HR 2.0 is the poster child for the next wave of SaaS innovation

The path for SaaS domination of a market segment has historically followed one of two routes: bringing previously offline workflows online, or moving on-premise software processes online.

In short, SaaS would take over segments that previously were not SaaSified. As hotbeds of net new SaaS activity consolidate into market winners, widespread innovation within a segment gives way to incremental innovation. The focus of entrepreneurs and investors mostly moves on.

Yet, the current wave of HR SaaS innovators entering the market over the past few years is proving that there can be more to the story even after a segment has been SaaSified. As we assess the market, product, competitive and talent dynamics, we see a perfect storm of enabling characteristics pushing beyond incremental innovation into the widespread disruption of the firmly established HR SaaS category.

We believe HR SaaS is one of the first clear cases of a third, newer path of broad SaaS innovation — next-generation SaaS (SaaS 2.0) disrupting established previous generations of SaaS (SaaS 1.0). HR 2.0’s success, playing out over the coming years, will be a catalyst for increasing entrepreneurial and VC attention into the platform potential of this third path. We will begin to see waves of future SaaS innovation focused on attacking established SaaS categories.

As the poster child for SaaS 2.0, how successful will HR innovators be? Our rough assessment of Next World Capital’s HR Innovators NextScape reveals a few $100 million of the $13-15 billion of annual HR software spend shifting to HR 2.0 innovators in 2016 (see the graphic at the end of the article). Over time, the strengthening force of key enabling dynamics discussed below will enable HR 2.0 innovators to battle for nearly all of the HR software market.

Market dynamics — the shift from a goods-centric economy to a talent-centric economy

According to the Bureau of Labor Statistics (BLS), manufacturing jobs in the U.S. peaked in summer 1977 at 19.5 million, then gradually waned over the next 23 years. Measured by decline in manufacturing employment, the full-scale transition from a goods-centric economy to an information or talent-centric economy occurred over the last decade, with manufacturing jobs dropping below 12 million by 2009 and remaining roughly at these levels today.

Underscoring this shift, the cost of talent per unit of economic output has risen by a factor of nearly 3x from an indexed value below 40 in 1977 to over 110 today, according to Trading Economics. Said another way, the U.S. economy has firmly progressed to an information economy, where talent has replaced goods as the most significant and important determining factor.

The U.S. economy has firmly progressed to an information economy, where talent has replaced goods.

The past generation of HR SaaS platforms were all founded before the absolute shift to a talent economy began. They were largely products of a transitional economy where talent was but one piece of the equation.

HR 1.0 placed a premium on administrative versus talent-centric value propositions, i.e. moving offline tasks online, automating processes and delivering compliance. But with the transition to a talent-centric economy, the market now has moved beyond a focus on administration and process. It desires a new breed of HR SaaS, one which aligns business goals with talent versus aligning business goals with process.

A few examples help highlight the shift. HR 1.0 facilitates online application submission, progress tracking and record keeping; HR 2.0 facilitates locating, attracting and hiring the best applicants. HR 1.0 facilitates user-friendly, templated and streamlined performance reviews and company measurements; HR 2.0 focuses on growth, collaboration and goal alignment through review and feedback mechanisms. HR 1.0 enables users to query records and report on KPIs; HR 2.0 enables users to drive decision-making based on past results and, over time, promises to leverage data science and deep learning techniques to recommend, even automate, decision making.

Product dynamics — a focus on millennials

In 2015, millennials became the largest generation in our workforce per BLS. It’s millennials penetrating middle management on their way to upper management, it’s millennials responsible for purchasing decisions and it’s millennials who must be the product focus for software developers. But millennials, the first completely online generation, prioritize specific elements in their software that, coincidentally, are not often focuses within older software offerings.

Clean and performant user experiences, intuitive processes that require little training, mobile-first, collaboration-first, try before you buy/freemium, APIs and integrations, powerful analytics, flexibility/configurability and consumerized interfaces can all be buzzwords that are thrown around when describing software.

But for millennials, many of these traits are table stakes for positive software experiences. HR 2.0 innovators are effectively exploiting perceived weaknesses in 1.0 offerings as millennials look not so much for one single buzzword but rather for an overall software experience with which they relate.

