Slide Show Version! SMB Group’s Top 10 SMB Tech Trends for 2015

(Originally published on the SMB Group website and available here in .pdf format).

Here are SMB Group’s Top 10 SMB Technology Trends for 2015 in slide show format!

SMB Group Top 10 SMB Technology Trends for 2015

crystal ball

(Originally published on the SMB Group website and available here in .pdf format).

Here are SMB Group’s Top 10 SMB Technology Trends for 2015! A more detailed description of each follows below.

(Note: SMB Group is the source for all research data quoted unless otherwise indicated.)

  1. Cloud is the new IT infrastructure for SMBs.
  2. SMB IT staff and channel partners evolve into cloud managers.
  3. SMBs recalibrate IT strategy and spending for a mobile world.
  4. The Internet of Things (IoT) comes into focus.
  5. SMBs reinvent marketing for the new buyer journey.
  6. KPIs trump ROI and TCO as the new “show me” metric.
  7. Analytics gets SMB-friendly with “bring your own data” and freemium offerings.
  8. It’s time to reimagine work.
  9. SMBs place a premium on protection.
  10. SMBs opt for an incremental, integrated solutions approach.

Detailed SMB Group Top 10 SMB Technology Trends for 2015

  1. Cloud is the new IT infrastructure for SMBs. SMBs increasingly view technology as a key business enabler. According to SMB Group research, 67% of small businesses (1–99 employees) and 81% of medium businesses (100–999 employees) say that technology solutions help them improve business outcomes or run the business better. However, most SMBs don’t have the resources necessary to keep pace with technology on their own. Just 19% of small businesses employ full-time dedicated IT staff. And while 86% of medium businesses have internal IT staff, they are typically IT generalists who lack expertise in newer technology areas such as mobile and analytics. As SMB requirements for fast, easy access to new social and mobile analytics solutions, more compute power and storage, and other services have been increasing, cloud adoption has boomed—with 92% of SMBs are now using at least one cloud business solution and 87% using at least one cloud infrastructure solution. In 2015, cloud solutions are poised for hockey stick growth as more SMB decision-makers turn to a cloud-first approach that not only supports existing business models, but also enables them to develop innovative new products, services and business models. Public cloud adoption will continue to significantly outpace that of private cloud, but more medium businesses in particular will consider a hybrid cloud approach, particularly in industries and applications where security and privacy are top concerns.
  2. SMB IT staff and channel partners evolve into cloud managers. As the cloud becomes mainstream, both internal SMB IT staff and external channel partner roles will evolve from implementation and break/fix support to become more proactive and strategic. SMBs will look for staff and channel partners that can work with line-of-business decision-makers to better align technology investments with business goals, select best-fit solutions and manage cloud service providers. Internal IT staff and channel partners will also need stronger integration expertise to help SMBs get more value from their technology investments. Channel partners will need to cultivate consultative selling and adjust staffing skill sets accordingly. SMB decision-makers will seek help to better understand and articulate new skill-set requirements, and to hire and/or contract for these needs. They will be hungry for thought leadership from SMB vendors, analysts and other influencers.
  3. SMBs recalibrate IT strategy and spending for a mobile world. A growing majority of SMBs now regard mobile solutions as essential business enablers, with 60% saying that mobile solutions are critical to their business. 86% of SMBs agree or strongly agree that mobile apps are a complement to traditional business applications, and 71% believe that mobile apps will replace some traditional solutions entirely. Mobile solutions also account for a growing share of SMBs’ technology budgets. SMB median spending on mobile technology and solutions as a percentage of total technology spending rose from roughly 12% in 2013 to 16% in 2014. Mobile service and device costs still account for the bulk of SMB mobile budgets, but SMB spending in other areas is rising as a percentage of mobile spend. On average, in 2014, SMBs spent 11% of their mobile dollars on apps, 9% on security, 11% on mobile management and 8% on consulting. Planned increased investment in mobile apps and more diverse mobile devices will necessitate a spike in mobile management adoption as well.
  4. The Internet of Things (IoT) comes into focus. IT vendors and prognosticators have been forecasting explosive growth for more intelligent and connected devices of all types. However, many IoT scenarios have been cast in a consumer light, such as smart watches and Tile (a locator for items such as keys and glasses), and the IoT vision has been fuzzy for many SMBs. In 2015, however, early but compelling use-case scenarios and solutions will emerge, leading more SMBs to the “aha” moments required to spark adoption. For instance, radio-frequency identification (RFID) has been used in logistics to track pallets and crates for some time, but mostly in closed-loop systems for high-value goods. IoT will help reduce RFID costs, making it more practical and appealing to retailers to use in order to help improve inventory accuracy, automate customer checkout and reduce theft. Beacons, which are indoor positioning systems that communicate directly with smart phones via Bluetooth, provide another compelling SMB use case. For example, a network of in-store beacons can identify the location of customers in a store and send them push notifications. Or, a trucking company could install beacons to monitor the state of its trucks, provide more timely maintenance, reduce vehicle downtime and decrease costs. Once SMBs understand use cases more clearly, IoT will hold great appeal because it is mostly invisible to end users, which negates adoption issues, and it provides real-time data for better decision-making and better business outcomes.
