Posts Tagged ‘spend management’

Friday’s Feature: Workday Release 10 Moves Users One Step Closer To ERP Replacement

Workday Continues To Pioneer SaaS Success In The Enterprise

Founded by Dave Duffield and Aneel Bhusri in March 2005, Workday has grown the company to over 135 customers with 80+ companies in production, 17 enterprise payroll companies, and over 400 employees in 50 countries worldwide.  Key industries include services, technology, financial services, manufacturing, healthcare, and others.  Unlike other ERP pure play True SaaS vendors (e.g. NetSuite, Intacct, and Ultimate Software), Workday uniquely serves the mid-size to very large enterprise clients.  Large production clients range from 26,000 employees at Chiquita to 200,000 employees at Flextronics.  Workday’s roots began with HR but Release 10 bolsters key financial and spend management capabilities, highlighting aspirations to be the SaaS option for Oracle, PeopleSoft, and SAP ERP replacements over the next 3 to 5 years.

Design Points Reflect The Principles Of Social Enterprise Apps

With the business user in mind, Workday incorporates 8 of the 10 essential elements for social enterprise apps.  These include (see Figure 1):

  1. Role-based design. Software designed around how users perform work including applicable security models.
  2. Consistent experience across channels & deployment options. Software that is agnostic to where or how that software is deployed and accessed.
  3. Contextual & relevant delivery of information. Software which understands what information to provide users at a point in time
  4. Configurable & adaptive. Software that can be modified to meet changing conditions.
  5. Outcome-focused & results-oriented. Software that tracks key metrics across an end to end process.
  6. Proactive, predictive, & actionable. Software that anticipates requests and supports decision making.
  7. Engaging for all stakeholders. Software that opens up the system to new types of users, collaborators, networks, and communities.
  8. Secure & safe. Software that meets security and disaster recovery thresholds.

Figure 1.  Workday’s Design Incorporates 8 Of The 10 Elements of Social Enterprise Apps

Software Insiders Point of View Photo Stream (click image for details)

(Source: Workday)

Release 10 Features Move Users Closer To An ERP Suite

  • HCM adds Succession Planning and expands geographic reach. HR managers gain new functionality with succession planning by candidate names and positions.  Succession profiles track potential, achievable levels, and retention risk.  Improved enhancements touch absence, benefits, compensation, performance management, and staffing.  Cuba and Guernsey are added as 2 new countries.   Global personal data already supports 297 countries and all UN member nations.   Employee contracts now support Chinese and EMEA requirements.
  • Financials expands horizontal capabilities. Key updates include improved customer contracts, scheduled billing, revenue recognition, and milestone recognition.  New financial reporting features allow cost center and regional managers to run reports.  Users receive new project billing, basic VAT, sales tax, and customer statement capability.
  • Payroll augments existing capability.  New features include new off cycle calculations, worker history enhancements, gross-up, and off cycle billing.  Payroll remains focused on primary processing.  Multiple job processing is not available yet but planned for future releases.
  • Spend management adds a supplier invoice workbench. Additional enhancements span procure to pay, contingent worker procurement, resource tracking, and purchase order review.
  • User experience focuses on role based designs. Worker and talent profiles receive new looks that build off of the design elements in the “All About Me” and “My Team” pages in Release 9.   Multi-currency display for compensation now displays local and preferred currencies.
  • Analytics and reporting simplify data creation and consumption. Simple enhancements such as default values for report inputs, report tags for categorizing and search, and data creation from any source accessible by the user improve the ability to turn data into information.  Export now supports CSV, XML, and GData formats.
  • Ecosystem integration expands to new partners. New linkages include MrTed TalentLink, 15 new providers to the Workday Benefits Network (WBN), and improved integration security in the Enterprise Interface Builder

The Bottom Line – Consider Workday In Shortlists For HCM Upgrade/Replacement And Two Tier ERP

With the bulk of most HCM solutions deployed prior to Y2K, many organizations now actively consider upgrade/replacement strategies.   Most users expect upgrades to result in expensive replacement scenarios.  Hence, organizations must determine whether or not to continue with incumbent vendors or pursue a two-tier ERP apps strategies using SaaS deployment.  For mid-sized to large enterprises, Workday provides a unique option to take a phased approach with HCM and grow into the full suite as the product matures.

Your POV

Are you considering an ERP replacement? Will Workday 10′s new features compel you to migrate from your existing apps?  If you are a Workday customer, how’s your experience been with the SaaS vendor?  Add your comments to the discussion or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity. Please let us know if you need help with your apps strategies.  Here’s how we can help:

  • SaaS/Cloud strategies
  • Crafting your next gen apps strategy
  • Short listing and vendor selection
  • Contract negotiations support
  • Market evaluation

Related resources and links

20100316 The Enterprise System Spectator – Frank Scavo “Workday pushing high-end SaaS for the enterprise”

20100324 InformationWeek – Doug Henschen “Workday 10 boosts HR capabilities”

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

News Analysis: DSAG Project Team Members Resign Leadership of SUGEN KPI Working Group

DSAG project team and project leader departure could signal disagreement with methodology not SUGEN

SAP embarked on an ambitious program to prove value in its Enterprise Support fee hike last year.   As planned, SAP should announce the results for the first set of SUGEN KPI’s in early December.  However, two key SUGEN KPI project sponsors (revised 11/30/2009) team members have left from the German SAP user group (DSAG).  Confirmed by a spokeswoman to IDG News Service on November 27th, 2009, both project leader Andreas Oczko and project sponsor Otto Schell resigned from their roles on November 18th.  Several outcomes may potentially have led to this departure:

  1. The methodology used by the auditing firm (Gartner Consulting) could be quite inconsistent
  2. Teams may not have had enough time to review the data to check for statistical errors.
  3. The KPI’s measured were only the first set, not the complete set.
  4. A few months does not provide enough trending data
  5. SAP’s attempting to announce results prior to when 90%+ of its maintenance renewal occurs in Q4

To be clear, DSAG remains a SUGEN member and has not pulled out of the group or project.  The leadership members have just left the project and have been active with the SUGEN group on other projects and issues.

