50 slides from Automatic Data Processing's investor day presentation, Feb 10, 2020
Slide 1: Innovation Day 2020
45? INNOVATION DAY 2020 February 10, 2020
Slide 2: Agenda
Agenda 9:00 am Registration and Breakfast 10:00 am Welcome Danyal Hussain, VP Investor Relations 10:05 am Opening Remarks Carlos Rodriguez, President and CEO 10:10 am Our Market Thesis Matthew Levin, Chief Strategy Officer 10:25 am Our Innovation Thesis Don Weinstein, CVP Global Product and Technolo
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identifie
Slide 4: Opening Remarks
Opening Remarks Carlos Rodriguez President & Chief Executive Officer Copyright © 2020 ADP, LLC
Slide 5: Always a Technology Company
Always a Technology Company Technology has been a differentiator for ADP from day one (Our 1961 Prospectus) Copyright © 2020 ADP, LLC 5
Slide 6: A History of Continuous Innovation
A History of Continuous Innovation Henry Taub EasyPayNet: NER: FIRST DataCloud: launches FIRST cloud HCM Big FIRST HCM Wisely: FIRST Automatic based payroll Data big data digital payroll Payrolls, Inc. solution publication platform solution 1962 2000 2009 2014 2019 1949 1998 2006 2012 2018 ADP lease
Slide 7: Our Market Thesis
Our Market Thesis Matthew Levin Chief Strategy Officer Copyright © 2020 ADP, LLC
Slide 8: The HCM Market is Growing and Evolving
The HCM Market is Growing and Evolving Large & Growing Market Continuous Evolution $150B Addressable HCM landscape continues to be shaped by secular changes across many categories Global HCM Market 5-6% Growth $90B WORK PAY HR BUSINESS TECH $40B • Growth of gig • More workers paid • Becoming more •
Slide 9: ADP is the Industry Leader in Global HCM
ADP is the Industry Leader in Global HCM Grow a complete Scale our market-leading Leverage our global presence suite of cloud-based HRO solutions by leveraging our to offer clients HCM solutions HCM solutions platforms & processes wherever they do business • #1 or 2 in most categories • #1 in PEO an
Slide 10: Positioned to Stay at the Forefront of HCM
Positioned to Stay at the Forefront of HCM 01 Thought 02 Organic 03 Strategic Leadership Investments Acquisitions Next Gen HCM Next Gen payroll and tax Strategic platforms ADP DataCloud ADP Marketplace Workforce Management Wisely Payment Platform ADP Ventures Copyright © 2020 ADP, LLC 10
Slide 11: Innovating on Three Dimensions
Innovating on Three Dimensions Differentiated Today Next Gen is Now Market-leading platforms delivering sustained Designed from a clean sheet, built from the growth and profitability ground up, informed by our thesis on the future of HCM Powered by a Digital Client Experience Personalized client exp
Slide 12: Our Innovation Thesis
Our Innovation Thesis Don Weinstein CVP Global Product & Technology Copyright © 2020 ADP, LLC
Slide 13: Tech at ADP
Tech at ADP Unmatched scale, an innovation mindset, and deep domain expertise Scaled Innovative Talented With end-to-end expertise With a long-term mindset Leveraging diverse experiences • Technologists in over a dozen • 7 global innovation labs • Deep domain expertise countries • Strong track-recor
Slide 14: Innovating on Three Dimensions
Innovating on Three Dimensions Differentiated Next Gen is Now Today Powered by a Digital Client Experience Copyright © 2020 ADP, LLC 14
Slide 15: ADP RUN
ADP RUN Easy to use solution powering small businesses across the US DIFFERENTIATED TODAY FUTURE READY Purpose-built solution delivering superior value Enhancing the buyer and accountant experience 640K+ Clients End-to-end eCommerce and digital buying experience with transparent pricing, eSign, and
Slide 16: ADP Workforce Now
