Posted on Thu, Feb 16, 2012 @ 11:43 AM
By Edward Jackson, President
I recently had the opportunity to host an HR.com webinar to show how VMS can be enabled to do true workforce management beyond just spend management. With third party labor comprising now almost half the workforce, VMS is a critical tool to help manage this workforce. It’s important to know who is in your enterprise and to make sound business decisions for long-term tenure use. Make sure to see the whole picture – the total workforce.
In the webinar, I discussed the following VMS solutions, including:
- Identity management
- Tenure management
- On/Off boarding and provisioning/de-provisioning
- Compliance and audit of all third party workforce
- Total workforce visibility
Watch an archive of the webinar here.
Posted on Mon, Feb 13, 2012 @ 12:32 PM
By Edward Jackson, President
Larry Ellison stated that Oracle was slowing down on M&A a year ago. At the time, he made the remark of SaaS that “If you look at the leader, Salesforce.com, they don’t make very much money and they’ve been at it for almost 10 years.” Now enter Taleo acquisition yesterday which is very much a poster board SaaS company and cited in most SaaS company benchmarks. One quick reaction is this is simply a “me too” response to SAP’s acquisition of SuccessFactors. However, I think it a combination of both a need to respond to SAP’s bold move as well as a growing acceptance (…and acquisition) of cloud/SaaS based companies. It is a new era in the M&A tent at Oracle for sure.
For us at Provade, we see a strong opportunity to continue our all Oracle focus. Oracle’s acquisition of Taleo not only strengthens the ‘red’ stack offering, but makes it a dominant player particularly when combined with its other HCM offerings such as iRecruit (eBusiness Suite) and Talent Management (PeopleSoft). This acquisition should make Oracle THE dominant ATS and recruiting provider in the market place.
Here at Provade, we look forward to extending integrations into Taleo and supporting our Oracle based customers on such. It has long been my belief that the poor man versions of ATS/Recruiting that exist in some of the VMS tools would never be a match to Taleo. With Oracle’s acquisition of Taleo, it is hard to debate the utility of inferior functionality vis a vis the leading tool in the market with the might and backing of Oracle. We look forward to the close of the transaction this summer and the deeper ties that will bring with our Oracle product partnership and this exciting new acquisition.
Posted on Thu, Jan 26, 2012 @ 01:04 PM
By Peter Parks, Vice President of Product Management
When implementing a VMS one of the key considerations is whether to integrate. This is not as simple as, “should we integrate?,” but rather a series of questions – should we integrate with HR, should we do SSO, should we integrate POs, PPM, etc.
The question that gets the most attention is typically PO integration. It is often billed as a silver bullet, delivering efficiency and control. But as with many sales pitches, there is much more to the story.
All mature procurement systems (Oracle, PeopleSoft, JDE, SAP, Ariba, Coupa, etc.) support a standard for PO integration. The most common, Punch-out/cXML, is typical in the functionality it offers. From a user accessing the VMS through SSO through the end process of a PO being created and dispatched back to the VMS. Shazam! Mr. Customer, you now have total control over spend because your procurement system and the VMS are in lock step. And the best part is that the VMS will ensure there is no overbilling. And that’s where the story typically ends.
However, when procuring services, the story does not end there. Does this sound familiar?
Two months after a contractor’s assignment begins, the contractor receives a raise or is extended and a change order is required.
If your PO integration ended with the dispatch, then let the games begin. In the best case scenario the VMS has been configured with sufficient alerts to inform the hiring manager and supplier that the assignment is approaching its scheduled end or that the funds are nearing full consumption. Even with those helpful reminders in place, there is still a manual process required to get the extension processed.
In an ideal environment, the process begins in the VMS because it has all of the data and logic to guide the hiring manager to an appropriate extension amount based on the bill rate and duration of the assignment (back to that efficiency and control idea).
In practice however, it often begins with the hiring manager going straight to the system he knows actually controls spending authority – his own procurement system. Unaided by the guidance the VMS provides, the hiring manager takes a stab at how much more funding he will need to complete the assignment. When the extension is approved there is typically no notification sent to the VMS or MSP. And if the extension is approved for less than the actual cost, what is adjusted in the VMS? Either way, you are going to run out of something – time or money.
