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At Oracle’s first-ever HCM World conference, the technology company demonstrated its commitment to human resources customers, explaining its strategy for Modern HR in the Cloud, which is focused on meeting the needs of employees in a large, dispersed workforce. The conference was insightful both intellectually and practically in its discussions of how workforces are changing. Oracle also showed its commitment by having both President Mark Hurd and CEO Larry Ellison present keynotes. This was the first time both have addressed a conference other than the flagship Oracle OpenWorld. It is worth watching the replays of their talks, which reveal the company’s motivation and investment in human capital management (HCM). In developing its HCM products Oracle has in mind multigenerational workforces that require software that is adaptable to people, competencies and new technologies such as mobile devices and social collaboration and recognizes the imperative to access workforce information and analytics immediately. The rebranded Oracle HCM Cloud Service has gained significant momentum, as my colleague Stephan Millard pointed out in his recent analysis of Oracle’s HCM portfolio. Taking a global approach it supports users in 196 countries, 34 languages and multiple currencies and operates entirely in a cloud environment.

At HCM World Oracle announced updates to its HCM offerings as part of release 8 of Oracle Human Capital Management Cloud. These include Oracle Global Human Resources CloudOracle Talent Management Cloud vr_HCA_11_mobility_matters_for_human_capital_analyticsand Oracle Social Cloud. Introducing updates every quarter is another indicator of its commitment to the HR sector. Among the advances in mobile technology is Oracle Tap for Oracle HCM Cloud, which enables both managers and employees to access their HR information and share tasks on smartphones and tablets. According to our human capital analytics research mobility matters to two-thirds of organizations, and Oracle provides easy access and interact through its mobile offering. Its innovations in mobility continue to lead the market and can be evaluated freely without involving sales people by download from mobile technology app stores.

Also at HCM World Oracle demonstrated its efforts in the new area of wearable computing. This presents mobile technology as part of clothing or attached in other ways to the user’s body. Through Bluetooth or WiFi these new technologies can transmit information bidirectionally from the device to the cloud or smartphones. For example, addressing the area of employee wellness, Oracle gave all attendees a free Fitbit tracking device so they can measure their exercise through walking and see how this works with Oracle’s software. Presenters at the conference demonstrated how this information is transmitted from a wearable device to a central cloud application and can be accessed and integrated to HCM for promoting wellness in an organization. Wearable computing has the potential to be used for a range of information recording and notifications that employees agree to allow or employers require, and the technology is now available at retail outlets like Best Buy in the United States. Even technology like Google glass are part of the wearable computing technology market. Oracle’s work with wearable computing is another part of its commitment to HCM.

In the area of recruiting, Oracle showed how its Oracle Taleo Social Sourcing Cloud Service can help organizations attract vr_socialcollab_08_collaboration_matters_most_to_large_companiesapplicants through social media. It emphasized integration of data between core HR and talent management products. Oracle also demonstrated advances in mobility for candidate review and social interaction through its integrated Oracle Social NetworkOur research on social collaboration and HCM shows that collaboration is important in half to two-thirds of organizations of all sizes. I hope to see more progress in the use of video for conducting and capturing live interactions, which could be used not only in the recruiting process but also across the spectrum of HCM activities. In a related area Oracle has integrated its business intelligence and big data technologies to support interactive analysis of metrics from recruiting processes.

Oracle’s biggest area for improvement is in workforce management. The need to support time and attendance tracking for hourly workers continues to grow, as Stephan Millard outlined in his recent assessment of the market. Oracle has multiple offerings for time and labor through Oracle PeopleSoft Workforce Management and E-Business Suite Workforce Management but will need to invest faster and further in Oracle HCM Cloud Service’s support for VR_tech_award_winner_2013hourly workers to be a force in workforce management. In the adjacent area of labor regulation, Oracle explained how in-memory technology can help with labor rules and monitoring. This furthers its support for industries that need this type of immediate look-up and processing. Oracle has been outlining its new direction in workforce management in the last couple of years at Oracle OpenWorld, and I expect to see more here in 2014.

Adding it all up, Oracle over the last two years has jumped ahead of most of its competitors by taking an integrated approach to human resources and talent management while innovating in analytics, mobile and social technologies and cloud computing. This is why the company received our 2013 Technology Innovation Award in Human Capital Management. Now Oracle continues to streamline work activities to increase employee productivity and, just as important, to improve the employee experience. Oracle’s applications for HR and talent management should also be evaluated for organizations and industries that have large numbers of employees in areas such as customer service, field service, manufacturing and sales. These and others should evaluate its products to support efforts to motivate and engage their talent and provide the best possible employee experience.

Regards,

Mark Smith

IBM held its 20th annual IBM Connect conference (previously known as Lotusphere) as part of its IBM Social Business efforts at the end of January. The conference focuses on business and social collaboration technology, which our business technology innovation research found to be the second-ranked priority for business innovation. At the conference IBM made a series of significant announcements, including a new version of its social collaboration suite, IBM Connections, and the ability to use the software on a cloud computing platform.Technology Innovation Priorities

In the mid ’90s Lotus Notes and Domino led the market with the first true business collaboration and communications software. Today, after decades of fierce competition with Microsoft and its Office and SharePoint offerings, IBM is innovating (in a much more serious way than I have seen from Microsoft) to gain growth in the new market for business and social collaboration software. It is a good time for IBM to aggressively expand into the market, as our research finds only 25 percent of organizations are satisfied with their social collaborative capabilities. These have been dominated by shared folders and documents (86%), videoconferencing and instant messaging (66%), yet those applications are only a small piece of what social collaboration is about.

