Dell’s Strategy to Bring Game-Changing Technologies to SMBs

This is the second post in a two-part blog series discussing Dell’s strategy to help SMBs better capitalize on technology. The first, A New Cloud Formation: Dell Cloud Marketplaceprovides perspectives from Dell World 2014. This second post, which is excerpted from SMB Group’s April 2014 report, Guiding Stars: Vendor Strategies to Bring Game-Changing Technology Trends to SMBs, offers additional insights into Dell’s approach to help SMBs capitalize on technology trends.

delllogoThe writing is on the wall for any business: With customers and prospects racing into the digital, mobile, and social future at breakneck speed, SMBs must proactively deploy technology to improve both business processes and the customer experience. SMBs that figure out how to use technology to stay ahead of their customers’ demands will thrive, while those that don’t face extinction.

But there are lots of vendors and solutions out there ready to help you on your journey, and one-size-fit all doesn’t apply in SMB. Is Dell a good fit for you? Read on for information and insights to help you decide.

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Dell’s Strategy to Bring Game Changing Technologies to SMBs

Dell sees cloud, mobile, social, analytics and other technologies converging towards the next pivotal tipping point, where IT will change the lives and experiences of nearly every industry, country and person on the planet.

Dell articulates its view on top technology trends somewhat differently than other vendors interviewed for this report. However, the same technology trends—cloud, analytics, social, mobile and security—are core to Dell’s top picks. Dell sees the following trends ushering in new wave of business transformation, similar or greater in scope to how the Internet and web affected businesses:

  1. People will increasingly rely on technology to connect, collaborate and accomplish tasks and goals. Embedded in user-friendly solutions, cloud, social and mobile technologies enable SMBs to connect, collaborate and engage anytime, anywhere to better serve their customers and to work more efficiently.
  2. IT is changing from a support function to becoming core most business operations, and business decision-makers are increasingly involved in IT decisions to ensure the business gets the value it needs from IT.
  3. Amidst the growing volumes of structured unstructured data, SMBs that have the rights tools to find the needles in the haystack and uncover useful, actionable information and insights will gain competitive and market advantages.
  4. As SMBs rely more on technology to run their businesses and engage with customers, partners, suppliers and others, taking measures to secure and protect data, information and access are increasingly essential to business viability.

Some of the tangible ways that Dell is helping SMBs capitalize on these changes include:

  • Becoming an über-cloud provider: Dell has been steadily expanding the Dell Cloud Partner Program to provide access and end-to-end support for offerings from multiple cloud vendors.
  • Offering open, private-cloud solutions, which should help give SMBs more confidence in using OpenStack as an alternative to proprietary IaaS and PaaS (infrastructure and platform as-a-service) alternatives.
  • Expanding portfolio of mobile management solutions, such as Enterprise Mobility Management, a unified mobile management solution to managed devices, apps, and content, and Secure Remote Access Gateway to protect endpoints.
  • New intellectual property gained from acquisitions such as SonicWALL, Quest, Boomi, Compellent and Force10 is skewed towards the SMB world. In fact, Dell views SMB and midmarket as an ideal focal point for development and acquisitions since it believes large organizations also want scalable solutions that are easier to deploy and use too.

Changes in SMB Technology Expectations and Behavior 

Fueled by the web, mobile and social access, Dell sees changes in how SMBs evaluate and shop for solutions. Today, SMBs are more prone to have done their homework before they come to the sales table. Armed with a greater understanding upfront, they are looking for vendors and partners that will listen to what they are trying to do and offer authentic, objective and knowledgeable guidance. In addition, Dell believes that simply doing the right things for people works. To that end, Dell prefers having its customers tell its story rather than Dell telling it. For example, Dell cites the tornado damage in Oklahoma City last spring, where Dell served as a first responder, as exemplifying its commitment to doing the right thing to earn customers’ faith in Dell.

Dell sees both the role of SMB IT and business decision-makers morphing. More frequently, line-of-business (LoB) managers are not only customers of IT departments, but also co-owners of IT. This means that IT staff must work harder to meet increasing demands, and become more educated and engaged in business operations and strategy than in the past. SMB IT personnel need more practical and actionable advice and support from vendors and their channel partners to juggle ongoing IT management with innovation.

SMBs are also scrutinizing “calculated risks” much more carefully. For instance, SMBs are interested in the cloud because of affordability and ease of access/use advantages, but want to ensure that cloud solutions are secure and reliable. SMBs are also more likely to factor business disruption into the cost/benefit analysis for any given solution. They are getting wiser about the perils of bad decisions and implementations, so the bar keeps getting higher to deliver solutions with less business disruption and faster time to value.

Finally, SMBs increasingly recognize that the technology-performance connection is real, and can be used to accelerate growth disrupt industry icons with innovation and agility. The perspective is summed up in Dell’s latest ad campaign. SMBs can use new technologies not only to reshape their existing businesses, but also to redefine the economics of an industry and expectation of the market.

However, one constant remains. Most SMBs need capitalize on these opportunities without putting themselves in financial or operational jeopardy. SMB budgets, IT staff and expertise aren’t often able to both maintain what they have and innovate within the window of opportunity. So Dell is focusing on designing, delivering, supporting and financing solutions that take these constraints into account.

