SaaS-Enabled HR Transformation for High Tech – Part II
Tech Sheets - The High Tech Blog
Posted by John Malikowski on June 1, 2012
In part one of this two-part series we looked at how trends in the market are shaping HR Transformation initiatives for High Tech companies. Today we’ll discuss how SaaS can accelerate the value of HR Transformation as well as the highlights of SaaS-enabled HR Transformation.
Accelerating the value of HR transformation with SaaS
Speed is the key to realizing value through HR transformations these days. That’s why SaaS can be such a compelling option for High Tech companies struggling with how to show their organizations the value of transformation now — not just a year or two in the future. This is crucial in the Technology industry, where there is heightened competition for talent and speed to market along with operational efficiencies are critical for competitive advantage. Here are some of the ways SaaS can help:
- Enable rapid deployment of the technology and service delivery solution to reduce costs.
- Leverage cost savings from accelerated technology implementation to invest in other components critical to a successful HR transformation.
- Address the typical integration challenges by ‘connecting’ the various initiatives and technology in the spirit of solution integration.
- Focus the transformation at the most critical point of change — the end user interaction with HR services (self-service, business partners, operations, etc.).
- Accelerate the HR Transformation efforts by addressing the key components of success in a comprehensive way: strategy, technology, service delivery, HR organization design, portal, etc.
When considering making the transition to a SaaS-enabled HR solution, don’t forget the big picture — economics, technical feasibility, and risk/security. Looking at economic return, pay attention to economic fit, transition cost, benefit analysis, and on-going operations. For technical feasibility, it’s important to clearly understand architecture readiness, vendor capability, migration complexity, and integration complexity before initiating the transformation. When assessing risk, look at data control governance, vendor compliance, security, and data privacy.
A SaaS strategy can help provide significant value in a relatively short timeframe by changing the traditional IT procurement model for the enterprise and offering alternatives to existing vendor channels.
Whether small or large, Tech companies should recognize emerging capabilities and take advantage of new service offerings — more nimble, flexible, and affordable architectures. Investigate the SaaS alternatives and select service offerings which are aligned with operational environments and risk profiles. Navigating the options, assessing the opportunities and risks, and migrating to the appropriate SaaS environment can enable companies to position themselves for future adoption of additional HR capabilities.
The real power of HR-focused SaaS is in the potential to re-think and re-design HR delivery and IT architecture at a fundamental level. SaaS-enabled HR Transformations can help HR accelerate the value of talent strategies (workforce planning, performance, succession management, etc.), revenue growth (M&A, business transformation, globalization, etc.), and operational excellence (workforce intelligence, HR policy, culture and communications) — making SaaS a truly disruptive and advantageous technology for any High Tech company looking to take HR to the next level.
Highlights of SaaS-enabled HR Transformation
As the number of Tech companies selecting SaaS-based solutions increases, HR leaders will continue to see the increased value of SaaS and the increased levels of integration. Here are some highlights of typical/common benefits resulting from SaaS-enabled HR Transformations:
- Rapidly usable
- Less dependence on IT
- Configure, not customize
- Improved service levels
- Accelerate deployment timeline
- Quicker value by shifting focus to COEs, HR Business Partners, Employees, Manager, and HR
- organization faster in the HR Transformation
- Ease of integration
- Rapid delivery of new functionality
- Updates, not upgrades
- Reduced implementation costs
- Lower ongoing costs (TCO)
- Cash flow (subscribe vs. buy)
- Faster realization of transformation benefits
- Faster deployment of improved, flexible, and more intuitive tools to the end users
- Faster timeframe to deploy talent functionality
- Frequent talent feature/functionality updates
What are your thoughts, questions or experiences with SaaS-enabled HR Transformation?
|John Malikowski is a principal in Deloitte Consulting’s Human Capital practice with over 25 years of experience in Human Resources (HR) and large scale project management. He is currently the National leader for Deloitte’s Workday practice.|
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