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There's nothing precise about Precision Medicine

There's nothing precise about Precision Medicine

The media gets excited about gene therapy. With the sequencing of genomes becoming ever cheaper and accessible, a grand vision of gene therapy is now being put about all too casually by futurists in which defective genetic codes are simply edited out and replaced by working ones. At the same time there is broader idea of "Precision Medicine" which envisages doctors scanning your entire DNA blueprint, instantly spotting the defects that ail you, and ordering up a set of customized pharmaceuticals precisely fitted to your biochemical idiosyncrasies.

There is more to gene therapy - genetic engineering of live patients - than the futurists let on.

A big question for mine is this: How, precisely, will the DNA repairs will be made? Lay people might be left to presume it's like patching your operating system, which is not a bad metaphor, until you think about how and where patches are made to a computer.

A computer has one copy of any given software, stored in long term memory. And operating systems come with library functions for making updates. Patching software involves arriving with a set of corrections in a file, and requesting via APIs that the corrections be slotted into the right place, replacing the defective code.

But DNA doesn't work like this. While the genome is indeed something of an operating system, that's not the whole story. Sub-systems for making changes to the genome are not naturally built into an organism, because genes are only supposed to change at the time the software is installed. Our genomes are carved up en masse when germ cells (eggs and sperm) are made, and the genomes are put back together when we have sex, and then passed into our children. There is no part of the genetic operating system that allows selected parts of the genetic source code to be edited later, and -- this is the crucial bit -- spread through a living organism.

Genetic engineering, such as it is today, involves editing the genomes of embryos at a very early stage of their lifecycle, so the changes propagate as the embryo grows. Thus we have tomatoes fitted with arctic fish genes to stave off cold, and canola that resists pesticides. But the idea that's presented of gene therapy is very different; it has to impose changes to the genome in all the trillions of copies of the code in every cell in a fully developed organism. You see, there's another crucial thing about the DNA-is-software metaphor: there is no central long term program memory for our genes. Instead the DNA program is instantiated in every single cell of the body.

To change the DNA in a mature cell, geneticists have to edit it by means other than sexual reproduction. As I noted, there is no natural "API" for doing this, so they've invented a clever trick, co-opting viruses - nature's DNA hackers. Viruses work by squeezing their minuscule bodies through the cell walls of a host organism, latching onto DNA strands inside, and crudely adding their own code fragments, pretty much at random, into the host's genome. Viruses are designed (via evolution) to inject arbitrary genes into another organism's DNA (arbitrary relative to the purpose of the host DNA's that is). Viruses are just what gene therapists need to edit faulty DNA in situ.

I know a bit about cystic fibrosis and the visions for a genetic cure. The faulty gene that causes CF was identified decades ago and its effect on chlorine chemistry is well understood. By disrupting the way chlorine ions are handled in cells, CF ruins mucus membranes, with particularly bad results for the lungs and digestive system. From the 1980s, it was thought that repairs to the CF gene could be delivered to cells in the lung lining by an engineered virus carried in an aerosol. Because only a small fraction of cells exposed to the virus could have their genes so updated, scientists expected that the repairs would be both temporary and partial, and that fresh viruses would need to be delivered every few weeks, a period determined by the rate at which lung cells die and get replaced.

Now please think about the tacit promises of gene therapy today. The story we hear is essentially all about the wondrous informatics and the IT. Within a few years we're told doctors will be able to sequence a patient's entire genome for a few dollars in a few minutes, using a desk top machine in the office. It's all down to Moore's Law and computer technology. There's an assumption that as the power goes up and the costs go down, geneticists will in parallel work out what all the genes mean, including how they interact, and develop a catalog of known faults and logical repairs.

Let's run with that optimism (despite the fact that just a few years ago they found that "Junk DNA" turns out be active in ways that were not predicted; it's a lot like Dark Matter - important, ubiquitous and mysterious). The critical missing piece of the gene therapy story is how the patches are going to be made. Some reports imply that a whole clean new genome can be synthesised and somehow installed in the patient. Sorry, but how?