Perspective: Dell as SMB Technology Catalyst

Dell’s journey to transform itself has been in progress for a few years. While on Wall Street’s watch, it wasn’t easy for Dell to recast its image from a transaction-oriented hardware company to an end-to-end solutions provider and trusted advisor.

However, Dell’s entrepreneurial heritage is once again alive and well. Michael Dell not only started the company in his dorm room when he was a 19-year old student at the University of Texas, but took it private in 2013 to gain control over its destiny again. With genuine DNA at the heart of Dell’s commitment to SMBs and entrepreneurs, Dell can take a longer-term view on return on investment in new technologies. This should enable it to launch more innovative and affordable cloud computing, mobile, social, analytics and security technologies geared to SMB requirements.

In addition, Dell prides itself on listening to its customers and creating a mutually beneficial dialogue. Dell’s Social Media Command Center is one of the best in the industry, and Dell’s SMB and partner outreach programs are extensive.

While Dell is still in the midst of its own transformation journey, its attitudes and actions when it comes to SMBs should help it to significantly broaden its status as a trusted advisor in this market.

 

Intacct Collaborate: Bringing Sales and Finance Together

This video interview was originally posted on SMB Group Spotlight. 

Laurie: Hi, this is Laurie McCabe from SMB Group and today I’m here on the SMB Spotlight at Salesforce’s Dreamforce 2014 Conference.  I’m talking to Aaron Harris, who is the Chief Technology Officer for Intacct.  Aaron, thank you for sharing time with me today.  Can you tell me a little bit about Intacct, who you are, what you do?

Aaron: Sure.  Thanks Laurie.  Intacct is a cloud accounting and finance solution that we have designed for small and medium-sized businesses.  We’ve taken a best in class approach, so all of our resources are targeted at building just what the accounting and finance team needs, the general ledger, payables, receivables.  We’ve got a strong relationship with Salesforce, so if you’re using Salesforce we’ve got a very nice native integration where Intacct and Salesforce synchronize data and processes and it’s a beautiful way to get your front office and your back office working together.

Laurie: So what are you highlighting here?  I know you have an announcement about some new collaboration capabilities with Salesforce.  What’s going on with that?

Aaron:      That’s right.  So at Dreamforce this year we are announcing Intacct Collaborate.  What Intacct Collaborate does it takes Salesforce Chatter and extends it into Intacct so that your sales and your marketing and support people who are using Salesforce today and who are collaborating on Chatter are using now the same network that the accounting team, the finance team, project managers are using on the backend.  So there’s one social network, there’s one collaborative network across the enterprise for the whole organization to work on.

Laurie: Good.  It sounds like that makes it easier for everybody to feed information into the whole financial process.

Aaron: That’s right.  There’s a lot pieces to it.  Obviously there are some great stories, right?  I’m a sales rep, I’ve got a deal that I want to get done, I need to get a 10% discount approved on that deal.  In the old world I’d write an email to the CFO, the CFO doesn’t know anything about what I’m talking about so the CFO has got to go do some research.  She responds to the email, there’s lots of back and forth, none of the communication is captured, right?  So it slows down the sale, it adds frustration, there’s no log to what happened.  So in this world that all happens via chatting and collaborating, and it’s all in real-time, it’s all captured, it’s all part of the record.  We also see this being useful within the accounting and finance team, getting them to collaborate over some of the more tricky business processes.  I was talking to a CFO the other day who said 20% of finance transactions are exceptional, they’re complex.  And we spend 80% of our time on those 20% of the transactions, the exceptions.  We have to find out what’s going on, what do we do?  Having Collaborate allows them to not only more efficiently communicate about these transactions and these exceptions, but it generates a log that you keep the communication around the transaction.

Laurie: I know Intacct is really aimed at small and medium businesses, but that’s a very diverse audience, so what segments of the SNB market are really the sweet spot for Intacct?

Aaron: Sure, so there’s really two categories of customers who are choosing Intacct.  The first is companies who have outgrown their first accounting product, usually it’s QuickBooks.  They’ll outgrow it when they need to automate processes that are manual.  Perhaps they’re now a multi-location business and it’s just too difficult to aggregate or consolidate data across the locations.  It might be that the reporting tools available in QuickBooks don’t give them kind of insight that they need, which product lines are the most profitable, which of my professional services engagements are losing money and which are making money?  This kind of insight is just not possible in some of the low-end products.  Or it may just be that this is a growing company that expects to go public, they need to have proper controls in place, they need to have a certain way they’re going to get through their Sarbanes–Oxley audits, so they need a product that will help them…

Laurie: Even if you’re preparing to be acquired or something like that.  If you sell the business you would need that.

Aaron: Exactly.  You need a product that cannot just assure external auditors that you’re following these controls, but that allows you to provide the evidence that you’re doing it.

Laurie: And that’s about half of your customers are coming from that.

Aaron: About half.  So the other half are people who have embraced the cloud.  They love Salesforce, they love some of the other cloud products.  They can see that with Salesforce they’re getting constant innovation, it embraces mobile technology.  You know what I’m talking about.