On the flip side, if you extend for the true duration and amount then you are in danger of overbilling. The result is always the same – a tremendous amount of manual reconciliation, emails and phone calls, some overbilling and overall discontent with the process and the system.
It does not have to be this way! These issues can be alleviated with the integrated change order. Depending on the procurement system, there can be several ways of accomplishing it: re-punch-out, supplier-initiated changes or messaging. The key to an integrated change order is to utilize the VMS to build the change order because it is the VMS that contains the logic to do an accurate projection of the cost of an extension.
Initiating changes in the VMS also enables the VMS to submit a change request to the customer’s procurement system, only when it results in a request for increased funding. It also drives a more consistent experience for the hiring manager - there is only one system to go to for all services spend, whether new or extended.
True nirvana in VMS integrations is a fully integrated change order. The hard and soft savings to the customer and the MSP are significant, leaving more resources and energy to focus on the elements of the program that drive true excellence.
Posted on Thu, Jan 19, 2012 @ 09:16 AM
On Tuesday January 31, Provade's President Edward Jackson will be presenting a webinar with HR.com titled "Enabling VMS to do true workforce management."
Many HR managers know of VMS as a system to help procure and manage contingent labor. Typically, the 'manage' part is usually spend management focused and tends to be the common key driver of a Procurement organizations initiative to utilize a VMS tool. However, VMS offers significant opportunities for HR beyond spend management benefits including:
• Identity management
• Tenure management
• On/Off boarding and provisioning/de-provisioning
• Compliance and audit of all third party workforce
• Total workforce visibility
With contingent labor going from less than 5% of the enterprise workforce fifteen years ago to being an average of 50% of the enterprise workforce within the next five years, HR can take a leadership role in utilizing VMS tools beyond spend management needs.
If you are already a member of HR.com, please login to register for the webcast. If you are not a member of HR.com, you will need to sign up for a FREE HR.com membership, this will only take you a moment to fill in the required information. Once you have confirmation of your membership, you will be able to register for this complimentary webcast.
Learn more about the webinar and register today by visiting HR.com.
Posted on Mon, Nov 14, 2011 @ 11:44 AM
By Peter Parks, Vice President of Product Management
In the world of VMS there are no viable off-the-shelf ERP options. Companies must either do a costly customized implementation or go to a SaaS provider, causing deviation from the best practice of a single stack. As the world moves toward the cloud, the ideal arrangement would be a SaaS provider whose infrastructure mirrors your own. It is widely accepted that there is parity among the major VMS players on the end-to-end functionality (req-to-check). This means that differentiation – true advantage – will be found elsewhere. For a SaaS provider, that elsewhere is in their ability to seamlessly integrate into your own stack.
Beginning with single sign-on, through sharing of control data (departments, locations, project/activity breakdown, workflow and hierarchy) and collaborative business processes, it is your VMS provider’s ability to be one with your systems that will drive true value. Utilization of web services will enable you to maintain ownership of master data while realizing the full benefit of its use in the services procurement process. But the effectiveness and efficiency of those web services will be heavily impacted by the system with which you are interacting. The less your VMS has to transform and interpret your data and its structure/format, the more beneficial those integrations will be.
And it is your VMS provider’s fundamental knowledge of your systems that will enable them to craft the most efficient and interactive integration scenario. If they are maintaining the same applications, they will be much more capable of implementing a solution that truly compliments your infrastructure and makes the most of every module, from end-to-end.
A logical next step for our industry will be the development of stack-specific VMS offerings. Whether you are running Oracle or SAP, look for the VMS that can seamlessly interact with your own systems, thus driving efficiency and greatly reducing maintenance costs on a recurring basis. Look for the provider whose own resources have implemented the very same Purchasing, HR, Projects, Financials and Business Intelligence you are running internally, not just once but multiple times. Build on your investment rather than try to bolt onto it.
It is understandable that companies get into the situation of hosting disparate components internally. You can’t always take the time to merge business units onto a single platform when consummating a merger. But when selecting a VMS you always have the time to make the right selection.
When there is a compatible option, go with it.
Posted on Tue, Nov 01, 2011 @ 11:57 AM
By Peter Parks, Vice President of Product Management
When an enterprise invests in technology, the ideal situation is to take a holistic approach. The “dream” scenario would include the foresight to implement a leading ERP that could address your business needs end-to-end. From employee portals to Procurement/Purchasing, HR, Projects, Financials and Business Intelligence, a single system that is natively integrated would provide significant benefits, including:
- Ease of use:
- Employees have a consistent user experience as they perform tasks, update profiles, make purchases and do their daily work. No longer will they suffer from the disorientation of jumping from one solution to another.
