Workday Strengths, Domain Expertise, and Key Differentiators
Workday is aiming to become the system of record for a large swath of users among its target customers and verticals. The vendor has been able to grow organically, while shoring up its presence in markets such as AI, Blockchain, Enterprise Performance Management and procurement. That results in a big wallet share among its key customers. Its Buyer Insights Master Database shows that not only Workday has been able to show a growing penetration of its Core HR and Financial Management among its customers, it has also experienced a steady increase in such important point solutions like talent acquisition.
Among the 1000 largest companies in the United States, nearly a quarter of them are now running Workday Recruiting for talent acquisition, according to its regular survey of these enterprise companies. With its recent purchase of Adaptive Insights, a provider of cloud-based business planning and financial modeling tools, now under the Workday umbrella, there are an additional 5,500 organizations worldwide utilizing Workday for planning and plenty of other options to standardize on the Workday platform.
Workday Recent Developments
In August 2020, Chano Fernandez was promoted to co-CEO, alongside Workday Co-Founder Aneel Bhusri, who was previously sole CEO. Both co-CEOs will report to the Workday Board of Directors. In June 2020, Workday announced the availability of Workday People Analytics, a new augmented analytics application that identifies top risks and opportunities regarding an organization’s workforce and delivers these insights in easy-to-digest story form. These insights empower HR and business leaders to make better people decisions faster to shape business outcomes.
Workday customers can use Workday People Analytics with Workday Human Capital Management (HCM) to maintain business continuity and solve challenges created by the pandemic. In addition of Workday People Analytics, Workday also published two new solutions (Workday Help and Workday Journeys) for Workday People Experience, a machine learning-driven employee experience, to further help organizations manage the complexities associated with our new world of work.
Workday Help is a comprehensive HR service delivery application that provides more intuitive case management, and Workday Journeys enables organizations to create personalized experiences that guide workers through critical moments and transitions, such as onboarding or becoming a manager. Both products will help employers better engage and support employees while making work more personal and productive for their people.
At Workday Rising 2019, Workday announced Workday People Experience, a personalized, more intelligent employee experience aimed at improving efficiency, knowledge sharing, and collaboration that is supported on any device, from desktop to tablet and mobile. Workday People Experience leverages machine learning, natural language processing, rich media, and enterprise search. Besides the use of machine learning technologies, Workday announced the usage of blockchain through a brand-new platform, Workday Credentials, and WayTo by Workday.
Workday Credentials will enable enterprise customers to quickly issue, manage and verify credentials for all types of workers and individual employees, contractors, students, and partners, helping to streamline credential verification and compliance. The WayTo by Workday mobile app will give individuals a better way to store, manage, and share their verified credentials as well as professional and personal information on their device. This means that individuals can decide exactly what and with whom to share information about themselves to expedite application processes. These enhancements reinforce the Workday HCM suite with best-of-breed capability and innovation across its entire product portfolio.
Workday Mergers and acquisitions (M&A) Activities
In 2019, Workday acquired Scout RFP for its strategic sourcing and supplier engagement applications. That followed its purchase of Trusted Key, an identity authentication company that uses blockchain to authentication credentials, like degrees, licenses and certifications.
The acquisition of Scout RFP builds on top of Workday’s existing procurement solutions, Workday Procurement and Workday Inventory. With increased importance around the supplier as a strategic asset, the acquisition of Scout RFP will help accelerate Workday’s ability to deliver a comprehensive source-to-pay solution with a best-in-class strategic sourcing offering, elevating the office of procurement in strategic importance and transforming the procurement function.
In 2018, Workday acquired Stories.bi for analytics and Adaptive Insights for cloud-based enterprise performance management and business intelligence. As Workday ramps up its acquisition strategy, the issue is how these different pieces will be integrated to deliver a seamless user experience.
Workday Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Workday applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Workday and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Workday Financial Management, Workday Human Capital Management, Workday Prism Analytics, Workday Professional Services Automation, Workday Student, customers.