Laurie: Yeah, they just want to be able to do things on the fly, they way they want, on the device of choice.

Aaron: And no more headaches about hosting the infrastructure, that’s security, right?

Laurie: No, they don’t want to mess with that.

Aaron: So they want to take their accounting and finance processes and modernize them to the same extent as they already have sales and marketing.  So they’re choosing Intacct not just because it’s cloud and it gives them the same advantages they’re getting through Salesforce, they’re also choosing it because it’s fully integrated with Salesforce.  They’ve got the full front office/back office integration, data synchronization, process integration.

Laurie: It takes the integration headache away too.

Aaron: That’s right.  No more disconnect in the process.

Laurie: So how can a potential customer or prospect learn a little bit more or better evaluate whether this might be a good fit for them?

Aaron: The easiest way is to go to our website, go to www.intacct.com.  There’s a number of things you can do there, but maybe the easiest is just to get a trial.

Laurie: So you do still offer a free trial?  I think a lot of them don’t anymore

Aaron: We do.  We’re very proud of our product, we think it’s very easy to use, so get a trial.  We actually walk you through how to learn more.  It’s actually a really nice way to learn about Intacct.

Laurie: That’s great.  Well Aaron, thank you again for sharing that information with me about Intacct.  I think it will be really valuable for a lot of small and medium businesses out there.  Have a great rest of Dreamforce.

Aaron: Thanks Laurie.

Laurie: Thank you.

Intuit QuickBooks Connect: Where Small Business Is Big Business

This is part one of a two-part blog series discussing Intuit’s strategy to help SMBs better capitalize on technology. This first post provides perspectives from Intuit’s 2014 QuickBooks Connect event. The second post, Intuit’s Strategy to Bring Game Changing Technologies to SMBs, provides a detailed glimpse into Intuit’s approach in the SMB market.

QBconnectLast week, Intuit held its inaugural QuickBooks (QB) Connect event in San Jose. The 4,000-plus attendees included accountants, developers, small businesses, press, influencers and analysts. The agenda included a good mix of updates, announcement and inspiration from an all-star line-up of speakers. Below are my top takeaways from each of these areas.

Turning the Cloud Corner

While newer competitors, such as Xero, have made a lot of noise, they haven’t had much of an impact on the market. Instead, Intuit’s Small Business Group continues on its growth trajectory, especially in the cloud. QuickBooks Online’s U.S. subscribers grew 32% in 2014. QuickBooks is no longer just a U.S. solution, however. Intuit now sells QuickBooks in 124 countries, and has translated the solution into 12 languages. As of September 2014, the company has 705,000 paid subscribers for QuickBooks Online, and a total of 32 million customers worldwide.

cloudIntuit has clearly turned the cloud corner. In 2009, just 5% of new users were online, now the majority opt for QuickBooks Online over packaged QuickBooks products. In addition, 80% of QuickBooks Online customers are new to the Intuit universe, indicating the cloud version is doing a good job of pulling in net-new customers. The event signaled that Intuit will be doing more thought leadership as well, as evidenced by offering entrepreneurs one-on-one speed mentoring by Lean Startup Productions at the event.

Intuit’s QuickBooks Online development platform is also growing. Developer booths were in the spotlight at the event, and hundreds took Intuit’s Hackathon (link() challenge for a shot at winning a chunk of the $100,000 pot. Method:CRM took home the $55,000 grand prize for its Method:Donor app. Payments Cloud by Cloud Conversion, Safety Net by Jobber, and Service Titan won the $15,000 runner-up prizes.

Finally, Intuit’s Accountant Partner Network has always been essential to the vendor’s small business success. Throughout the event, Intuit speakers discussed “the power of we,” and ways in which the company is enhancing Intuit’s QB Accountant Edition to reduce the amount of time accountants need to spend on low-value data entry chores and increase the time they spend providing their customers with strategic business advice (some of which I note below).

Of course, the combination of a healthy pipeline of new QuickBooks Online customers plus a vibrant developer and accountant ecosystem bode well for continued growth.

Sometimes Less Is More

As Intuit CEO Brad Smith noted, Intuit is not focusing on creating more and more features for fewer and fewer small businesses. Instead, the company is looking for ways to make things easier for small businesses. According to Dan Wernikoff, senior VP and general manager of Intuit’s Small Business Group said, Intuit’s goal is to “make accounting completely invisible to small business owners.”

To that end, Intuit is plowing much of its R&D budget (which is about 16% to 17% of its revenues) into making its products simpler for small businesses, accountants and developers to use. Key announcements unveiled at the event included something for everyone:

Small businesses:

  • A full-service payroll solution, that handles payroll tax complexities
  • Automatic synching for bank and credit card transactions in QuickBooks Online
  • Easier ways to create reports, such as P&L and balance sheets in QuickBooks Online
  • Ability to accept credit card payments in QuickBooks Online in under a minute
  • A new payments offering that enables invoicing, accepting payments and updating books
  • A new QuickBooks Self-Employed solution to help freelancers, contractors and home-based business to separate personal and business finances

Accountants: 

The big news here was the new QuickBooks Online Accountant edition, which gives accountants the ability to work on their clients’ books anywhere, anytime and provides:

  • Customizable dashboards that provides snapshots of action items and deliverables.
  • Toolbox for one-click access to any client, from anywhere within QuickBooks Online.
  • Books-to-tax integration, so users can automatically push bookkeeping data to Intuit Tax Online.
  • Integration with Box, to give accountants a better, easier way to share content and collaborate with their clients.

