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SaaS HCM and Traditional HCM

Today we look at traditional or On Premise HCM Applications like PeopleSoft HCM and also at SaaS or On Demand HCM like Workday.


Are you wondering why i choose to name PS and Workday here from a plethora of On Premise and On Demand HCM applications available ? Well there is a reason and the reason happens to be these two inspiring and gritty gentleman who found Workday in 2005-2006. The duo David Duffeild and Aneel Bhusri were part of the PeopleSoft leadership team who witnessed the takeover of PeopleSoft in 2004(David was a founder of the erstwhile PeopleSoft).
And what would i do if i had to face a similar situation, maybe lick my wounds in private and turn bitter but no sir, that was not what the duo did, they created a top notch ERP again and this time it has an additional dimension to it, it was cloud enabled, in other words it was an On Demand or a SaaS application.
I salute the never say die spirit of Workday.
So what does SaaS mean,
Software as a Service simply means a software that is hosted and made available to the customers by the vendor over the internet.

Software as a Service simply means a software that the vendor has hosted on cloud and lets you use it over the internet, so in a way you rent a sofware hosted on the vendor’s infrastructure instead of buying the software and then installing and hosting it on your servers as in traditional software models. Along with you many other users/organisations also avail of the same software and use it without bumping into each other’s space, think of a mail service like gmail or yahoo (but with a fee), you do not download or install anything, just type in the url, create an account for yourself and get started. And in the case of traditional software when the vendor rolls out a new version of the application, it is upto the customer to work and upgrade to the newer version but in the case of a SaaS application, the vendor upgrades the application hosted on his cloud and the new version is rolled out to all subscribing customers.

When you implement an On Premise software application(another name for traditional software models) you buy the software license and then pay an Annual Maintainance Cost i.e. AMC to retain rights to use the software, in an On Demand software (another name for SaaS) you pay a monthly fee and a fee for any services that you may avail of fromn the vendor.

An On Premise software can be customised to a large extent by your development or consulting teams depending on your business needs whereas On Demand software cannot be customised by you as you are renting the software and this software is owned by the vendor and shared by many others, so the customisation route is not possible here. So you have to adapt to the functionality offered by the SaaS tool and you cannot adapt it to suit your business needs.

As you can see there are tradeoffs against both the models.

So see ya soon with another post :

My Love My Passion……PeopleSoft HRMS

Ok so here goes, after the month long silence on my blog i am back again,

My previous series was my take on conducting a requirements analysis and how i approached it as a Business Analyst rather than as a Project Manager.

In my current series i plan to talk about my passion, PeopleSoft HCM (PeopleSoft HRMS earlier) which also happens to be my bread and butter too, i would say “Happy is the one whose passion is his/her profession’. So after that not so clever adaptation of a classic quote i revert to PS HCM.

Why PS HCM you may ask, well perhaps because i have been working on ot and learning it all along my work life, i appreciate the manner in which complex and simple business processes have been handled, the flexible workflows, the scope for customisation, the intutive self service options and the way the extensive HCM suite has been conceptualised and built is for me a huge wow..

So what is PS HCM,

PS HCM is an ERP (Enterprise Resource Planning) software, an ERP is an integrated set of modules containing business processes that can be used to capture, store and manage data relevant to an organisation. ERP includes HCM, CRM , Financials , Student Administration among others.


PeopleSoft Human Capital Management (PeopleSoft Human Resource Management System earlier) is essentially a set of loosely related modules bundled together (called as a suite too) meant to be used for the entire lifecycle of an employee in an organisation, this starts at the point from which the need is identified for hiring an employee (Talent Acquisition Manager) through creating an EmplID or Person ID (Administer Workforce) , managing the employee’s performance(ePerformance), training needs(Administer Training) , salary payouts(Global Payroll/Payroll Interface) and benefits(Base Benefits & Benefits Administration) to the termination(Administer Workforce again) or retirement of an employee(includes Pension Administration). These modules along with the Time and Pay, Workforce Development, Country specific Payroll and Compensation Management are essentailly for use by the power user teams (your HR personnel, recruiters, Compensation and Benefit Management teams et al).

Self Service / Employee Self Service and Manager Self Service are access points for employees of your organisation and their reporting managers to access and use the PS HCM application made available to them.

And so for the PS HCM application to be made ready for use by the power users and end users , it has to be installed, master data has to be setup, access rights have to be configured and allocated to users.

Over the posts in this series we will explore the setup of the control tables and the several nuances associated with it, next we look at security both in terms of access and data. And then we will move on to understanding several of the modules that make up PS HCM.

So do wait for the next post on the setup fundamentals of the PS HCM application.

Before signing off i will attempt to explain the term Core-HCM used very commonly in the HCM context, Core-HCM according to me refers to all those modules in a HCM suite that enable employee core data pertinent to his/her tenure in the organisation to be captured and stored. The modules generally part of Core-HCM are Workforce Administration, Adminster Training, ePerformance and Compensation Management. The modules used in your organisation would depend on the organisation’s implementation strategy, business needs and licensing.

Bye till next post