The annual HR Tech conference drew in a respectable crowd last week as attendees came to see the latest developments for core HR and talent management IT.
There were a variety of themes throughout the conference, many of which were the usual suspects impacting the wider healthcare IT market: cloud, SaaS, social media and technology, mobile and gamification.
However, the most prevalent theme of the conference was the growing use and potential for predictive analytics.
Any vendor that is not already talking about predictive analytics will quickly fall behind the curve, with both new startups and established ERP vendors at HR Tech touting their latest progress for gathering, sorting and analyzing big data for strategic HR management.This form of advanced analytics digests acquired data and predicts or provides recommendations regarding what will happen or is likely to happen in the near future. Today, predictive analytics is starting to creep into the HR space in a number of ways, with the potential to help users highlight future leaders, identify problem employees, recommend learning courses and predict attrition.
Looking at the healthcare industry, predictive analytics are primarily being used for obtaining insight on readmission management, bundled payments, claims processing, fraud detection and other clinical decision-making processes. IHS Inc. predicts the US market for predictive analytics for medical HCM to have a strong influence on market growth through 2020. However, the use of predictive analytics for medical human capital management (HCM) is still nascent today.
It is clear that predictive analytics will increasingly become a key feature in HR solution suites, but it will likely take a few more years for these solutions to catch on with buyers. Nevertheless, competition is intensifying (for software players and consulting firms) as vendors are racing to develop a predictive analytics solution that delivers high value and is intuitive for users. Consequently, there will be no shortage of vendors introducing advanced analytics products for medical HCM and other industries as big data continues to expand and solution capabilities improve.
For now, vendors are spending most of their time trying to educate buyers on the value of their solutions. Bill Kutik, who co-founded the HR Tech Conference tweeted during the event that “if predictive analytics vendors can’t explain to humans how it works, HR is not going to buy it, even just to assist decisions.” This thinking is quite common among buyers, particularly in the healthcare industry, where providers are pinching every penny.