Developers:

Intuit is striving to create a “drop dead simple environment” for developers to build and sell their apps. To that end, Intuit introduced:

  • New developer experience, featuring seamless cloud integration, new SDKs, and simpler documentation to make it easier to call on QuickBooks Online APIs.
  • New payments API to allow deep integrations with QuickBooks Online.
  • New Apps.com marketplace to enable developers to reach more QuickBooks customers with their solutions. Over 400 apps are already integrated with QuickBooks Online and available on Apps.com.

Inspiration On Tap

qbconnect speakersUnbelievably (this from someone who attends many events and co-manages a small business!) all the speakers featured at QuickBooks Connect were inspiring and informative. The speaker line-up was very diverse, but one commonality is that all are successful entrepreneurs. You can watch them on demand at www.qbconnectlive.com. Pearls of wisdom were flowing like water, but here are some of my favorites, which I hope will inspire you too! 

  • Arianna Huffington, chair, president and editor-in-chief of the Huffington Post: Stop wearing “busy” like a badge of honor! It’s not! Success is more than the metrics of money and power. We need health and well-being to be truly successful and happy.
  • Debbie Blox, CEO of Goldieblox, and winner of Intuit’s 2014 Super Bowl ad contest: You need to put yourself out there, and ask for what you need, because it takes a village to create a successful, sustainable small business! Be specific about what you want, and get advisors.
  • Tristan Walker, CEO of Bevel: You don’t get what you don’t ask for, and trials are really blessings in disguise.
  • Martha Stewart, founder and Chief Creative Officer of Martha Stewart Living Omnimedia, reminded us that we need to work really hard to be successful but must be compensated fairly for our hard work, and that once you’re through changing–you’re through!
  • Clif Bar CEO Kevin Cleary: Find people who share your passion and empower them to break things. The future of business is to upend the unacceptable.
  • Marc Andreessen, cofounder and partner of Silicon Valley venture capital firm Andreessen Horowitz: There’s a pivot happening with web, cloud and mobile enabling small businesses to use tech more aggressively.
  • Earvin “Magic” Johnson, chairman and CEO of Magic Johnson Enterprises and NBA legend: Have the courage to say I don’t know everything and to get help! Also, know your customer, serve them well they’ll keep coming back
  • Scott Cook, Intuit Founder and Chairman of the Executive Committee: Every one of Intuit’s successful businesses takes off via word of mouth.
  • Brad Smith, CEO of Intuit: We strive to be the operating system behind small business success.

Perspective

Intuit may have been born in the era of green screens and DOS, but it is now all in with solutions for today’s cloud, mobile, social and analytics technologies. However, one thing that hasn’t changed at Intuit is its commitment to helping small businesses thrive. This combination of strengths bodes well for fueling the next era of innovation for Intuit and for small businesses.

Disclosure: Intuit paid for most of my travel expenses to attend QuickBooks Connect.

Using ATS and Assessments for an Automated, Uniform Recruitment Process

Whether a business is large or small, identifying, qualifying and hiring the right employees is critical to innovation and growth. But, as the recession wanes and the economy picks up, more companies are hiring, and competitionespecially for top talent is intensifying. This makes it more difficult for many companies to find, track and hire the talent they need to thrive.

As a result, many businesses are reassessing and refreshing their existing recruiting practices and solutions. They are looking for knowledge and tools to give them the agility they need to compete more successfully throughout the recruitment process.

In this three-part series, sponsored by IBM Smarter Workforce, I look at how companies are using applicant tracking systems (ATS) and assessment solutions to better address these issues, and new developments in this area that promise to provide further enhancements.

Behind the Scenes at A Leading Hospitality Company 


kids
Almost everyone that has ever had children has been to venues that combine a restaurant with arcade games, amusement rides, climbing equipment, entertainment and other activities, including climbing equipment, tubes, and slides.

But it takes a lot of behind-the-scenes talent to pull all of this off. According to the Senior Recruiting Administrator at one of the largest hospitality companies of this kind, the Kenexa Recruiter Enterprise ATS that they had implemented years ago “was very basic, it served as a database for resumes. When managers read the resumes and selected top candidates for management and technical positions, they would have to manually overnight applications to them, and the candidates would have to complete and overnight them back. We had HR statuses, but they didn’t trigger anything. We couldn’t automate or control the process, or assign different levels of access to different types of users.” In addition, although the hospitality company had created two custom assessment tests for management and technical positions, hiring managers had to administer the 35 to 40 question tests to applicants over the phone.

By 2011, the manual processing required to support these workflows had become overwhelming, and says the senior recruiting administrator, “the company decided we were well overdue, and it was time to upgrade both its ATS and revamp its assessment tools to keep up with our evolving recruitment requirements.”