  5. SMBs reinvent marketing for the new buyer journey. The buyer journey is evolving rapidly and includes many more touch points than ever before. SMBs must transform their marketing approach to connect with more prospects and customers, and to provide them with the right information at the right time in the buying journey. Although many small and even medium businesses rely on point solutions, more will turn to an integrated marketing approach. In 2014, 20% of small businesses and 25% of medium businesses had purchased/upgraded to a marketing automation solution in the past 24 months. Meanwhile, 22% of small businesses and 26% of medium businesses plan to purchase/upgrade a marketing automation solution in the next 12 months. More SMBs will realize that choosing the right marketing automation solution is one of the most important technology decisions they will make, particularly as cloud, mobile, social, analytics and other technologies continue to transform the buying process.
  6. KPIs trump ROI and TCO as the new “show me” metric. Historically, vendors have tended to focus on proving solution value through return on investment (ROI) and total cost of ownership (TCO) analysis and metrics. But these assessments and metrics, while often beneficial, are frequently too vague and/or too dependent on nuanced measurements to be compelling for SMBs. In comparison, key performance indicators (KPIs) can provide SMBs with specific, actionable insights on business performance and what areas need improvement. With so many vendors fighting for SMB dollars, SMBs will increasingly seek out those that help them understand what KPIs are most relevant for their business and industry, and those that provide credible, specific metrics about how their solutions affect these KPIs.
  7. Analytics gets SMB-friendly with “bring your own data” and freemium offerings. Most SMBs don’t have data analysts on staff. These businesses often are intimidated by analytics solutions, which have traditionally been expensive, complex and difficult to use. But cloud computing, better user interfaces, visualization tools, improved algorithms and natural language capabilities as well as a growing number of freemium offerings designed for business decision-makers—not data scientists—are poised to change this. For instance, IBM’s Watson freemium offering allows users to bring in data from many sources, and it has capabilities that reduce data preparation and loading time, including a “fix it” button to repair data quality issues. Once data is plugged into Watson, users can query in natural language to analyze information. As more solutions designed for people with little or no data preparation and analytics skills emerge, analytics will become more consumable for SMBs.
  8. It’s time to reimagine work. Whether you prefer the hashtag #futureofwork, #newwaytowork, #reimaginework or something else, it’s clear that change is on the horizon. Processes, tools, attitudes and behaviors are shifting as mobile, social, cloud, analytics, IoT and other technology advances take hold in SMBs. Likewise, demographic shifts are reshaping the makeup of SMB workers as well as their expectations of what technology should do and how it should do it. For instance, millennials and digital natives are rising through the workforce ranks, while baby boomers are starting to retire or move to part-time work. Meanwhile, the ranks of temporary and contract workers continue to grow. The National Employment Law Project found that temporary help agencies, staffing agencies, professional employer organizations and employment placement agencies fill 2.5% of all jobs, up from 1.4% in 1990. In addition, easy-to-use consumer apps and devices have raised the bar for user experience in the business-to-business (B2B) world. This changing mix of resources, behavior, attitudes and requirements will lead more SMBs to seek better, easier and more affordable ways to access, evaluate, buy and get productive with technology solutions. Vendors that understand and plan for this evolution, provide clear solution value and make SMB customers feel that they are part of a strong ecosystem will have a decisive edge as this trend unfolds. Providing easy access and free trials, clear messaging, a delightful user experience, superior support and vibrant user communities will be key to tapping into this trend.
  9. SMBs place a premium on protection. SMBs are already using basic security and backup tools. However, our research shows that most use point solutions that only tackle part of the problem. The use of more comprehensive solutions to protect and manage data is still far from the norm. But greater reliance on technology, an increasing number of “moving parts” (traditional apps and infrastructure, cloud, social, mobile, etc.) and the need to manage data no matter where it resides necessitate better security, control and management capabilities. SMBs need only turn on the news to understand the financial, brand and legal ramifications of data breaches at large companies such as Sony Pictures, Home Depot and eBay. As awareness rises, SMBs will place a premium on more comprehensive solutions from vendors that offer proactive guidance, deeper expertise, stronger service-level agreements (SLAs) and 24/7 support for an always-on world.
  10. SMBs opt for an incremental, integrated solutions approach. New cloud, mobile and social solutions have made it easier for SMBs to access and use new applications, but they have offered little help with integration. Although 63% of SMBs have partially integrated some applications, 79% still rely on manual Excel file uploads or custom code for integration, which underscores the severity of the problem. SMBs typically lack the expertise and resources to manage the entire integration process, and they need solutions that both encompass and better integrate cloud, mobile, social, analytics, security and other technologies. However, SMBs don’t want—and can’t digest—monolithic solutions. Vendors need to accommodate SMB integration requirements with a LEGO-like approach that enables SMBs to acquire only what they need at a given point in time, and then to add on new capabilities (their own or those of partners) with as little friction as possible when new needs arise. Although integration remains one of the toughest technology nuts to crack, we see new hope. Open ecosystems, embedded integration capabilities and stronger APIs should help pave the way, as should toolsets designed to help non-technical users to configure integrations without coding if they understand business integration workflows and requirements. Built-in collaboration and social communities to help users crowdsource information, find experts and share and/or sell integrations will also be key to making SMB integration a reality.