For thirty years they've tried and failed to rectify the one cystic fibrosis gene in readily accessible lung cells. Now we're supposed to believe that whole stretches of DNA are going to swapped out in all the cells of the body? It's vastly harder than the CF problem, on at least three dimensions: (1) the numbers and complexity of the genes involved, (2) the numbers of cells and tissue systems that need to be patched all at once, and (3) the delivery mechanism for getting modified viruses (I guess) where they need to do their stuff.

It's so easy being a futurist. People adore your vision, and you don't need to worry about details. The march of technology, filtered through 20:20 hindsight, appears to make all dreams come true. Practicalities are left to sort themselves out.

But I think it takes more courage to say, of gene therapy, it's not going to happen.

 

New C-Suite Future of Work Chief People Officer

Event Report - Equifax EFX Forum - Compliance Insights in the cross hairs - and strategic questions

Event Report - Equifax EFX Forum - Compliance Insights in the cross hairs - and strategic questions

I had the opportunity to attend Equifax Workforce Solutions yearly user conference in New Orleans this week. The event was well attended, similar to last year’s event in Scottsdale (see my event report here). Most attendees are on customer advisory boards and have a direct influence on the product roadmap, so it creates a unique atmosphere of ownership under attendees. Certainly a smart setup by Equifax. 


Here are my top 3 takeaways from the event:
 
Dann Adams open Keynote at EFX Forum
 
Insights are the Mission – Equifax is on the journey to become an insight company. It was good to see how honest executives were on what challenge this was and to a certain point remains to the vendor. Beginning from a working definition on what an insight is for Equifax, over training employees, changing and adapting product architectures – this is a long way for any vendor. Good to see the honesty and transparency of the management team – something not found often in enterprise software these days.
 
Great overview slide of ACA interactions
Affordable Care Act (ACA) – The ACA is the gift that keeps giving to vendors in the compliance space. And Equifax is no difference, helping customers to master the complexity and taking out fears and concerns around this statutory topic. Equifax shared that there is an expectation that close to 8B fines will be send out to employers, definitively a good argument for any enterprise legging on their ACA plans to get going. The ACA solutions is available and has well known blue-chip customers already depending on Equifax for ACA compliance and reporting. 
 
Signficant TCO rerduction on adding Work Numbers


Compliance – This is the key area where Equifax plays today and is known for. We learnt that Equifax will re-platform its I-9 solutions, a good move that will future proof the offering. The vendor has to go through the challenge of doing this ‘in flight’ – but has split the roadmap (under NDA) as such that it is realistic to get done in the next 18+ months.

 

MyPOV

Equifax is uniquely positioned to take advantage of the compliance tsunami that is rolling towards enterprises. But like their competitors in the compliance space, Equifax is building software solutions, that clients still need to understand, implement and operate (from a business perspective). Any presentation I have attended on compliance, mainly ACA these days, shows the concern and high level of discomfort in the audience. In my view this literally screams for a service. And Equifax is familiar with the model e.g. in the unemployment space where the vendor acts as agent for enterprises. So the market is ripe for Equifax (and competitors) to take over compliance for their customers. No more stories to who all the exchange notices maybe sent or not sent – they all go to the vendor, who for e.g. a % of salary cost will manage all government interactions. Timing is ripe as enterprises now need to ramp up on ACA knowledge, define processes, select software etc. A ‘CaaS’ (Compliance as a Service) offering would be highly welcome.

The other strategic aspect that Equifax needs to make a decision on is how much the vendor wants to be on the enterprise desktop – or be a data provider (or API) being called by other vendors who have the eyeballs and clicks of the enterprise user. Not an easy decision as it changes go to market and positioning.

The good news for customers and prospects is that Equifax is working hard to help solve compliance pains across the board. The link to credit and TALX give Equifax tangible differentiators over the competition and a strong ‘true’ analytics DNA help in the effort. .
 