Although the company was familiar with Kenexa, the company wanted to check out competitive offerings to make sure that there wasn’t a better fit out there. They were looking for a cloud solution that would provide them with the automated ATS workflows they needed, and at an affordable price. In addition, the company also wanted to move its custom assessments into an online assessment system.

As the administrator observes, “We looked at 6 or 7 systems, and most offer fairly similar functionality in terms of ATS. But price was a key consideration for us. Some of the competitive solutions had lots of bells and whistles that we knew we wouldn’t use—along with more expensive price tags. So we’d be wasting our money.”

In addition, competitive ATS vendors that the company evaluated didn’t have the assessment piece. “They would have handed us off to a third-party, and we’d have to negotiate two deals, and manage two maintenance contracts and vendors,” notes the recruitment administrator. Kenexa’s ability to provide both ATS and assessments at “the right price” was also a key factor.

In addition, since the company had decided to deploy cloud-based offerings, it didn’t need to involve its 25-person IT staff. “Our bread and butter is the stores, so our IT staff is pretty lean.” Ultimately, the Senior VP and Director of HR at the company made the final decision to go with Kenexa for both ATS and custom assessments.

Moving to an Automated Approach for ATS and Assessments

Once they decided to go with Kenexa BrassRing ATS and assessments, Kenexa assigned a project manager, to help keep project milestones on track, and the team planned the rollout. They started with an initial group that included herself and four field recruiters, because recruiters would be using the solution in the most depth. Says the administrator, “I learned fairly quickly that you need to go beyond the project manager that’s assigned, and ask a lot of questions to a lot of people, including the technical people who configure everything. Once I got more resources on the Kenexa team in the loop, it was easier to figure out what approach to take and get it done more quickly.”

Kenexa also provided this initial small team with a day of training the week before it went live. After about one month using the system, the recruiters “had a good grasp of the solution. It’s pretty simple to use. But don’t get me wrong, we stumbled. We could have done more…like have more people testing it. It was a learning process, but one of the guys on Kenexa’s technical support team helped us and in the end it was a smooth rollout,” she added.

After the initial group was up to speed, they rolled it out to 45 district managers through an initial meeting, and then the company’s four recruiters worked with the district managers individually. Now, in addition to field recruiters and district managers, Internet recruiters, hiring managers, HR managers and regional managers are all using the system.

Observes the administrator, “The biggest challenge we probably had was getting people used to it, to the change. We sent emails saying you need to create a new profile, get a new password. So notifying people in each store caused us a little bit of trouble. And doing assessments online was also a big change for them. So in general, it took about 2 weeks for them to get comfortable with it.”

IBM now provides ongoing support via its Global Support Center staff, and the hospitality company’s IT staff hasn’t needed to get involved in supporting these solutions. If the internal team gets a call or email, they send it to IBM. However, when the business is ready to integrate Brassring with its Workday HRIS, its IT staff will play a role in the integration.

Getting Results

?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????According to the recruitment administrator, “Gaining the ability to pull a lot of reports, much more easily, and on our own is very helpful. We used to have to request reports—and then wait for someone to pull them. It definitely also helps us control the workflow.”

She continues, “Triggers, forms and having things go at specific times ensure a more uniform recruitment process. The best part is that it reinforces the workflow, and helps us limit exceptions. Because there’s a single platform, everyone has to do it right, its set up the same way for everyone.”

This provides peace of mind, especially in the assessment area. The business has had two successful validations of its assessment process since automating it. As she observes, “It’s great, we’re not open to any legal issues here.”

Although the company hasn’t done a formal ROI, the cost and time savings benefits are clear. “Recruiters used to sit on the phone getting 35 to 40 questions answered, now this is online, saving time and eliminating expenses for overnight shipping,” notes the senior recruiter.

Perspective

Talent is the lifeblood of any organization, fueling the innovation required to grow and thrive in today’s hyper-competitive world. Many cloud-based ATS and assessment solutions are available, but as this story highlights, there are some of fundamental considerations that need to be factored in regardless of which solution you choose to ensure a smooth transition, including:

  1. Distinguish must-have requirements from nice-to-have features. Affordability and getting both ATS and assessments from one vendor were top priorities in this case. Setting these priorities helped stop them from getting distracted by solutions with nice to have, but expensive and unnecessary features.
  2. Ask questions early, often and from multiple people on the vendor side. Implementing or upgrading an ATS system is a big project, and its unlikely any one person will have all the answers or the depth of information you need to make the best and most expedient decisions during the implementation process. Learn who the best resources are for different questions and guidance, and use them.
  3. Get more people involved in the testing process. It can be tempting to limit initial testing to a very small group of users to make the process more manageable—over the short-term. But, things usually go more smoothly over the long-term when you involve a few more people upfront to work out more of the kinks earlier in the process.

When it comes to ATS and assessments, each company has unique requirements, workflows and considerations that come into play. However, across the board, strong communication and collaboration, both internally and with the vendor, will help ensure a successful outcome in the short-term, and set the stage for your organization to adapt to new requirements.

This is the third post in a three-part blog series written by SMB Group and sponsored by IBM. The series examines talent management solutions and trends.

What Is Workforce Science, and How Can It Help Your Business?

