Insights from Ceridian Insights 2017

The timing of Ceridian Insights 2017 was interesting. I had recently been interviewed by Canada’s The Globe & Mail re: Ceridian.  The focus of that interview followed the history of Ceridian. The reporter and I discussed the transformation that Ceridian has undergone since David Ossip took the helm several years ago.

Ossip replayed much of that history to the conference attendees. The main themes in this narrative were that Ceridian:

  • Acquired Dayforce, a new multi-tenant cloud HR solution, as a way to modernize the technology used by Ceridian customers
  • Sold off several product lines to avoid R&D dilution, to lighten their debt service load and to focus on products with a long market runway
  • Created a new culture that focused heavily on customer satisfaction
  • Would rapidly transition existing customers from service bureau offerings to new Dayforce and PowerPay cloud offerings while also taking away customers from other payroll service bureau and HRMS software providers

Most software companies are “one and done” phenomena.  They create some interesting product(s), enjoy some market success and then are finished. Sure, they may get bought and sold a time or two and the management might get switched out with increasing frequency but it’s rare for these firms to ever surpass their prior glory days. It’s precisely this phenomenon that makes Ceridian interesting as it’s breaking the pattern. The new Ceridian is not only dissimilar from the old Ceridian/Control Data, it may become bigger and more successful than its prior incarnation.

But, let’s temper that thought for now.  ADP, a Ceridian competitor, is trying to match some of Ceridian’s new product and service developments. Workday, SAP and Oracle all offer more than just HCM solutions with major product line extensions in Finance, Supply Chain, etc. to cross-sell. It’s a competitive HCM space, for sure, and Ceridian will have to earn its way into deals, one prospect at a time.

Prospects? What were they thinking?

I love shows where the vendor allows industry analysts a free rein. I learn a lot by speaking to customers and prospects. Ceridian makes it easy to do this by ecolor-coding the name badges for us.

I shamelessly buttonholed about two dozen or so customers and prospects. I asked them questions like:

  • How they liked Ceridian
  • What products they were running away from
  • What other products they were considering

Not one customer or prospect really had anything negative to report.

Five years ago, Dayforce was missing a lot of critical functionality. Today, the product line holes are considerably smaller in nature. One customer is still waiting for Dayforce software to produce a (U.S.) EEO-4 report and another indicated that their Dayforce implementation took a bit longer than Ceridian estimated but that was, according to the customer, the customer’s own organization and political fault.  Otherwise, I just couldn’t get anyone to really dish out some big dirt.

Many prospects included firms that had outgrown their current solutions. Some were looking for an all-in-one HCM/Payroll suite.  I sensed many of these wanted solutions that were always current technically and from a compliance/regulatory perspective.

What apparently sold/sells these prospects is Ceridian XOXOX program and related implementation/ support activities. Software buyers like vendors that don’t start billing the subscription service until AFTER the customer goes live. This is something most Ceridian competitors don’t offer.

Prospects also like dealing with ONE firm for both the software and implementation. Customers have been burned too many times by vendors that turn over implementation activities to third parties whose interests may not necessarily be aligned with those of the customer or the vendor. Ossip also referenced an analyst report showing that Dayforce implementations averaged a return on investment in 8 months with competitor products taking something closer to 27 months.

Ceridian Insights 2017
Ceridian implementation – designed to achieve fast time to value

The prospects I met this year included a lot more net-new potential customers than firms considering a move from the legacy service bureau solutions to Dayforce.  Ossip pointed out that the majority of the company’s revenues are now cloud based with 2,700+ customers live on Dayforce.  This shift in prospective customers may be indicative of just how many older customers have already made the transition to Dayforce.

Integration & configuration

HR systems in larger firms can have 100 or so integration points. They must connect to financial systems, benefits providers, 401K plans, insurance firms, operational systems, time tracking technology, one-off HR software products and many, many more solutions.

The creation and maintenance of these integrations is time-consuming and expensive for HR and IT departments. Worse, these integrations frequently change and require a lot of maintenance.

