A recent review of business-software.com latest Top 10 Human Capital Management Software Vendors REVEALED report is interesting not because of the vendors mentioned but because of a noticeable absence or two. Although order of listing is not an important factor Oracle (nee PeopleSoft) was missing from this year’s list, replaced by Epicor and Microsoft lost its spot for Optimum Solutions.

The list of vendors in the order of progression as per the report is appended below:

2010 - 2011
Oracle - Epicor
Infor - Lawson
SAP - Infor
Kronos - SAP
Microsoft - Kronos
Ultimate Software - Optimum Solutions
Sage - Ultimate Software
Lawson - Sage
Perfect Software - Perfect Software
Workday - Workday

Steve Goldberg, a principal consultant for Bersin & Associates summed it up nicely when I discussed the Oracle omission with him. He commented:

“I think in general that the market has really embraced the notion that enterprise s/ware must be engaging and have a high "what's in it for me" factor >> both of which drive user adoption and therefore busines value as you know. Large HR-ERP's have been the antithesis of engaging solutions historically -- somewhat because they were too focused on world domination the wrong way in my view --- by having products for all HR processes and localized Payroll systems instead of dominating the market by driving measurable business value and end-user adoption. That said, HR Depts take much of the blame for that as they were often too myopically focused on process automation, system integration issues and reporting and compliance requirements, so the HR-ERP's were just giving them what they wanted. It took 2 decades of low satisfaction scores, non-realized business cases and abandoned or failed projects with HR-ERP's -- and the success of a whole slew of Talent Mgt Software co's -- to get the major's to wake up ... so now things like adoption and customer success management are top of mind for SAP and Oracle.”

The only item(s) I would add to Steve’s excellent assessment is that Oracle has been involved in an enormous program of integration including folding PeopleSoft & JD Edwards platforms into their application array as well as many minor products (too numerous to mention). As one Oracle insider confided to me recently ‘this was killing their ability to sell anything because they couldn’t integrate the products they were buying and it was impacting their ability to maintain the core platforms that were competing with SAP’. In the case of Microsoft it is their program of catch-up on everything from ERP to gaming platforms which is impacting their niche product range including the Microsoft Dynamics GP integration and development.

So, what’s my two cents worth? Oracle (PeopleSoft) and Microsoft are examples of overreach, although for differing reasons.

Oracle (PeopleSoft) remains one of the largest HCM providers and will continue to grow market share just because it is the only ERP who can compete against SAP in the >5000 FTE space. Saying that, I would also think that behind closed doors they are moving to fix their program issues and ensure that they are featured in every HCM report, both big and small, going forward.

A personal mea culpa, I know nothing about the Microsoft Dynamic GP product.  Saying that, given the companies desire to be everything to everyone I can only see a slow decline in any HCM product they offer. Why it was featured for the 2010 report is beyond me, given that it is a minor application from a mega-giant? I can only guess it was chosen due to market share prior to buy-out by Microsoft. Why anyone who is a serious Operational Workforce Planner or serious HCM advocate would look to Microsoft outside of an Operating System or Office product is questionable and I certainly wouldn’t recommend any HCM product which isn’t part of an integrated ERP or a high-level stand-alone HCM.

Notes:

I attempted to contact Oracle PR and although they did return my call I was unable to discuss this issue with them directly. If I do get feedback from Oracle I will update this blog (retrospectively).

Many thanks to Steve Goldberg & Lexy Martin (Cedar Crestone) for their feedback as it is appreciated. Any mistakes or omissions in this blog are my responsibility alone.