 

Smarter workforceEngaged, motivated employees can be an organization’s greatest asset. When employees are fully involved in, committed to, and passionate about their work, productivity rises, and more employees are likely to become brand advocates who can help you grow the business.

But many factors come into play when it comes to developing a more engaged workforce. While talent management tools are important to helping you attract, energize and retain the best employees, it’s only part of the picture.

In the last post in this three-part series, sponsored by IBM Smarter Workforce, I look at how companies are using applicant tracking systems (ATS) and assessment solutions to better address these issues, and new developments in this area that promise to provide further enhancements.

Why Should Companies Care About Workforce Science?

Intuitively, we all know that employees can make or break a company. When employees are productive and dedicated, they can propel business growth. Conversely, disgruntled or even apathetic employees can grind business growth to a halt.

Research confirms this intuition is spot on. IBM has found a strong correlation between employee engagement at the business unit level and key performance indicators, including customer metrics such as higher profitability, productivity, and quality, as well as lower employee turnover, absenteeism, theft and safety incidents.

But how much do most businesses really know about their employees? While many organizations are going to great lengths to understand and analyze customer and prospect expectations, most don’t really know much about what makes their employees tick. For instance, how does a person prefer to learn? What are their talents? How much do they care about their jobs?

The truth is that most companies still use subjective criteria to make many decisions in this area. For instance:

  • Only 56% of companies use an assessment as part of the hiring process. (Aberdeen)
  • 77% of HR professionals worldwide do not know how its workforce potential is affecting the company’s bottom line1 and less than half of organizations surveyed use objective talent data to drive business decisions.(SHL)
  • 86 percent of companies say they have no analytics capabilities in the HR function. Moreover, 67 percent rate themselves as “weak” at using HR data to predict workforce performance and improvement.(Bersin by Deloitte)

When you consider that businesses and their employees basically share a two-way profit relationship, it’s hard to understand why companies have been so slow to focus on this problem.

How Workforce Science Improves Talent ROI

talent lifeccyleWorkforce science helps businesses solve for this by combing behavioral science with normative data, analytics, consulting, and processes to determine what it takes to build an engaged workforce, and create the “systems of engagement” to execute on it.

Particularly as the recession wanes and the economy picks up, more companies are starting to get interested in improving their effectiveness through workforce science. With the competition for top talent intensifying, organizations are looking to use the predictive powers of workforce science to help ensure that their investments will pay off throughout the talent management life cycle.

For instance:

  • Predictive hiring. By looking for patterns across organizational, unit, HR, and external data, companies can hire more top performers by identifying the talents and skills that are critical to high performance in different areas, and creating a process to hire candidates that most closely align with these characteristics. In addition, analytics are also used to determine what characteristics are a better cultural fit with the company, so you can more readily identify candidates who will fit, be more productive, and who are more likely to stay with the company for a longer time period.
  • Predictive workforce readiness.To close talent gaps today, and develop the talent you need for tomorrow, you need to be able to accurately identify the talent you have, and take steps to fill the gaps. This starts with mapping talent requirements to key strategic objectives, identifying linkages between organizational roles and key competencies, assessing employee competencies, and determining what hiring, training, or actions you need to take to close the gaps. For example, a company may determine that the existing workforce supplies the electrical engineering competencies they need today, but much of the talent is concentrated in the baby boomer age group, and they will face a deficit in 5 years as these boomers retire. With data-based analysis, the company can take proactive steps well in advance to fill the gap.
  • Predictive retention. All companies want to reduce employee turnover costs. Being able to anticipate why top performers might leave, and taking action to stop it can help you reduce these costs. But how well do you really understand what’s causing employee attrition? For instance, a media company believed that long commutes were the key reason for high turnover in its administrative ranks. However, analysis showed that employee family obligations, such as caring for children or aging parents, was a much more important reason. By determining the real case instead of relying on a hunch, the company could take the right corrective actions to reduce turnover.

Perspective

Talent is the lifeblood of any organization, fueling the innovation required to grow and thrive in today’s hyper-competitive world. The truth is, however, that most companies are just starting to think about putting science, solutions and processes in place in this area.

Because taking this type of analytical, data-driven approach to talent management is so new, most companies will want to keep the following in mind:

  • Start with the basics. It is probably overwhelming to even think about standardizing your existing human resources data, bringing in normative data and applying new tools and processes on a corporate basis. Start by focusing on a few key problems, such as a skills gap you know exists but can’t quantify, or figuring out why turnover in a key function is too high.
  • Bring real people into the process. Don’t get so carried away with the science that you forget to talk to people in the trenches upfront in the process. This will help ensure that you are not overlooking any possibilities, and are testing the right hypotheses when you do apply analytical tools.
  • Keep the big picture in focus. Although it’s often necessaryand even advantageousto start small, continually reassess how more accurate insights into your human resources and talent information can help you improve business performance.
  • Find a vendor you trust to help guide you. Although this is still a relatively new area, best practices are emerging. Vendors with deep expertise and experience can help you avoid pitfalls and accomplish your goals more quickly and effectively.

IBM’s workforce science solutions combine 25 years of behavioral expertise, analytics and talent management solutions with the largest content library and normative database in the human capital industry. To learn more, visit http://www.ibm.com/smarterworkforce.

