INDUSTRY STUDY. The Definitive Buyer's Guide to the Global Market for Learning Management Solutions 2013

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1 INDUSTRY STUDY The Definitive Buyer's Guide: Learning Solutions 2013 The Definitive Buyer's Guide to the Global Market for Learning Solutions 2013 Janet Clarey, Senior Analyst Katherine Jones, Ph.D., Lead Analyst Wendy Wang-Audia, Research Analyst David Mallon, Lead Analyst 1 Copyright 2013 Deloitte Development LLC. All rights reserved.

2 The Definitive Buyer's Guide: Learning Solutions 2013 The Bersin WhatWorks Membership Program This document is part of the Bersin Research Library. Our research is provided exclusively to organizational members of the Bersin Research Program. Member organizations have access to an extensive library of learning and talent management related research. In addition, members also receive a variety of products and services to enable talent-related transformation within their organizations, including: Research Access to an extensive selection of research reports, such as methodologies, process models and frameworks, and comprehensive industry studies and case studies. Benchmarking These services cover a wide spectrum of HR and L&D metrics, customized by industry and company size. Tools Comprehensive tools for HR and L&D professionals, including tools for benchmarking, vendor and system selection, program design, program implementation, change management, and measurement. Analyst Support Via telephone or , our advisory services are supported by expert industry analysts who conduct our research. Strategic Advisory Services Expert support for custom-tailored projects. Member Roundtables A place where you can connect with other peers and industry leaders to discuss and learn about the latest industry trends and best practices. IMPACT Conference: The Business Of Talent Attendance at special sessions of our annual, best-practices IMPACT conference. Workshops Bersin analysts and advisors conduct onsite workshops on a wide range of topics to educate, inform, and inspire HR and L&D professionals and leaders. For more information about our membership program, please visit us at 2

3 Learning s 2013 Vendor Profiles SuccessFactors (an SAP company) COMPANY SNAPSHOT Centennial Towers One Tower Place, Suite 1100 South San Francisco, California Year Founded: 2001 Number of Employees: 1,578 (as of 12/31/11) Size of Target Markets: SMB Large Enterprise Top Industries Served: Cross-Industry Geographic Presence: Customers in 168 countries and offices in North America, Europe/the Middle East/Africa, Latin America and Asia-Pacific Public or Private Company: Public (NYSE:SAP) Current Fiscal Year: 2012 Current Revenue: $336.3 million (2011) Growth Rate over Previous Fiscal Year Revenue: 61% Number of Customers: 3,500+ Three Largest Customers/Implementations and Number of Users: Large Retailer 2.1 million users General Electric 500,000+ users U.S. Department of Veterans Affairs 500,000+ users Company Overview SuccessFactors began 10 years ago as a cloud startup, and now has more than 15 million users and 3,500 customers in more than 168 countries and 35 languages. In February 2012, SuccessFactors became an SAP company, as that company s go-to-market talent management solution. Today, the company continues to provide growth as part of SAP s new cloud division with Lars Dalgaard, founder and previously CEO for SuccessFactors, at the helm. Prior to becoming an SAP company, in 2011 SuccessFactors acquired Jambok, a SaaS social learning company, to extend its social collaboration offering. Subsequent to the Jambok acquisition, it acquired the enterprise-level LMS solution provider Plateau s Ltd. in August This acquisition, along with Jambok, positioned the company to provide a broad suite of products, including formal and informal learning solutions along with its established integrated talent management solution for both enterprise-class and small to midsize businesses. As an SAP company, SuccessFactors is positioned to provide broad integrated business solutions that address the big business challenges which companies face. 3

4 Learning s 2013 Vendor Profiles Products and Services Core Strengths Learning, Collaboration, Analytics, Core HR and Talent. Offerings Services Platforms Tools Background Checking Assessment s Accredited Degree Programs Advanced e-learning Development Community Career Assessments Classroom or Meeting Technology Competency Development Competency Competency Libraries Media Development Employer Branding HR Compliance Rapid Development HR Technology Consulting Learning Analytics Customer Service Simulation & Games Learning Administration Learning Digital Resource Library Survey & Assessment Learning Delivery Learning Executive Education Learning Delivery Mobile Learning Financial Learning Measurement Onboarding Healthcare Payroll Processing Recruitment Advertising Strategic HR Consulting Support Social Learning Platform IT Desk Leadership Development Project Strategic L&D Consulting Social Software Sales Technology Hosting Technology Implementation Succession Talent Suite Workforce Analytics Workforce Planning 4

5 Learning s 2013 Vendor Profiles Market Differentiators 1. Business Execution Unlike many talent management or human capital solutions, SuccessFactors brings together HR processes (including learning and talent management) and business data, allowing people s strategies to be linked to the business strategies to drive desired business results. 2. In addition to the SaaS-based set of learning, collaboration and talent solutions, SuccessFactors also provides core HR and workforce analytics, giving the company the breadth and depth that other providers may lack. 3. The backing of ERP giant SAP provides development talent and dollars to propel SuccessFactors into the global HCM market in a more timely manner than the company could have done otherwise. The combination of SAP s experience and resources, and the innovation and agility of SuccessFactors has made it highly competitive in the market. Product Overview Product Name Current Generally Available Version Number Date Current Version Released Number of Previous Versions Officially Supported Underlying Development Technology Delivery Models Supported (SaaS/ Multitenant, Hosted, and/or On-Premise) SaaS-Supporting Data Centers Learning July 2012 July 2012 N/A all customers are on the current version Java SaaS/multitenant, installed on-premise 3 in North America, 1 in Western Europe & 2 in Oceania coming in 2013 & Goals July 2012 July 2012 N/A all customers are on the current version Java SaaS/multitenant 3 in North America, 1 in Western Europe & 2 in Oceania coming in 2013 Jam July 2012 July 2012 N/A all customers are on the current version Java SaaS/multitenant 3 in North America, 1 in Western Europe & 2 in Oceania coming in