Competitive dynamics – a triple opportunity

Before SaaS 1.0 arrived, only the most mission-critical client-server software made economic sense for mid-market buyers given the high up-front costs. SaaS 1.0 offerings initially battled in this largely greenfield mid-market. Here, they bulked up with functionality and enterprise chops before eventually moving up weight classes into the enterprise, where client-server offerings dominated. As successful SaaS 1.0 vendors increasingly focus up market, emerging SaaS 2.0 innovators emerge in their wake to take on a somewhat orphaned mid-market.

HR software has followed this playbook with many HR 1.0 platforms almost exclusively focused on the enterprise opportunity. Yet, HR 2.0 innovators enjoy a second beneficial competitive reality. In 2012, the dominant HR 1.0 vendors were acquired — Taleo by Oracle, SuccessFactors by SAP and Kenexa by IBM. As a result, HR 2.0 is stepping into a landscape largely devoid of independent 1.0 vendors.

2.0 offerings, on the other hand, uniquely enable organizations to attract, hire and maximize talent.

“No one ever gets fired for buying IBM” is a commonly heard phrase with the general idea being that buying servers, storage or even commodity applications from an established platform company is safe. These technologies are not a competitive differentiator for the buyer’s business, so why take risks on upstarts? HR2.0 aims to flip this script.

HR 2.0 argues that Oracle, SAP and IBM are not a fit in a talent-centric economy precisely because they are not aggressively advancing innovation and differentiation. 2.0 offerings, on the other hand, uniquely enable organizations to attract, hire and maximize talent, a central competitive advantage in today’s economy.

Talent dynamics — strong and crystalizing

BetterWorks, Checkr, Culture Amp, Greenhouse, Grovo, Gusto, Justworks, Lever, Namely, Reflektive, SmartRecruiters and Zenefits are a few examples of HR 2.0 innovators that received Series A financings between 2012 and 2015. It’s no surprise that these emerging companies, which have forward-looking entrepreneurs and strong VCs, have recently stepped in. Together, the enabling dynamics and entrepreneurial community have converged to usher in the first widespread wave of SaaS 2.0 innovation against an established SaaS category.

At Next World, we actively track 80+ HR SaaS players within our HR Innovators’ NextScape. This NextScape is not exhaustive, but rather focuses exclusively on players that are driving the HR 2.0 wave. We break down the market into the core HR functional areas of talent acquisition, talent maximization and HR administration.

With innovators still commanding a small fraction of HR spend and new market entrants continuously emerging, we are perhaps in the second inning of this wave. Given the sheer breadth of activity, consolidation is inevitable. New market entrants must carefully consider the mission criticality and depth of workflow and use cases that they subsume. However, the foundations are in place for a new breed of enduring HR SaaS platforms. Their continued momentum will bolster the entrepreneurial community’s willingness to attack other established SaaS categories.

HR 2.0

via TechCrunch
HR 2.0 is the poster child for the next wave of SaaS innovation

Reminder: We’re meeting in Columbus on Wednesday

I’ll be in Columbus, Ohio, on Wednesday, August 10, to hold a night of pitches and open mic shenanigans so bring your guitar and pitch deck. The event will be at O’Toole’s 4796 W Broad St, right off I-270.

We’ll start at 7 p.m. sharp with pitches, so get there after work. And at 8 p.m. we’ll have an open stage with live music – I’m going to play with my friend Rick so bring your phones – and networking.

Want to pitch? Fill out this form and I’ll pick 8 companies to pitch on stage. First prize is a table at Disrupt in SF, and two other teams will receive tickets to the event.

We could also use a few sponsors for beer and what not. Get in touch if you’re interested. Also if you can think of any cool people who’d like to be judges, please let me know at john@techcrunch.com.

Special thanks to the folks at Kinsta for grabbing the first round of beers!

I’ll see you all next week!

