The Human Capitalist

"Instant Gratification of Apps"

I was at a conference recently when the CEO of a SaaS vendor threw up a slide essentially stating what customers want from his company today...."instant gratification of apps".  I love this short but simple synopsis.  This is quickly becoming the new model for both business and consumer applications.

Some attribute this desire for instant gratification to what is now referred to as the "Google Effect" or Google's simplified approach to search which is now propagating through to other, more commercial applications.  I would like to think of it as the design convergence of business and consumer application. Consumers want quick, simple applications that get to their desired state such as instant access to information, immediate purchase of goods or services, or direct connectivity to other users.

Enterprise software vendors have finally realized that those same consumers are using their business applications during the day.  Less is more and smart application companies are focusing on improving the 20% of functionality that customers actual use versus adding on to the 80% functionality that users struggle to find, understand and use.

So what does "instant gratification of apps" really mean?  Here is my 6 critical requirements:

1. Serves the need of every single enterprise user
2. Requires no training
3. Viral affect on adoption and use
4. Limited-to-no IT footprint (translation...does not require individual install and configuration of software)
5. Seamless upgrades (this assumes a more frequent upgrade cycle as well)
6. Delivers immediate value (intrinsic or otherwise)

Ironically, Kleiner Perkins Caufield & Byers, one of the most recognized venture capital firms, lists their criteria of software investment here.

Distractions at Work...

This is just classic.  My favorite part...."I don't bother you at work..."

Why ADP Should Buy Hewitt?

I was recently reading an article in Forbes about ADP's incoming CEO, Gary Butler, and some of the changes that may be in store when he takes over in August.  Although he states in the article that he has, "...minimal interest in acquisitions that are dilutive beyond a year", I would like to throw out why an acquisition of Hewitt may make sense...

• ADP has cash and lots of it (nearly $3 billion at last glance); Hewitt has a strained balance sheet and is basically undervalued at this point (trading at 1x multiple).  Investors want ADP to either start spending the money or return it to the shareholders

• ADP must start investing that cash towards growth opportunities; HRO is a growth opportunity and ADP has proven the ability to build a scalable, profitable business

• ADP is playing catch up in HRO; Hewitt is the recognized market leader (profits withstanding)

• ADP owns the mid-market; Hewitt is strong with F1000

• ADP rules the payroll world; Hewitt's strength resides in benefits and consulting

• ADP is not a technology company; they should not be looking at technology acquisitions (which they have been recently)

Having said all that, acquisitions and especially those of larger proportion, typically fail (78% fail to be precise).  At least worth consideration or some engaging discussion among the industry watchers.

Oracle or SAP - Who Do You Believe?

Oracle says they are taking share in the applications market from SAP.  SAP says they are stealing Oracle customers and increasing market share over Oracle. 

So whose lying?  I haven't looked at the numbers in detail so my default answer is both may be successful in grabbing share in certain applications market.  Here is what I do know though...

• SAP Netweaver (also referred more broadly as the SOA "fabric"...errr...ESA in SAP's sake) is starting to hit its stride after years of hype.  At SAP Sapphire last month, the Netweaver/ESA forums were standing room only; Fusion continues to be the punching bag of the industry, with speculation about its role in the integration of JDE/Oracle/Peoplesoft product still mostly only meaningless chatter from Oracle

• The ecosystem partners will tell you that SAP is out-executing Oracle by a significant margin.  SAP, with its German heritage, was traditionally known as an unfriendly player just a few years ago.  It is the exact opposite today.  SAP's partners rave out their approach and support.  Oracle, on the other hand, is still considered the school-yard bully when it comes to partnering.

• In BPO, SAP has established a significant time-to-market advantage versus Oracle.  As companies continue to look towards BPO providers to support their ongoing technology maintenance and support, SAP has developed a robust partnership model that will be difficult for Oracle to catch up quickly.
  