IBM has been adding business collaboration features over recent years with new capabilities that include activity streams, broadcasting, instant messaging, videoconferencing and wikis. All are part of IBM Connections 4.5, along with content and document management. With IBM Docs people can collaborate on a range of documents, including spreadsheets, presentations and word processing. IBM has advanced the user experience and integrated its collaborative and social software into a unified user experience. IBM is also making the software available on Apple, Android and BlackBerry smartphones and tablets. Our research finds Apple to be the first-ranked priority for smartphones (50%) and tablets (66%), followed by Android on smartphones (27%) and tablets (19%). Though BlackBerry (which just announced the change in its corporate name from Research in Motion) is a distance third for smartphones, it still has a loyal following that also uses IBM software. Our research finds Microsoft at the bottom of business and IT buyers’ priority lists. IBM is also expanding its social collaboration support for mobile technology to operate in an offline mode which is essential and has also addressed the need to secure sensitive communications and content.

IBM also maintains a strong installed base with Notes and Domino. IBM Notes and Domino Social Edition 9 is expected to be available in March and brings an innovative approach to blend social collaboration within electronic mail that many will really like IBM innovative approach. Businesses that do not use Notes, which make up the majority of the industry, can examine IBM Connections.

IBM is also moving fast to ensure that its offering is available in cloud computing. IBM SmartCloud for Social Business will make it easier for organizations to get started and use the software without the need for servers, storage and other internal IT resources. This is an important step to bring its offering to a larger audience that may not have the IT resources or budget to support new business collaboration efforts. The software helps streamline the cultural transition to using social collaborative software. IBM has introduced adoption services with a range of models, processes and education. This investment is critical to get organizations to step into the new world of social collaboration and increase the confidence level of organizations in this approach; today only 17 percent are very confident and just 38 percent are confident.

IBM has completed its acquisition of Kenexa, and at IBM Connect seemed to indicate it has settled on some specific areas of focus that blend learning and recruiting with Social Collaboration and Talent Managementsocial collaboration. It has taken steps since my analysis at the time of the acquisition to address many of my concerns. In addition, IBM introduced its new Employee Experience Suite, which is designed to provide an interface to business priorities and work like an employee portal. IBM also touted its new social learning offering, which when delivered will leverage its existing software and what the company purchased with Kenexa. I would like to have seen more on how to leverage Kenexa OutStart mobile learning. The potential in social learning is significant, and IBM’s product offerings put the company on a short list of providers who offer integrated social learning today. More broadly, IBM’s efforts to bring social collaboration to human capital management come at a time when our research into HCM shows that knowledge sharing, collaborating and learning are key priorities in organizations today. IBM will need to invest further to bring into IBM Connections more from Kenexa of what is needed in talent management in recruiting, performance and compensation. IBM has a great opportunity to expand its position with Kenexa recruiting customers that use both its software and its services and get them to use more IBM social collaboration and workforce analytics software.

IBM spoke at the conference about its Smarter Workforce Analytics Suite, designed to address workforce analytics and predictive hiring analytics, but I did not see this software leveraging the company’s business intelligence or workforce analytics solutions. The tandem of this software foundation, the IBM Research and global Improve Workforce Analyticsbusiness services organizations, and the analytic services of the Kenexa organization has the potential to advance the necessary process of moving off of spreadsheets to a dedicated business intelligence tool to meet the needs for workforce analytics and planning. We have found in our research a significant move by businesses to improve workforce analytics in 2013, with 61 percent of organizations indicating they have plans in this area. Also most HR organizations are still working on advancing beyond the use of spreadsheets and reports indicating a lower level of maturity than what IBM might expect. This could be an opportunity for IBM if they fully utilize the core technology of its business analytics software and that I wrote about last year.

Technology ConsiderationsI was impressed with IBM’s advancements in social collaboration at Connect 2013 and its commitment to usability, which our research found to be the highest priority (64%) in choosing technology, followed by reliability, since technology in use across an organization must be able to scale and perform. Organizations that have not considered IBM for social collaboration should examine the new version of Connections, since it offers a powerful set of unified capabilities that encompasses mobile technology. The top benefit to such software according to 72 percent of organizations in our research is better communications and knowledge sharing, and Connections has the power to deliver that. However, IBM should also embed its social collaboration features in other business applications, as that is still a preferred method of accessing collaboration according to 43 percent of organizations. One area that I expected to see more highlighted was its integration with IBM business analytics software which is one of the top use cases for using social collaboration in the enterprise and that IBM has integrated already.

IBM is taking a significant step forward to bring Smarter Workforce into a highly competitive market for human capital management. This is confirmed in my colleagues (Stephan Millard) research agenda for human capital management, that the pace of innovation in 2013 will be significant. IBM new offerings and approach are ones to watch but make sure you are able to get something for use today in your business and not have to wait for the future. IBM is a vendor to watch for its ability to help organizations of all sizes with social collaboration and human capital management.

Regards,

Mark Smith
CEO & Chief Research Officer

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