SuccessFactors continued its expansion in HR software in early June with a
product that aims to blend employee data management with social networking.
But the move raises questions about how far talent management specialists
should stretch from their roots and about the need for yet another Facebook-like
tool.
At SuccessFactors’ customer conference in San Francisco on June 8, the firm
introduced Employee Central. The new product is designed to aggregate basic
employee data—such as name and job title—now frequently stored in human resource
information systems with other talent data including performance information.
It
also lets employees create profiles and tag themselves as focused on certain
projects or hobbies.
“This is much more than just phone numbers and insurance information, but a
social tool to collaborate, communicate and make real, strategic decisions about
[an organization’s] people,” SuccessFactors chief executive Lars Dalgaard said
in a statement.
But Jim McDevitt, head of rival talent management software firm Authoria,
argues there’s a risk of being spread too thin by branching into human resource
information systems.
“We’re not planning to dilute ourselves by heading off into that space,” he
says.
The fast-growing field of talent management software refers to applications
for key HR tasks such as recruiting, employee performance management and
compensation management.
SuccessFactors, founded in 2001, has been a leading talent management vendor
in recent years.
At the conference, though, Dalgaard and other executives hinted that they
intend to compete in the larger category of business management software. They
framed SuccessFactors as providing tools to bridge the gap between strategy and
execution.
To go with this broader vision, SuccessFactors announced a deal with Sie¬mens
in which the conglomerate will use a variety of SuccessFactors software modules
with its 420,000 employees.
Employee Central, slated to be released in July, puts SuccessFactors squarely
in the territory of human resource information systems, which was long
controlled by vendors including Oracle, SAP and Lawson.
SuccessFactors says the
product offers some HRIS-like functionality, such as planning a leave of
absence.
Melody Silberstein, senior vice president of human resources at San
Francisco-based insurance broker Woodruff Sawyer & Co., learned about
Employee Central at the San Francisco conference and liked what she heard.
“HR
is going to need to have a social networking strategy,” Silberstein said.
But it’s not clear how much appetite workers will have for another networking
tool, and how such technologies affect the bottom line. Employees already have
been setting up work-related groups on Facebook and MySpace. And corporate
social networks can foster time-wasting along with productive teamwork.
To Lisa Rowan, an analyst at research firm IDC, Employee Central signals a
looming war over which application will be counted on for data about workers.
“As HRIS and [comprehensive business software] providers continue to enhance
talent functionality and talent management vendors continue to creep into core
HR territory, it will make for an interesting meeting in the middle and a battle
for status as ‘system of record,’ ” Rowan wrote in a report June 8.
—Ed Frauenheim
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