Featured Image: Larry Knupp/Shutterstock

via TechCrunch
Reminder: We’re meeting in Columbus on Wednesday

Heinrich Himmler’s Lost Wartime Diaries Confirm He Was a Total Bastard

Himmler inspects a prisoner of war camp in Russia, circa 1941. (Image: U.S. National Archives and Records Administration)

Work diaries chronicling the daily activities of Hitler’s henchman Heinrich Himmler have surfaced in Russian military archives. The recovered texts speak volumes about a key figure behind the Holocaust—a man who could orchestrate mass killings at one moment and then casually switch to mundane family matters the next.

Three books consisting of a thousand pages of Heinrich Himmler’s wartime diaries were uncovered by Russian historians in the small town of Podolsk. The texts, which read more like a daily agenda than a personal diary, were written by Himmler’s assistants. They had languished on a shelf for 70 years after being seized by the Red Army at the end of the Second World War. The diaries correspond to the years 1938, 1943, and 1944, which complements previously discovered diaries. The texts, which the German Historical Institute of Moscow describes as “a document of unusual historical significance,” will be make available to the public next year.

Damian Imoehl, a reporter for the German magazine Bild, managed to get a copy of the diaries, and they offer deep—and often disturbing—insights into the daily life of the second most powerful man in the Third Reich.

http://ift.tt/2b8ol1Y

During the Second World War, Himmler formed the dreaded Einsatzgruppen and oversaw the construction of extermination camps. His role in the Holocaust cannot be understated, having directed the killing of some six million Jews and other ethnic groups during the war. But as his diary makes clear, he went about his daily business in a ruthless yet cavalier manner.

Himmler killed himself at the end of the war, and avoided standing trial. (Image: Bundesarchiv, Bild)

When visiting the Buchenwald concentration camp in Germany, he “took a snack in the cafe of the SS Casino.” Later, when visiting the Sobibór extermination camp in occupied Poland, he witnessed the gassing of 400 Jewish women and girls. That same day he attended a banquet with SS men. Another chilling entry reads, “Landing in Warsaw. Reception by a senior colonel. Lunch at the SS. Drive through the ghetto. Take inventory.”

Writing in The Times, Imoehl notes: “One day he starts with breakfast and a massage from a personal doctor, then he rings up his wife and daughter in the south of Germany and after that he decides to have ten men killed or visits a concentration camp.” In another excerpt, Himmler passes on instructions to equip the Auschwitz concentration camp with guard dogs capable of ripping their victims “to shreds.”

At the same time, Himmler was an attentive husband and father—oh, except for that affair he was having with his secretary. As Imoehl wrote, “He takes care of his comrades and friends,” adding, “The most interesting thing for me is that combination.”

Indeed, it’s that combination—a genocidal killer at one moment and a caring friend the next—that truly encapsulates what Hannah Arendt described as “the banality of evil.”

[Haaretz]

via Gizmodo
Heinrich Himmler’s Lost Wartime Diaries Confirm He Was a Total Bastard

22Plinkster Sees How His Ammo is Made

CaptureWhile there is a plethora of videos showing how common centerfire ammunition is made, 22LR and similar rimfire ammunition has been kept relatively close to the chest. CCI had a video out a few years ago, but it disappeared from their official YouTube outlet and was not saved anywhere that I remember. The general process […]

Read More …

The post 22Plinkster Sees How His Ammo is Made appeared first on The Firearm Blog.


via The Firearm Blog
22Plinkster Sees How His Ammo is Made

MySQL Document Store — The NoSQL Zipcodes

The MySQL Document Store functionality allows developers to use a relation database with or without SQL (structured Query Language), also known as NoSQL. The example in this blog is hopefully a simple look at this new feature of MySQL. The example data used is from JSONStudio.com and is a JSON formatted data set for US zip (postal) codes (656K compressed). So download your copy of this data set and lets get to work.

Create a collection

Collections are tables and below we create a collection name ‘zip‘ in the test database in the Python dialect.


mysqlsh -u root -p --py test
Creating an X Session to root@
localhost:33060/test
Enter password:
Default schema `test` accessible through db.

Welcome to MySQL Shell 1.0.4 Development Preview

Copyright (c) 2016, Oracle and/or its affiliates. All rights reserved.

