EMPLOYEE RELATIONSHIP MANAGEMENT
New Sector walks like ‘CRM’ and quacks like a Portal yet it’s a priority for software venders

Almost out of the blue, ERM is seeking kingpin status alongside customer relationship management (CRM), supplier relationship management (SRM) and partner relationship management (PRM). When outspoken Siebel head honcho Tom Siebel announced that he saw the market for ERM outstripping the market for his company's CRM crown jewels quite soon, many observers sat up and took notice. Although several vendors had been chugging along with little fanfare, building applications that automated every part of an employee's working life at a company, it took the entrance into the market of an applications giant to get people to pay attention.

What is it?
ERM, if anything, is a wide set of functionality that encompasses e-learning; performance and incentive management; knowledge and information management; workforce analytics; and a host of operational issues like recruitment, time and expense reporting, indirect procurement and employee self service. It’s primary objective centers around automating every interaction between employee and employer. In fact, most ERM projects are internal cost cutting measures which seek to minimize the impact of recent downsizing efforts, or more quickly assimilate new employees from acquired companies.

But many industry professionals think it’s simply a change in the message. In fact, if you take a look at the products being introduced from new entrants like Siebel (pictured center), PeopleSoft and the fragmented existing software providers like Extensity and Workbrain, there’s really nothing new here. They are all bundling sets of other applications under the objective of lowering corporate overhead costs.

HOW ARE COMPANIES USING ERM?

IS THERE A MARKET FOR ERM?

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