SAP Should Still Be Given Credit For Undertaking A Huge Endeavor

Despite attempting to raise get away with a large (revised 11/30/2009) maintenance fees hike in the middle of one of the worst global recessions, the SUGEN agreement with SAP is a good faith gesture and a step in the right direction.  While this is not a legally binding agreement, the deal calls for SAP to limit increases until demonstrable results from the KPI’s have been achieved.  This is not an easy challenge but a few props should go out to SAP because:

  1. SAP’s embarking on a risky but unique program to show value
  2. Benchmarking 100 global customers against 10/11 KPI’s creates data consistency challenges
  3. Agreeing to present results in the face of public opinion takes courage

The Bottom Line For Users -  Remain Vigilant And Compare SUGEN Results With Your Own

SAP customers should work with their user groups to understand the methodology used and gain access to the underlying data with these 100 customers.  Keep in mind SAP’s Value Academy already has benchmarking data for a broader set of customers.  The result – selection of the 100 customers by the user groups will significantly impact the outcome.  Users should see how their situation fares compared to the benchmarks to gauge their own potential value achieved from SAP’s Enterprise Support

The Bottom Line For Vendors – Provide Customers With Tiered Maintenance Plans

Pressures from SaaS deployments and mid-market competitors will erode the 70 to 80% margins in maintenance fees.  Customers will begin to demand third party maintenance options and include such protections in future contracts.  Those vendors who keep tiered maintenance based on the life of the product in production will engender the most loyalty by providing customers with the right balance between sustaining maintenance and incentives to upgrade.  At the end of the day, customers have to migrate on their own terms.  Maintenance fees should reflect the value that customers receive and not be an impediment in the client – vendor relationship.

Your POV.

If you get a chance, let us know:

  • Which SAP products do you use?
  • What do you think about the progress on SUGEN KPI’s?
  • Are you considering alternatives to SAP?
  • Do you feel SAP is innovating fast, ok, or slow enough?

Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 2009 R Wang and Insider Associates, LLC. All rights reserved.

Vendor Event: Ariba North American User Conference


Title: Vendor Event: Ariba North American User Conference
Location: The Gaylord Opryland Conference and Resort, Nashville, TN
Link out: Click here

Start Date: 2009-10-11
End Date: 2009-10-14

Registration Link

North American User Conference
Gaylord Opryland Resort and Convention Center
Nashville, TN
October 11 – 14, 2009


The Ariba User Conference will provide you with two days of networking with other Ariba users as well as invaluable opportunities to interact with Ariba product managers, engineers, and solution strategists. From Ariba enablement team leaders to procurement analysts, you will gain the first-hand information you need to be successful in spend management. If you are being charged with delivering results that take your company to new heights in spend management, you can\’t afford to miss the annual Ariba User Conference.

Why should you attend?

The Ariba User Conference is a forum for users to come together and discuss what\’s new and what\’s next for Ariba with respect to their solution, region or industry. You will hear tips on how to better prepare for the next major release and share best practices on solution usage. Ariba will also offer an optional training track at the end of the conference on topics ranging from Sourcing Event Management (Basic and Advanced courses), Contract Management Professional, and Spend Visibility.

This conference is a must-attend for all users to learn, share, and grow with their Ariba spend management solution. This is a unique opportunity to meet with Ariba users from all geographies, solutions and industries, and you do not want to miss it. If you have attended Ariba User Conferences in the past, you know how invaluable the experience is. The upcoming Ariba User Conference will provide more time over the course of two days to connect with an even-wider audience than ever before.

Who should attend?

* Buyers
* Analysts
* Implementation Team
* Technical Staff
* Suppliers
* Department Managers
* Educators and Trainers of Ariba Applications
* Business Owners

User Conference Benefits

* Gain Insight into the Ariba Roadmap Align your spend management plans with Ariba’s direction by hearing from our lead developers, product managers and customer support group.
* Learn New Spend Management Strategies Application tips and tricks; implementation strategies; training practices and upgrade best practices, with a focus on the next major release. Get new ideas from your peers through breakout sessions, panel discussions, social events, and networking throughout the conference.
* Troubleshoot Issues with Technology Experts Bring your issues and questions to the technical support area. Experts will help you work through your problems at the \”Ask Engineering\” stand.
* Share Your Feedback Meet with Ariba product support staff to discuss any of your product support needs while sharing your feedback at the same time. The team leaders will be present onsite at the \”Ask Product Support\” stand.
* Collaborate with Ariba Solutions Experts through Networking and Informal Breakfast Roundtable Discussions Meet with solutions owners and address questions and topics dear to you and your organization over the two days of the conference.

Space is limited and registration is on a first-come, first-served basis!