Oracle is a registered trademark of Oracle Corporation and/or its
affiliates. Other names may be trademarks of their respective
owners.

Type '\help', '\h' or '\?' for help.

Currently in Python mode. Use \sql to switch to SQL mode and execute queries.
mysql-py> db.createCollection("zip")


Is it there?

As soon as most of use create a table we want to see if it is there.


mysql-py> db.getCollections();
[
<Collection:zip>
]
mysql-py>

So it is there. But what is the underlying structure of this table. Switch to SQL dialect (or open a mysql client.


mysql> SHOW CREATE TABLE zip;
+-------+--------------------------------+
| Table | Create Table |
+-------+--------------------------------+
| zip | CREATE TABLE `zip` (
`doc` json DEFAULT NULL,
`_id` varchar(32) GENERATED ALWAYS AS (json_unquote(json_extract(`doc`,'$._id'))) STORED NOT NULL,
PRIMARY KEY (`_id`)
) ENGINE=InnoDB DEFAULT CHARSET=utf8mb4 |
+-------+--------------------------------+
1 row in set (0.00 sec)

mysql>

If you peeked at the zip code file you downloaded, you may have noticed that it has an _id field already. But what if your data set has no _id or you want to use another key/value pair from the data as an index? Simply use a stored generated column on the field of your choice. Remember good indexing practices still count as the underlying relational database still has to keep the infrastructure underneath up to date.

Loading data

I will skip over the loading of the zip code data (I can address that in a later blog post if there is any interest. For now lets take it as a given that the data has been moved into the new collection.

Finding a Rainbow

So lets look for a particular zip code. For out data set the zip code corresponds with _id field.And remember that this column is a generated column using that field from the JSON document.



mysql-py> db.zip.find("_id = '76077'")
[
{
"_id": "76077",
"city": "RAINBOW",
"loc": [
-97.70652,
32.281216
],
"pop": 722,
"state": "TX"
}
]
1 document in set (0.00 sec)

mysql-py>

How About Searching a Non-indexed JSON data

Lets look for the state of Texas, or TX in the JSON data. Previous we had the _ID field as a materialized column extracted from the JSON data. Now we are asking the MySQL server to read all the records and return the ones meeting the criteria. This does perform a full table scale of the data (not as efficient as as index) but, thanks to the relatively small amount of records, it does return fairly quickly.


mysql-py> db.zip.find("state = 'TX'")
.
. (Omitted)

.
{
"_id": "79935",
"city": "EL PASO",
"loc": [
-106.330258,
31.771847
],
"pop": 20465,
"state": "TX"
},
{
"_id": "79936",
"city": "EL PASO",
"loc": [
-106.30159,
31.767655
],
"pop": 52031,
"state": "TX"
}
]
1676 documents in set (0.06 sec)

mysql-py>

Wrap Up

So now we can create a collection and search it. But what happens when we add records and especially records without our index-able key? That will be covered in another blog soon.
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MySQL Document Store — The NoSQL Zipcodes

China’s Mythical Great Flood May Have Really Happened

China's Mythical Great Flood May Have Really Happened
Fourteen skeletons of victims killed by earthquake at Cave dwelling F4 at Lajiia site excavated in 2000. (Image: Cai Linhai)

Chinese legend tells of a great flood, and how Emperor Yu drove back the floodwaters, founding the Xia dynasty and giving rise to Chinese civilization. Now an international scientific collaboration has discovered the first geological evidence that such a flood may actually have happened—and the founding of the Xia dynasty may have happened hundreds of years later than historians previously thought. They describe their findings in a new paper in Science.

“Great floods occupy a central place in some of the world’s oldest stories,” the University of Washington geologist David Montgomery wrote in an accompanying commentary on the new findings. “Emperor Yu’s flood now stands as another such story potentially rooted in geologic events…. How many other ancient stories of intriguing disasters might just have more than a grain of truth to them?”

There are different versions of the Great Flood myth, handed down through oral tradition for hundreds of years before finally being written down around 1000 BC. But all feature the heroic Yu, who figured out how to dredge and channel all the flooded rivers and tributaries to control the floodwaters—a task that purportedly took decades to accomplish, even with the help of a dragon to dig channels and a giant turtle to haul mud. (Myths have their fanciful elements.) This led to him becoming emperor and establishing the Xia dynasty in China.

