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The Relationship Between HR SaaS and Enterprise Digital Transformation
Simply put, HR SaaS is human resource service software, a completely innovative software application model that emerged from the mature Internet. Application software is deployed by HR SaaS vendors on their own servers. The customers can purchase the software they need and enjoy the services provided by vendors via the Internet. In the process of enterprise digital transformation, the match of corporate strategies with organizational goal management, execution efficiency, human resource incentive, corporate culture, etc. has a direct impact on the competitiveness of the company. HR SaaS is a dual-attribute tool. As it has integrated software capabilities and the underlying talent management concept, it can empower enterprises' business development and digital transformation from a higher perspective.
Drivers of the HR SaaS Market in China 1/3
The scale ofdigital economy accounts for an increasing proportion in GDP
Digitaleconomy development is among China's national strategic goals. The growth rateof the digital economy has been much higher than that of the GDP over the sameperiod in recent years. Enterprise digitalization drives the new round ofnational economic development. Stimulated by both industrial digitization anddigital industrialization, in 2020 China's digital economy scale hit 39.2trillion yuan, accounting for 38.6% of its GDP, increasing 2.4pct compared to2019. Its impact on the overall economic output value has further increased. Asan enterprise management tool, HR SaaS is closely related to enterprisedigitalization. Together with other tools, it can improve the efficiency ofproduction, management, operation, supply chain, and other links, therebydriving the fast development of the digital economy. The development of thedigital economy will provide a good environment for the penetration of digitaltool application in enterprises, forming a spiral positive circulation.
Driversof the HR SaaS Market in China
Cloudcomputing technology facilitates digital transformation
With theconstruction of cloud computing infrastructure and the maturity of technologythe scale of the cloud service market keeps growing and reached 231.55 billionyuan in 2020, increasing by 43.6% YoY. iResearch projects that the market sizewill hit 538.14 billion yuan by 2023 and maintain a growth rate of over 30% inthe next few years. CAICT data shows that in 2019 the proportion of Chineseenterprises using cloud computing reached 66.1%, increasing by 11.4pct comparedto 2017. Companies start digital transformation after going through the informationization stage. As a light asset product of human resourcemanagement, HR SaaS has the feature of flexible delivery. It can relieve thecash flow pressure on enterprises and is of great significance to enterprisedigital transformation.
Extension of HR SaaS ApplicationScenarios
In the humanresource management application scenarios, HR SaaS covers the whole chain,including recruitment management, core human resource management, training anddevelopment, talent management, talent assessment, organizational development,and so on. Among them, core human resource management consists of organizationinformation, attendance management, performance management, and salarymanagement. Different from core human resource management, talent managementtakes competence as the core and combines various modules through competencerecognition models. Therefore, various technologies such as model building,assessment, and online examination are needed to assist judgment. Using HR SaaSproducts, companies can manage the entire life cycle covering employeerecruitment, selection, hiring, management, development, retention, andresignation, realize digital management of human resources, and greatly improvemanagement efficiency, which will conducive to talent retention andorganizational development. In addition to standard users, the increasingdemand for blue-collar employment management in recent years has also attractedmore attention to the flexible employment market and demand explosion.Nov 22 2021
Digitalization and AI will inject vitality in enterprise service
Enterprise service covers a lot of aspects but its main characteristic will remain enterprise digitalization for a long time. This is because, after completely changing the To C sector, the Internet has reached the To B sector, guiding enterprises to primary digitalization focusing on “links and customer acquisition. With increasing clients, contact points and traffic costs, the enterprises inevitably attach great importance to customer experience and customer journey. At the same time, big data and AI technologies have just matured. With necessity and feasibility, enterprise digitalization is an inevitable trend. Digitalization and intelligence will become the new drivers to enterprise service: Even human outsourcing, which seems to be the most traditional field, carries out business digitalization through platformization and software definition, etc. This report focuses on the new variables that digitalization and intelligence bring to enterprises.
Chaos has become the new norm of transformingenterprises because of the internal posteriority and the external complexity
Transformationis the only choice for enterprises to break the bottlenecks in the aspects ofcustomer demand, external environment and competition. As the next-generationinformation technology is booming, digital tools become the ideal carrier forenterprises transformation. However, to achieve digital transformation is noteasy. The posteriority of internalorganizational culture and the complexity of external enterprise servicemarket bring lots of difficulties. Although someenterprises now have initial business innovation plans and enterprise serviceproviders are prepared in relevant digital technologies, the two parties havenot formed benign links yet, hindering the implementation of enterprise businessinnovation and the value conversion of vendors’ advanced technologies. Chaos has become the key word for enterprises in digital transformation bottleneckperiods.
