Thomas Smouse, VP of Administration and HR at Newfield Exploration, an attendee at Oracle’s HCM event this week in Washington, DC, appropriately framed for me the rapidly changing talent market. The oil and gas industry has been transformed with innovations in “horizontal drilling” technologies and “unconventional” hydrocarbon sources. That has dramatically reshaped the US energy position in the last few years. While Newfield continues to rely on talent networks in the traditional oil patch – cities like Houston, Tulsa and Denver – Smouse said it is starting to mine talent which has been working in newer shale fields in Pennsylvania and elsewhere = “unconventional” places.
Fredrik Rexhammar of Swedbank presented another perspective as he described how their digital needs (mobile, online banking) demand very different skills while they continue to nurture talent needed to support their traditional, personal touch, large network of branch banking across the wide country.
Keynotes and breakout sessions during the event provided glimpses of this “we are not in Kansas anymore” talent landscape. Mark Hurd, CEO of Oracle, discussed how Oracle has taken the risk of accelerated college recruiting for its sales force and the joys and challenges of dealing with Millennials in the workforce.
It’s way more than Millennials, of course, it is about multi-generational talent management as this Oracle slide showed
Then there is the global angle. Condi Rice, former US Secretary of State, peppered her talk about geopolitics with other Millennial and other young talent perspectives. “Immigration keeps the US young” ,“Our 12-K crisis is our biggest national security risk” and “China will get old before it gets rich”.
Kraig Eaton of Accenture discussed a variety of organizational models he sees clients experimenting with including one the HCM audience cringed about – “Abolish HR” .
In a breakout with analysts, Bertrand Dussert, VP HCM Transformation and Thought Leadership at Oracle who spends most of his time with HR executives in the Fortune 500 mentioned the most common discussion theme is how to build a small, solid core of top 200 “athletes”. Chris Leone, SVP of HCM Development at Oracle spent the first 15 minutes of his keynote discussing “digital transformation” and how players like Lyft, Airbnb and Amazon have transformed their industries.
Notice a pattern here? Many of the sessions were about strategy and policy. What’s striking is this was not at a McKinsey or BCG gathering. This was hosted by a technology vendor.
In some ways, as Microsoft did at Convergence couple of weeks ago, HCM World was less about feature/function. While Microsoft made it a showcase of its wide portfolio of technology offerings. Oracle turned this into more of a showcase of consumer and social technologies it is leveraging in its HCM offerings – see my note here about Oracle’s Consumer Grade HCM.
And in a breakout with analysts, Hurd turned the conversation to his technology and highlighted Oracle’s momentum in the cloud applications market. 800 new SaaS customers, including 220 in HCM signed up in its third quarter ending February 28. Hurd pointed out Q2 was similarly strong and the momentum should continue in Q4.
There was animated discussion among the analysts whether this was an indication Oracle is moving down market with its offerings. More likely, given a wide portfolio of organic and acquired HR offerings, customers who adopt even a tiny sliver of the offerings get included in that “HCM” count.
Vendors and analysts get excited about such market shares. Customers, in turn, appreciate hearing from peers about common challenges and solutions, and HCM World provided plenty of opportunities to do so. They learned about innovations of “horizontal drilling” and the possibility of “unconventional places” in their quest for talent.
Déjà vu–All over again
Almost to the day, two decades ago, I got a recruiting call. A few weeks later I was a Gartner analyst and over the next 5 years was part of the roaring 90s of ERP projects stoked by Y2K, reengineering, client/server architectures and other drivers.
Last week I drove with 3 other analysts at the Plex Summit. They reminded me I was the youngest in the car. Each has vivid memories, from their varied perches, of that phase. I am going to the Oracle HCM event this week, and notice the Diamond sponsors are Accenture, Deloitte and PwC. Brings back memories of my alma mater and other Big 8 firms.
There are throwback signs every where. That’s goodness in those memories if customers learn from history. Buzzwords from that era are showing up again…so here comes the reminder “Fool me once, shame on you. Fool me twice, shame on me.”
“The Suite always wins”
History - The Suite salesperson won. The Suite buyer ended up with shelfware. Which funded acquisition of similar functionality which was supposedly already in the Suite. Whose integration took another few years. In meantime, the brochures continue to talk about “integrated, wall to wall…”
“ROI”
History - You thought that had something to do with payback on your investment? It was French for King. You anointed several minor princes in software and outsourcing world. And “Value Engineered” their portfolios.
“Rapid”
History - Few of the outsourcers/SIs have acquired Chinese construction companies who can raise a skyscraper in 15 days. They are still incented to bill by the hour, work 4 days a week, and charge you 25 to 30% of fees in travel expenses.
“User Experience”
History - For a brief moment in the 90s, enterprise software caught up in look and feel with your PC apps. Since then it has lagged your social apps, your mobile apps, and increasingly your car and home apps. Try screaming at your enterprise software. Make a nasty gesture. Unlike your car or Nest, it won’t even understand you are not happy.
“Best practice”
History – the phrase was perfected by consultants who had never set foot on a shop floor. In a warehouse. In a delivery truck. Entered a multi-line customer order with a unique promotion code. Explained what negative inventory means. And IFRS. And Octroi. And SPED.
“Continuous improvement”
History - The outsourcer proposals were splattered with terms like Six Sigma and CMM Level 5. In the reference calls, the customers laughed uncontrollably when you asked how much year on year improvement they actually saw.
“Customer advocacy”
History - User groups sold you on what your fees bought – training sessions and social events. But ask them for a catalog of their “victories”. Where have they successfully lobbied with the vendor for lowered pricing or significant new functionality? Where have they publicly disagreed with the vendor? Usually a very short list. But the margaritas at the events are pretty good.
“Magic Quadrant”
History – Last time customers depended on a MQ prepared by some guy named Vinnie, they ended up spending $ 300 million. Each.
March 23, 2015 in Industry Commentary | Permalink | Comments (4) | TrackBack (0)