Streamlining HR processes to improve ROI: aiming to strike a balance between insourcing and outsourcing for HR efficiency? Consider Web-based "point solutions" to leverage best features that can meet today's and tomorow's needs.

• Author: Hackney, Skip
• Position: Human resources, return on investment

Considering streamlining your human resource processes? Chances a re your company will choose one of two models: expand its internal enterprise resource planning (ERP) system to include HR functionality or outsource some or all HR functions to a single third-party vendor. Your company is not alone.

ERP expansion and total outsourcing are two papular choices. Companies select one or the other, based on their existing needs, and devote significant resources to implementing and maintaining their chosen solution.

However, companies are beginning to wonder if these solutions can meet their future needs. They are asking these types of questions: Is the return on investment (ROI) in our ERP or outsourcing solution as high as it can be? Is our solution capable of supporting our future--possibly very different--objectives? What is the cost of expanding its capabilities? Does association with a single vendor or solution limit our flexibility and leverage?

More and more, companies are concluding that the costs and time associated with upgrading their ERPs and total outsourcing solutions to meet new demands may be prohibitive. And, they are increasingly frustrated by the limitations imposed by their single format, either/or models. ERP and total outsourcing solutions each have unique advantages, and many companies would like to capture the benefits of both.

Fortunately, new technologies are making a more balanced approach possible. Point solutions--targeted, best-in-class applications that easily integrate into existing client legacy and vendor systems through Web-based technologies--allow companies to leverage the best features of their ERP (such as finance, accounts receivable and accounts payable) and outsourcing solutions, while adding new functionality that reflects their changing needs.

Balancing Old and New

Coca-Cola Enterprises Inc. (CCE), the world's largest marketer, producer and distributor of products for The Coca-Cola Co., recently discovered the value of point solutions and a balanced approach to HR efficiency. Like most companies, executives at CCE didn't know how much they were actually spending to administer their benefits.

When they analyzed the return on the company's benefits investments, the results were disappointing: despite significant average annual benefits expenditures, CCE's 72,000 employees did not fully recognize and appreciate the value of their benefits. Decentralized and inconsistent processes were hampering CCE's...