ADP Workforce Now Full-suite, single database HCM platform delivering enhanced user experience DIFFERENTIATED TODAY FUTURE READY The HCM market leader Enabled end-to-end on the public cloud with an enhanced user experience 70K+ Clients HCM Market #1 Share Average Modules 3+ per client1 “ADP ranks fi
Slide 17: ADP Upmarket Portfolio
ADP Upmarket Portfolio Deep functionality and platform flexibility bolstered by strategic enhancements DIFFERENTIATED TODAY FUTURE READY Addressing broad client needs With choice and flexibility ADP Vantage HCM ADP Workforce Now 2.5K+ HCM Clients 75%+ ofon Fortune 500 ADP Solutions Deep functionalit
Slide 18: ADP Global Portfolio
ADP Global Portfolio Unmatched global reach and compliance capabilities DIFFERENTIATED TODAY FUTURE READY Unmatched global reach Global leader in unified and compliant multi-country payroll 60K+ International Clients 140 Countries Served 45+ Languages 27 Global MNC Locations “ADP now controls two of
Slide 19: ADP Global Portfolio Client Success Story
ADP Global Portfolio Client Success Story: Large and complex global technology provider Global Technology Provider 100+ Countries 100K+ Employees Client Challenges: Transformation Outcome: Lack of standardization Global convergence 50+ Payroll Providers Consolidated to ADP Celergo in 90+ countries 6
Slide 20: Mobile and UX
Mobile and UX Access whenever, however, wherever DIFFERENTIATED TODAY FUTURE READY First HCM mobile application Mobile-first self service Top 5 Business App 4.7 Apple App Store Rating (2019) $1892.17 Monthly myADP 90M logins Onboarding Benefits Pay Enrollment Copyright © 2020 ADP, LLC 20
Slide 21: Workforce Management
Workforce Management Leading time and labor management solutions DIFFERENTIATED TODAY FUTURE READY Large and growing business Data-powered decision making Geo-Pinning 80K+ Embedded Analytics and Insights WFM Clients 14M+ Employees Served Point of Sale Integration Monthly Time 750M+ “Punches” Copyrig
Slide 22: Talent Acquisition
Talent Acquisition All worker types supported, gig workers included DIFFERENTIATED TODAY FUTURE READY Market leading solutions for permanent workers Support for all worker types, including freelancer 1.6M+ Jobs Posted 15M+ 40M+ Background Applications Checks 1.6M+ Candidates 32M+ Resumes 10M+ $1.5B+
Slide 23: AI / ML
AI / ML Data-driven insights in the flow of work DIFFERENTIATED TODAY FUTURE READY Largest, most accurate dataset in DataCloud AI in the flow of work Executive / Companies Included 740K+ Manager Insights Candidate Assessment in Database Unique Employees Paid 90M+ Over Last 10 Years 5,000+ Job Types
Slide 24: AI / ML Client Success Story
AI / ML Client Success Story: Major National Auto Parts Chain National Auto Parts Provider 1K Locations 20K+ Employees CHALLENGE ACTION TRANSFORMATION • Rolled out mobile insights to provide 5pt store managers real-time visibility into 99% Managers Using Mobile turnover data App with Real-Time Data
Slide 25: ADP Marketplace
ADP Marketplace Dynamic, open platform with self-serve capabilities DIFFERENTIATED TODAY FUTURE READY Largest open HCM ecosystem Intuitive eCommerce experience embedded in the flow of work 400+ Apps Available 3K+ Partners in Pipeline 900M+ API Calls per Year ADP Marketplace directly embedded in Work
Slide 26: Innovating on Three Dimensions
Innovating on Three Dimensions Differentiated Next Gen is Now Today Powered by a Digital Client Experience Copyright © 2020 ADP, LLC 26
Slide 27: ADP's Next Gen is Informed by Guiding Principles
ADP’s Next Gen is Informed by 5 Guiding Principles DYNAMIC TEAMS WORK AND PAY GLOBAL AI ADAPTABLE YOUR WAY COMPLIANCE EVERYWHERE TECH PLATFORM Copyright © 2020 ADP, LLC 27