This is the third and final post in a three-part blog series written by SMB Group and sponsored by IBM. The series examines talent management solutions and trends.

 

International Game Technology: Winning At The Talent Recruitment Game

Smarter workforceWhether a business is large or small, identifying, qualifying and hiring the right employees is critical to innovation and growth. But, as the recession wanes and the economy picks up, more companies are hiring, and competitionespecially for top talentis intensifying. This makes it more difficult for many companies to find the talent they need to thrive.

At the same time, options to help identify and hire candidates are expanding. For instance, employee referrals, advocacy programs, social media and mobile apps are becoming more important recruitment tools, while the role of external recruiting vendors is diminishing. While these new recruitment channels can help companies access a broader applicant pool, it’s not easy to use, integrate and optimize across them.

As a result, many businesses are reassessing and refreshing their existing recruiting practices and solutions. They are looking for knowledge and tools to give them the agility they need to compete more successfully throughout the recruitment process. .

In this three-part series, sponsored by IBM Smarter Workforce, I look at how companies are using applicant tracking systems (ATS) and assessment solutions to better address these issues, and new developments in this area that promise to provide further enhancements.

International Game Technology: Fueling Growth With Talent

HomepageHeroBanner_JurassicParkHeadquartered in Las Vegas, 34-year old International Game Technology (IGT) is the leading manufacturer of gaming machines. From Las Vegas to Monte Carlo, from Wheel of Fortune to James Cameron’s AVATAR, chances are you’ve played a video slots game on an IGT machine.

While IGT has been the long-time market leader, it does not rest on its laurels. In 2011, the company introduced IGT Cloud, an industry-first which lets casino operators dynamically deploy game content across multiple properties to optimize floor efficiencies, and also offer a seamless gaming experience across land-based, mobile and online devices. In 2012 IGT acquired Double Down Interactive LLC, a social gaming company and developer of DoubleDown Casino on Facebook, to fuel IGT’s expansion through new media. In 2013, IGT partnered with Casino Del Sol in Arizona to hold the AZ, to hold the Game King Championship, the first cross-platform video poker tournamentand the largest in the world, with more than 360,000 players.

To sustain this pace of growth and innovation, IGT must be able to identify and attract top talent.

Keeping Up With IGT Talent Requirements

Talent management solutions are still relatively new. Up until 2000, IGT had—like most companiesrelied on newspaper ads and human resources business partners for candidate recruitment. People would stop in to drop off hard copy applications, and everything was stored in physical file cabinets.

In 2000, IGT started using BrassRing’s cloud-based applicant tracking system. While the solution worked well, as the company grew, they needed more capabilities in the talent management area. When Laura Callender joined IGT six years ago as HRIS Staff Analyst, her job was to refresh and revamp talent management systems at the company to ensure IGT would be able to attract and retain top talent.

IGT’s first priority was to revamp the BrassRing ATS (which is now part of the IBM Kenexa Talent Suite) to keep pace with the company’s expanding global operations and hiring requirements. According to Callender, “It’s very easy to get wrapped up in the day-to-day, and neglect new features. But it’s important to keep re-evaluating business needs and figure out what will really help improve the process.”

Callender took a fresh look at things, and extended the system to support IGT’s growing geographical footprint, and provide Chinese and Spanish language capabilities. She also added other capabilities, such as mobile functionality. “So many things that are cutting edge, like enabling mobile job applicants…five years ago, people wouldn’t have dreamed of job hunting and applying on a mobile phone. But now applicants might be at the dentist’s office and want to apply. We need to enable these new capabilities that will make a difference to our business,” says Callender.

Community and Support Are Key to Success

men with puzzle piecesIGT has found IBM’s “Kenexans” and the community of Smarter Workforce users invaluable in helping her figure out what changes will provide the most value to IGT. “IBM’s Kenexans help us stay ahead of these trends…they focus on helping us improve the way we do things and help us figure out what options will give us the biggest bang for the buck. Should we turn features on or off? What should we do differently? And how can we make things seamless for our users? So many things are cool, but what will we get the most value from?” observes Callender.

IBM’s Smarter Workforce Global Support Center helps IGT prioritize enhancements via an annual review. As important, IGT can call on their services as needed, not only for break/fix issues, but for new project tickets, and to get the “hand-holding” required to implement new functionality. “We’re in the middle in terms of what we need to implement, and they are there when we need them to help with the next step. It’s a closer degree of support than we get from other vendors,” notes Callender. “Out of all the vendors, in terms of support, I would choose IBM Kenexa any day.”

Callender is very active in user groups as well, which helps her learn from what others are doing, and what’s worked and what hasn’t for them. She’s attended six global conferences, and participated in user groups at all of them. As Callender puts it, “The user groups have really grown, from 30 to 40 attendees to over 100 at the last one. We don’t have an army of HR and IT people, but I can talk to users that do, like Pepsico, Time Warner and Disney, that we can really learn from. At the same time, there are companies smaller than uswith just 100 or 200 employeesthat we can help. It’s a really good way to exchange knowledge.”