Ownership: - WDAY : NYSE
Number of Employees: 12500
Functional Market: Absence and Leave Management, Workforce Analytics, Workforce Scheduling, Task Management, Time and Attendance, Core HR, Payroll, Benefits Administration, Compliance, Onboarding, Recruiting, Applicant Tracking Systems, Performance and Goal Management, Learning and Development, Succession and Leadership Planning, Compensation Management,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith Based Nonprofit, Youth and Elderly Care Nonprofit, Special Cause Nonprofit, Oil and Gas, Professional Services, Retail, Transportation, Utilities,
Workday Key Cloud and HCM Applications
Workday Financial Management, Workday Human Capital Management, Workday Prism Analytics, Workday Professional Services Automation, Workday Student,
Workday HCM and Cloud HCM Applications Revenues, $M:
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* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Workday Revenue Breakdown by Type:
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Workday HCM Applications Revenues By Sub-Functional Markets, $M:
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Workday HCM Applications Revenues By Verticals, $M:
Workday Total and HCM Applications Revenues by Region:
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Workday Direct vs Indirect sales
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Workday Customers - Breakdown by Geo, Size, Vertical and Product
No. of Workday Customers: 3200
No. of Workday HCM Applications Customers: 3200
No. of Workday Cloud HCM Customers: 3200
No. of Workday Cloud HCM Subscribers: 50 million
Workday Customer Count: Workday HCM - 2800 Workday Projects - 1075 Workday Expenses - 900 Workday Financial - 725 Workday Procurement - 650 Workday Inventory - 150 Workday Grants - 150 Workday Prism Analytics - 275 Adaptive Insight - 4500 Workday has more than 3,200 customers, more than 70% of which are live and in production, ranging from mid-sized businesses to more than 35% of the Fortune 500 and half of the Fortune 50.
In February 2020, Wells Fargo & Company chooses Workday Human Capital Management to help elevate the user experience and increase HR efficiencies across the organization for its approximately 260,000 global employees. Wells Fargo’s delivery roadmap includes Adaptive Insights Business Planning Cloud, Workday Payroll, Workday Prism Analytics, Workday Recruiting, and Workday Time Tracking to help the company plan, execute, and analyze across the enterprise all in one system powered by machine learning.
With Workday, Wells Fargo aims to enhance HR experiences for global team members with an system that will help enable them to access relevant information and perform tasks whenever and wherever necessary. The company minimizes risk with controlled access to data, equipping employees with the right level of information and a single source of truth for HR data across the entire organization. Also, Wells Fargo wants to gain greater visibility into its workforce and utilize insights to make more informed and timely people decisions, Streamline and support critical HR processes and operations, creating efficiencies for team members to focus on strategic tasks that help drive the business forward. And in addition to utilize scalable workforce planning capabilities and analytics to help allow HR business partners and organizational leaders to optimize talent in a way that effectively aligns with corporate goals, and to more quickly make informed decisions that drive business value.
Despite their size, some of Workday's key customers have gone live in a compressed time frame including Bank of Montreal, Glencore International, and Piedmont Airlines, a subsidiary of American Airlines. Workday Financial Management customers include 21st Century Fox, Airbnb, Aon, Brown & Brown, Caliber Holdings, Care.com, City and County of Denver, Conde Nast, Continental Casualty, Cushman & Wakefield, Denny's, First Financial Bank, Giant Tiger, J.B. Hunt, Life Time Fitness, Louisiana State University, Netflix, New York Public Library, The Ohio State University, Panera Bread, Sacramento Kings, Salmat, Sanford Health, Sky Betting & Gaming, TripAdvisor, Unum, WeWork and Yale.
Workday Human Capital Management customers include Amazon, Airbus, Bank of America, BP, Centrica, Citigroup, Dell, Deutsche Bank, Fast Retailing, Hitachi, Home Depot, HP Inc. and HP Enterprise, Humana, IBM, Kohl's, Lloyds Bank, Massachusetts Mutual Life Insurance, MGM Resorts, Morgan Stanley, Nissan, Pfizer, PNC Bank, Primark, Rolls-Royce, Qantas Airlines, Sanofi, Shell, Siemens, Target, Unilever and many others.
Workday Market Opportunities, M&A and Geo Expansions
After becoming a popular Cloud HCM choice among major companies with tens of thousands of employees, Workday boosts its presence in the midmarket space. Working with a long list of deployment partners like Deloitte has started delivering fixed-fee and preconfigured packages for midmarket customers in the United States. The template approach expected to fuel the customer count of Workday, perhaps doubling or tripling it over the next few years as it rolls out its midmarket push in other countries.
In May 2020, Workday made two strategic partnerships with Microsoft and Salesforce. Workday integrated with Salesforce to enable joint customers to forge ahead in their plans to safely return to work. The companies will offer integrated solutions between Workday, the source of truth for real-time worker information and skills insights for today’s dynamic workforce, and Salesforce’s Work.com, an all-new suite of applications and advisory resources to help business and community leaders around the world reopen safely. The pairing will equip joint customers with rich, timely insights and tools to help them manage their workforce as businesses move further into a reopening strategy in the face of COVID-19.
