As cloud technologies become more prevalent in mission-critical business systems, HR professionals are increasingly asking me whether cloud is the right choice for their HCM processes. Considering the breadth of most HCM practices today – which address a wide variety of operational, strategic, and compliance issues – I believe that cloud is the answer for HCM.
HRIZONS has deep experience in helping companies move from on-premise systems to integrated, cloud-based HCM solutions. We have seen numerous examples of how running HR in the cloud can help enterprises create new efficiencies, enhanced value, and minimize the complexity of their business processes. In fact, many companies use the addition of a cloud-based HR system as a chance to hit the “reset” button on their business solutions and embrace simplicity.
Adding value to HR operations
Cloud solutions enhance efficiency by enabling agility and flexibility beyond what on-premise software offers. With nimble cloud-based HCM platforms, companies can quickly match the needs of their business and workforce. As users become familiar and proficient with the software’s offerings, organizations can begin to add new functionalities such as powerful analytics and reporting. They also can optimize the solution to match it to the maturity of the workforce.
Because the cloud eliminates the need to manage and maintain on-premise software and hardware, it can also generate significant cost savings. Lengthy deployment projects and resource-intensive IT maintenance efforts are replaced by a provisioned cloud solution that’s managed simply. Cloud solutions can be configured rapidly to meet organizational needs and goals, reducing the labor needed for customization and testing. Instead of budgeting for long-term capital expenditures, HR organizations can fund cloud solutions through their operating budget.
This speed to value enables companies to realize new business benefits. And, in addition to reducing IT costs, the cloud enables the business to be more agile and progressive. Because they can readily change or optimize a cloud solution, companies can react in real-time to market opportunities. The flexibility can help organizations realize top-line improvements and margin gains that are impossible with traditional on-premise HR technology.
Some HR executives still have misconceptions about cloud-based solutions. Most of these issues revolve around the ability to customize new HCM technology or to extend customizations from their existing solutions to the cloud platform. Years ago, these concerns were valid. But the growing maturity of cloud solutions virtually eliminates worry. Platform extension solutions – available on the platform from SuccessFactors, an SAP company – afford companies a wide variety of options, such as building and integrating new functionality into the cloud platform (specific to the company or an entire industry). These “extensions” allow HR teams to adapt and precisely meet specific business requirements that go beyond the traditional HCM cloud platform.
Getting ready to run simple
The financial benefits of moving to the cloud are easily quantified. However, less obvious is the often transformative impact of cloud solutions on companies’ ability to simplify their HR processes and simplify their business.
One of our customers, a large, global company based in the Midwestern United States, used SuccessFactors to standardize and simplify its entire performance and rewards process. This standardization included everything from goal management and performance reviews to compensation programs including merits, bonuses, and stock options. By deploying the solution across dozens of countries and meeting the needs of employees in more than 46 languages, our customer unified its HR processes and now delivers an improved user experience in a single integrated HCM cloud solution. Project executives reported that this was the company’s most successful HR and technology project in its history.
Reducing business process complexity is critical. Yet, for most enterprises, HR’s processes are integrated and certainly aren’t simple. HR deals with operational, strategic, and compliance issues across the organization that have a material impact on business success. By deploying a fully integrated, cloud-based HCM platform, HR organizations can create a unified, streamlined user experience and realize benefits by simplifying essential business processes.
HRIZONS enables companies to become best-in-class, talent-based organizations by architecting and implementing integrated human capital management infrastructures, best practices, a programmatic approach to solutions, and cutting-edge cloud HR technology.
HRIZONS is a reseller and consulting partner of SAP SuccessFactors. To explore cloud solutions from SAP, visit our website.