About SMB Group

SMB Group focuses exclusively on researching and analyzing the highly fragmented “SMB market”—which is composed of many smaller, more discrete markets. Within the SMB market, SMB Group’s areas of focus include: Emerging Technologies, Cloud Computing, Managed Services, Business and Marketing Applications, Collaboration and Social Media Solutions, IT Infrastructure Management and Services, and Green IT.

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.

 

Why Should You Take 3 Days Out of Your Schedule to Attend Dell World?

dell worldFrom November 4-6, Dell will host roughly 5,000 customer, partner and influencer attendees at its fourth annual Dell World conference in its hometown of Austin, Texas, and up to 10,000 attendees will tune in live online. 

For those who are unfamiliar with it, Dell World is Dell’s premier annual customer and partner event. Having found the three prior Dell World events I attended to be both informative and fun, I was eager to find out what’s on tap for this year’s event. So I was delighted to get a sneak preview from Jeanne Trogan, Dell’s Executive Director of Global Events, about what Dell World will offer.

With time arguably being our most valuable asset, here’s my take on why you’d want to take 3 days out of your busy schedule to attend Dell World based on this preview. 

  1. Gain a clearer understanding of how technology can help solve business problems and meet business goals.

Companies want to harness technology for better business outcomes, but it’s often hard to figure out how to do this. According to SMB Group’s 2014 SMB Routes to Market Study, small and medium businesses (SMBs) increasingly view technology as a means to automate operations and work more efficiently, and as a vital tool for creating and sustaining a vibrant, growing business (Figure 1). But the same study also shows that figuring out how different technology solutions can help their businesses is a top challenge for many SMBs.

Figure 1: SMB Technology Perspectives

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With this in mind, Dell World will provide customers–from SMB to large enterprises–with high-level advice and expertise to help them understand how and why key technology trends are reshaping business and consumer practices and behaviors. Keynote speakers, including Dell CEO Michael Dell and other tech and business innovators from business and academia will put cloud, mobile, analytics, security, the Internet of Things (IoT) and other trends into sharper focus, and help attendees stay ahead of the technology curve.

  1. Learn how to turn strategy into reality.

Refreshing your technology strategy and direction is the critical first step, but then you have to figure out how to execute. In fact, figuring out cost-effective ways to implement and/or upgrade solutions and to keep them up and running are also daunting challenges for SMBs (Figure 2).

Figure 2: SMB Technology Challenges

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Dell World is chock full of interactive sessions as well as hands-on labs and demos to help attendees kick the tires on new solutions, and fulfill the new technology requirements that their businesses require. Attendees can choose from more than 70 breakout sessions for a deeper dive into how to make technology work for the business. For instance session topics range from how to conquer cloud chaos to how to maximize mobility benefits without compromising security, and labs address areas such as big data and analytics, desktop virtualization, and streamlining IT management.

In the Solutions Expo, attendees can get an up close and personal look at the latest solutions. This year, Dell is reorienting the Solutions Expo from a Dell product-centric approach to a customer-centric problem and solution approach. The floor will feature different paths that start with technology problem areas, and guide customers toward relevant solutions and information. I think Dell’s refreshed approach to the Expo floor and demonstrations will be something that customer attendees will appreciate.

  1. Learn outside the classroom.

Just like when you were in school, sometimes the most important learning you do takes place outside of the classroom. Networking is a key part of Dell World with other attendees for fresh perspectives, exchange information and compare notes, not just at the event, but over the longer term. In addition to the serendipitous meetups that will happen spontaneously throughout Dell World, Dell is also scheduling meetings, such as an Executive Summit for CIOs, to facilitate peer-to-peer interaction.

  1. Enjoy Austin.

congress-avenue-bridgeIf you’ve been there, you know what I’m talking about! If you haven’t been there, you’re in for an amazing experience. In fact, Dell keeps asking attendees where they want to have Dell World, and people want to come back. Austin has something for everyone, whether you love music, great food or the great outdoors. For starters, Dell World will feature both Weezer and Duran Duran in concert–something for everyone from millennials to baby boomers. Get some fresh air with a walk or run around Town Lake, and grab a bite or drink at the Hula Hut as a reward. At night, check out the live music and gourmet food trucks on Rainey Street, or at Austin City Limits. And don’t forget to check out the nightly bat migration under the Congress Street Bridge. Last but not least, there’s the history–Dell was born in Austin in Michael Dell’s University of Texas dorm room. Since then, Austin has grown as a tech mecca.

Dell World also marks the one-year anniversary since founder Michael Dell won an extended battle to take the company private. In a recent CNBC interview, he expressed how liberating its been to off the Wall Street treadmill and able to focus on customers, and invest more time, R&D and energy on their behalf. I have a feeling that attendees will probably pick up on how this more positive energy is coming to fruition at Dell World as well.

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.

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