More on Equifax
  • Event Report - Equifax Worforce - Preventive Medicine for the HR departrment and a silver lining of DaaS - read here
 
More on general HCM topics
 
  • Musings - Is Transboarding the Future of People Talent Management? Read here
  • Musings - How technology innovation fuels Recruiting and disrupts the laggards - read here
  • Musings - What is the future of recruiting? Read here
  • HRTech 2014 takeaways - Read here.
  • Why all the attention to recruiting? Read here.
And  more on Payroll:
 
  • Could the paycheck re-invent HCM – yes it can – read here.
  • And suddenly, payroll matters again! Read here.
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ThinkBig and Teradata Partner for Data Consulting

ThinkBig and Teradata Partner for Data Consulting

With all the data and all the opportunity, it’s really necessary to have someone focus on getting most out of that data. Otherwise, as other’s have coined, you end up with a data lake – a bunch of data but not in context and not useable in providing great, continuos customer experiences. And at the end of the day, what companies need is to have the data actually to help them run their business better. So the announcement today solves some of these issues, i.e.,  Think Big, a Teradata (NYSE: TDC) company, announced the immediate expansion of its big data consulting business.

They have announced a dashboard engine to be able to drill down capability and get to the insights using ingestion patterns and infrastructure. ThinkBig embraces a range of vendor-neutral, open source options and recommends the best combination to complement existing, proven technologies based on each customer’s unique business needs.

Think Big assists clients, across industries, to gain measurable business value from big data through implementation and integration of open-source technologies such as Apache™ Hadoop®, Apache Spark™, and NoSQL databases (i.e. Apache HBase™, Apache Cassandra™, and MongoDB).

Hadoop and its fast growing ecosystem of open source projects have quickly become first-class technology assets, regardless of the organization’s size or geography,” said Rick Farnell, co-founder and senior vice president International, Think Big, a Teradata company. “Think Big’s international expansion will allow us to effectively share our expertise and support our customers. To support its growth, Think Big is aggressively recruiting talented individuals to fill a variety of positions in sales, data engineering, data science and project management.”

Will be very interesting to see how the partnership evolves and the case studies that result. Remember – send your clients to the enter into the Super Nova Awards to be considered. It’s a great honor and Constellation Research is looking for innovators who are disrupting business models and using data to do that. Especially in click-stream data.

@drnatalie

VP and Principle Analyst, Constellation Research

Covering Marketing, Sales and Customer Service to Provide Great Customer Experiences

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Data to Decisions: Are You Missing Something Big?

Data to Decisions: Are You Missing Something Big?

You’re sitting on a gold mine, and it’s your data. Yet despite all the hype about big data and the Internet of Things, lots of companies still don’t see it.

I’ve covered data and data technologies for more than 17 years, most recently as executive editor at InformationWeek. Over these years the volumes and varieties of data have exploded and new tools and techniques to make sense of the information have flourished. I’m excited to be joining Constellation Research to help businesses navigate the next developments through our data-to-decisions research theme.

One sign that companies are taking data opportunities more seriously is the emergence of chief data officers. The CDO role first emerged among Internet companies looking to cash in on big data. Companies facing tough governance and compliance challenges were also early CDO adopters, with financial services leading this pack. Now the CDO is practically mainstream, with manufacturers like Ford being among the latest to hire a C-level exec strictly to focus on data strategy.

What’s really surprising is when seemingly data-savvy companies uncover “new” opportunities in data that look like no brainers. Twitter, for example, announced last week that it’s going to stop giving away its entire API-accessed “fire hose” of half a billion Tweets per day to third-party resellers at wholesale rates.

You’d think a company so sorely in need of profits would have recognized this opportunity long ago, but today Twitter gets only about 10% of its revenue from data licensing, while the lion’s share is from advertising. Recognizing the value of data, Twitter last year acquired Gnip, which was in the business of aggregating the Twitter feed, along with other data sources, and reselling that information to leading brands.

“In the future, every significant business decision will have Twitter data as an input,” Chris Moody, the former chief of Gnip and now Twitter’s VP of data strategy, told financial analysts in November. “Why wouldn’t you add into your business decision-making, ‘What does the world think about this topic at this particular time or at a previous moment of time,’”

That’s an example of an information-driven company waking up to unrealized value in data. Among governance-and-risk-minded companies, JPMorgan Chase has revealed that it’s analyzing internal information to take on a very expensive governance and compliance problem. The company is building an electronic surveillance unit to monitor digital records and communications in an effort to spot rogue traders and compliance problems, reports Bloomberg News.

We’re not talking about reinventing business models or opening up a new source of revenue, here. But to put the problem in perspective, JPMorgan Chase has spent more than $36 billion (with a “b”) on legal bills since the financial crisis, according to Bloomberg. The most recent cases included responses to a government probe into fraudulent mortgage-bond sales and the company’s $6.2 billion London Whale trading loss.