The user groups also help facilitate conversations between the IBM Kenexa team and users. “We talk, and they listen. We sit in a roundtable, it’s very interactive, with experts and R&D engineers at each table to discuss topics such as referrals, triggers, etc. It’s very helpful and they act on our input.”

Getting Results

Since IBM Kenexa BrassRing is cloud based, upgrades are “very easy,” says Callender. “IBM rolls them out and turns them on. Some things you have a choice to upgrade or not. But they never break anything with an upgrade, which has happened with some of the other cloud solutions we use.”

Today, IGT hiring managers, external recruiters and applicants are all using the system. Last year, IGT used BrassRing to hire about 600 employees for mostly technical positions, with an average of about 50 applicants for each position. IGT has integrated BrassRing ATS with its SAP ERP system, so that when someone is hired, they are automatically moved from BrassRing to SAP. “Instead of having a person digging through emails to find candidates, ATS can do this for us much faster and more effectively with Boolean searches, and tagging,” states Callender.

IBM Kenexa’s BrassRing ATS also helps IGT answer important questions that impact recruitment strategy, such as:

  • What is the tipping point for the number of applicants for a certain position?
  • How can we do a fill requisitions more quickly?
  • What’s the best way to deal with counteroffers, or higher rejection rates?
  • How can we recruit people that aren’t currently looking for a job?

“We get our money’s worth from BrassRing ATS. We don’t have a formal measurement system, but we know we are saving a lot of time, which saves us money. There is no way we could function without it.” In addition, BrassRing pricing is based on the number of requisitions and applicants, so “what we pay for it aligns with our actual use, which we appreciate,” explains Callender.

Perspective

Talent is the lifeblood of any organization, fueling the innovation required to grow and thrive in today’s hyper-competitive world. Many cloud-based ATS solutions available, but as the IGT story illustrates, it’s not just the nuts and bolts of the software that matter. Being part of an active, engaged vendor support and user community can help you to:

  1. Map out a more effective strategy. Look for vendors and user communities that are collaborative, and can help you assess your requirements and how they are likely to evolve, and provide you with scalable solutions that you can deploy in an incremental manner.
  2. Get things right the first time. Your company benefits when the vendor facilitates knowledge sharing of best practices for things such as reporting considerations, workflow and underlying database structure that will take the most time and pain out of different processes. For instance, how do you set things up so applicants don’t need to fill out a new affirmative action form every time they apply for a new job, but can just edit information they’ve previously entered?
  3. Prioritize next steps. Your business is constantly evolving, and so is the hiring environment. But few organizations can do everything. Strategic prioritization is essential to figure out what new functionality will provide the most value.

The world of recruitment and talent management is changing quickly. This sets the stage for not only selecting the company and solution that best fits your immediate needs, but one that will provide a strong support experience to help you gain the best outcomes as your business and the recruitment landscape evolve.

This is the first post in a three-part blog series written by SMB Group and sponsored by IBM. The series examines talent management solutions and trends.

How The Cloud Can Help SMBs: A Conversation

Screen Shot 2014-06-30 at 12.27.13 PMLast week, I had the opportunity to be a panelist on IBM’s first virtual influencer event on Spreecast, (a great new platform that connects you with people through video conversation) about how the cloud can help small and medium businesses (SMBs) to build their businesses from the ground up, compete more effectively with big businesses, and grow.

Paul Gillin, veteran tech journalist and social media expert at Profitecture (@pgillin) moderated the panel, which included me, IBM General Manager, IBM Midmarket John Mason (@jcmason), and Subbu Balakrishnan, CTO and co-Founder of Good.co (@backslash0), a career platform built on SoftLayer that helps people find best-fit workplaces and jobs. 15-20 other SMB thought leaders also joined us via Spreecast’s chat function.

You can watch and listen here for the full conversation, but here are a few of the key perspectives I took away from this lively and interesting discussion:

  • All panelists agreed that the momentum for SMB adoption of cloud services is rising rapidly. SMBs increasingly see that by using cloud solutions, they can focus more of their resources and money on their core business, and leapfrog slower-moving competitors.
  • With the help of SoftLayer, Good.com went from idea to over 100,000 users in a year and a half using a credit card to pay for cloud infrastructure. According to Subbu, this is something the 15-20 employee company would not have been able to accomplish if they had to build out their own cloud infrastructure.
  • Many startups are forgoing on premises software entirely, opting to do as much as possible in the cloud. The cloud removes technology and capital barriers to get up and running. They can skip a whole generation of software to get their companies off the ground more quickly. The cloud is quickly becoming the preferred way for startups to go.
  • Once you’re up and running, the cloud gives you a flexible infrastructure to scale and grow the business.
  • The rate and pace of technology change continues to increase. The cloud not only provides SMBs with the benefits of infrastructure scale, but with access to the increasingly specialized technology skills and expertise that are necessary today.
  • There is no one-size-fits-all when it comes to the cloud. Public, private, hybrid, shared, or dedicated—each company will have different requirements for different solutions.
  • Business partners play a critical role in helping many SMBs take full advantage of cloud services by fully understanding the SMB’s business requirements. Skilled and trusted partners can translate SMB business requirements into the best-fit cloud solution so the SMB doesn’t have to parse through all of the cloud variants on their own.
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