Magic Quadrant for T alent Management Suites 14 March 2013ID:G00227698 Analyst(s): Thomas Otter, Jeff Freyermuth, Ron Hanscome VIEW SUMMARY This new Magic Quadrant assesses the market for talent management suites, which help organizations manage the key processes of plan to source, acquire to onboard, perform to reward and assess to develop. Market Definition/Description Talent management suites are an integrated set of applications, including workforce planning, talent acquisition, performance appraisal/assessment, goals management, career development, succession management, learning management and compensation management. These functional components align with the key human capital management (HCM) processes of plan to source, acquire to onboard, perform to reward and assess to develop (see "KPIs for Top Human Capital Management Processes"). Until recently, HR leaders had little choice but to purchase separate functional components if they wanted best-of-breed software to support a particular talent management process, such as talent acquisi tion or compensation. However, as offerings from the vendor community expand, and I T and user frustration grows with the cost and effort of integrating multiple niche solutions, the talent management suite has become a viable option. Adoption of a full talent management suite is still limited; however, our inquiries indicate that the number of customers adopting three or four modules from a single vendor continues to grow, and that customers are predisp osed to buy more modules from a single vendor. The interesting, vibrant nature of this rapidly evolving market drove our decision to launch this Magic Quadrant. Return to Top Magic Quadrant Figure 1.Magic Quadrant for Talent Management Suites Source: Gartner (March 2013) Return to Top Vendor Strengths and Cautions EVALUATION CRITERIA DEFINITIONS Ability t o Exec ute Product/Service: Core goods and services offered by the vendor that co mpete in/serve the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or thro ugh OEM agreements/partner ships as defined in the market definition and detailed in the subcriteria. Overall Viabil ity (Business Unit, Financi al, Strat egy, Organization): 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 o f the art within the organization's portfolio of products. Sales Execution/Pri cing : The vendor's capabilities in all presales activi ties and the structure that s upports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel. Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success as opportuniti es develop, competitors act, customer needs evo lve and market dynamics change. This criterion also considers the vendor's history of respo nsiveness. Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to infl uence the market, promote the brand and busi ness, increase awareness ofthe products, and establish a positive identification with the product/brand and organization in the minds ofbuyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leader ship, word-of-mo uth and sales activiti es. Customer Experience: Relationships, products and services/programs that enable cli ents to be successful with the products evaluated. Specifically, this includes the ways customers receive techni cal support or account support. This can also include ancillary tools, customer support programs (and the quali ty thereof), availability of user groups, service-level agreements and so on. Operations: The abil ity of the o rgani zation to meet its goals and co mmitments. Factors incl ude the quali ty o fthe organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and effici ently on an ongoing basis. Completeness of Vision Market Understanding: Ability of the vendor to understan d buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen and understand buyers' wants and needs, and can shape or enhance those with their added vision. Marketing Strategy: A clear, differentiated set ofmessages consistently communicated throughout the organization and externalized through the website, adverti sing, customer programs and positionin g statements. Sales Strategy: The strategy for sell ing products that uses the appropriate network of dir ect and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skils, experti se, technologies, services and the customer base. Offering (Product) Strategy: The vendor's approach Magic Quadrant f or Talent Management Suit es htt p://www.gart ner.com /technology/reprint s.do?id=1-1EH8O3B&ct=130... 1 of 15 5/3/2013 11:29 AM