China's Mythical Great Flood May Have Really Happened
The Jishi Gorge on the edge of the Tibetan Peninsula. (Image: Wu Qinlong)

Whether or not the Great Flood actually happened has been a longstanding bone of contention among scholars. After all, the historical record may have included the story of the flood and Emperor Yu’s role in driving back the waters as propaganda to justify imperial rule. History is written by the victors. This new geological discovery is the first real evidence for such a flood taking place.

In a press conference yesterday, lead author Wu Qinglong of Peking University in Beijing described the accidental discovery of unusual sediment in the Jishi Gorge of the Yellow River. He hypothesized that it might be linked with the great flood and the founding the Xi dynasty. It was Wu who brought together the members of the collaboration, hailing from different disciplines, to find evidence to bolster that hypothesis.

According to co-author Darryl Granger, a geologist at Purdue University, they found that evidence by mapping and dating the distinctive sediments deposited downstream from Jishi Gorge. They also examined bones from skeletons of children who died in an earthquake, found at the archaeological site of Lajia. Radiocarbon analysis of the skeletons gave a date of around 1922 BC.

From this, the collaborators were able to reconstruct a sequence of likely events occurring around this time along the Yellow River. First, there was a devastating earthquake that caused a massive landslide. This dammed the Yellow River in the Jishi Gorge, located right at the edge of the Tibetan plateau. According to Granger, quake-caused landslides are quite common to this area. The resulting lake eventually spilled over the top of the dam of debris, weakening it until it collapsed catastrophically, sending a deluge of water downriver and flooding the lowlands.

China's Mythical Great Flood May Have Really Happened
Yu the Great fighting the flood. Relief outside the Water Resources and Hydro Power Lab, Wuhan University, 2005. Wikimedia Commons.

The houses of that period would have been more like caves dug into windblown sediment, according to co-author David Cohen, an archaeologist at National Taiwan University, which collapsed when the earthquake hit, killing the people inside.

“We know [the earthquake] happened the same year [as the flood] because fissures in the ground caused by the earthquake are filled with flood sediment, as are pottery jars [at the site,” said Granger. “So the people killed in the quake and the flood are intimately related.” Had it been more than a year, the annual rains would have kicked in, filling those fissures and jars with finer sediment.

The flooding would have significant enough to devastate the region. In the Book of Documents, Yu describes the flooding:

“The inundating waters seemed to assail the heavens, and in their extent embraced the hills and overtopped the great mounds, so that the people were bewildered and overwhelmed.

That’s in line with the Chinese collaboration’s estimates based on their mapping and analysis of sediment the site. Granger estimated that the flood waters may have risen 38 meters (around 124 feet) above the usual river level—about one-third the height of the Empire State Building, per Cohen—with flow rates between 300,000 to 500,000 cubic meters (79 million to 132 million gallons) of water per second. “That’s equivalent to the largest flood registered on the Amazon River, and the largest known flood on Earth in the last 10,000 years,” he said. The pile of debris that dammed the river would have been somewhere between the height of the Three Gorges Dam that spans the Yangtze River and the Hoover Dam in the US.

This timeline also coincides with a major cultural transition, as the late Neolithic Era gave way to the Early Bronze Age, although Cohen describes this as more of an interesting parallel, with no evidence as yet for direct causation. There is evidence that the system of smaller chiefdoms in place before that time suddenly collapsed, and after a transitional period, larger cities, with more complex administrative structures, a writing system, and bronze manufacturing emerged around 1900 BC.

In that sense, “The story of Yu taming the flood is the story of a new political order emerging out of the chaos of the flood,” said Cohen.

[Science]

via Gizmodo
China’s Mythical Great Flood May Have Really Happened

This DIY Screen Hides Bulky AC Units, Storage, or Trash Bins in Your Yard

Necessary items like your trash bins or an AC unit aren’t exactly the look and feel you want your yard to have, especially if you’re aiming for a relaxing oasis, or a well-manicured garden. Hide the unsightly stuff in your yard with this simple DIY screen.

