such as Beamery and Mya.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 16/26
Cautions
Vendors Added and Dropped
We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of
these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor’s
appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we
have changed our opinion of that vendor. It may be a reflection of a change in the market and,
therefore, changed evaluation criteria, or of a change of focus by that vendor.
Dropped
The inclusion criteria for coverage in this research was raised for several measures, from 2019 to
2020. Some of these criteria include the amount of existing customers a vendor has with more
than 1,000 employees, and the number of net new deals during the proceeding four fiscal
quarters. The fill inclusion criteria can be seen in the next section of this report. As a result, the
vendors below were dropped from this year’s coverage.
Inclusion and Exclusion CriteriaTo be included in this Magic Quadrant, each vendor needed to meet all of the following criteria:
Payroll adoption: Workday Payroll has lower customer adoption than the payroll capabilities of
some of the Leaders in this Magic Quadrant. Workday offers payroll capabilities in Canada,
France, the U.S. and the U.K., but customer adoption is still predominantly North American.
■
HR service management: Workday Help for HRSM support went live in January 2020. Workday
has also added to its “People Experience” UX through the addition of guided journeys for users.
This fills a previous gap, but these offerings are new and customer adoption is still at an early
stage.
■
Geographic reach: Workday has customers operating in the APAC region, but its HR
localizations there need time to mature, and regional service and implementation partners are
still limited in comparison with other Leaders in this Magic Quadrant.
■
ADP (Vantage HCM)■
Ramco■
Deliver core HR administrative transaction support and reporting/analytics capabilities, plus at
least three talent management (TM) functions (recruiting/onboarding, performance
management, career/succession management, learning, compensation and workforce
planning) or a combination of workforce management (WFM) and at least one TM function.
■
Deploy its solution on either a community cloud or public cloud (subscription-based private
cloud is not acceptable).
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 17/26
A number of vendor products did not meet all of these criteria. Therefore, they were not included
in this Magic Quadrant. However, their offerings do meet many customer requirements and could
also be considered in an evaluation of HCM suites. Market Guide for Human Capital Management
Suites contains additional profile data for 22 solutions from 17 other vendors, in addition to the 11
participants in this Magic Quadrant.
Evaluation Criteria
Ability to Execute
Gartner assesses a cloud HCM suite vendor’s Ability to Execute by evaluating its product(s),
technologies, services and operations. We assess how these enable it to be competitive, efficient
and effective in the market, and how they positively affect revenue, client satisfaction and
retention, as well as general market reputation. We judge a provider’s Ability to Execute on its
success in delivering on its promises, using the following criteria:
Have at least 125 customers, each with more than 1,000 employees, in production with core HR
and at least two TM functions on either a community cloud or public cloud.
■
Actively market, sell and implement HCM suites on a stand-alone basis, regardless of any
additional bundling with ERP suites or other applications.
■
Provide evidence of market momentum documenting at least 25 net new deals during the
previous rolling four fiscal quarters — each with more than 1,000 employees — purchasing core
HR and either two or more TM functions or one TM function and WFM. Note that the timing of
this data should be the prior four quarters through 31 March 2020.
■
Must be regularly identified by Gartner clients and prospects as a notable vendor in the HCM
market.
■
Product and Service: This includes the vendor’s capabilities in admin HR, TM, WFM and HR
service delivery (refer to the Market Definition/Description section for a detailed list of
functions). These areas are assessed for functional breadth and ease of use. How well the
vendor integrates the components is also important. Reporting and analytics receive
considerable attention, because they have been major customer concerns. The architecture,
delivery models and use of mobile and social capabilities are also rated. The focus is on the
vendor’s current functionality, although enhancements and/or new modules on the verge of
general availability are also taken into consideration.
■
Overall Viability: Key aspects of this criterion are the vendor’s ability to ensure the continued
vitality of a product, including support for current and future releases, and a clear roadmap for
the next three years. The vendor must have the cash on hand and consistent revenue growth
during the past four quarters to fund current and future employee burn rates, and to generate
profits. The vendor is also rated on its commitment to the specific product being evaluated, and
the ability to leverage it to generate revenue and profits in the cloud HCM suite market.
