I have recently spoken about HRIT and SaaS already but now I feel that there is still much more to that topic than I have written before. When you think about HRIT and SaaS I believe that at least 90% of you are thinking Workday or SuccessFactors. That is my experience. Also, when you speak to consultants, this is what you get as an answer – take Workday or SuccessFactors, maybe Oracle Fusion. But that’s it. But if I look into the history of not only HRIT, but also consumer technology I must wonder if this still is the right answer. In addition, the clearness of consulting advice you get towards these two/ three solutions makes me cautious.
Think about consumer tech. Since the Apple iPhone introduction which is celebrating its 10 year anniversary next year (yes, time flies, and also yes – 10 years ago there were no real smartphones!), we are on a path of convergence. Most of our technology, most of our daily tech interaction is with the iPhone or any other smartphone for that matter:
- Consumer grade cameras and also video cameras are or have been replaced by the phone
- The Walkman, Discman, MP3 player as a separate device has disappeared and was replaced by the phone
- Your landline phone has disappeared
- You are utilizing your computer much less for internet browsing or similar
- Your TV or home Hi Fi system remote controls have merged into the Phone
- There is an App for everything
- and more and more and more
In essence, the phone was becoming (and still is) the monolithic device that steers our lives and that we would probably miss most if we lost it. However, this trend is rapidly changing. The App industry is going down, phones now are turning modular (see here or here) or are enriched with additional, separate tech tools. The consumer tech industry is bringing back gadgets, Apps are no longer a lasting business model (except for the global big players). After 10 years of convergence, the phone is exploding and bringing back gadgets that are not multi-purpose, but specialized, that are not ok to use, but the best for a specific use-case.
And now think about the history of HR tech. The real HR tech started truly with systems like SAP HCM or (Oracle) PeopleSoft. These systems started out as “better” payrolls and converged into monolithic HCM suites for any use-case of data admin, payroll, recruiting, performance management, self-service, etc. But at some point in the years of 2000 (more towards the middle and end), these monoliths were “exploding” and the newest trend in HR tech was “best-of-breed”. You did still use your HCM monolith, but only for some core applications and only because it was the knot that hold everything together. But you mainly worked in specialized Apps for Learning, Performance Management, Recruiting, etc.
Today, it seems like we are again for a long time – at least for the last 5-6 years – back with monolithic systems. It is just that they are called different now (SuccessFactors, Workday, Fusion). But why should we be at any different point than consumer tech today or HR tech 10 years ago? – I actually believe that we are even closer to the explosion in HR tech than in consumer tech. Why so? – we are at the perfect storm of two catalysts joining up:
- HR significantly evolving and repurposing important topics like engagement, performance, compensation, succession, learning
- Tech significantly evolving with a multitude of start-ups that are now no longer consumer focussed, but B2B focused like tinypulse.com or everwise.com
This perfect storm will bring up the question of how the new monoliths can integrate with best-of-breed, and that at a faster pace and probably not with standardized interfaces to connect and exchange data. It will bring up the question of how we should think and prepare for that future – today.
Chief HR Officer 