JPMorgan Chase is bringing together data on compliance training attendance, violations of personal trading rules, and breaches of market-risk limits and it’s feeding it into predictive software to spot suspicious patterns of behavior. The idea is to spot bad actors and prevent damaging acts before they happen. JPMorgan says these efforts will increase the company’s return on equity to 13% from 10% last year just by cutting legal fees and other regulatory expenses.

JPMorgan is also well aware of the threat of digital disruption and transformation, another of our research themes. As Constellations Orbits member and analyst Gavin Heaton writes this week, the company is casting a wary eye at PayPal, Bitcoin, and other technology-driven payment companies and it’s going to “work hard to make our services as seamless and competitive as theirs,” CEO Jamie Dimon recently wrote in his annual letter to shareholders.

The point here is that data awareness – recognizing what you have and what you can do with it – is as important as the sort of business situational awareness that has JPMorgan Chase looking over its shoulder. Follow this space to learn more about how companies are using technology to turn data into decisions, new sources of revenue, and smarter ways of running a business.

Media Name: investigation.jpg
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Registration Opens for Inaugural Constellation Digital Disruption Tour

Registration Opens for Inaugural Constellation Digital Disruption Tour

First Stop Scheduled for April 22 in Melbourne

Executives Learn How to Identify Disruptive Trends and Craft Digital Business Models

Digital Disruption Tour
Today Constellation Research announced that registration is live for the inaugural Digital Disruption Tour, a series of executive-level seminars that show attendees how to effectively conquer disruptive forces in the era of digital business. The first stop of the tour is scheduled for April 22, 2015 in Melbourne, Australia at The Deck.  Constellation will host subsequent events in San Francisco, Atlanta, London, and Amsterdam. Speakers including Constellation analysts, early adopters, and founder, R “Ray” Wang will will identify disruptive trends that business leaders must address in the digital era. R “Ray” Wang will share insights from his book Disrupting Digital Business, published by Harvard Business Review Press.

Many of the rules that governed business in the 20th century do not apply in the digital era. Since 2000, fifty-two percent of the Fortune 500 has fallen off the list as a result of mergers, acquisitions, bankruptcies, or replacements. Success in the digital era requires a new business education and a new skill set that enables the executive to create business models that take advantage of the digital economy. The Digital Disruption Tour will identify the trends governing business in the digital era, and equip executives with the knowledge to excel in digital business.

The Constellation Digital Disruption Tour is particularly suited to senior executives from non-technology companies.

“The impact of digital disruption is real. Savvy leaders will recognize the great opportunity the digital economy presents, learn all they can about the new business landscape, and be prepared to dominate digital disruption,” said Constellation Research founder, R “Ray” Wang. “Digital Dariwinism is unkind to those who wait.  The Constellation team is looking forward to preparing the brightest minds in business for the challenges of the digital economy.”

Digital Disruption Tour Dates:

  • April 22, 2015 - Melbourne, Australia
  • May 4, 2015 - San Francisco, California
  • May 14, 2015 - Atlanta, Georgia
  • June 18, 2015 - London, United Kingdom
  • June 22, 2015 - Amsterdam, Netherlands

 
To register for the Digital Disruption Tour please visit http://www.constellationevents.com/.

Follow the Digital Disruption Tour on Twitter with the hashtag #cxotour.

For sponsorship opportunities, contact [email protected]


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Death, Taxes and Supply Chain Disruptions!

Death, Taxes and Supply Chain Disruptions!

It is that time of the year again here in the United States…tax day. You know how the saying goes:

Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.

Benjamin Franklinin a letter to Jean-Baptiste Leroy, 1789
I might add another certain to Ole Ben’s letter – supply chain disruptions. Unfortunately much like death and taxes, these disruptions are not something to look forward to. But much like taxes and death, the inevitability of their happening does not mean we shouldn’t plan for their potential impacts. By preparing for these events we can ensure that we emerge from these situations in the best shape possible.
 