In-depth transformation empowers companies to expandbusiness layout and to lead the industry ecology
Enterprisesmay encounter internal and external difficulties in the transformation process.However, if they can establish a top-down transformation decision-makingmechanism, link the business processes and real needs between variousdepartments, and get equipped with information tools that can solve their painpoints, they will probably enjoy the dividends brought by transformation.iResearch believes that enterprises provide a technological base for industrydigitalization and digital industrialization through digital transformation andupgrading. Industry digitalization and digital industrialization complementeach other. On the one hand, internal business innovation can help thecompanies suffering from very limited growth in the traditional model to expandbusiness layout and create the second growth curve. On the other hand,enterprises can form an industrial platform through the external radiation oftheir capabilities to provide services for companies and users both in theupstream and downstream of the industry chain, which can not only increaserevenues but also strengthen their differentiated position in the industry andestablish resource barriers that serve their long-term development
Information technology application innovation bringsgreat opportunities
Informationtechnology application innovation (ITAI) is a long-termstrategy for the development and upgrade of China's IT industry. Beginning withindependent innovation of core components of key links and pilot zones in theParty, government and military organizations as well as key industries relatedto the national economy and people's livelihood, it gradually establishesindependent IT infrastructure and standards, achieving optimization andupgrading of the strength and structure of the entire IT industry chain. ITAI has been an important policy driver for thedevelopment of China's To B market in recent years. It promotes the industryfrom four aspects, which are 'demand increase, experience accumulation,ecological construction, and social support',conducing to the development of vendors, and the vitality of the wholeenterprise service market.
ITAI Market Structure
The reconstruction of IT standards leads to changes in the industry chain, and ITAI will advance to industries
From the perspective of industry development, with the advancement from ITAI construction to industry ITAI, more and more vendors will get involved. The current players in the market are striving to enhance compatibility and build their own ecology. ITAI will remake IT standards. The new standards provide new opportunities for vendors in the IT market and will probably lead to the reconstruction of the industry chain and market reshuffle. In the short term, taking the ITAI opportunity, the market will be booming and full of vitality. In the long term, the industry will become increasingly mature and concentrated.
Difficultiesin the supply side are mainly in the areas of technologies in downstream, adaptation in upstream and the overall ecological construction
Building a new ecosystem based on China's independentIT architecture requires joint efforts of upstream and downstream vendors.Upstream basic software and hardware vendors need to improve their technologiesand their products are not mature. Meanwhile, too many technical routes resultin scattered industry power and overall low technology level. For downstreamapplication software and service providers, the diversity of basic software andhardware makes compatibility and adaptation harder. In addition, theperformance degradation to some extent in the ITAI environment adds problems tothe innovation of professional software and complex software.
ITAIcontributes to the rise of Chinese domestic software and hardware and thereconstruction of IT industry structure
The construction of ITAI is a long-term plan forpromoting China's information technology industry. In the early stage, ITAI ismainly driven by policy incentives and provides Chinese IT vendors with afavorable development environment. Thanks to efforts of the whole society,China's information technology industry is booming with features such as theintegration of application, technological innovation and lots of talents. Themarket is more vigorous than ever. With market opportunities brought by favorablepolicies, vendors of the whole industry chain join hands to promote the rise ofChina's basic software and hardware and the reconstruction of industry ecologybased on China's own IT standard. In the future, China will enter the globalmarket and achieve a new round of innovation and development.Nov 16 2021
Integrated Mobile Office Platforms in China and America
The differences in the products and development paths of vendors in the two countries are caused by multiple factors
There are many differences in the products and development paths of the integrated mobile office platforms in China and the United States. Slack, Teams, and other representative products in the American market are different from those in the Chinese market in the aspects of product positioning, ecological model, and customer acquisition methods, which is mainly caused by different social habits, openness degrees and demands of enterprises.
Driving Factor —— Enterprises' Demand
Office application scenarios are fragmented. The value of an integrated office platform is exploited
In the traditional office model, office software and hardware equipment are scattered, and terminal systems are different. The office application scenarios are fragmented. For executive staff, it results in poor experience when choosing office products. For managers, it causes tedious office processes and low efficiency to some extent. Meanwhile, data of enterprises’ internal and external application scenarios can’t be managed or calculated in an unified way, leading to data island. To solve these problems, integrated mobile office platforms integrate enterprises' internal management information and business information, which will help improve data integration capability, streamline operation processes and improve office efficiency.
Scale of China’s Integrated Mobile Office Platform Market
The market scale hit 12.5 billion yuan in 2021 and is expected to exceed 20 billion yuan by 2023
From 2016 to 2019, the growth of the integrated mobile office platform market is mainly driven by the revenues of OA, ERP and other traditional office software vendors. Some portal platform enterprises have entered the market but are still at the stage of production, promotion and commercial exploration. The outbreak of the Covid-19 pandemic in 2020 resulted in a fall in the revenue growth rate of software vendors. Meanwhile, the surge in telework demand has led to the quick increase in ecological partners and active users of integrated mobile office products of the Internet companies; As the traffic falls, the market will grow steadily at a CAGR of around 26.6%.