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 18/26
The relative weighting assigned to each criterion is shown in Table 1.
Table 1: Ability to Execute Evaluation Criteria
Sales Execution/Pricing: The vendor must provide multicountry regional and/or global sales
and distribution coverage that aligns with its marketing messages. It must have specific
experience and success in selling cloud HCM suite solutions to HCM buying centers. This
includes deal management, partnering, pricing and negotiations, presales support, and the
overall effectiveness of the sales channels.
■
Market Responsiveness/Record: This refers to the vendor’s ability to respond, change
direction, build alliances, be flexible and achieve competitive success as opportunities develop,
competitors act, customer needs evolve and market dynamics change. This criterion also
considers the vendor’s history of responsiveness, as this market has developed during the past
seven to 10 years.
■
Marketing Execution: This criterion assesses the clarity, quality, creativity and efficacy of
programs designed to deliver the vendor’s message. It assesses how these have influenced the
market, promoted its brand and business, increased awareness of its products, and established
a positive identification with the vendor’s product or brand in the minds of buyers. This mind
share can be driven by a combination of publicity, promotions, thought leadership, word of
mouth and sales activities.
■
Customer Experience: This criterion assesses relationships, resources and programs that
enable customers to be successful with the products and services offered. It includes feedback
from active customers on generally available releases during the past 12 to 18 months. This
can also include the existence and quality of such customer resources as ancillary tools,
support programs, the availability of user groups and SLAs. Sources of feedback also include
Analyst-validated customer reviews from Gartner Peer Insights, relevant to the audience and
criteria for this research. Additional data sources include Gartner inquiries and other customer-
facing interactions taking place at Gartner and industry conferences.
■
Operations: This criterion assesses the ability of the vendor to meet its goals and
commitments. Factors include the quality of the organizational structure — the skills,
experiences, programs, systems and other vehicles that enable the organization to operate
effectively and efficiently on an ongoing basis.
■
Product or Service High
Overall Viability High
Evaluation Criteria Weighting
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 19/26
Source: Gartner (November 2020)
Completeness of Vision
Gartner assesses the Completeness of Vision of cloud HCM suite vendors by evaluating their
ability to successfully articulate their perspectives on current and future market directions,
anticipate customer needs and meet competitive forces. We judge a vendor’s Completeness of
Vision on its understanding and articulation of how market forces can be exploited to create new
opportunities for itself and its clients, using the following eight criteria:
Sales Execution/Pricing Medium
Market Responsiveness/Record Medium
Marketing Execution High
Customer Experience High
Operations High
Evaluation Criteria Weighting
Market Understanding: This refers to the vendor’s ability to understand buyers’ needs and
translate them into products and services. Vendors that show the highest degree of vision
listen and understand buyers’ wants and needs, and can shape or enhance them with their
added vision. We specifically looked for how vendors described the integrated market and
opportunity for their cloud HCM suites as a whole, not merely that of the component products.
■
Marketing Strategy: This criterion assesses whether the vendor has a clearly differentiated
marketing strategy with a set of messages. These messages must appeal to HR organizations
and leaders, and be consistently communicated throughout the organization and externalized
through the vendor’s website, customer programs and positioning statements.
■
Sales Strategy: The vendor should have a strategy for selling cloud HCM suite software that
uses the appropriate network of direct and indirect sales, marketing, and service and
communications affiliates. The strategy should extend the scope and depth of market reach,
skills, expertise, technologies, services and the customer base. Key elements of the strategy
include a sales and distribution plan, internal investment prioritization and timing, and partner
alliances.
■
Offering (Product) Strategy: The vendor should demonstrate a vision for application
functionality across the breadth and depth of the cloud HCM suite. We focus beyond the
functional scope listed in the Ability to Execute section. We place additional focus on the
vendor’s vision for the use of emerging technologies; advanced analytics; relevant social,
■
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 20/26
The relative weighting assigned to each criterion is shown in Table 2.
Table 2: Completeness of Vision Evaluation Criteria
geographic or industry use cases; integration and ease of use; and support for process
transformations enabling the digital workforce. The product strategy can be a combination of
organic development, acquisition and/or ecosystems. For ecosystems, we pay close attention
to the quality and support of third-party partners. For those that acquire functionality, we pay
close attention to integration strategy and roadmaps.
