Vendor Landscape Talent Management Suites Effectively manage your

Vendor Landscape: Talent Management Suites Effectively manage your workforce from hire to retire with an end-to-end talent management solution. Mc. Lean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a Mc. Lean & Company is a research and advisory firm providing practical solutions to human resources challenges©via executable research, tools and advice that clear and measurable impact on your business. 1997 -2013 Mc. Lean & Company. have a clear and measurable impact on your business. © 1997 - 2013 Mclean & Company. Mc. Lean & Company is a division of Info-Tech Group Mc. Lean & Company is a division of Info-Tech Research Group Research Inc. Vendor Landscape: Talent Management Suites 1

Introduction Talent Management (TM) suites are an end-to-end solution; they generally cover recruitment, performance management, learning, and compensation. This Research Is Designed For: This Research Will Help You: üEnterprises seeking to select a solution for üUnderstand what’s new in the talent Talent Management. üTheir talent management use case may include: management market. üEvaluate talent management vendors and products for your enterprise needs. • Current implementation of an end-to-end talent management suite. • Current implementation of a module or modules of a talent management suite with the option to implement other modules in the future. Vendor Landscape: Talent Management Suites üDetermine which products are most appropriate for particular use cases and scenarios. 2

Executive Summary Mc. Lean & Company evaluated 10 competitors in the talent management market, including the following notable performers: Champions: • Sum. Total - This talent management suite offers robust succession planning and workforce planning modules, as well as Salesforce. com integration, best-fit analytics packages, and a choice of deployment options. • Cornerstone On. Demand – This Software as a Service (Saa. S) talent management suite is appealing, intuitive, and robust. Its single code base is evident in the interoperability of, and seamless flow between, its three core modules. • HRsmart – This Saa. S talent management suite offers a highly intuitive user interface and full mobile device support, as well as full pay equity analysis functionality. • Kenexa (IBM) – This talent management suite offers full functionality, including comprehensive competency libraries and management tools, skill gap identification, learning tied to competencies, and full pay equity analysis capabilities. Mc. Lean & Company Insight 1. User interface appeal and intuitiveness areas of focus for most vendors. The commoditization of the talent management market means that even advanced features are becoming expected; users will be drawn to the experience offered by the suite; appeal and usability both play a large role in that experience. 2. Social and mobile functionality will become more important as customer use catches up with product capability. Almost all vendors offer social and mobile functionality, but the depth of their offering varies substantively. As customers begin to design more interactive virtual environments for their employees – ideally accessible from anywhere – a robust social and mobile offering will be table stakes. Trend Setter Award: • Kenexa (IBM) – Comp. Analyst Market Data, an add-on module, is a robust engine that pulls market rate information from multiple employer-reported data sources. It is an exceptional tool for establishing and reviewing salaries for market competitiveness. Vendor Landscape: Talent Management Suites 3

Market Overview How it got here Where it’s going • Over the last number of years, the talent management market has experienced widespread consolidation; larger talent management vendors have bought up niche players and large ERP vendors have begun purchasing talent management suites. As a result, talent management competition in the mid-market is now dominated by large, established multi-nationals with a broad user base and extensive resources. • Social and mobile functionality both continue to gain momentum because of their end-user appeal and their ability to drive usage across the platform. Organizations should carefully consider their short-term social and mobile requirements before focusing too heavily on these functionalities; vendor offerings will improve across the board over the next few years. • Advanced reporting and analytics functionality that allows the integration of data points from separate modules has become a point of differentiation for some vendors. Only organizations with sophisticated reporting needs will be drawn to this functionality; basic functionality should be able to serve the needs of a majority of organizations. • Vendors that have a suite which contains disparate pieces obtained through acquisition will work toward even more robust back-end integration between modules to ensure the user experience is seamless. • Some vendors, like Cornerstone, offer fully homegrown solutions, but the vast majority are a result of acquisitions. For vendors in the latter group, their legacy product tends to be their strongest, though this is changing; these vendors are focused on creating suites that are uniform in look and feel. As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. Automated routing has become a Table Stakes capability and should no longer be used to differentiate solutions. Instead focus on getting the best fit for your requirements. Vendor Landscape: Talent Management Suites 4

Talent Management vendor selection / knock-out criteria: market share, mind share, and platform coverage For this Vendor Landscape, Mc. Lean & Company focused on those vendors that offer broad capabilities across multiple platforms and that have a strong market presence and/or reputational presence among mid and large-sized enterprises. To be considered inclusion, vendors had to offer performance Included in this Vendorfor Landscape: and Cornerstone learning. Integrated modules, as& well as a recruitment module, a • management Cornerstone On. Demand. Learning Talent Management Suite. compensation module, or both. • Halogen Software. Strategic Talent Management Suite. • HRsmart. Unified Talent Management Suite. • Kenexa (IBM). Kenexa 2 x Talent Management Suite. • Lumesse. Integrated Talent Management. • Oracle Taleo. Cloud Service. • Saba Software. Saba People Cloud. • Success. Factors (SAP). Business Execution Suite • Silk. Road. Life Suite. • Sum. Total Systems. Sum. Total Talent Platform. Vendor Landscape: Talent Management Suites 5

