Workday is making serious inroads into the Enterprise HR space at the expense of the legacy providers offering 100% replacement business for Oracle HR, PeopleSoft HR and SAP HR, offering a more modern feature set at a better price and a lower total cost because businesses can buy into it as a service rather than having to maintain ownership over it. Still, Workday is a long way off from displacing Oracle and SAP’s competing HR services both, still serving over 10,000 clients each. The larger companies are doing their best to catch up, which includes heavy acquisitions. Last December, SAP announced it would spend $3.4 billion on the human capital management software company SuccessFactors. Meanwhile, Oracle bought Taleo, which develops employee recruitment software, for $1.9 billion. Surely PeopleSoft’s leading position in HR space is at stake and it will be interesting to see the fight between the three getting more intensified in the coming time.
Data –> Information –> Plan & Strategize –> Innovate & Improve –> Lead
Right focus at the right time is the key to organizations’ success. With data becoming widely available and more easily accessible, industries are quick to realize the value of insights that analytics can uncover. More and more organizations are now looking to success using HR/Workforce Analytics to show business impact and predict future performance. With the automation of HR functions, from resource requirement to retirement along with the need to perform strategically, workforce analytics has become all the more important than ever.
Unfortunately, HR analytics has gotten off to rough start because it hasn’t been well-defined and understood. Also the approach has to be different as per the nature and size of the organizations and their IT infrastructure and systems. HR analytics is a lot more than head counting–it’s about the total amount and the quality of talent, knowledge, and expertise. Its not just integrating all the systems (i.e. HRIS) in one place so that they can talk to each other. It’s about measuring the return on Human Capital investment and measuring the impact and how HR is driving performance, productivity, and profitability.
As of now HR seems to be lagging in this era of analytics and big data. Workforce analytics can drive the business and show a real return-on-investment by linking HR data, using cause-effect statistics, to actual business outcomes.