Business Model: The vendor needs to have a clear business plan for how it will be successful
in the cloud HCM suite market. This plan should include appropriate levels of investment to
achieve healthy growth during the next three to five years.
■
Vertical/Industry Strategy: The vendor should have a strategy to direct resources, skills and
offerings to meet the specific needs of individual market segments, including vertical
industries.
■
Innovation: The vendor must show a marshaling of resources, expertise and/or capital for
competitive advantage or investments in new areas. Potential areas include advanced
analytics, ML, diversity and inclusion, service delivery, engagement measurement, and worker
wellness. The vendor must also show UX improvements or new access methods, such as
conversational UIs, chatbots, smartwatches or other wearables.
■
Geographic Strategy: We examine the vendor’s strategy to direct resources, skills and offerings
to meet the specific needs of regions outside the corporate headquarters location — either
directly or through partners, channels and subsidiaries — as appropriate for that geography and
market.
■
Market Understanding Medium
Marketing Strategy High
Sales Strategy Medium
Offering (Product) Strategy High
Business Model Low
Vertical/Industry Strategy Low
Evaluation Criteria Weighting
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 21/26
Source: Gartner (November 2020)
Quadrant Descriptions
Leaders
Leaders demonstrate a market-defining vision of how HCM technology can help HR leaders
achieve business objectives. Leaders have the ability to execute against that vision through
products and services, and have demonstrated solid business results in the form of revenue and
earnings. Leaders effectively leverage cutting-edge technologies in impactful ways. In the cloud
HCM suite market, Leaders show a consistent ability to win deals. These deals include the
foundational elements of admin HR (with a large number of country-specific HR localizations) and
high attach rates of TM, WFM and HR service delivery capabilities. They have multiple proof
points of successful global and regional implementations by customers with workforces in
multiple geographic regions, in a wide variety of vertical industries and sizes of organization (by
number of employees). Leaders are often what other providers in the market measure themselves
against.
Challengers
Vendors in the Challengers quadrant have a broader addressable market than the vendors in the
Niche Players quadrant. They have developed a substantial presence in one market and have
growing presence in multiple markets, but are not able to execute consistently or equally well in
all geographies. They understand the evolving needs of an HR organization, yet may not lead
customers into new functional areas with a strong functional vision. Challengers tend to have a
good technology vision for architecture and other IT organizational considerations, but are not as
operationally mature as Leaders. They have strong customer growth and momentum, financial
health and sustained product investment. Relative inability to execute consistently across the full
range of cloud HCM suite functionality for large and complex global enterprises is primarily what
separates Challengers from Leaders.
Visionaries
Visionaries are ahead of most potential competitors in delivering innovative products and/or
delivery models. They anticipate emerging/changing market needs and move the market ahead
into new areas. Visionaries have a strong potential to influence the direction of the cloud HCM
suite market, but are limited in execution and/or demonstrable track record.
There are no Visionaries in this Magic Quadrant, predominantly due to the greater importance
placed on the execution (including cost-effective and reliable delivery of standardized processes)
of admin HR functions that are, by their nature, more limited in innovation. In addition, much of the
Innovation Medium
Geographic Strategy High
Evaluation Criteria Weighting
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 22/26
innovation in HCM has taken place in niche TM and analytics applications, which have been
adopted by cloud HCM suite vendors. However, many have had to focus on the threshold of what
is “good enough” for their target segments, so that the benefits of an integrated solution are able
to overcome feature/function gaps.
Niche Players
Niche Players offer cloud HCM suite functionality, but they may lack some functional
components, may focus on limited geographic or workforce scale, or may lack strong business
execution in their chosen market. Niche Players may offer complete portfolios for a specific
vertical or workforce size, but are unable to fully support cross-industry requirements for several
HCM functions — such as WFM, recruiting or learning in TM. They may offer only limited HR
localizations in admin HR. From an execution standpoint, Niche Players may lack the ability to
support large-enterprise requirements or complex global deployments. Despite the challenges
described, Niche Players can offer the best solutions to meet the needs of particular HR
organizations whose requirements align with the vendor’s market focus and capabilities. The
price/value ratio for these vendors is often high. They may consistently win evaluations in a
specific region or industry, but are not consistently winning the whole suite across multiple
regions. Although this may be a matter of execution or relative maturity, it may also be a matter of
the vendor’s chosen market focus.
