sap - david ludlow

HR Technology - What the Future Holds

David Ludlow, Group Vice PresidentSAP HCM Solutions

© 2011 SAP AG. All rights reserved. 2

Macro trends and their impact on HR

Increased demand for HR services

>Continued Globalization

>Acquiring/retaining talent

>Managing multiple worker types

>Sustainability, CSR

>Workforce Planning

Increased disruption from technology >Mobility

>“Big Data”

>Social networking and collaboration

>Cloud-based delivery options

New challenges and opportunities

on how HR supports the

business


MobilityAlways On


In 1983, Motorola introduced the DynaTAC 8000x, the first commercially available portable cellular phone. It was a foot long, weighed two pounds, could store 30 phone numbers, and cost $3995. 1

Today, there are 4 billion mobile phones in use,

27% of which are smart phones.

In the 4th quarter of 2010, 101 smartphones were

sold vs. 92 million PC’s. 1


More…

3 of 5 workers say they don’t need to be in the office anymore to be productive 2

40% of information workers use personally owned devices to access business applications, up 10% from last year 2

32% of employees globally use more than one mobile device on a typical workday 2

Number of mobile workers by 2013 3 • US 120m• Western Europe 130m• Asia/ Pacific 546m

1. PC World, 2007: http://www.pcworld.com/article/131450/in_pictures_a_history_of_cell_phones.html2. IDC 2011 Consumerization of IT Study: Closing the “Consumerization Gap,” sponsored by Unisys, July 20113. IDC Study:

http://thenextweb.com/mobile/2010/02/21/billion-mobile-workers-worldwide-2010

Sources:

http://thenextweb.com/mobile/2010/02/21/billion-mobile-workers-worldwide-2010


Evolution of Consumption

A new definition of mobile worker: from “always traveling” to “always on”

New ways of consuming processes and information

• Anywhere/anytime

• Unique user experience

Increasing demand for business applications accessed via mobile devices

Willingness to use personal devices


Enabling “Mobile HCM” Across the Workforce…

Executive ► Exception Handling

• Access to key HR metrics • Navigate the Org. Chart

HR Business Partner ► Information on call

• Employee data and analytics • HR Reports and KPI’s• Meeting preparation and follow up

Manager ► Efficiency and Insight

• Workflow approvals• Team Information • Selected HR Processes

Employee ►Efficiency and Engagement

• “Every-day” transactions (requests, Time Entry, Pay Slip, Team Calendar, Employee Lookup)

Know the HR process and data stakeholders

Where is the most value derived from mobile access?


Mobile HCM

Potential benefits for HR…

Personal vs. company-issued devices

Standardization vs. configurable apps

Macro vs. micro

Network bandwidth, cost, IT budgets

Overtime?

Reaching more users, 100% ESS

Delivering more consumable information and processes

Meeting expectations of today’s users

Key Considerations…

DataBig Data | Real Time


In 1980, the first gigabyte hard disk is introduced by IBM. The IBM 3380 is the size of a refrigerator, weighs around 500 pounds, and costs $40,000.

In 2010, the average hard disk cost per

gigabyte reached $0.08. The average hard disk

size reached 1,000 gigabytes.


More…

Data storage in Petabytes (approx. 1m GB) 3

• US 3500PB

• Europe 2000PB

• China 250PB

Most enterprises expect annual data growth rates of 11-30%4

30% of all analytic applications will use in-memory functions by 2014 1

1: blog.spamfighter.com 2:Gartner 3: lonewolflibrarian.wordpress.com 4: EMC2


Evolution of Analytics

Years of process automation have resulted in large amounts of data

Ability to store data cheaply enables unique insight

Advancements in technology like in-memory enable faster, real-time ability to plan and analyze

From Reporting to Insight, Measurement, and Planning


Multiple dimensions of HCM Analytics

Long term: strategic workforce planning

Annual: headcount planning and budgeting

Model/Plan

Monitor interventions and strategies

Find problems, verify the hunch

Investigate/Monitor/Measure

Manage HR risk indicators


HCM Analytics

Analytics requires process automation to collect the data and historical data to show trends