Maintaining the lucratrive maintenance fees will be critical for both Oracle and SAP, and may be the biggest attribute to recent (and future) earnings as Vinnie points in his recent post at Deal Architect (a blog I recommend by the way.)  I can imagine in some applications markets, specifically those tailored to specific vertical markets such as retail, Oracle is gaining share.  My opinion, though, is while Oracle is still challenged internally, SAP is finally starting to exploit the opportunity in front of them externally.

How Would You Define the Recruiting Process At Your Company?

I want to know.   Please scroll down the blog and fill out the instant poll (on the left side).  The more that respond, the better the results!

Do You Have a Succession Plan in Place?

Based on my recent poll, over 2/3rd (68% to be precise) of companies today have no formal succession planning process in place. 

Keep in mind, this is not scientific nor a formal survey, but simply a pulse of the readers on this blog.  As you will note, only 5% of companies polled have a succession plan at the executive level.

When a Product Upgrade Fails...

I recently downloaded Internet Explorer 7.0 "Beta 2".  I have always used Internet Explorer as my browser of choice and have been generally satisfied with the product.  Immediately after downloading Explorer 7.0, I began exploring the functionality...tabbed browsing, integrated search, RSS feeds, etc. 

My initial feedback...resist the temptation to upgrade your Explorer browser.  It is a piece of crap.  The tabbed browsing sucks and wreaks havoc on the performance of the browser as each new tab is created.  Simple page response times are worse than ever.  You would think Microsoft would assume this important factor into the product design.  The other features have been disappointing in its design and use.  What is most fatal in the new version, though, is that my browser crashed nearly every time I loaded the application.

As a result of my experience, I downloaded and installed Mozilla FireFox for the first time.  I feel like I have wasted my browser experience over the past few years by not using FireFox.  Firefox is noticeably faster than Explorer 6 and Explorer 7 and has most of the features that Explorer 7 is now offering (tabs, integrated search, etc).  Although I am not surprised Microsoft crapped the bed on this one, I am shocked that they haven't realized the seriousness of a lackluster product and the affect it has in today's browser war.

The net-net....our concept of Beta has changed.  Even a beta product today must be "enterprise ready" (although almost any IT guy will tell you not to touch a beta product).  Any hiccups can cause users to immediately find a competitive alternative.

The Vendor Pitch

The good news about my job is that I often get to listen to vendors pitch their products and services.  Personally, I enjoy meeting CEOs that are passionate about their business.  In the HCM technology space, its guys like Derek Mercer at Vurv, Jason Goldberg @ Jobster, Paul Sparta @ Plateau and Lars Dalgaard @ SuccessFactors.

The bad news about the job, though, is that most vendors still do not understand how to "brief" an analyst (I am not calling anyone out specifically, simply making a general statement).  In an effort to make vendor briefings more productive and useful for both parties, I would like to throw out a couple of recommendations...

1) When it comes to the presentation...less is more. When a vendor sees they have 30-45 minutes to educate an analyst about their product or service, most try to shove as much information at you as possible (both public and private companies included).  This includes 40+ slides about the product features and functions down to practically the code level.  I find it much more valuable for myself and hopefully the vendors to keep an interactive dialog.  No more than 12-14 slides is ideal.  I find that the less slideware a company has, the more they actually know about their business (Larry Ellison and Steve Jobs are probably the best about the "less is more" theme).

2) Know your audience. This is "Sales 101" right....I guess not.  I can't tell you the number of times I have seen quotes from IDC or Gartner in a company's pitch to me.  I know, and have, tremendous respect for my colleagues at those firms -- and wouldn't be here if those quotes didn't mean something -- but for god-sake...you wouldn't wear a Red Sox hat into the Yankee Tavern...would you?

3) KISS (Keep It Simple Stupid).  Fancy buzz words make me chuckle.  If I had a nickel for every "innovative, patent-pending, "the only", "next-generation technology solution" that "enables", "maximizes", and "leverages"...blah...blah....blah...".  I am more than happy to be straight-forward with you...please give me the same courtesy.