ContextAll vendors included in this Magic Quadrant sell and support admin HR functions with the option
for the customer to utilize functional capabilities for payroll, benefits, TM, WFM and HRSM. The
extent of support for country-specific HR regulatory requirements and common practices (as well
as their actual implementation experience in countries) varies by vendor. They have customers
that are successfully using their products and services.
This is not an exhaustive list of all providers, because many other regional and/or vertical industry
specialists did not fully meet our inclusion criteria. Other vendors have substantial customer
bases that have deployed their solutions on-premises and are now making the transition to full
cloud HCM suites; these vendors were also excluded from this Magic Quadrant, but are profiled in
the Market Guide for Human Capital Management Suites.
Regardless of the provider you’re considering, ask yourself, “Will this vendor enable more-effective
support for HCM processes across my organization?” and “How well does this vendor align with
our HCM technology strategy?” In many cases, an HR organization must evaluate not just a
vendor’s direct product offerings, but also the ecosystem of technology and service providers that
can fill in whatever functional or business process gaps the vendor may not offer.
Cloud HCM suite clients must continually rely on vendors for continued releases and reliable
infrastructure and service. This relationship is a departure from the relative autonomy in on-
premises deployments. As such, the vendor’s track record for CRM, reliable operations and
executing on product roadmaps should be weighted heavily in selection processes. With new
features being regularly released multiple times per year, checking every “nice to have” box on an
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 23/26
RFP is less important than alignment with longer-term product direction and confidence that the
vendor will execute against plans and provide good service.
Use this Magic Quadrant as a reference for evaluations, but explore the market further to qualify
the capacity of each vendor to address your unique business problems and technical concerns.
Depending on the complexity and scale of your requirements, your shortlist will be unique. This
Magic Quadrant is not designed to be the sole tool for creating a vendor shortlist. Use it as part of
your due diligence, in conjunction with discussions with Gartner analysts and companion
research, such as Gartner’s Market Guide for Human Capital Management Suites and Critical
Capabilities for Cloud HCM Suites for 1,000+ Employee Enterprises.
Market OverviewIn Gartner’s 2020 HCM market share research, we found one of the consequences of the COVID-
19 pandemic is the delay or rescoping of large transformational HCM projects. Most of these
projects will not restart until there is a clear exit plan from the pandemic and a clearer indication
of the economic prospects for each organization. In any case, we expect most organizations will
do this assessment as part of the preparation for their 2021 budget. Based on this assessment,
about 20% to 25% might be looking to accelerate their plans for 2021.
In the interim, organizations will still have to respond to the heightened need for agility. During the
pandemic, business planning cycles have been reduced from quarters and months into weeks. In
the HCM domain, this is translated into an increased pace of finding talent with the right skills,
particularly inside the organization, and to reskill those with gaps (see Flip COVID-19 Downtime
Into a Strategic Reskilling Opportunity). Building the right skills in the workforce was the top-of-
mind topic in Gartner’s HR leaders survey for two consecutive years. 1 This is to continue, but the
pace just got faster.
Another priority for HR leaders in the last two years has been employee experience. In 2019 and
early 2020, organizations started to make their first steps on this priority (see How to Enhance
Employee Experience When Full HCM Technology Replacement Is Not an Option). During the
COVID-19 period, and despite some expectations that it would deteriorate as a priority, employee
experience has emerged even stronger. A Gartner survey of 214 HR leaders in April 2020 found
that 64% were prioritizing employee experience more highly than before the coronavirus
outbreak. 2 Particularly when organizing the return to the workplace, HR leaders needed to create
new “employee journey maps” to identify and manage the moments that matter most to
employees, such as their first day back and their first team meeting.
