Bersin & Associates Announces First Comprehensive Research Study of U.S. Market for Workforce Performance Management; Findings Show Market Growth of 42% over Next Year.OAKLAND, Calif. -- Market Highly Fragmented, with Only 11% of Surveyed Companies Using Vendor-Provided Solutions; Market Maps Show No Significant Penetration by Any Single Vendor Bersin & Associates, the only research and advisory firm solely focused on enterprise learning and its organizational impact, today announced the availability of its newest research study, "Performance Management 2006: Market Analysis, Trends, Best Practices, and Vendor Profiles." Bersin and Associates analysts estimate that this nascent nascent /nas·cent/ (nas´ent) (na´sent) 1. being born; just coming into existence. 2. just liberated from a chemical combination, and hence more reactive because uncombined. but rapidly growing market is at $136M in license revenue today and will grow 40% over the coming year, based on purchasing plans and vendor estimates. The 230-page report is based on a quantitative survey of 553 HR and training managers and executives, in-depth interviews with more than 50 representatives from organizations currently using performance management systems, briefings with 21 software and services vendors, and a quantitative survey of 125 HR managers with experience implementing a performance management system. The study verifies the extreme fragmentation (1) Storing data in non-contiguous areas on disk. As files are updated, new data are stored in available free space, which may not be contiguous. Fragmented files cause extra head movement, slowing disk accesses. A defragger program is used to rewrite and reorder all the files. of the market; of 21 vendors included, none has a significant lead in market share. SuccessFactors has the highest market share based on revenue (17.5%); Halogen Software Halogen Software Inc. is a software publishing company in Ottawa, Ontario, Canada which provides Web-based employee performance and talent management solutions. Company History Halogen Software was spun off of the business-consulting firm, Manta Consulting. has the largest number of live client sites (20.7%), and Oracle has the largest share by number of licensed users (17.8%). However, the report points out that these market share leads represent relatively small revenues and customer bases. Only 11% of organizations surveyed have vendor-provided solutions, and 41% of these implementations have occurred in the last year. "When it comes to demand, we're seeing the tip of the iceburg," said Josh Bersin, president of Bersin & Associates. "The business drivers behind this market are very powerful. Undisputable shifts in workforce demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. are making all aspects of talent management critically important - from hiring smarter to identifying and cultivating management prospects to ensuring the development of competitively important skills throughout the organization. "Technology finally makes it possible and even practical to automate these processes. Solutions are available now to improve the employee management process, increase employee engagement, improve succession planning Management Succession Planning In organizational development, succession planning is the process of identifying and preparing suitable employees through mentoring, training and job rotation, to replace key players — such as the chief executive officer (CEO) — , and align talent requirements with learning investments. In the course of conducting this study, we've seen numerous examples of organizations that have used performance management solutions to achieve demonstrable de·mon·stra·ble adj. 1. Capable of being demonstrated or proved: demonstrable truths. 2. Obvious or apparent: demonstrable lies. business results and competitive advantage." Respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. cited four primary benefits of implementing employee performance management systems. Improving consistency and efficiency of the process was the most frequently cited benefit (33%); improving equity and morale (30%); alignment of goals and performance with company strategy (29%); and improved data for talent management and workforce planning Strategic Workforce Planning involves analyzing and forecasting the talent that companies need to execute their business strategy, proactively rather than reactively, it is a critical strategic activity, enabling the organization to identify, develop and sustain the workforce (26%). The study covers a wide range of topics, including: --The key business drivers of performance management initiatives (for example, pay for performance, business transformation, acquisitions, critical talent management) - and how each impacts a performance management initiative. --Case studies discussing best practices in the implementation of performance management processes and performance management systems. --The seven elements of performance management and how each fits into a maturity model for performance and talent management. --A detailed review of the four categories of software providers (pure-play performance management vendors, talent management suites, LMS (Learning Management System) An information system that administers instructor-led and e-learning courses and keeps track of student progress. Used internally by large enterprises for their employees, an LMS can be used to monitor the effectiveness of the providers, and ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. providers) with recommendations to guide buyers in identifying the category that best fits their strategy. --In-depth vendor profiles, MarketMaps(R), and screen shots highlighting how vendors address different aspects of performance management. --Implementation benchmarks for performance management systems - including the costs, required staff resources, implementation time, and key challenges in system adoption. --System integration trends and integrated talent management or HCM HCM hypertrophic cardiomyopathy. suites. To make it easier for buyers to develop short lists, the study also charts vendor strengths (for instance, learning and performance management features), as well as the average size of their customer bases (global, enterprise, and mid-market). The 21 vendors profiled include: Authoria, Cornerstone OnDemand, Exxceed (acquired by Workstream), Halogen halogen (hăl`əjĕn) [Gr.,=salt-bearing], any of the chemically active elements found in Group 17 of the periodic table; the name applies especially to fluorine (symbol F), chlorine (Cl), bromine (Br), and iodine (I). , International Performance Systems, Kenexa, Learn.com, MindSolve, Oracle, Performix Technologies, Plateau, Vurv (formerly Recruitmax), Saba, SAP, Softscape, SumTotal, SuccessFactors, TEDS, Workscape, and Workstream. Bersin & Associates will discuss the study's findings in an upcoming webinar on Wednesday, May 31, at 2:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . To register, go to http://events.interwise.com/?p=500589&t=7&s=bersin. Performance Management 2006 is available at no cost to Bersin & Associates research members. Copies can be purchased for $1,795. For more information, go to http://www.bersin.com/perfmgt. About Bersin & Associates Bersin & Associates is the only research and advisory firm solely focused on corporate-learning with a comprehensive research program targeted to the needs of learning and HR professionals and executives. In 2001, Bersin & Associates introduced the What Works series, primary research that offers learning and HR practitioners factual and practical insight that can improve program effectiveness and results, reduce costs, and avoid time-consuming and costly mistakes. The company specializes in six research areas: planning and strategy, blended learning Blended Learning is the combination of multiple approaches to learning. Blended learning can be accomplished through the use of 'blended' virtual and physical resources. A typical example of this would be a combination of technology-based materials and face-to-face sessions used , content development, learning management systems and infrastructure, measurement and analytics, and talent management. The company develops industry-leading research studies and provides advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to corporations and solution providers. For more information, go to www.bersin.com or call 561 819 6213. |
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