'Big Three' converge as technology evolves: New products could boost HR's strategic value, analysts predict - HR Technology: Systems & Solutions - Oracle, SAP and Peoplesoft human resource management service providers

HR Magazine, March, 2002 by Mike Frost

Forget those old assumptions about the "Big Three" human resource management system (HRMS) vendors: Oracle is purely a database product; PeopleSoft is for HR organizations only; and SAP is primarily an enterprise resource planning (ERP) tool. All three now provide HRMS suites as well as database products that provide ERP, financial, supply chain management (SCM) and customer relationship management (CRM) database capability. They also provide workplace analytical tools, integrate with corporate portals and offer web-enabled modules.

Each vendor also has introduced features that provide functionality that mid-market vendors traditionally offered.

"PeopleSoft, Oracle and SAP all recognize their systems don't function as stand-alones anymore," says Michael Rudnick, an enterprise portal leader for Watson Wyatt in Stamford, Conn. "The web is pushing this convergence. Corporate portals act as common denominators, giving employees the ability to call up any data source they need."

"There has been a convergence of capabilities between the packages," says Kathy Battistoni, a partner in the human performance practice at Accenture in Boston.

Recently, all three companies have introduced features and technologies that help automate HR transactions and that emphasize manager and employee self-service.

Oracle Adds Recruiting, Learning

"Flexibility is a key aspect of any HRMS solution," says Joel Summers, senior vice president of HRMS development at Oracle Corp., based in Redwood Shores, Calif. The company demonstrated this trait as it evolved from a database products specialist to a leader in the CRM and procurement software arenas, as well as HR.

Oracle's HRMS modules include Core HR (which includes staffing, applicant management, hiring, termination and promotion functions), Advanced Benefits, HR Intelligence, Payroll, and Labor and Training Administration. Oracle set the first quarter of 2002 for the introduction of two new modules--iRecruitment and iLearning.

iRecruitment is scheduled for a March 2002 rollout. "It provides end-to-end integration for every tracking aspect of the hiring process," says Summers.

iRecruitment can handle the entire recruitment transaction. It also tracks new employee performance and retention, enabling managers to determine the most successful recruiting sources, Summers says. Recruitment's reach is extended by integrating pre-screening and reference checking resources provided by HireRight of Irvine, Calif.

Oracle fully integrated its iLearning module in January. It manages the administration of training courses and measures their impact.

Another recent addition to Oracle HRMS is the Time and Labor module. Implemented in fall 2001, the web-enabled tool improves on its predecessor, Time Management, by automating time and attendance record-keeping and by integrating with payroll.

Oracle's Advanced Benefits module is another significant upgrade to the company's product line, he says. With its open architecture, Advanced Benefits allows the Oracle HRMS to support a wide array of benefits, vendors. "It has an interface builder that lets employers tailor the system to their benefits provider in a very simple, straightforward manner," says Summers.

"This is a significant feature for larger organizations," says John Brooks, senior consultant with Technology Solutions Co., a technology implementation firm based in Chicago. "The new system automatically alerts the HR department about changes in an employee's status and lets them know what new benefits they are eligible for."

Oracle HRMS focuses on capturing HR and other data essential to the business and reporting it efficiently, Summers says. "Our systems are geared toward making it easier to get data into the database, and our management tools are based on effectively extracting that information," he says.

PeopleSoft: Building on A New Architecture

Version 8 of PeopleSoft eBusiness suite marked a significant change in direction for the Pleasanton, Calif.-based company. PeopleSoft's product moved from a client/server architecture to a purely Internet-based delivery method. "What this means for our customers is that anyone in their company can access features of the HRMS, because all they need is a browser," says Don Chun, director of global HRMS product strategy for PeopleSoft Inc.

PeopleSoft 8.3, released in November 2001, includes a global payroll product. A rules engine incorporates a country's payroll regulations and business rules, and creates a payroll tool, Chun says. "When we created our first four payroll country extensions--for the U.K., France, Germany and Switzerland--we didn't write a single line of code. It's just about entering rules."

The product includes payroll rules for 10 countries. PeopleSoft plans to add more in future releases.

For example, PeopleSoft's eBenefits package is fully integrated with products from GeoAccess of Lenexa, Kan., which enables users to search for health care providers by name, location or health plan. Authoria Inc., a third-party benefits database vendor, provides customized responses to health and retirement plan inquiries.