In the absence of large transformational spending, a crucial step to address these business
priorities is optimizing adoption of existing solutions. In the large enterprise segment, it is quite
typical to see purchases of specialist solutions from previous years with pilot or regional
deployment (e.g., voice of the employee or continuous performance solutions). In other cases,
many functionalities within HCM suites already implemented were deferred for adoption at later
points in time.
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 24/26
HCM application leaders need to assume a more active role in driving adoption of existing
solutions, often by repurposing their use to a specific problem (e.g., using VoE to gauge sentiment
of remote teams during lockdown). They will have to partner more closely with their HCM
vendors’ customer success managers and ask for help, tools or data to design adoption activities.
Through active participation in customer communities, application leaders can also bring the
perspectives of other organizations to apply in theirs. Finally, close attention to vendor roadmaps
will provide opportunities to deploy relevant functionalities without the need for extra investment.
Evidence1 Top 5 Priorities for HL Leaders in 2020
2 Gartner Survey Finds 64% of HR Leaders Are Making Employee Experience a Higher Priority
When Planning the Return to Work
Evaluation Criteria Definitions
Ability to Execute
Product/Service: Core goods and services offered by the vendor for the defined market. This
includes current product/service capabilities, quality, feature sets, skills and so on, whether
offered natively or through OEM agreements/partnerships as defined in the market definition and
detailed in the subcriteria.
Overall Viability: Viability includes an assessment of the overall organization's financial health, the
financial and practical success of the business unit, and the likelihood that the individual business
unit will continue investing in the product, will continue offering the product and will advance the
state of the art within the organization's portfolio of products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that
supports them. This includes deal management, pricing and negotiation, presales support, and
the overall effectiveness of the sales channel.
Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve
competitive success as opportunities develop, competitors act, customer needs evolve and
market dynamics change. This criterion also considers the vendor's history of responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver
the organization's message to influence the market, promote the brand and business, increase
awareness of the products, and establish a positive identification with the product/brand and
organization in the minds of buyers. This "mind share" can be driven by a combination of publicity,
promotional initiatives, thought leadership, word of mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable clients to be
successful with the products evaluated. Specifically, this includes the ways customers receive
technical support or account support. This can also include ancillary tools, customer support
programs (and the quality thereof), availability of user groups, service-level agreements and so on.
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 25/26
Operations: The ability of the organization to meet its goals and commitments. Factors include
the quality of the organizational structure, including skills, experiences, programs, systems and
other vehicles that enable the organization to operate effectively and efficiently on an ongoing
basis.
Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers' wants and needs and to
translate those into products and services. Vendors that show the highest degree of vision listen
to and understand buyers' wants and needs, and can shape or enhance those with their added
vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated
throughout the organization and externalized through the website, advertising, customer
programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of direct and
indirect sales, marketing, service, and communication affiliates that extend the scope and depth
of market reach, skills, expertise, technologies, services and the customer base.
Offering (Product) Strategy: The vendor's approach to product development and delivery that
emphasizes differentiation, functionality, methodology and feature sets as they map to current
and future requirements.
Business Model: The soundness and logic of the vendor's underlying business proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet
the specific needs of individual market segments, including vertical markets.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or
capital for investment, consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the
specific needs of geographies outside the "home" or native geography, either directly or through
partners, channels and subsidiaries as appropriate for that geography and market.
© 2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc.
and its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior
written permission. It consists of the opinions of Gartner's research organization, which should not be
construed as statements of fact. While the information contained in this publication has been obtained from
sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy
of such information. Although Gartner research may address legal and financial issues, Gartner does not
provide legal or investment advice and its research should not be construed or used as such Your access and
13/11/2020 Gartner Reprint
https://www.gartner.com/doc/reprints?id=1-24KV2YAY&ct=201111&st=sb 26/26
provide legal or investment advice and its research should not be construed or used as such. Your access and
use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for
independence and objectivity. Its research is produced independently by its research organization without input
or influence from any third party. For further information, see "Guiding Principles on Independence and
Objectivity."
About Careers Newsroom Policies Site Index IT Glossary Gartner Blog Network Contact SendFeedback
© 2018 Gartner, Inc. and/or its Affiliates. All Rights Reserved.