August 28, 2012, 4:27 PM — Oracle is intent on taking an ample share of the increasingly hot HCM (human capital management) software market, and a new internal document describes its battle plan.
The 48-page document, "Fusion HCM and Taleo: GTM [go-to-market] Strategy and Partner Playbook, is dated this month and lays out a detailed set of positioning statements for Oracle's technology, selling guidelines and scenarios and other information.
Oracle spent $1.9 billion to purchase Taleo, which focuses on the talent management segment within HCM, providing applications for recruiting, employee orientation and learning. It is pairing Taleo's software with Fusion HCM, which handles core human-resources functions such as payroll.
The Taleo deal came shortly after rival SAP bought Taleo competitor SuccessFactors for $3.4 billion. And the competitive stakes got even more interesting this week with IBM's announcement it would buy Kenexa, which offers a number of HR-related applications, for $1.3 billion.
Software vendors are keen to build out an HCM business because the applications can potentially reach and be licensed for all employees in a company. In contrast, CRM (customer relationship management) software tends to be used mostly by sales and marketing departments.
Oracle's partner document explains how its software can be positioned as a full suite spanning many functional areas, as well as sold by individual modules.
It also includes directives on how customers should be approached.
For example, on full HCM Suite deals, partners should lead with Fusion HCM, according to the document.
"Net-new" deals for performance management, which covers areas such as employee reviews, would involve Fusion Performance Management added onto a Fusion, PeopleSoft or E-Business Suite core HCM application, according to the document. One exception would be with sales to Taleo Recruiting customers; in that case, Taleo Performance management would be the add-on.
In the case of "full talent suite" deals, Taleo Performance Suite is positioned first, according to the document. "Deal MUST include all Talent modules (Recruiting, Learning, Performance and Compensation)," it adds. However, it's "OK to lead with Fusion Performance in a full suite case if install base is Fusion HCM, or E-Business Suite HCM, or PeopleSoft HCM."
Finally, a "full suite play" should involve Fusion HCM, Performance, and Compensation along with Taleo Recruiting and Taleo Learn, according to the document.