4) Tell me why you are different.   You'd be surprised how many people don't know how to articulate their differentiation.  Differentiation can mean many things.  Is it your business model, pricing strategy, technology foundation, product functionality, sales execution, market approach, or yes, even the "team"?  If you are not different and are competing in a highly commoditized market, I still want to hear your opinion why you will win.

5) Talk about what makes your customers different.  How are clients different from using your product or service?  We all hear that technology is the "enabler".  Well then..what is it "enabling"?  Does it affect a group, department or is it organization-wide?  Are you clients more profitable than their peers set because of you?

6) Tell me where you are going to be in 3 years.  This is the typical interview questions that I used to hate.  Nonetheless, it is important to understand the ambitions of the company.  Based on my interaction with buyers, most still want to see a vision when they are considering a purchase and, more importantly, want to ensure you will still be around next year and the year after that.

7) Passion can not be faked.  There is an intangible factor to a company that has passion.  Passion can outsell a better product.  Do you have passion for the product/service and is the entire company passionate about changing the market?

The Beauty of the Stanley Cup

I am not a big hockey fan.  In fact, most people aren't these days.  So, just in case you missed it, the Caroline Hurricanes became Stanley Cup champs last night.  What I really love, though, is the aura around the Stanley Cup trophy itself.

In the middle of the 1st quarter (sorry) period, the broadcast cut over to a guy getting out of a limo, with his white gloves on, and gently grabs the trophy from out of the back seat.  An image of class and distinction.

Does the league not know what happens to that trophy following the last game of the season?  Not only does each player, front office person, family member (and everyone in between) touch, feel and grope the trophy immediately following the game.  That evening is when the real festivities begin...and the 11 months that proceed showcase why we really love the Stanley Cup.

6 Traits of the Next-Generation HR Leader

Because 7 is too many and 5 is not enough.  Thoughts and comments recommended...

1) Can manage complex teams of employees, partners and vendors.  HR departments are morphing into diverse, complex organizations that include support from outsourcing providers, technology vendors, third-party recruiters, internal workers, contingent employees, etc.  Management skills of employees and non-employees is critical to success.

2) Knows how his strategy (and execution of that strategy) is impacting the financial performance of the business.  I speak to many HR executives on a weekly basis.  It is my estimate that most, especially those in mid-to-small businesses, still cannot articulate how they impact the balance sheet.  HR executives must be able to define what the key metrics and performance indicators are for the HR organizations and how their decisions impact the business. 

3) Uses analytics to manage his business.  Most HR executives and managers use analytics to justify their own existence...can you say, "Time to Hire".  The use of analytics will quickly determine "who gets it" versus those just filling a role.  Metrics and dashboards are not simply to see how fast you are going or how much gas is in the tank but what the road looks like in 5, 10 &100 miles and provide detours in the case of roadblocks, weather conditions, and schedule changes.

4) Creates a flexible work environment and is capable of managing change.  Change management is becoming a critical competency for HR leaders. Ever-changing regulatory and compliance issues, complex outsourcing relationships and global workforce dynamics and policies require HR organizations to become more flexible than ever.  Workforce planning will quickly become a top issue in HR and organizations must structure the business to adapt on-the-fly.

5) Capable of selling his strategy throughout the organization.  As a former Fortune 500 CEO once told me..."if you are not out selling, you are sitting on your ass!"  HR leaders are no exception.  HR must sell their vision within the organization and get buy-off throughout the organization from the top leadership down to each individual employee.  HR should not be feared but embraced.

6) Understands technology and how to deliver technology to an enterprise.  Technology is becoming an increasingly important influence on HR departments.  SaaS vendors are quickly becoming not just technology enablers but can provide best practices based on functionality delivered and intelligence that is leverage within the solution.  HR technology decision-makers must focus on simplified usability in an effort to gain user support and adoption.