Dayforce Link got some conference love. It’s a tool that’s designed to take a lot of integration headaches away especially for more common integrations.

Another headache cure Ceridian touted was it Validation Dashboard. Dayforce customers see the results of over 400 automatic configuration audits. These audits detect configuration errors during implementations.

Microsoft at a Ceridian event

A Microsoft executive was on-hand to take the big stage with Ossip to announce Ceridian’s global payroll alliance with Microsoft’s Dynamics 365 product line. This deal enables Microsoft Dynamics partners an opportunity to use a single payroll interface for their customers. Dynamics 365 users (or channel partners) don’t need to know all of the country-specific fields needed to calculate payroll in many of the most populous countries globally. Ceridian will take the interface outputs that it needs for a specific country and either complete the payroll calculations itself or utilize its network of payroll providers.  Readers should note that the UK Payroll sub-name with Global Payroll refers to Ceridian’s new native UK payroll capability.

Microsoft Azure will also play a role in this international expansion.

Other product news

Ceridian announced several new product launches and related events. In the learning area, Ceridian is partnering with LMS vendor Docebo. I’ve covered Docebo previously and their approach to learning is intriguing. This relationship should be beneficial to both parties and quickly accretive to users.

A Compensation Management module was also launched. Given the variety of compensation planning methods in-use today by corporations, I’d expect to see this tool continue to morph over time to accommodate more and more nuances. Compensation management is always tough as HR is trying to control costs while retaining best talent. These tools need to consider the compensation that competitors are offering in all of the labor markets and geographies where they have staff. Oh, and let’s make it even tougher by expecting a tool will be able to handle:

  • all of those nuances where your job descriptions are different than competitors
  • situations where some people need their payrate to catch up to missed raises in down years
  • relocation/ cost of living adjustments and other factors.

Predictive analytics and AI were also showcased.

In my opinion, Ceridian, like most of its competitors, is still a ways from being a provider of killer predictive analytics. The enterprise software industry is choking on over-promised but under-delivered predictive analytic capabilities. Most software firms are lucky to field a dozen analytic applications/applets as they’ve learned these take time to develop, often take a lot of personalization for the customer and don’t scale well.  So, I’d put Ceridian right there with its competitors in being in the early stage of this capability.

Likewise, when Ceridian offered up their (obligatory) Alexa demo, it was all question/response mode. While I’ll give Ceridian credit for offering up a teaser demo that was lengthy, entertaining and far-ranging in the kinds of content served up, it wasn’t all that anticipatory in its answers and guidance like I’ve seen from firms like Aera Technology.  This will likely take years for them (and all of their competitors) to develop fully (see the Alexa commentary in this piece I penned for HR Technology Conference this month).

My take

Growing up, we had a dog that always knew when our car or pickup turned off the highway and got on the gravel road to the ranch. Like that dog, I can always spot when a vendor or a product line hits a major maturation point.

Ceridian’s approaching one of these now. The Dayforce product line is a very mature and complete HCM suite with more goodies coming. The company’s customers are converting over to the cloud-based Dayforce solution in volumes that many old-school ERP vendors will envy. Ceridian management has been executing on a strict timetable to remake the company, its solution set, its culture, its development team and more. And, just as important, Ceridian’s owners, a private equity firm are seeing a realistic opportunity for a liquidity event.

When I spoke with The Globe and Mail reporter weeks ago, I said that I expected some kind of material change of control to occur in 2018 for Ceridian.  It’s the highway to gravel road sensation I’m sensing.

Think about it. After all of this change, what would be the next chapter for Ceridian? Another firm would consider building out other back office applications. Or, will they build out more local in-country payroll solutions for other parts of the world? That makes sense if they intend to dramatically grow their non-U.S./non-Canada sales efforts. Whatever the answer, the company will need to pivot to a new long-term vision. What that vision is, I don’t know. Management is either keeping this close to the vest or isn’t thinking that far out. I know if I were Ossip, I’d be thinking about monetizing my success with this turnaround and taking a nice long vacation.