Microsoft made a strategic partnership with Workday prioritizing enterprise planning in the cloud and expanding the business solutions customers can use to better optimize their everyday work. Through this partnership, Workday customers will also be able to run Workday Adaptive Planning on the Microsoft Azure cloud. Further, Microsoft will adopt Workday Adaptive Planning for its global finance teams for planning, budgeting, and forecasting to help accelerate decision making. The companies also unveiled new integrations between Workday’s suite of applications and Microsoft Teams and Azure Active Directory that will enable customers to simplify day-to-day tasks, foster collaboration, increase productivity, and enhance security.
After winning deals from a slew of customers in the education and services sectors, Workday expected to move into asset-intensive industries. Earlier, Workday announced Workday Inventory along with enhancements to Workday Procurement, to address the supply chain management needs of healthcare providers. As its customer mix becomes more diverse, global support was a big priority for Workday in 2019.
The same applies to continuous innovation in the user interface, gearing up to save time and money for its customers that are committed to making easy-to-use Workday applications available to a massive base of employees and key constituents across different devices and touchpoints.
Workday Risks and Challenges
In June 2020, to help further maximize innovation and help customers reach their aspirations, Workday promoted Sayan Chakraborty to executive vice president, Technology, and Pete Schlampp has been promoted to executive vice president, Product Development. Together, they will lead Workday’s Products and Technology organizations.
As Workday expands its footprint, the risk lies in which market segment it plans to build out and where to backfill. The acquisition of Scout RFP may well foreshadow Workday's attempts to leapfrog competitors like Coupa, GEP, and others in the procurement space. Workday's ability to wrest control of the back-end financial management and processes is still a work in progress. Most customers still consider Workday as a serious HR apps contender, not full-blown enterprise applications play.
Workday could become the system of record for some accounts, however, will have a hard time blanketing many others because of limited capabilities in such areas as global payroll, quality management for asset-intensive manufacturing companies, and even learning for industries like banking and financial services, and healthcare. The good news is there's still plenty of runway for Workday to claim a more significant share in the HCM apps market. What happens next will take more than tucked-in acquisitions to realize Workday's goal to become the total solution provider for enterprise customers.
Workday Ecosystem, Partners, Resellers and SI
In June 2020, Workday expanded operations into Mexico, with Guillermo Reynoso as the new country manager. Services partners are ready to assist Workday deployments in the country.
The world of work is changing more quickly and significantly than ever, with global organizations – including those in Mexico – facing new realities that require them to respond and pivot in a moment’s notice. To do this, they need technology systems that enable them to be agile and provide real-time finance and HR insights so they can make more informed decisions about their future.
The Workday ecosystem is getting a helping hand from its VC arm. In 2019, Beamery, a talent engagement platform, announced it has received a strategic investment from Workday Ventures and it will join the Workday Software Partner Program. In addition, Beamery also announced that the Workday Talent Acquisition team has selected Beamery products that help further its efforts to identify early-stage, passive candidates and are complementary to Workday Human Capital Management HCM, including Beamery Talent Customer Relationship Management CRM, Beamery Talent Marketing, and Beamery Pages.
The acquisition of Scout RFT, which previously was funded through Workday Ventures, underscores its VC arm is both an incubator and a talent producer that feeds its product pipeline. Workday primarily sells direct, but its partner ecosystem is becoming more robust than ever. Accenture, CSC, Deloitte, NGA Human Resources, OneSource Virtual, and PWC have invested heavily in their Workday practice.
In addition, Workday has certified more than 6,000 partner consultants, growing its field expertise to meet customer demand. Because of some gaps within the Workday portfolio, partners like NGAhr, now part of Alight, have been able to shore up services and product offerings especially when it comes to payroll support for dozens of countries that Workday does not currently support with its offerings.
Earlier Workday expanded its partnership with ADP to provide multinational organizations with a seamless and unified global payroll experience. The partnership plans to leverage the next level in integration technology to unite Workday Human Capital Management (HCM) and ADP Global Payroll in single user experience within Workday, enabling multinational organizations to more effectively manage their global workforce, efficiently process payroll, and maximize business growth. Other partners include Appirio(now Wipro), AXIA(acquired by KMPG), Balkon(acquired by PwC), CedarCrestone(now Sierra-Ceder), Cloudator, Collaborative Solutions, CPSG, DayNIne(now Accenture), everBe, IBM, Jeitosa Group International(acquired by Mercer), Kainos, Kloud, KPMG, Meteorix(acquired by IBM), OmniPoint (acquired by Aon Hewitt), and Towers Watson (now WillisTowersWatson).
Workday Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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