During the first few months of this month I have heard the same concerns about our supply chains:
  • Acts of nature are unpredictable. Yes floods, tsunamis, earthquakes, blizzards, ash clouds, hurricanes and the list goes on, of natural events are unpredictable and constant. While one day we may be able to control the weather and other natural phenomenon (according to some James Bond villains) today we remain at the mercy of Mother Nature. Our abilities to predict acts like the weather are better but certainly not 100% accurate. And we have have to find good ways of pinpointing where earth quakes and volcanic eruptions will occur.
    Making cars not boats

     

     

  • Macroeconomic drivers are constantly changing. Exchange rates, the price of oil, deflation and other economic characteristics are driven by government, corporation and human action, but sometimes we cannot really understand the outcomes of these acts. Of course at some level of supply chains entities can afford to pay for influence at these economic levels…but even that does not ensure full control or understanding of outcomes.
  • Humans…yes we are unpredictable at the end of the day. When I studied political science and economics I always struggled with the notion of a “rational” actor or state. What is rational to me might not be to you and vice versa. Yet all of our theories started with some assumptions around “rational” behavior. Of course the same is true within our supply chains. Whether it is a buyer, a worker, a partner or any other human within the supply chain we cannot always assume we understand their behaviors and actions.

So what does this mean? When it comes to our supply chains we should focus on three rules:

  1. Data conceptEmbrace the growing amounts of data and sources of that data. While data is not the panacea for our ills,it can provide clearer picture of what is happening and where things are being impacted. The growth of data as well as what is producing the data (think IoT) opens the door for companies to get a greater understanding of their supply chain. This digital disruption will only continue to grow in importance – maximize the value for your supply chain.
  2. Constantly push yourself to keep an eye on possible new business models. Anyone who has been in business, gone to business school or just read a business publication knows that the secret is to always be ahead of your competitors with “paradigm” changing models. True. But not easy to identify. However within our supply chains we do not need to always identify but more – be open to discovering and leveraging these opportunities when they present themselves.
  3. Focus on what you can control. Understand what you cannot control and think about how it can impact your supply chain, but focus on what you can control. The data should help you better understand what is possible as well – but there must be a discipline as to what is controllable and what is not. Within the context of modern supply chains, this discipline is even more crucial.

Like death and taxes, disruptions to your supply chain will be a constant. The good thing is that new digital aspects have given supply chains a fresh arsenal of solutions and business processes to offer solutions to meet this disruptive realities.

 


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Quips: The Long Tail On Intel's Latest Earnings

Quips: The Long Tail On Intel's Latest Earnings

Latest Earnings Reflect Macro Trends In PC Shipments, Data Center Growth, and IOT

Intel Building Noyce

Industry bellwether, Intel, reported earnings per share of 41 cents versus 38 cents per share year over year.  Revenue came in flat at $12.78 billion versus $12.76 billion. The continued secular PC slump and late entry into mobile chips still drives into the flat revenues of the recent earnings at Intel.

However, the bright side is the investment and diversification into data center showed a 19% jump in revenue!  The secular growth in cloud and networking drove these gains.  And more importantly, Intel is much better positioned for the future of sensors and analytical ecosystems related to IOT.  From security at the core chip level to analytics of sensor data, Intel is poised for long tail.  Moreover, the strategic investments from Intel Capital appear to be paying off.

The Bottom Line: Intel’s Outlook Reflects A Broader Secular Outlook On Digtialization

Constellation sees a market with 80B sensors in devices by 2020.  Those sensors will get smarter and that’s where Intel’s future lies in bringing things to life from the chip level and then back into the sensor and analytical ecosystems.  These advancements and movement to mobile gives Intel a platform that builds on its strengths through alliances and partnerships building on top of Intel’s platform.  The adoption of Windows 10 may head off the currency head winds with the stronger dollar.

Your POV.

Do you see the impact on digital disruption to Intel?  Can you see the macro effects on disrupting digital business?  Add your comments to the blog.

Reprints

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales .

Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2001 -2015 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Customer Experience

 

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The latest FIDO Alliance research

The latest FIDO Alliance research

I have just updated my periodic series of researh reports on the FIDO Alliance. The fourth report, "FIDO Alliance Update: On Track to a Standard" will be available at Constellation Research shortly

The Identity Management industry leader publishes its protocol specifications at v1.0, launches a certification program, and attracts support in Microsoft Windows 10.

