It wasn't too long ago that the human resources department operated independently of the rest of the business. Nowadays, HR is a strategic business partner as business leaders and managers across all functions within the company need to know about the cost and effectiveness of their workforce. Additionally, human capital management (HCM) in today's business environment takes substantially more data, measurement, and metrics than was used to guide astronauts to the moon and back.
Thankfully with today's cloud-based business applications, it's easier than ever to centralize employee data and make informed decisions. Some 58 percent of executives face an ever-increasing need to correlate talent insights with profitability, according to the Human Capital Institute. So it should come as no surprise that HR professionals who are succeeding with data analytics are 6.3 times more likely to get opportunities for advancement than those who aren't, according to a Global Leadership Forecast by Development Dimensions International (DDI).
With HCM executives demanding answers in a fiercely competitive market, choosing a prebuilt, off-the-shelf solution drastically reduces time to value. To meet these business needs, Oracle is announcing a new packaged analytics solution for human resources: Oracle Analytics for Cloud HCM, an analytic application available from the Oracle Analytics for Fusion Applications product family.
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Built on Oracle Analytics Cloud and powered by Oracle Autonomous Database, this offering provides deeper insights into workforce issues by enabling a comprehensive view of data from across the organization. It's built for line-of-business managers who need to keep a close eye on a team's structure, culture, and effectiveness. It's designed for the HR business partners who are responsible for team health and planning. It's architected for the HR analysts who perform scenario modeling to analyze, plan, and budget or build ad hoc analyses. And finally, it's easy to use for those executives and HR leaders responsible for strategic planning and business guidance through opportunities and risk identification.
"In today's volatile business environment, HR has become a key strategic business partner for the organization," says T.K. Anand, senior vice president, Oracle Analytics. "With Oracle Analytics for Cloud HCM, customers are now able to leverage out-of-the-box HR analytics to gain unprecedented intelligence and reduce the organization's reliance on IT. This allows for closer collaboration between HR and other key business units such as finance—to help our customers navigate uncertain times and position them for sustained business growth."
At its core, Oracle Analytics lets users delve into complex analyses, deep historical trends, predictions, cross-departmental analyses, and can also include external data in the analysis. We developed this Fusion version specifically for HCM managers primarily because "people analytics" is a high priority, in-demand skill that HR professionals want to learn.
With more than 100 facts, 50 prebuilt HR key performance indicators (KPIs), and numerous dashboards and reports ready to use right out of the box, HR managers can gain insight into complex questions such as:
With Oracle Analytics for Cloud HCM, the HR department gets a library of best practice KPIs to help measure performance within typical HCM operations. For this release, the packaged KPIs answer questions by topic related to workforce, turnover, diversity, compensation, and performance, as shown in the table below.
Core to the user experience of the application is this notion of KPI cards and decks. Using a KPI card, a manager can immediately see when a particular KPI is trending poorly or positively. At a glance, KPI card data visualizations show the actual value of the KPIs or a comparison to a target that the user has identified, as well as a comparison to a previous time period for a trend comparison.
These cards can be assembled into a dashboard—or deck—that allows managers to see prebuilt data pipelines that do the hard work. There is no need to do data design, extract, transform, and load (ETL) tuning or modeling.
Clicking on any of these cards presents the analysis in a chart form (see the image below). This level of data behind the data visualization allows for deeper understanding and helps focus discussions and decision-making.
Oracle Analytics for Cloud HCM is available to use right away with the same Oracle Analytics Cloud interface. It can also be expanded with more data from external sources or from internal departmental sources such as finance, sales, or marketing to gain even deeper insights.
While we started with the finance department and expanded to HR, Oracle expects to continue to extend these capabilities to procurement and planning functions, and later to supporting supply chain management, and customer experience functions such as sales, marketing, and service.