Integration is key:• Cross-HR data (core HR + compensation

+ talent, etc)• Enterprise data (e.g. financials, sales)

Insight to find potential problems and support the business

Measurement and Monitoring to measure strategies and risk

Better data to support business planning

Potential benefits for HR…



Social HCMState of mind | Not statement of age


As of September 2011: •750m Facebook users in worldwide•100m Twitter users worldwide

Americans spend more time on Facebook than they do on any other US website

Nearly 4 in 5 active internet users visit social networks and blogs, accounting for nearly a quarter of total time spent online

Social networking apps are the third most-used among US smartphone owners

27% of organizations have social networking on their corporate intranets

39% of 18-24 year olds would consider leaving a company if they weren't allowed to access Facebook or Youtube

Consider…


More…

78% of consumers trust peer recommendations; 14% trust advertisements

Internet users over the age of 55 are driving the growth of social networking through the internet

Years to Reach 50 millions Users: Radio (38 Years),TV (13 Years), Internet (4 Years), iPod (3 Years)… Facebook added 100 million users in less than 9 months… iPhone applications hit 1 billion downloads in 9 months.

Nielsen Group http://blog.nielsen.com/nielsenwire/global/social-media-accounts-for-22-percent-of-time-online/http://socialnomics.net/2009/08/11/statistics-show-social-media-is-bigger-than-you-think/http://www.thesocialworkplace.com/2011/03/29/social-knows-employee-engagement-statistics http://www.checkfacebook.com/ http://www.businessinsider.com/twitter-100-million-active-users-stats-2011-9

Sources:

http://blog.nielsen.com/nielsenwire/global/social-media-accounts-for-22-percent-of-time-online/

http://socialnomics.net/2009/08/11/statistics-show-social-media-is-bigger-than-you-think/

http://www.thesocialworkplace.com/2011/03/29/social-knows-employee-engagement-statistics

http://www.checkfacebook.com/

http://www.businessinsider.com/twitter-100-million-active-users-stats-2011-9


Demands of today’s workforce align with experiences from social networking

“I like people to recognize my contribution”

“Collaboration with my network helps me to get my job done”

“I use my phone to stay on top of things, it’s my

mobile command center”

“I need a work environment that

fosters my professional

development”

“Frequent feedback from

my manager and peers is

important to me”


Within HR, some social software is already leveraged…

External Networks• Recruiting: using networks to find candidates

Content Management• Learning: using collaboration to share knowledge

Conceptual usage: • Performance management and career development

But…

they are specific to the individual application

and

Not a part of the larger social network of the organization


Future HCM applications…

“Social” Talent Management“Career OnDemand”

Negotiate/Agree on goals Track ongoing

achievements Receive and share

feedback

Discover ideas and options

Find mentors Share experiences

Activities,Collaboration

• What I’m planning• What I’m doing/have done• What helps me to achieve

my goals

Embedding Social Networking and Collaboration

Performance

Development Career goal Development plan

Create Goals Appraise Performance

My Network

• Find people• My contacts and groups• What others are doing

Profile

• Who I am/my personal brand

• What I’m responsible for• Sharing experiences


Social HCM

Focus on weak links to drive maximum value

Understand potential limitations from workers’ councils in Europe

Ensure integration of the processes and social foundation

Knowledge sharing

Insight to performance

Insight to career options

Better decision making

Comprehensive view of the workforce

Potential benefits for HR Stakeholders


CloudNew delivery models


• Cloud Applications or SAAS

• Cloud Infrastructure or IAAS

• Cloud Platform or PAAS

Hybrid Cloud (Cloud Spanning):• Public Cloud

• Private or Internal Cloud

• Virtual Private Cloud

• Elasticity

• Cloud Bursting

Some Cloudy Terminology…


Some SaaS Considerations

Less Disruption

CAPEX

Speed of Innovation

OPEX

High IT Dependence Low IT Dependence

High Customization Standardization

… …


Bridging the SaaS/On-Premise gap

"Customers today want choices in how they scope, configure, and deploy business software."