Executive Summary

The FIDO Alliance is the fastest-growing Identity Management (IdM) consortium we have seen. Comprising technology vendors, solutions providers, consumer device companies, and e-commerce services, the FIDO Alliance is working on protocols and standards to strongly authenticate users and personal devices online. With a fresh focus and discipline in this traditionally complicated field, FIDO envisages simply "doing for authentication what Ethernet did for networking".

Launched in early 2013, the FIDO Alliance has now grown to over 180 members. Included are technology heavyweights like Google, Lenovo and Microsoft; almost every SIM and smartcard supplier; payments giants Discover, MasterCard, PayPal and Visa; several banks; and e-commerce players like Alibaba and Netflix.

FIDO is radically different from any IdM consortium to date. We all know how important it is to fix passwords: They're hard to use, inherently insecure, and lie at the heart of most breaches. The Federated Identity movement seeks to reduce the number of passwords by sharing credentials, but this invariably confounds the relationships we have with services and complicates liability when more parties rely on fewer identities.

In contrast, FIDO's mission is refreshingly clear: Take the smartphones and devices most of us are intimately connected to, and use the built-in cryptography to authenticate users to services. A registered FIDO-compliant device, when activated by its user, can send verified details about the device and the user to service providers, via standardized protocols. FIDO leverages the ubiquity of sophisticated handsets and the tidal wave of smart things. The Alliance focuses on device level protocols without venturing to change the way user accounts are managed or shared.

The centerpieces of FIDO's technical work are two protocols, called UAF and U2F, for exchanging verified authentication signals between devices and services. Several commercial applications have already been released under the UAF and U2F specifications, including fingerprint-based payments apps from Alibaba and PayPal, and Google's Security Key from Yubico. After a rigorous review process, both protocols are published now at version 1.0, and the FIDO Certified Testing program was launched in April 2015. And Microsoft announced that FIDO support would be built into Windows 10.

With its focus, pragmatism and membership breadth, FIDO is today's go-to authentication standards effort. In this report, I look at what the FIDO Alliance has to offer vendors and end user communities, and its critical success factors.

Digital Safety, Privacy & Cybersecurity FIDO Chief Information Officer

Australian Social Media Cheat Sheet

Australian Social Media Cheat Sheet

1

Detailed statistics and information on social media in Australia continues to be a challenge. While there are pockets of data here and there – we rarely see a side-by-side comparison of user data and benchmarking information. So it is great to see this cheat sheet available. Shared by the folks from Reinventure (over on LinkedIn), it compiles (mostly) Australian data from Facebook, YouTube, Instagram, LinkedIn and Twitter – with Pinterest data pulled from global data.

The infographic provides some great high level stats, pros and cons for each of the platforms and some useful comparison benchmark data. The data appears to be current as at February 2015 and includes sources like Social Media News, YouTube press statistics and DirectTarget.

ReinventureStats

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News Analysis - Workday supports UK Payroll - now speaks (British English) Payroll

News Analysis - Workday supports UK Payroll - now speaks (British English) Payroll

Payroll and related services are somewhere beyond 80 to 90% of HCM enterprise spend, and making sure that an enterprises is compliant with legal and statutory updates, as well as it can pay its employees correctly and on time is a ‘must have’ for HR Leaders. So big news today comes from Workday – as the vendor is adding Payroll support for the UK in Workday 24, its 3rd vendor supported country (Workday supports USA and Canada already). 
Let’s dissect the press release (you can find it here) in our customary style:

Workday, Inc. (NYSE: WDAY), a leader in enterprise cloud applications for finance and human resources, today announced the general availability of Workday Payroll for the UK. Organically built as part of Workday Financial Management and Workday Human Capital Management (HCM), the new payroll application enables customers with UK employees to address the full spectrum of enterprise payroll needs, providing administrators with the flexibility, control, and insight required to support the unique aspects of their organizations.

MyPOV – Good move, from our customer interactions, enterprises want native / organic payroll support as they need this area of automation to work 99.999% of the time. Less vendors involved, less manual work, less moving parts are always good news to get to that uptime.