- Reduced cost:
- Efforts to integrate disparate systems are eliminated.
- On-going maintenance is greatly reduced. Upgrades can be done more efficiently when working on a single platform.
- By making a bulk purchase, the enterprise realizes a volume discount rather than buying separately and paying a premium on each purchase.
- Greater flexibility:
- Features in one module are often dependent on an adjoining module. Cross-component features are designed by the vendor with the assumption that the customer will be using a single stack. The single stack approach empowers you to leverage the maximum functionality.
- Influence:
- ERP roadmaps are influenced most heavily by larger customers and those who are customers of multiple components from a single software vendor.
Sounds wonderful, does it not? Every company should be implementing a single system. But the reality is that companies grow, organically and through M&A, and have not been able to adhere to the best practice of a single stack of core applications. The typical Fortune 1000 company is not living in this technological nirvana. They often are customers to more than one of the big enterprise providers (Oracle and SAP) and have a healthy showing of medium size applications thrown in there. You will find redundancies; running Oracle Financials in the Americas and SAP Financials in EMEA, for example. No matter where you look, you find the home-grown systems – nobody can remember when they were built or by whom, and they have been in maintenance mode for years.
As enterprises continue to search for opportunities to reduce costs and drive efficiencies, more and more are launching initiatives to implement the single stack. The money lost by keeping dozens of disparate systems connected can be redirected to the replacement of niche tools with true enterprise components that are compatible with their primary systems. As they get closer to the unified vision, tenuous integrations are replaced by native connections across modules. Previously unusable features can be turned-on and efficiencies are gained.
Nirvana is no longer a fantasy, it is a vision on the horizon.
Posted on Fri, Sep 30, 2011 @ 11:30 AM
By Edward Jackson, President
With October right around the corner, the Provade team is looking forward to attending SIA’s Contingent Workforce Strategies Summit in Las Vegas, NV. This year’s Summit focuses on the next generation of contingent work and will provide key performance indicators guaranteed to make a positive impact on contingent workforce management. We will be presenting our recommendations on getting the most out of your VMS during a roundtable discussion being held on Tuesday, October 4.
If you’re headed to the Summit, be sure to stop by our booth, #203. The Provade team – James “Jamie” Parker, Peter Parks, Kate Dyer and myself are all looking forward to meeting with you and discussing your VMS needs.
Did we mention the chance to win $1,000 in casino chips just by visiting our booth and providing us with your business card?
If you can’t join us in person, follow @Provade on Twitter for live posts during the conference.
We look forward to seeing you there!
Posted on Thu, Jul 28, 2011 @ 08:55 AM
By Edward Jackson, President
As the demand for actionable business intelligence grows at today's leading corporations, the focus for information leaders is finding the best way to fold niche applications into their existing ERP platform. The ultimate goal is to eliminate information silos to the greatest extent possible so that executives can view their organization in a more complete, holistic way.
Cloud-based applications have clear advantages in terms of upfront costs and speed of implementation, although the thought of integrating SaaS with on-premise systems puts some CIOs in a cold sweat. Common concerns include connectivity issues and the security of sensitive business data. These are all valid considerations, although frequently the perception is a lot scarier than the reality.
A number of SaaS providers are offering technology that can be integrated "out of the box" with common ERP systems such as Oracle and SAP, eliminating the need for time-consuming interface development. Applications built on an enterprise architecture also enable many of the rich features offered by the "parent" software. Security is another key concern for information leaders, as it should be. The fact is that most large companies have their data off-site already, and their encryption and security protocols may not be as strict as those enforced by the on-demand software vendor. Often, the more questions a client will ask about a vendor's privacy and security features, the quicker it disappears as a worry.
As these issues are addressed, the benefits of cloud-based software become apparent, particularly for key administrative functions such as HR, accounting and procurement. Major companies, typically aren't ready to invest in large upfront outlays for new applications. The generally high cost of upgrades only adds to that challenge. By utilizing hardware more efficiently and charging clients based on actual use, on-demand applications help on both these fronts.