Product and service competition;channel and ecological cooperation
Suppliers ofportal platforms include Internet companies and non-Internet companies.Although the positioning of their products is very similar, the non-Internetcompanies have some of the characteristics of traditional office softwarecompanies in terms of targeted customers and revenue models, and they havein-depth product forms and business models. In the integrated mobile office platform market, the traditional office software competes withportal platform suppliers in products and services and cooperates with them inthe areas of channels and ecology. The two parties compete with each othersince they have overlapping basic functions. On the other hand, products oftraditional office software enterprises provide in-depth services but have lowmarket penetration. Channels provided by the portal platforms can help themaccelerate market distribution. Meanwhile, the portal platforms can improvetheir services and competitiveness in the continuous integration of products ofthe traditional office software companies, and eventually form a mutuallybeneficial and win-win situation.Nov 11 2021
China Cloud Service Market Scale and Structure
Users and vendors empower each other.
In the first half of 2021, the public cloud market scale hit 123.5 billion yuan, increasing by 48.8%YoY and accounting for 76.2% of the entire cloud market. SaaS companies speed up the upgrading and iteration of their cloud application products to adapt to the fierce market competition, which increases the consumption of public cloud resources. After adopting SaaS, users in various industries introduce basic cloud services to better suit top applications and support business innovation by digital tools. In addition, cloud vendors also use innovative cloud deployment methods, such as promoting distributed cloud construction, to upgrade cloud infrastructure (building intelligent data centers, mobile data centers, edge data centers and other new data centers) ，to expand the public cloud service scope and abilities.
Competitive Landscape of China Basic Cloud Service Industry
Alibaba Cloud, Huawei Cloud and Tencent Cloud are thetop 3 players in China’s basic cloud market
In the firsthalf of 2021 Alibaba Cloud, Huawei Cloud, Tencent Cloud are the top 3 players in both the IaaS publiccloud market and the IaaS+PaaS public cloudmarket in China. The market structure is further concentrated. 1) The growth ofInternet cloud vendors has slowed down. The migration of large clients and thechange of industry policies have influenced the revenues of Internet cloudvendors. 2) The growth ofcloud vendors from an IT background is prominent. Thanks to the increasinglytight connection between cloud and industries, the market shares of cloudvendors from an IT background have all increased. As cloud applications amongcompanies are more refined, the market structure might change. Cloud vendorsneed to attach more importance to building sustainable competitiveness.
CloudScenarios-Digital and Intelligent Upgrade of the Energy Industry
Accelerate industry digitalization and drivesustainable development
The energyindustry, like manufacturing, is crucial to the digital upgrade of traditionalindustries. Energy resources are important to the development of the energyindustry. The health of the energy industry is the key to the sustainableimprovement of people's living standards and the development of enterpriseproduction. To promote the digitalization process of the energy industry, thefirst step is understanding the characteristics and status quo of China'senergy industry and summarizing the commonalities and characteristics, painpoints and needs of the industry. The second step is formulating solutions fordifferent links such as exploration in the early stage, production in themiddle stage and use in the late stage. Energy issues have attracted theattention of countries all over the world. Energy digitization will effectivelyimprove China's energy structure and help China peak its CO2 emissions before2030 and achieve carbon neutrality before 2060.
Cloud Computing Will Remain the Foundation
Support reforms in the information and technologyindustry, the innovation ofdigital scenarios and the upgrade of digital capabilities
The emerge ofconcepts related to Web 3.0, such as the metaverse, leads to the upgrade of the interactive model,expansion of Internet functions and content, and changes of pan-Internetindustry technologies and products such as the game cloud and video cloud,which gradually arouses discussions in the industry. But the fact that cloudcomputing is the foundation of industrial innovation and business evolution hasnever changed. 'Cloud +industry' isgradually surpassing 'cloud+technology' and becoming a focus of the information technologyindustry. Thanks to its Internet genes, its advantages in serving the Internetindustries, and its high penetration in the digital upgrades of traditionalindustries, cloud computing is able to support and connect the physical worldand the digital world. From serving Internet industries to serving traditionalindustries, from supporting AI and big data to supporting diverse edgeequipment and terminals, cloud computing is indispensable for the innovation ofdigital scenarios and the upgrade of digital capabilities. It is foreseeablethat the digital world and the physical world will be more tightly andfrequently connected and cloud computing will be more important and is going toprovide a solid foundation for innovation in the information and technologyindustry.
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