Organizations tired of traditional ERP-based systems: Survey

Seeking newer talent-based infrastructure to drive business results
|hrreporter.com|Last Updated: 08/30/2011

Most organizations are becoming increasingly frustrated with inadaptable, complex and costly enterprise resource planning (ERP) software, according to a global survey by SumTotal Systems, provider of human capital management (HCM) solutions.

As a result, they are seeking alternate cloud-based solutions that provide deeper and more strategic HCM alignment with integrated core HR capabilities, found the survey spanning multiple market segments across 27 countries.

Legacy ERP and HRMS providers have been too slow to incorporate deep integrated talent management functionality, such as performance, learning, development, succession, compensation, hiring, social collaboration, workforce planning, workforce management and talent analytics, said SumTotal. By a three-to-one ratio, the typical global organization favours moving toward a single best-in-class solution provider over adopting the basic functionality of their legacy ERP provider.

The ideal solution for global HR technology buyers is a complete infrastructure approach — incorporating strategic human capital management functionality including core HR management that serves as the definitive talent-based system of record, said SumTotal. Thirty-four per cent of all HR system buyers now want a single vendor for their HR technology, it said, and with this approach, cross-functional reporting and analytic insight are more easily achieved because all workforce data is in one place.

“Customers have articulated to us that they want to reduce the number of HR technology deployments at their organization, not just to reduce overhead costs but also to simplify the management process of disparate systems,” said John Borgerding, CEO of SumTotal Systems. “Managing a mix of point systems — whether legacy, custom-built or niche deployments — has become untenable from a cost and administration perspective.”

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