While all that’s interesting to ponder, it takes away from the following reality: Ceridian has moved heaven and earth to make Dayforce a successful, robust solution and has done so in record time.

One final thought: Ceridian’s Insight conference occurred immediately after the worst mass-shooting in American history. Being in Las Vegas was surreal and somber. It’s not the mood one associates with a user conference where parties, after-parties and bombastic showmanship are the usual order of the day.  When I arrived at the conference hotel, you could hear birds, the wind blowing, etc. outside. The Vegas Strip was eerily quiet, almost respectful.

The Ceridian Insights 2017 user conference opened, interestingly enough, with the CEO of MGM Resorts. He thanked everyone for attending and not cancelling. And, he was correct. To have done otherwise would have been to submit to the terror caused by that shooter. Only 23 of the several thousand attendees cancelled.  Since that shooting, Las Vegas tourism has changed – my heart still goes out for the dozens killed and hundreds wounded there.

[“Source-diginomica”]

Gear up to deal with gout

Changing dietary habits can help in treatment. Photo: iStockphoto

Changing dietary habits can help in treatment. Photo: iStockphoto

The pain in his right ankle was so intense, he couldn’t rest his foot on the floor. Yet there was no swelling or inflammation. This is what Alex Anthony, 56, a retired naval captain and a maritime lawyer in Kochi, recalls vividly about his first attack of gout 11 years ago. “It felt like thousands of needles were piercing my ankle,” he says. When Ayurvedic massage offered no relief, he decided to consult a rheumatologist, who ordered an X-ray and a blood test.
“At first, we thought it was a particularly painful sprain,” he says. “However, the X-ray showed no signs of injury or trauma. A blood test revealed high levels of uric acid which led to a condition called gout.”

“Gout is an inflammatory form of arthritis,” says Shrikant Yeshwant Wagh, consultant rheumatologist at Apollo Jehangir Hospital, Pune, and founder-president of Know Your Arthritis, a charitable trust that works to raise awareness about arthritic ailments. “The condition arises because of the build-up of uric acid crystals—an excess of which is called hyperuricemia—in the blood. It is possible to have elevated levels of uric acid (higher than 6mg/dl, which is the norm) without developing gout, but when this excessive uric acid is deposited in a single joint, it results in gout pain.” Uric acid is a waste product that should be excreted by the kidneys. If it isn’t, it can lead to a build-up in the bloodstream.

“And though it can affect any joint, the common sites where excess uric acid is deposited are the big toe, the finger joints, the ankles or the knees—the result is intense and chronic pain,” says Dr Wagh.

Affecting younger people

According to a study published in 2015, in the medical journal Nature Reviews Rheumatology, the incidence of gout has been increasing worldwide over the past 50 years. In India, the disease is affecting a growing number of younger people too. “In some cases, gout is genetic, but a diet high in protein, frequent abuse of alcohol and a high intake of fast foods can increase your uric acid levels and put you at greater risk of developing it, especially if you’re already predisposed to it,” says J.V. Srinivas, director of orthopaedics, Fortis Hospital, Bengaluru. “We are seeing a lot of cases of people in their early 30s and 40s, though it can affect anyone at any age.”

As in Anthony’s case, the pain occurs without warning and keeps escalating. During an attack, your physician will prescribe painkillers and, depending on the intensity, even steroids that offer some measure of relief. Prevention, however, is most essential.

Lifestyle changes

Since uric acid is a waste product formed when the body breaks down purines—a type of protein that is found in many foods and even occurs naturally in our cells—changing dietary habits has long been linked to the treatment of gout.