Basically, you’re constructing a 3-sided wooden box with planks along each side to hide your items. It’s pretty simple, but it looks great. You can adjust the proportions of the fence to match the space you want to enclose. You can see what it looks like in the photo above, and the Apartment Therapy link below has a complete parts list, and step-by-step instructions. When you’re all finished, you’ll have something that looks much better than a big rubbermaid shed, or even better, won’t drive your HOA crazy. This design doesn’t include a gate, but you may want to add one for easy access to whatever you store behind the screen, or you can leave space between the screen and the wall for access.

How to Make a Simple, Modern Screen to Hide the Ugly Stuff in Your Backyard | Apartment Therapy

Image from Erin Francois.

via Lifehacker
This DIY Screen Hides Bulky AC Units, Storage, or Trash Bins in Your Yard

Researchers Make Startling Discovery on What Can Prevent Asthma in Children: Barns

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In America, asthma now affects 1 in 10 children between the ages of five and 14, according to the CDC. These children must spend their childhoods with an inhaler within reach at all times, to help them weather sudden, terrifying episodes of an inability to breathe. That is good for the people who make the inhalers and not so good for the children and the parents. And asthma has been on the rise since the 1960s.

The conventional wisdom is that asthma, which is incurable, is caused by a combination of genetic and environmental factors. To isolate the first, a team of medical researchers looked at two genetically homogenous American farming communities, the Indiana Amish and the North Dakotan Hutterites. Both originate from roughly the same region in Europe and have belief systems that involve simple diets, simple lifestyles, a rule against keeping indoor pets, and the discipline to maintain spotlessly clean homes.

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Yet asthma is much more common in the Hutterites (15-20% of the population) than the Amish (just 2-4%). The researchers took blood samples from children in both communities and found that the Amish had far more robust immune systems. Why?

One thing the researchers noted is that the Amish and the Hutterites farm in distinctly different ways. 

The Amish way
The Hutterite way

According to The New York Times (boldface ours):

The Amish live on single-family dairy farms. They do not use electricity, and use horses to pull their plows and for transportation. Their barns are close to their homes, and their children play in them

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The Hutterites have no objection to electricity and live on large, industrialized communal farms. Their cows are housed in huge barns, more like hangars, away from their homes. Children do not generally play in Hutterite barns.

The researchers began collecting dust samples from both Amish and Hutterite homes. The Amish dust was loaded with bacteria from the nearby barn and animals within them, while the Hutterite dust was not. In lab tests, they found that introducing this Amish dust to mice subsequently boosted their immune systems, as their bodies began producing the white blood cells needed to fight the bacteria off. They became, after inhaling the dust, less prone to developing asthma.

"We found exactly what we found in the children," [Researcher Dr. Donata] Vercelli said. "If we give the Amish dust, we protect the mice. If we give the Hutterite dust, we do not protect them."

…"Our jaws were hanging open," [study author Dr. Carole] Ober said. "We could not believe it."

The full study, "Innate Immunity and Asthma Risk in Amish and Hutterite Farm Children," has been released today in The New England Journal of Medicine.

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In an earlier post, we looked at how Amish barn-raising is an important group activity that strengthens social bonds. Who would’ve guessed that in erecting this practical structure, they’re also unwittingly building an incubator that protects their children?

via Core77
Researchers Make Startling Discovery on What Can Prevent Asthma in Children: Barns

This Guy Fighting an Excavator Is an Inspiration to Us All


GIF

You know who wins when an angry dude fights an excavator at a construction site? All of us watching the battle unfold from the sidelines, because it gives us the chance to stop and think about the excavators we’re all dealing with—metaphorically.

Maybe it’s an annoying boss. Maybe it’s big government. Maybe it’s even something personal. Whatever your excavator is, just think of this guy and remember that no challenge or obstacle is impossible to overcome. (But make sure to stop thinking of this guy before the part where Finnish police arrive and haul him away.)

[YouTube via BoingBoing]

via Gizmodo
This Guy Fighting an Excavator Is an Inspiration to Us All