Talent Management Suite criteria & weighting factors Product Evaluation Criteria Features The solution provides basic and advanced feature/functionality. Usability The solution’s dashboard and reporting tools are intuitive and easy to use. Affordability The three year TCO of the solution is economical. Architecture The delivery method of the solution aligns with what is expected within the space. Criteria Weighting: Features Architecture Usability Affordability* Product Vendor Evaluation Criteria Viability Strategy Reach Channel Vendor is profitable, knowledgeable, and will be around for the long-term. Vendor is committed to the space and has a future product and portfolio roadmap. Vendor Viability Strategy Vendor offers global coverage and is able to sell and provide post-sales support. Vendor channel strategy is appropriate and the channels themselves are strong. *Affordability was weighted 0 and not scored in this Vendor Landscape: Talent Management Suites Channel Reach 6

Table Stakes represent the minimum standard; without these, a product doesn’t even get reviewed The Table Stakes What Does This Mean? Feature The products assessed in this Vendor Landscape. TM meet, at the very least, the requirements outlined as Table Stakes. What it is: Platform breadth Vendors must offer a performance management module and a learning management module, as well as a minimum of one of either recruitment or compensation. Saa. S deployment option Software as a Service (Saa. S) must be an available deployment option and is increasingly the deployment option of choice for talent management customers. Automated routing All modules must allow administrators and/or managers to set up automated routing of tasks and approvals. Many of the vendors go above and beyond the outlined Table Stakes, some even do so in multiple categories. This section aims to highlight the products’ capabilities in excess of the criteria listed here. If Table Stakes are all you need from your talent management suite, the only true differentiator for the organization is price. Otherwise, dig deeper to find the best price to value for your needs. Vendor Landscape: Talent Management Suites 7

Advanced Features are the capabilities that allow for granular market differentiation Scoring Methodology Mc. Lean & Company scored each vendor’s features offering as a summation of their individual scores across the listed advanced features. For the first four items, vendors were given 1 point for each feature the product inherently provided in all modules of the suite and half a point for each feature provided in part of the suite (1 or more modules). For the last four items, vendors were given 1 point for having the feature and half a point if they had partial capability. Advanced Features What we looked for: Feature Analytics Mobile End-user interface customization Social Advanced analytics and reporting. Mobile device support. End-user interface customization capability. Social functionality. Workforce planning functionality. Succession planning functionality. Skills tracking Skills and competencies tracking. Pay equity analysis Internal and external pay equity analysis capability. For an explanation of how Advanced Features are determined, see Information Presentation – Feature Ranks (Stop Lights) in the Appendix. Vendor Landscape: Talent Management Suites 8

Identify leading candidates with the Talent Management Suites Vendor Shortlist Tool The Mc. Lean & Company Talent Management Suites Vendor Shortlist Tool is designed to generate a customized shortlist of vendors based on your key priorities. This tool offers the ability to modify: • Overall Vendor vs. Product Weightings • Individual product criteria weightings: ü Features ü Usability ü Affordability ü Architecture • Individual vendor criteria weightings: ü Viability ü Strategy ü Reach ü Channel Vendor Landscape: Talent Management Suites 9

Appendix 1. Vendor Landscape Methodology: Overview 2. Vendor Landscape Methodology: Product Selection & Information Gathering 3. Vendor Landscape Methodology: Scoring 4. Vendor Landscape Methodology: Information Presentation 5. Vendor Landscape Methodology: Fact Check & Publication 6. Product Pricing Scenario Vendor Landscape: Talent Management Suites 10

Vendor Landscape Methodology: Overview Mc. Lean & Company’s Vendor Landscapes are research materials that review a particular HR market space, evaluating the strengths and abilities of both the products available in that space, as well as the vendors of those products. These materials are created by a team of dedicated analysts operating under the direction of a senior subject matter expert over a period of six weeks. Evaluations weigh selected vendors and their products (collectively “solutions”) on the following eight criteria to determine overall standing: • Features: The presence of advanced and market-differentiating capabilities. • Usability: The intuitiveness, power, and integrated nature of administrative consoles and client software components. • Affordability: The three-year total cost of ownership of the solution. • Architecture: The degree of integration with the vendor’s other tools, flexibility of deployment, and breadth of platform applicability. • Viability: The stability of the company as measured by its history in the market, the size of its client base, and its financial performance. • Strategy: The commitment to both the market-space, as well as to the various sized clients (small, mid-sized, and enterprise clients). • Reach: The ability of the vendor to support its products on a global scale. • Channel: The measure of the size of the vendor’s channel partner program, as well as any channel strengthening strategies. Evaluated solutions are plotted on a standard two by two matrix: • Champions: Both the product and the vendor receive scores that are above the average score for the evaluated group. • Innovators: The product receives a score that is above the average score for the evaluated group, but the vendor receives a score that is below the average score for the evaluated group. • Market Pillars: The product receives a score that is below the average score for the evaluated group, but the vendor receives a score that is above the average score for the evaluated group. • Emerging Players: Both the product and the vendor receive scores that are below the average score for the evaluated group. Mc. Lean & Company’s Vendor Landscapes are researched and produced according to a strictly adhered to process that includes the following steps: • Vendor/product selection • Information gathering • Vendor/product scoring • Information presentation • Fact checking • Publication This document outlines how each of these steps is conducted. Vendor Landscape: Talent Management Suites 11

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