Workday also announced momentum for Workday Global Payroll Cloud, a partner program that helps customers reduce the costs associated with deploying, integrating, and managing third-party payroll solutions. Partners offer certified, bi-directional, pre-built integrations between Workday HCM and other payroll systems to provide a comprehensive view of global payroll data. With 85 countries now certified in Workday Global Payroll Cloud, customers including Groupon, Johnson & Johnson, PineBridge Investments, and Zoetis have achieved greater visibility into global payroll actuals, payroll process automation, and streamlined integration between payroll and other HR systems.

MyPOV – Key for Workday to balance organic vs. partner provided payroll out. Customers and partners need / want to know where Workday will build its own ‘organic’ payroll and where it will be partner business. Workday has done a good job enabling a modern bi-directional interface for 85+ country payrolls via 16 partners, enabling customers to see a global view of its payroll actuals in Workday (technology tidbit: brought in-memory), while still being able to use local payroll providers in each country that offer the desired level of service.


 
iPad User Interface

Workday Payroll for the UK
Payroll has traditionally been a complex undertaking for global organizations, particularly due to the various regulations and laws for each country. Workdays flexible and intuitive payroll applications delivered in the cloud have alleviated many of these challenges with functionality that addresses regulatory and legislative changes. Workday Payroll for the UK follows on the success of the company's payroll applications for the U.S. and Canada, with Workday Payroll for France expected in 2016.


MyPOV – Workday is right to point out, that payroll is a large challenge for enterprises. Thanks to the cloud a lot of the need to implement and test legal and statutory changes has now shifted to the cloud providers, away from the enterprises. A significant relief for payroll practitioners, especially on the technical / IT side.

Customers using Workday Payroll for the UK benefit from:
Automatic tax updates - New tax updates are automatically applied through a cloud delivery model, eliminating the need for regular upgrades and patches required by on-premise payroll systems.

MyPOV – Good to point out the inherent value of cloud (and BPO) based Payrolls.
Powerful and flexible calculation tool - Workday's robust calculation engine makes it easy to handle complex requirements. Users can run payroll calculations as often as needed and payroll-processing time is drastically reduced from hours to minutes.

MyPOV – Good to see – ad-hoc payroll calculation (not sure if supported) for single workers / employees to see over time and take away home pay are key modern capabilities of payrolls today. 

High configurability - Unlimited earnings, deductions, pay groups, and pay frequencies can be easily configured by payroll administrators to support calculation and reporting needs. Accumulations, balance periods, and pay balances, as well as complex processes such as off-cycle and retroactive payment processing, are also supported.
MyPOV – Good to see Workday supporting these key payroll features.
Support for UK-specific statutory requirements
 
Workday Payroll for the UK offers a modern system with support for pay-as-you-earn (PAYE) statutory taxes including National Insurance, student loans, statutory absence payments, and court orders. It also provides an exception reporting capability, audits, and alerts to prompt users, ensuring improved accuracy with payroll calculations as well as real-time information (RTI) reporting.
MyPOV – Key for payroll to work – and good move by Workday to mention support of more recent legislative changes in the YK around PAYE and RTI support. 

Anytime mobile access - With one self-service application, employees can check pay slips and payment elections -- any time, on any device. The flexibility of the cloud also gives administrators the ability to process payroll from anywhere at any time.

MyPOV – Now a ‘must have’ feature for payroll, good for Workday and customers that the vendor ships mobile access in the first release. 

Real-time analytics and reporting - Organizations can now see what they are actually spending on workers via pre-built reports and analytics for payroll insights. With the same reporting format used throughout Workday HCM, users can combine datasets to increase the context for decision making.
MyPOV – Also a ‘good to have’ feature – enabled by the technology platform a modern payroll is built on – and good for Workday to have this capability in the first version of the UK Payroll.


 
iPhone User Interface

Workday Global Payroll Cloud
Workday Global Payroll Cloud is the foundation of the company's global yet local approach to payroll, where customers benefit from a unified view of HR and payroll data in a central HCM system while leveraging local payroll providers that meet the specific requirements of individual countries. With Workday Global Payroll Cloud and Workday's country-specific payroll applications, business leaders have greater visibility into the true cost of the global workforce with real-time analytics on global payroll actuals in a single currency or country-specific analytics in a local currency.