6 Learning s 2013 Vendor Profiles Product Capabilities Modules Available Career & Succession Compensation Competency HRIS/ HRMS Learning Social Software and Collaboration Talent Acquisition Workforce Planning Background and Support Administration Adaptability Security & Permissions User Application Configurability Application Communication & Notifications Interface Data - Architecture Data Core Reporting & Analytics G D Background and Support Adaptability User Experience Delivery Model SaaS Maturity Search & Discovery Decision Support Integrated Global Support & Infrastructure Career & Succession Succession Phase 1: Planning Phase 2: Identification Phase 3: Development Phase 4: Transition Phase 5: Talent Review Talent Calibration D = No functionality in this area or not applicable. K = Limited functionality in this area. May support some use cases. G = Basic functionality in this area. Will likely support most use cases. D = Advanced functionality in this area. = Complete or near complete functionality in this area per market at report publication date. 6

7 Learning s 2013 Vendor Profiles Career & Succession Succession Career Talent Profiles Talent Data Integration Talent Pools Administration Career D Compensation Salary Banding / Structure Job Valuing / Job Pricing Budget & Allocation Incentive Total Comps / Rewards Statements Pay Equity Analysis Competency Employee Profile Competency Maintenance Competency Assessment Talent Integration Competency Reporting Employee Education & Experience Job Profile Talent Profile Review & Analytics D D HRIS/HRMS Position Position Tracking Self Service Document Reporting HRIS/HRMS Compliance Benefits Global Support Organizational Charts D = No functionality in this area or not applicable. K = Limited functionality in this area. May support some use cases. G = Basic functionality in this area. Will likely support most use cases. D = Advanced functionality in this area. = Complete or near complete functionality in this area per market at report publication date. 7

8 Learning s 2013 Vendor Profiles Learning Course and Resource Catalogs Curriculum, Learning Plans & Certification Learning Surveys & Assessments Enrollment & Registration Administration ecommerce Learning Reporting Process Cascaded Goal Planning Development Planning Reviews Calibration Support Pay for Social Software and Collaboration Conversations Collaboration Connections Moderation Tools Social Analytics Integrated Communication Tools D D Talent Acquisition Requisition & Approval Job Posting Employee Referrals Candidate e-career Portal Candidate e-search Recruiter Workflow Automation Pre-Screening & Assessment D D Talent Acquisition Onboarding Interview Candidate Communications Talent Acquisition Reporting High Volume Recruiting Employee Data Task and Acculturation = No functionality in this area or not applicable. K = Limited functionality in this area. May support some use cases. G = Basic functionality in this area. Will likely support most use cases. D = Advanced functionality in this area. = Complete or near complete functionality in this area per market at report publication date. 8

9 Learning s 2013 Vendor Profiles Workforce Planning Workforce Segmentation & Position Workforce Reporting & Analytics Demand Planning & Analysis Action Planning & Progress Monitoring Supporting Tools Integration = No functionality in this area or not applicable. K = Limited functionality in this area. May support some use cases. G = Basic functionality in this area. Will likely support most use cases. D = Advanced functionality in this area. = Complete or near complete functionality in this area per market at report publication date. Bersin by Deloitte Analysis Today, SuccessFactors has more than 3,500 customers in 168 countries using its application suite in 35 languages. The total number of users supported on the cloud platform is more than 15 million. The company defines its markets as: Small Business: 1 to 750 employees Midmarket: 750 to 3,500 employees Enterprise: > 3,500 employees Today, 67 percent of its customers are in companies exceeding 10,000 employees. Companies supported run from a one employee company to one organization with 2.2 million users. In addition to its own developments that extend its talent management solution, SuccessFactors grew by acquisition, adding both learning management (via the Plateau acquisition), and social and collaborative learning (via the Jambok acquisition), as well as analytics and other functionality. These solutions have been integrated at the functional levels, and are increasingly incorporating a common look and feel for an easier user experience. The products are sold as separate modules, as a talent management suite, or as a core HR solution. SuccessFactor s social learning functionality is powered by its Jam social business platform (formerly Jambok). The platform supports screen captures, communities, wikis, blogs, network discovery, video (including mobile), and a rating and ranking of content. Along with its learning management system, its solution is capable of blending formal and informal learning modes. Its social learning solution also leverages SuccessFactors Business Execution Suite, allowing employees to connect via organization, job type, location, or any other profile attribute. The platform can support expertise directories based on a user s competencies and profile. This can be handled independently or as a way to complement formal learning. SuccessFactors plans to continue to deeply integrate its social learning products with its LMS module. 9

10 Learning s 2013 Vendor Profiles The company reports 1,578 employees as of December 31, Its year-over-year growth between 2010 and 2011 was 61 percent. SAP reports rising quarterly results which it attributes directly to continued cloud momentum, driven by synergies between SuccessFactors and SAP. SuccessFactors is well-positioned for increased global support through the depth of global functionality from SAP. 10

11 The Definitive Buyer's Guide: Learning Solutions 2013 About Us Bersin by Deloitte delivers research-based people strategies designed to help leaders and their organizations in their efforts to deliver exceptional business performance. Our WhatWorks membership gives Fortune 1000 and Global 2000 HR professionals the information and tools they need to design and implement leading practice solutions, benchmark against others, develop their staff, and select and implement systems. A piece of Bersin by Deloitte research is downloaded on average approximately every minute during the business day. More than 5,000 organizations worldwide use our research and consulting to guide their HR, talent, and learning strategies. As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright 2013 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited. 11

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