“Dietary restrictions depend on how high your uric acid levels are and the frequency and intensity of your attacks,” says Saman Zaman, nutritionist at Philips Healthcare, New Delhi. “For non-vegetarians with chronically high levels of uric acid, it is best to avoid red meat, and consuming meat from organs such as brain, liver and kidney,” she says. “If your attacks aren’t as frequent, you can have limited intake of meats such as lamb, fish (tuna, salmon, trout) and poultry as these have moderate levels of purine. Portion sizes shouldn’t exceed 100-150g daily,” she says. “Chronic gout sufferers who are vegetarians may have been asked to avoid certain pulses and legumes such as beans, chickpeas and rajma, but recent studies show that moderate intake of purine-rich vegetables like these don’t aggravate symptoms of gout. A balanced diet that includes fruits, vegetables and dairy is recommended.”

In a study published in November in the Journal Arthritis & Rheumatology, it was established that the DASH (Dietary Approaches to Stop Hypertension) diet, originally formulated to help patients with high blood pressure, could also greatly help in controlling gout attacks.

“The DASH diet is a simple plant-rich diet. It’s high in fibre, low in sodium and red meat. Salt is restricted to around 1,500mg per day (2-3 tsp). It requires you to eat a lot of vegetables, fruits and whole- grain foods which increase your fibre intake. You can include fish and poultry and nuts, but must eliminate red meat. It also requires you to cut the simple carbs like sugars, sugary drinks, canned and tinned foods, Indian sweets, and junk food that contain trans fats and cholesterol,” says Payal Banka, a dietitian based in Bengaluru.

Associated health risks

A study of 409 obese patients, published in the June 2012 journal of Obesity Surgery, found that 47% of them had hypertension or high blood pressure. The group that had hypertension was more likely to develop hyperuricemia as well. Researchers found that though abdominal fat doesn’t directly cause the condition, gout patients had a propensity to become obese and develop diabetes.

Controlling gout, then, is essential to good health. Frequent monitoring is required, says Dr Wagh. “Keeping uric acid levels below 6 is critical to prevent the occurrence of other health issues,” he says. People who suffer from gout do have a tendency to develop kidney stones too, another excruciatingly painful condition to deal with. “Drink plenty of water to excrete the excess uric acid so that kidney stones don’t form and keep a strict eye on your blood sugar levels,” says Dr Wagh. “Ideally, patients should take a blood test once every month (for four-six months) to constantly monitor their uric acid levels.”

Understanding your body and its needs is critical in living and coping with gout and staying free of pain.

[“Source-livemint”]

Spacewatch: SpaceX reuses rocket to launch north American satellite

The SpaceX Falcon 9 lifting off in Florida on 11 October this year. Photograph: SpaceX/flickr

SpaceX set a brisk pace this week, with two successful launches of the Falcon 9 rocket. The second launch by the company – whose chief executive is its billionaire founder, Elon Musk – re-used a previously flown first stage booster, increasing confidence that SpaceX could deliver re-useable rockets and so drive down launch costs.

The first launch took place on 9 October. The rocket lifted off from the Vandenberg airforce base in California at 05:37 PDT (12:37 GMT). It placed 10 communications satellites in a 400-mile-high orbit for Iridium, the telecommunications company.

Iridium runs a constellation of telecommunications satellites. This launch is the first of eight launches scheduled that will place 75 satellites in orbit for the company.

On 11 October a second Falcon 9 rocket lifted off, this time from Kennedy Space Centre, in Florida. The launch took place at 18:53 EDT (22:53 GMT), and carried a larger communications satellite into orbit for SES and EchoStar.

This second launch was notable because it re-used a previously flown Falcon 9 first stage. This part of the rocket first launched last February when it boosted a Dragon cargo ship to the International Space Station; it then flew back and soft landed in Florida for re-use. This booster has now landed back on Earth again, several hundred miles from Cape Canaveral on a drone ship.

Reusing significant spacecraft components is the key to SpaceX’s business model of reducing launch costs. After each flight this week all the first stages returned safely to Earth.

These launches bring the total of SpaceX launches this year to 15, establishing the company as a leading player in the satellite launch market. In September, Musk declared his intention to use his rockets to colonise Mars.

[“Source-theguardian”]