Opportunities for the integrated HCM suite

[Jon Ingham]

I've gradually changed my view that the future of HCM (or 'talent') technology lies with ERP systems and maybe one or two best of breed / point solutions, to the new integrated HCM suites which are currently entering the market?

What do you think?

What's your experience?

[Denis W Barnard]

This is true - however, the key problem with most so-called solutions at the moment is that they are using metrics that fail to demonstrate causality.

To state that 90% of people are happy in their jobs, that there were 2,500 organisational traiinng days in the last 12 months and that sickness absence is 7% are meaningless statistics - quantitative rather than qualitative.

The main reasons for this would seem to be a) the current crop of HC metrics have largely arisen from academic quarters rather than people responsible for making organisations work and b) the people who could make the right correlations are employees, too absorbed in keeping their jobs rather than thinking strategically and radically.

[Mike Shoemaker]

I mostly disagree. I do believe that the ERP suites will ultimately come around.

What may drive consolidation on an ERP platform, in fact, is 1) greater demand for metrics that tie human capital measures to business and operational outcomes; and 2) the need to easily deploy consistent job models across HR applications, so that you can hire against the same criterion against which you assess performance, compensate, promote, and develop.

[Joanne Bintliff-Ritchie]

Our expereince does not suggest that there is a greater move to consolidated ERPs. We provide cllients with a technology that integrates all their data and provides dashboards with metrics. One reason for the strong interest in this is that their analytics solution is not dependant on their underlying platform decisions and migrations. Most clients hate one or more pieces within their ERP suite. Fact is the best of breeds are better. With the exception of all SAP environments where HR has nothing to say about their technology most HR decision makes still want the best process application support. Letting integration trump that is the tail wagging the dog. Data integration is critical but does not necessarily mean you have to settle for ERP capability.

I also see the metrics improving. Companies still want the quantitative measures becasue they are relevant to process managment and improvement. The relational correlations, modeling, predictive analtyics are coming. But most HR organizations aren't ready yet anyway. They're still at basic integration. Right now they need dramatically more efficient reporting capability, and process oriented metrics that can be used to manage and drive process excellence. Current technology also lets them compare trends and focus on key populations. The higher level analytics are a goal.

[Gireesh Kumar Sharma]

Because of the steep focus on HR, new integrated HCM suites will ride the wave. The simple reason is that the ERP systems have a wide focus, and the expertise of its development team cannot match the the "To the Point" approach of HCM suites. HCM suite developers may be way ahead in HR knowledge than general ERP vendors.

Further, the selling model of ERP is through vendors, who in turn may not be able to devote the resources only to HR.

Gireesh
http://www.empxtrack.com