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Migrating to the Cloud?Here’s why HR should go first
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Q&A
Tom ConnollyCEO
Speakers
Saurabh GuptaProduct LeadRamco HCM
Bob McCarthyManaging Director, Workforce Analytics
Our View
Leadership teams have always had to make tough decisions about the what, when and how of staying competitive
Digital transformation is one of the most important competitive decisions leaders face, across a range of opportunities & challenges
Traditionally, HR’s role has been to “hurry up and wait” – support the needs of other areas and delay its own technology upgrades.
That’s exactly the wrong way to think.▪ HR is uniquely suited to the cloud.▪ The cloud has completely disrupted
HR software economics▪ The ROI HCM is significant▪ Change management strength
developed here translates well to other migration efforts.
▪ A distributed, but largely internal customer base.
▪ Change management strengths.
▪ Experienced with delivering on limited/smaller IT budgets.
Getting it right: Why HR is uniquely suited
Sequencing Trade-offs Scalability
All reasons for HR to go first, but there are also the “big three”
Getting the sequencing right
Sequencing the migration is a tricky decision
For every business platform, four very different migration possibilities
Complete re-write – high cost, high risk▪ Reserved for “bet the
farm”/core applications
Hybrid extend – keep the core in-house, build all new functionality in the cloud. ▪ Complex▪ Two talent pools▪ Integration, Data exchange and UX challenges
Lift and shift – the “simplest” of all, but rarely possible
Product replacement – Find a new product that works betterHR is typically moving from...▪ Platform-to-platform▪ Manual-to-platform
Trade-offs: Perceived and Real
Performance Myths & Realities▪ Reality: Data Dependencies▪ Reality: Incompatible application
architecture▪ Myth: Proximity/Latency
Security Myth & Realities▪ Reality: Transport & transfer protection ▪ Reality: Regulatory requirements▪ Reality: Employee data critically
important to protect, but customer data is where the largest exposures lie.
▪ Myth: “It’s safer in-house”.
It’s important to sort our “real” from “perceived”.
As with all new technologies, there is as much myth and urban legend as there is truth…
Understanding Scalability
“Vertical” characteristics (Customer Database)▪ Millions of records▪ Relatively few fields▪ Few Data Inter-connections
Vertical Scalability
This is what most in-house applications are built for, and what most IT professionals are trained
to understand when the say “big system.”
Vertical Scalability -- What most IT professionals are trained to understand when the say “big system.”
Understanding Scalability
“Horizontal” Characteristics (Employee Database)
▪ Thousands of records
▪ Hundreds of fields
▪ Many Data Inter-connections
Horizontal Scalability
This is not what most IT professionals are trained to understand when the say “big system.” A major reason why HCM implementations go so poorly.
Horizontal Scalability – This is not what most IT professionals are trained to understand when the say “big system.”
Why HCM Platforms are Uniquely Suited to Go First
Sequencing
HR migration is the best, most direct, least risky option
Trade-offs▪ Performance not an issue▪ Security can be improved
by moving to the cloud
The Scalability Reality: Vertical vs. HorizontalHCM has ALWAYS been a challenge of horizontal scale ability. This is something HR leaders understand implicitly.
Product Replacement
Manual-to-Platform
Product Introduction
Platform-to-Platform
Economics of HCM
Opportunity Competitive Demand
SIZE EMPLOYERSEMPLOYEES
(M)
5,000-9,999 1,707 12.8
2,500-4,999 4,180 15.7
1,000-2,499 7,158 12.5
500-999 15,811 11.9
250-499 37,034 14.0
TOTAL 65,890 66.9
Opportunity
Small- & Medium-sized businesses have different issues than
large enterprises
The Cloud has completely changed the economics of HR
technology. Solutions that were available only to large
enterprise organizations are quite affordable for SMB’s.
We will bring enterprise-level capabilities to SMB’s, and
build a brand that enterprises embrace.
• Less likely to have done it before
• Less likely to be familiar with readiness assessments Are they ready for a large technology project?
