Why is the giant transition SaaS service starting with the HCM field?

At the end of 2014, Oracle announced that it was the world's second-largest SaaS company after Salesforce.com. In Oracle's three cloud services HCM (Human Capital Management Human Resources Management), CX Customer experience management, and ERP enterprise resource planning Management, the HCM human capital Management cloud is the most mature and fully deployed cloud in its current market.

in order to deploy the hcm,oracle has at 46 U.S. dollars per share of the acquisition of talent Management cloud service provider Taleo, the total acquisition amount of up to 1.9 billion U.S. dollars. Taleo is integrated into the Oracle HCM Cloud, providing a comprehensive talent lifecycle management from recruitment to entry.


's transition to SaaS in the HCM area is not a single example, with Oracle's old friend SAP organizing the first China Human Capital Summit last year to force the Chinese market. SAP and China Communications Services Limited (PRC Telecom) set up a joint venture company------Digital Information Co., Ltd., and based on this company to Chinese customers to provide successfactors HCM solution. SuccessFactors, the most famous human resources software in Silicon Valley, is a 3.4 billion-dollar acquisition by SAP and is now contributing significantly to SAP cloud performance.


can see Oracle, SAP's SaaS market layout for HCM rather than ERP SaaS services, why the giant transition SaaS service, not from the core ERP software, but from the HCM field?


based on the Itvalue reporter's visit to the Community CIO, the following conclusions were drawn:

The success of
1, Salesforce and Workday proves the SaaS feasibility, and the giant has seen the future of SaaS, and the reference to Salesforce's footsteps is inevitable. In Oracle's transformational strategy, it is clear that IBM's veteran technology companies are no longer rivals for Oracle, and more of a partner. Oracle's rivals are those that have the potential to change the rules of cloud computing, such as Amazon, Salesforce and infrastructure companies.


2, Human resources management business and it processes are relatively standardized, is the most easily from the traditional software transformation deployment to the cloud. The human resources product and the structure are more stable, the change is not complex, very conforms to the cloud service the attribute, easy to form the scale quickly.


Zheng Li Aviation Industry Co., Ltd. Senior manager Che Wu that: "Even if involved in different forms of enterprise such as chain, join, joint ventures and other forms, the human resources software is not large, the same traditional human resources software can cover to 70~80% enterprises, but invoicing, financial type of software is very complex." Moreover, the software of the human system can be sold separately, in addition to the price of human resources software is not high, is the traditional manufacturers to test water SaaS very good entry point. ”


3, HR software involves data that is not sensitive to financial data, and is within the scope of the enterprise's ability to accept SaaS software security.


analysis from the enterprise side, why is HCM software increasingly deployed in the cloud?


to cite an example, when an HR turnover, once the material handover is not perfect, the company before the investment in HCM will be wasted. Training programs need to be scientifically established in enterprise training, with process records and result evaluations. More importantly, when data is deployed in the cloud, data is not lost.


In addition, data growth is also an important reason for human resources SaaS applications.


December 4, 2012, IBM announced the completion of the online human management platform is willing to resist the acquisition of Kenexa. But for some business reasons, Kenexa China was not bought at the same time, and the Chinese business remained independent. Interestingly, in January 2015, kenexa China worked with Oracle to open up online services in the Open class of human resources, online architecture on Oracle Taleo systems, offline offering a public course covering all of China's first-tier cities.

One point of
Kenexa's collaboration with Oracle is to consider the future development of a long-term number of customers doubling, the future may need to support thousands of tens of thousands of customers at the same time online. Kenexa can help companies gain social and business competence as a leading provider of recruitment and talent management solutions, and Oracle is proud of its collaboration with Kenexa China, and in addition to bringing more SaaS collaboration points, Kenexa China can help Oracle further refine the HCM cloud.


In addition, the modern enterprise's HR work has broken through the traditional recruitment, salary and personnel management category.


Johnson China is a user of Oracle Taleo, the current situation of human resources management is: Faced with multiple regions, a number of subsidiaries recruitment team and outsourcing team of different challenges, it is difficult to ensure consistency management, lack of human resources insights, IT system support is not to talk about.


By deploying Oracle Taleo, Johnson has rebuilt its recruitment process to manage recruitment more systematically, more effectively, and more efficiently, achieving consistency across regions and business units. Johnson said: In the age of the Internet, the talent market changes rapidly, the talent for the recruitment experience more demanding, while the preference for a more concise recruitment process, which requires enterprise HR to deal with the technical aspects, including the integration of BI to from the recruitment insights, development of mobile and social media side of the interaction and so on


In addition to multinational companies are training in the world of talent, Chinese enterprises have begun to go abroad, in overseas markets to find business opportunities, different markets and culture for human capital Management has brought many challenges: how to quickly adapt to the new market talent management model. How to achieve consistency within the enterprise. How to balance the diverse needs of a diverse workforce. How to provide employees with a 7x24 all-round staff experience. SaaS software can play a role and value.


However, although the traditional enterprise's human resources software is also to the emerging enterprise social software to start "people-oriented", more emphasis on user experience. But the former is rigorous in software development, it is impossible to involve the elastic and gray area. Itvalue Community CIO General response: "Traditional software may be more in the boss's appetite, but in the actual user experience, the user experience is not the best." Heavy old manufacturers for large and medium-sized enterprises to provide more products, compared with the next generation of corporate social software relatively fixed, traditional software in the flexibility of the lack of Reiki. "At present, the domestic small and medium-sized enterprises, private enterprises in the SaaS model of human resources management Services have not fully accepted, but the Chinese enterprises are relatively high-speed customer growth."


"Wen/itvalue reporter Zhang Yuting this article from Itvalue (micro-public number: Itvalue) More CIO views, please click here to enter the Itvalue community"