Rather than worrying about data center and equipment issues, IT personnel are freed up to do tasks that actually add value to the organization, such as improving reporting capabilities. Perhaps the quickest converts to on-demand apps are front-users, who gravitate toward the familiar feel and more intuitive layout of a web-based program.
Just because your enterprise software is on-premise doesn't mean your company has to build out its data management capabilities using that approach. Given the budgetary and workforce limitations most organizations are faced with today, the agility and value of SaaS makes a compelling case.
Posted on Mon, May 30, 2011 @ 01:06 PM
by Kate Dyer, Vice President Strategic Accounts
In a few previous blog posts I talked about the importance of defining and measuring metrics that give your organization true, actionable intelligence and insights into your non-employee workforce. A VMS with strong analytics functionality will deliver the data, reports, scorecards and dashboards that provide the foundation for business intelligence, the next step is to turn those insights into action.
The typical venue in which business intelligence data is reviewed, analyzed and discussed is in a quarterly business review (QBR). One trend we are seeing, is a shift from QBR’s being focused on reviewing where the program has been, to where it needs to go.
One key component of a forward-looking strategy is to ensure you adjust the metrics and key performance indicators (KPIs) that you measure, and how you measure them. This enables you to track if/how you are meeting your objectives as they change.
Defining and measuring KPIs is a process and not a single event. As your business objectives change, the business landscape and the contingent labor market changes. One of the best strategies I have seen for managing these changes is to have a quarterly evaluation of KPI prioritization. One client uses a 20-10-2 strategy. They track 20 KPIs - 10 are the quarterly focus and 2 are the strategic priorities. The KPIs shift each quarter as their business and the market changes. The client also tracks 2-3 additional KPIs that are either a redefinition on existing KPIs or new KPIs. This approach enables the client to use the power of VMS analytics and continually adapt to their objectives. At the end of the day, they are able to turn that business intelligence into results that drive business improvement.
The take-away is implementing a best practice to consistently re-evaluate and change KPI definitions, targets and priorities to ensure delivery of the best performance, quality and cost savings results. Having a VMS that will support these changes and deliver a comprehensive suite of analytics is key to having the business intelligence data at your fingertips to take action.
Posted on Wed, May 18, 2011 @ 11:10 AM
by Peter Parks, Director of Product Strategy
In a recent blog post, MSP or Self-Managed Program: 5 Factors to Evaluate (Part 1), I provided two factors to examine when deciding to go with an MSP or self-managed program. Here are three more factors to consider:
Diversity of Requirements
How many different types of services are you procuring? A manufacturing facility with a single large location including both production and administrative may be able to function very well managing a few key suppliers. But a company with many operating units, even if relatively centralized, and a wide diversity of skill requirements (LI, admin, IT, off-shore, 1099, payroll, marketing, SOW, etc.) starts to look like an MSP candidate. Maintaining the right mix of suppliers who offer all of the skills and services you require to run your business can be daunting and requires constant attention and experience in the evolving market.
Experience
How have you traditionally managed your services suppliers? Have you maintained a limited list of suppliers, are your contracts standardized, are your end users compliant and satisfied with the performance of your program? If you can honestly answer yes to these questions, maybe the introduction of VMS technology is sufficient to realize savings and improvement. If you are not comfortable with the answers to these questions then outside help is likely necessary.
Culture
Is your company one that fosters a high degree of self service, bottom-up initiative and individual creativity (often referred to in our world as “the Wild Wild West”), or is yours an organization that has well defined guidelines and enforced reporting structures? Although an MSP may be frustrated in the Wild West, so might you if you were to attempt a self-managed program. While the MSP might not be able to achieve all of the expected savings and improvements in a more creative environment, there is value in having someone to take the brunt of the program management. In more conservative organizations there may be a greater chance for true success in self-management.
The benefits offered by MSPs are well documented and proven. But, in order to realize those benefits you must fit a certain profile. We have some large customers who very successfully self-manage. Although they have over $100 million in annual spend, they are centralized, experienced and run a program as if they were an MSP. A large, categorically diverse, dispersed program would very likely benefit from MSP involvement, but you should never make the assumption – examine your program and create your own assessment. If you choose to go with an MSP, you should ask more questions, like should the MSP also be a supplier, or do we have one global MSP or do we need the MSP involved in all of our services procurement? Do a thorough and honest assessment because this decision can make or break your program.