Peter M. Russo, Managing Director of Pierre Audoin Consultants

… combine key benefits of on-premise and SaaS to deliver value

… package software, content, and services to deliver a solution

… ensure the most predictable and fastest time to business value

Service

Software

Enablement

Content

RAPID DEPLOYMENT

SOLUTIONS

SAP Rapid Deployment Solutions…

Thank You

Contact information:

David LudlowGlobal Vice President, HCM [email protected]+1 650 849 4287

Appendix


Cloud Computing

growth of public cloud market: 2014: 56b $ IDC

2013: 150b $ Gartner

2011: 160b $ Merrill Lynch

2020: 160b $ Forrester

private cloud market: 2020: 65b $ Forrester

growth of cloud adoption(2009-2011):1 Italy: 89%, Canada: 68%, Germany: 43%, USA: 19%

1: Avanade® Research & Insights Global Survey: Has Cloud Computing Matured?


Terminology

Hybrid Cloud (Cloud Spanning): A computing environment combining both private (internal) and public (external) cloud computing environments. Quick note Hybrid cloud: I do see the hybrid cloud model becoming quite common in the next few years as companies start to move certain non-critical applications to the Cloud and retain their IP, business, SLA sensitive applications in house.

Virtual Private Cloud: The term describes a concept that is similar to, and derived from, the familiar concept of a Virtual Private Network (VPN), but applied to cloud computing. It is the notion of turning a public cloud into a virtual private cloud, particularly in terms of security and the ability to create a VPC across components that are both within the cloud and external to it.

Elasticity: Conversations around the Cloud usually have a general dose of the term “elasticity” thrown in. Elasticity is the ability of being able to scale up and down rapidly based on usage. So for instance if the application is seasonal (like Online tax filing) being elastic means the application can rapidly grow to meet the demands during the Mar-April timeframe and then shrink back on regular usage.

Cloud Bursting: The ability to utilize external and public cloud resources to meet increased demand for compute resources,


A Few more Terms…

Cloud Infrastructure or IAAS: These are providers for virtualization environment – typically the barebones virtual machine and the Operating System. Most of them also provide ways to scale/shrink the hardware based on the application needs. So instead of going to Hp, Dell or IBM to buy machines you rent general compute, storage, and other resources from these infrastructure providers.

Cloud Applications or SAAS: Represents the application that have been delivered on the cloud and typically offered as a service. Salesforce.com, SAP, Google Apps, Microsoft Office 360 are all cloud delivered applications

Cloud Platform or PAAS: There is a huge gap between the functionality provided by the bare-bones cloud infrastructure provider and what the application developer needs to do to be able to run on it. This is where the Cloud Platform comes into play – enabling quick development and delivery of cloud applications– examples of the Cloud platform are TIBCO Silver, Microsoft Azure, Google AppEngine.

Public Cloud: A cloud computing environment that is open for use to the general public, whether individuals, corporations or other types of organizations. Amazon Web Services are an example of a public cloud.

External Cloud: Although it often is, an external cloud is not necessarily a public cloud. Some external clouds make their cloud infrastructure available to specific other organizations and not to the public at-large. Ex: Cloud Infrastructure providers might set up a cloud environment for specific government agency- although external it is not a public cloud.

Private or Internal Cloud: A cloud computing-like environment within the boundaries of an organization and typically available for exclusive use by said organization. A slightly more technical version is - cloud environment which creates a pool of resources behind a company's firewall and includes resource management and dynamic allocation, chargeback and support for virtualization.

sap - david ludlow

Technology

sap ag

hr technology

mobile phones

mobile deviceswillingness

mobile deviceon

number of mobile workers

hr increased demand

key hr metrics