MyPOV – The definition of ‘cloud’ has been stretched by many vendors, and if this is a ‘cloud’ one could argue. What matters is that Workday goes to great lengths to certify 3rd party payroll providers interfaces, giving customers peace of mind. At the end all payroll vendors in the global space rely on partners to complement their native / ‘organic’ payroll platform support. 

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Comments on the News
"With companies moving to the cloud faster than ever, we are excited to deliver UK payroll to alleviate a huge piece of the complexity faced by these organizations," said Leighanne Levensaler, senior vice president, products, Workday. "As our customers continue to grow their operations around the world, we will keep advancing the breadth and depth of our payroll solutions to ensure they can achieve a unified view of HR and payroll."

"Workday has made it possible for us to standardize and streamline our payroll integrations across 60 countries," said Usman Afzal, director of HR operations, Zoetis. "Workday Global Payroll Cloud has helped us create a common interface with one central source of HR data. That has simplified our lives with respect to global reporting, vendor management, and ongoing maintenance."


MyPOV – Notable that the gentleman from Zoetis refers to Workday Global Payroll cloud – not the UK payroll. But UK customers will take their time to test and validate the UK payroll – and it is not clear from the press release when they got to use the payroll and could validate it in test runs. It may be with them only with Workday 24.

Availability
Workday Payroll for the UK is now available as part of the company's latest release, Workday 24.

MyPOV – So if customers only got their hands on the real code with the last week release of Workday 24 – we should not see live customers in 3 (simple) to 6 months (moderate complex scenarios) live on the Workday UK Payroll.

Overall MyPOV

As mentioned in the introduction, a working payroll solution is key for enterprises's people strategies, as it gives the peace of mind and freedom to pursue more strategic people related projects. All too often we see that payroll (and compliance) challenges put more strategic people projects on time out in the best case. In the worst case, executive teams lose confidence in the HR leadership, and will be more conservative when asked for budget for strategic HR transformation projects.

So it’s good news for Workday customers that Workday has added support for the UK payroll. Now we will have to see how quickly and well customers can get to the benefits and be live on the UK payroll. It will also be a good test for the Workday compliance teams and product architecture, as payroll implementations often take so long, that new legal and statutory changes happen during the client implementation. But that is the same for all vendors in the payroll business.

From a payroll complexity, the UK ranks relatively low in the world, we expect the France payroll (planned by Workday for 2016) to be a more formidable challenge.

And finally Workday has done well extending its country support via the Workday Global Payroll Cloud to 85 countries. But we know from enterprises that decision makers see a difference between partner based and vendor based payroll support. As Workday lags the ERP Top 3 (SAP, Oracle and Infor) as well as its co-opetitors ADP and Ceridian in vendor supported countries – it will be interesting to see how decision makers will weigh the importance of vendor based payroll support going forward. As for Workday it looks that partner strategy is set – as Workday highlights its recent partnership with Payroll Inc. in Japan (see here).

In my view large customers in large markets (Germany, Italy, Japan, Russia, Brazil etc.) will over time force Workday to provide vendor based payroll support for these markets. But that is speculation and only the future (and maybe some people in Pleasanton) could tell.



 
More on Workday
 
  • Workday 24 - 'True' Analytics, a Vertical and more - now needs customer proof points - read here
  • First Take - Top 3 Takeaways from of Workday Rising Day 1 Keynote - The dawn of the analytics era - time to deliver Insight Apps - read here
  • Progress Report - Workday supports more cloud standard - but work remains - read here
  • Workday 22 - Recruiting and rich Workday 22 are here - read here
  • First Take - Why Workday acquired Identified - (real) Analytics matter - read here
  • Workday Update 21 - All about the user experience and some more - read here
  • Workday Update 20 - Mostly a technology release - read here
  • Takeaways from the Salesforce.com and Workday parnership - read here
  • Workday powers on - adds more to its plate - read here
  • What I would like Workday to address this Rising - read here
  • Workday Update 19 - you need to slow down to hurry up - read here
  • I am worried about... Workday - read here
 
More on Payroll:
 
  • Could the paycheck re-invent HCM – yes it can – read here.
  • And suddenly, payroll matters again! Read here.
You can find more coverage on the Constellation Research website here.
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