Vincent Belliveau, EMEA general manager for Cornerstone OnDemand, examines why more companies are turning to software-as-a-service (SaaS) solutions for learning management, employee performance management, succession planning and more.
It is recognised that information technology (IT) can help organisations manage their processes and information more efficiently and cost effectively, but HR managers are not IT specialists. They just want an easy-to-deploy, reliable and low-risk solution that helps them achieve their business objectives. A historical lack of investment in IT for HR has meant many HR professionals desperately need to upgrade their systems. However, organisations can now take advantage of the latest technology without the stress and expense of a traditional IT implementation through software-as-a-service (SaaS) applications, which require less up front capital investment, are hosted by a third party and are made available ‘on-demand’ over the internet.
Five reasons why SaaS is gaining adoption and momentum
1. Cost: SaaS has a lower total cost of ownership than traditional IT, both in the short and long term. The vendor takes on the responsibility of building and maintaining the hardware, infrastructure, data security protection and technical support. Those costs are shared across the vendor’s customer base, with regular upgrades included in a lower, predictable price. The customer does not have to buy or maintain hardware to host the application. In addition, there is less impact on the organisation’s bottom line, as the cost of SaaS is an operating expense – a yearly charge – rather than a larger, one-off, up front capital investment.
2. SaaS works with geographically dispersed workforces: The system is web-based and will serve end-users whether they are office, field or home-based. It also works across borders. Subscribers only need a web connection and browser, so SaaS applications can be rolled out irrespective of the IT infrastructure across the user base.
3. SaaS is future-proof: Uniquely, the ‘version-less’ approach means the application will never become outdated, and there is no expensive migration path – all customers and subscribers use the same, latest and greatest version.
4. SaaS is quick to implement, with little risk: Customers simply pick the configuration they need, tailor the front end to their corporate identity, integrate with their existing systems as needed and commence rollout. Reduced involvement from the IT department makes the process faster. Furthermore the application is tried and tested by many customers, so there is no risk of failed projects.
5. Customer-centric approach: SaaS applications are comparatively easier to develop and upgrade, so vendors can invest more in innovation and tend to be more receptive to customer suggestions for new functionality. They tend to facilitate online user communities, so customers can share requests to improve the software and collaborate to make sure their most pressing needs are prioritised. As the subscription is renewed over time, the vendor is heavily incentivised to provide better service and responsiveness and fix problems faster.
Is SaaS right for you?
Most organisations are ready and able to adopt SaaS applications. With a lower cost of ownership for a proven, future-proof application, HR professionals can demonstrate to stakeholders that it is a safe and reliable way to deploy technology solutions for learning management, employee performance management and succession planning across the entire organisation in a cost-effective way. Depending upon the offering, SaaS solutions can also benefit the HR strategy by enabling greater use of a blended approach to learning and development, as well as the integration of learning and HR processes. In general, SaaS provides organisations of any size with more autonomy over their own deployments, meaning the implementation process is faster and cost effective too. HR professionals have never been better placed to get the right solution for their current and future needs.
Case study: LV=
LV= is the UK’s largest friendly society and a leading mutual financial services provider. The company serves 3.8 million members and customers and manages around £7bn on their behalf. In addition to having a complex business structure and a number of office locations across the UK, LV= is subject to regulation by the UK’’s Financial Services Authority (FSA) and strict data protection regulations. Nearly two-thirds of LV= employees are client-facing and must be trained to communicate with clients in a way that is compliant, factually correct and delivers outstanding customer service. LV= wanted to implement a learning management system (LMS) quickly in order to improve the quality and timeliness of its management information and auditing capabilities, and support a move towards a culture of self-service learning.
Krissie Billingham, learning operations manager for LV=, selected Cornerstone’s SaaS LMS to assign, deliver and track learning and development (L&D) activity across the organisation’s 4,000 employees across 28 UK offices.
"Each LV= employee has a complex combination of governance, compliance and job-specific learning needs, so we needed a flexible and extensible platform for learning which we could use to build a more effective blended learning strategy, reinforce our new corporate branding and structure, and help the organisation to deliver business performance and outstanding customer service."
Vincent Belliveau is general manager EMEA, Cornerstone OnDemand. For more information on Cornerstone OnDemand, visit www.cornerstoneondemand.co.uk.
