As professional workers in the US continue to work remotely due to the pandemic, many are discovering their HR and financial systems aren’t set up for this modern situation.
For companies that haven’t switched to cloud-based service providers, accessing sensitive and confidential documents can still require some roundabout measures. “They are having people sneaking onto their business to download some reports and being able to provide the financial numbers” Chano Fernandez, Workday’s co-chief executive officer said during a conference call on Nov. 20.
Opportunities in the cloud
Even without secret office visits, many businesses are realizing they need to modernize the various systems they use to manage employees (known as HCMs), in order to survive the pandemic and better accommodate long-term remote
(Bloomberg) — Workday Inc. executives said the pandemic-fueled recession will likely crimp software demand next year, putting a damper on a positive earnings report and turning shares down in extended trading.
The company said some customers of its human resources and accounting tools are struggling and new business is harder to find as the coronavirus continues to spread. Executives, speaking on a conference call, expressed optimism about their business, but said Covid-19 has created so much uncertainty that they couldn’t give a forecast for fiscal 2022, which begins in February. Shares, which had jumped as much as 6.3% in extended trading, lost all those gains during the call, declining
shares were getting a push on Tuesday from Piper Sandler analyst Brent Bracelin, who lifted his rating on the cloud-based enterprise software company’s stock to Overweight from Neutral, with a new price target of $275, up from $248.
The core debate around the shares of Workday (ticker: WDAY) has been around the rate of adoption for the company’s cloud-based financial software suite as growth in the company’s core HR software segment slows. But Bracelin is a bull about the company’s “FINS” financial software business—which competes with legacy enterprise resource planning (ERP) software vendors like
(SAP)— and he sees acceleration ahead as well in the core HR software business.
Bracelin sees multiple catalysts that could drive the stock higher in 2021. Among other things, he points out that Gartner sees the cloud-based enterprise resource planning (ERP) segment accelerating to 17% growth in 2022, from 3%
So there’s certainly quicker to value with fewer consultants and generally projects take shorter time. The second thing is there’s a workday delivered methodology, which all partners have to use. so only approved partners can work on implementation projects and every consultant from every part has to be certified on every new version of the product there’s less freedom to customize but in our experience it’s rare that customers can’t meet their needs through the configuration options available. One of the key issues is change management a workday implementation project is going to affect every employee at every level in the organization.
Communication appropriate to the different levels of the organization and to the different roles that people play is absolutely key. also the HR function itself is likely to be transformed people that have been doing a certain kind of work for years, may find their work changing significantly … Read More