• Less likely to be conversant in, or resources for change management, centers of excellence, or best practices –
All areas of distinctive competency at GattiHR
0
5000
10000
15000
20000
Implementation Subscription
HCM Platform Costs ($000’s)
Enterprise Platform 2001 Cloud Replacement 2016
HR TECHNOLOGY IS ONE OF THE MOST-FUNDED SECTORS FOR VC
INVESTORS.
HR TECHNOLOGY CAN FINALLY MAKE A DENT IN HUMAN CAPITAL
ISSUES.
• Productivity growth is sagging• The biggest constraints to growth continue to
be human capital-related.
$72B
$164B$225B
$76B
Recruiting70% replacements, not adds
Training
Recognition programs
Managing absenteeism
$591M 1Q 2016 on-pace to repeat
$2.4B 2015: Raised in 383 transactions
Opportunity
Why?
US Spending on Managing Human Capital70% Employees who are
“disengaged” at work
$500B in lost productivity
The majority of employees believe the best way to further their career is to quit.
Companies have no idea who their best employees are, or where their next leaders will come from.
And yet…
Competitive Realities
Work is changing, and it’s re-defining the workforce.
Structures that support nimble, engaged, high-performing workforces. Technology is driving new solutions.
Companies need to create a new ecosystem for work
Small teams;Globally distributed
Workforce Silos
Open workforce ecosystem(employees, contractors, freelancers)
Outcomes-as-purpose;Work incidental
Rapidly evolving roles; Quick to adapt
Stable roles; Slow to adapt
Large teams; Central locations
Connected workforce
Limited workforce ecosystem (employees)
Work-as-purpose;Outcomes incidental
14
Entrepreneurial/Collaborative
Community/Social
Tech-Enabled
Sharing
Mission-Driven
ROI
ROI
But what’s in it for HR?
Stop doing busy work and focus on high-value work!
▪ HR▪ Everybody else
Call Volumes
What Employees Think HR Does
What employees say…
Handle disputes
67%
Create a safe & supportive workplace
76%
Process payroll
55%
Manage employee benefits
68%
Track time off – vacation, personal & sick
39%
Find & hire great talent
54%
Train employees
29%
Vs. HR’s Priorities & Biggest Challenges
Find & hire great talent
92%
What HR leaders say…
More effective employee engagement
72%
Build the employer brand
61%
Workforce Analytics
53%
Creating a safe & supportive workplace
48%
Building better leaders & managers
65% 14%
Managing high velocity change
8%
Upgrading obsolete tools & tech
Tech’s Opportunity for Impact
Full-suite HRIS upgrade
58% 36%
Recruitment
36%
Performance Management
36%
Learning & Development
52% of HR Leaders surveyed believe their organizations are unprepared for the high-velocity learning environment that the competitive marketplace is demanding
What Chatbots Can Do (So Far…)
Time off. ▪ Request, resolve scheduling conflicts,
auto-approve, flag exceptions, track.▪ Deliver balances, holiday schedules,
Recruiting –screen, schedule, correspond, track.
T&E – request, auto-approve, flag exceptions,
document, pay.
Answer pay questions Deliver payslips Answer Benefits enrollment & deduction
questions
Outcomes
Aligns customer & employee experience
▪ Engagement up▪ Performance up
Re-imagines process
Streamlines with Real self-service▪ Call volumes down▪ Productivity up▪ Performance up
Information capture at the source▪ Data quality up▪ Productivity up▪ Performance up
New Capabilities Introduced▪ Mobile Enabled▪ AI-infused▪ Cloud-based
integration
Why HCM Platforms are Uniquely Suited to Go First
Result: HR can lead the way on cloud migration.
Next generation of HCM software
Substantial cost savings Frees up IT resources
IntroductionDigital transformation is driving every organization to cloud-based solutions.
Adoption arguments are compelling…
But migration to the cloud is harder than it looks
Talented staff can focus on highest value priorities.
Save money – micro & macro scalar economies
Free up financial resources by getting out of the data center business – real estate, equipment, capital and staff cost
Manage risks
Migration skills are in short supply.
Data structures and applications are incompatible.
Exposing the customer experience to migration is risky.
© Ramco Systems www.ramco.com
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