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Cedar 2002 Human Resources Self Service/ Portal Survey

 
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Cedar Survey Shows Early Adopters of Human Resources Self Service and Portal Initiatives Forecast Measurable ROI within Three Years

Dell Computer Corporation saves $2.5 million in first year

Baltimore, MD ‑ December 3, 2002 ‑ Corporations that are not yet beginning the implementation of HR self service solutions will lose competitive advantage, according to The Cedar 2002 Human Resources Self Service/Portal Survey released today. The fifth annual survey, conducted by Cedar, an enterprise applications consulting company, reflects the strategies, use and plans for HR self service and portals of organizations around the world.

Five years of data from the Cedar HR survey show respondents save as much as 50 percent on transaction costs and forecast measurable ROI within three years. Early adopters achieved payback on robust employee and manager self service in as few as 18 months.

As an early adopter of HR self service, Dell Computer Corporation saved $2.5 million in the first year of implementation of a fully web-native, self service system. Today, employees are able to access virtually every HR process via the web and the system has been rolled out to 23 countries throughout the Americas and Asia-Pacific regions.

Survey respondents that reported success in their efforts to deploy HR self service recognized that incorporating employee ideas as well as manager visions and values into the technology and change management planning process were critical success factors (this is from one organization ‑ the data shows the critical success factors being adequate budget/funding, CEO/executive commitment, collaboration between HR and IT, process design, and a business case. This year, companies increased strategic applications by 55% in order to meet demands and business objectives and realize noteworthy return on investment.

“This year’s survey data reflects the acceleration of trends that we had identified in the previous four years of research,” said Tom Rump, CEO of Cedar. “HR self service and portal initiatives are key investments to organizations that want to achieve competitive advantage in today’s current market as well as prepare for the economic rebound.”

Cedar found that the most effective and cost efficient implementations emerging are best of breed package solutions from traditional ERP vendors that are often already in use within an organization. The Cedar 2002 HR Survey shows a 10% increase in implementations from these HRMS vendors. Third party solutions show a slight increase in adoption and continue to offer specialization in self service solutions.

According to Giga Information Group, Inc. report, Survey Data Shows Clear ROI for HR Self Service, November 2002, "Giga has found that comprehensive B2E initiatives are most effective in organizations with more than 5,000 employees, due to economies of scale," said research director, Paul Hamerman. "For Web-based HR self-service, package solutions are overwhelmingly preferred, especially integrated self-service provided by ERP and HRMS vendors."

“As HR technologies continue to mature as strategic, comprehensive solutions, they are increasingly central to building high performance workforces,” said David Link, Cedar’s vice president of eWorkplace and leader of portal initiatives. “Organizations are finding that in addition to cutting administrative and transactions costs, they are also attracting higher caliber employees that make smarter business decisions.”

Lessons Learned from Early Adopters
Cedar revisited five of twenty-five early adopters interviewed for the original survey in 1997 and highlight the visions of these organizations in applying technology to the workforce, as well as lessons learned. Corporations participating in this unique look at how the technology has supported their strategic initiatives are Dell, Baxter, Southern California Edison, Hewlett-Packard, and Pfizer.

About the Cedar 2002 HR Survey
Continuing as the industry’s most comprehensive research effort focused on HR Self Service, Portals and related HR technology initiatives, the survey provides important data to assist in the development and execution of strategies to transform employee and manager service delivery using Internet and Intranet technologies. Cedar began conducting research into the state of HR self service in 1997, focusing on early adopters in North America with self service in place for at least one year.

In 2002, there were a total of 299 responses, with 79% from North America (United States primarily but with 10 responses from Canada), 16% from Europe, and 6% from Australia/Asia Pacific. Over 9.2 million employees are represented by the responding companies in the 2002 survey, with 7 million from North America, representing over 5% of the entire working population.

About Cedar
Cedar is a leading global enterprise consulting organization that offers unparalleled expertise in the design and implementation of systems that demonstrate the bottom-line benefits of HR, Student Administration, Financials, CRM and portal applications. Cedar’s highly experienced workforce enables clients to maximize value and return on enterprise system investments utilizing its Concept to Completion® model. Cedar is an enterprise application consulting division of Cedar Enterprise Solutions, Inc. with its workforce deployed throughout North America, Europe and Asia-Pacific. For more information, visit the company’s Web site at www.cedar.com.
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