Slide 28: Dynamic Teams
Dynamic Teams How work really happens DYNAMIC TEAMS Built for how work really happens – in dynamic teams + Empower team leaders to track and measure where work truly happens – including freelancers + Drive engagement and performance where it matters by providing teams and leaders the critical insigh
Slide 29: Work & Pay Your Way
Work & Pay Your Way Extreme personalization WORK & PAY YOUR WAY Consumer grade, personalized experiences that enable teams to work and get paid the way they want + Smart payroll and tax engines power real-time, compliant gross-to-net calculations + Integrated pay anytime solutions combined with fina
Slide 30: Global Compliance
Global Compliance Global from the ground up GLOBAL COMPLIANCE Deliver compliant global capabilities easily and rapidly + Rapid localization with global as configuration and federated development + Powered by ADP’s unmatched global reach and compliance expertise Copyright © 2020 ADP, LLC 30
Slide 31: AI Everywhere
AI Everywhere In the flow of work AI EVERYWHERE Real data driving real insights + Drive relevant, accurate, data-driven insights leveraging the world’s largest HCM dataset + Leverage AI and ML in the flow of work to identify insights and drive prescriptive actions + Uncover contextual, meaningful an
Slide 32: Adaptable Tech Platform
Adaptable Tech Platform Low-code, flexible, extensible ADAPTABLE TECH PLATFORM Next Gen Platform that powers our entire tech stack + Power rapid innovation with a flexible, extensible, low-code platform + Fully cloud native with uptime, resilience and scalability of the public cloud + Drives extreme
Slide 33: A Day in the Life
Power of ADP’s Next Gen HCM System “A Day in the Life” Copyright © 2020 ADP, LLC 33
Slide 34: Powering the Future of Work – Today
Powering the Future of Work – Today DYNAMIC TEAMS WORK AND PAY GLOBAL AI ADAPTABLE YOUR WAY COMPLIANCE EVERYWHERE TECH PLATFORM Copyright © 2020 ADP, LLC 34
Slide 35: Positive Industry Feedback
Positive Industry Feedback Strong Positive HCM Industry Coverage Next Gen HCM Award Wins “This is the first time in our history that a company has won the same award five years running, and this level of excellence is a “This new ADP platform will be a force to be testament to ADP's drive to address
Slide 36: Client Perspective: Gold's Gym
Client Perspective: Gold’s Gym Why Next Gen HCM • Deploy dynamic teams and leverage team based insights • Provide an integration ecosystem through highly flexible platform • Enable teams to work their way by deploying Mini-apps • Eliminate paper process and drive consumer-grade self-service Copyrigh
Slide 37: Recent Wins for ADP Next Gen HCM
Recent Wins for ADP Next Gen HCM 15,000 Employees 3,000 Employees 65,000 Employees Multi-location specialty retailer Manufacturer of engineered products Transportation company Client needed: Client needed: Client needed: • Next Gen solution with modern, • Dynamic teams to better represent • Next Gen
Slide 38: Next Gen is Now
Next Gen is Now FY18 FY19 FY20 FY21 PILOT ROLL OUT SCALE ACCELERATE Live with pilot clients in Sell 15 - 25 North • Sell 50 - 75 North America • Sell 100+ North America Next Gen North America America clients clients clients HCM Growing platform Start global expansion • Global roll-out Live
Slide 39: Innovating on Three Dimensions
Innovating on Three Dimensions Differentiated Next Gen is Now Today Powered by a Digital Client Experience Copyright © 2020 ADP, LLC 39
Slide 40: Our Client Experience Thesis
Our Client Experience Thesis Dianne Greene Vipul Nagrath DVP/GM OneADP Global Chief Norfolk & Information Louisville Officer Copyright © 2020 ADP, LLC
Slide 41: Why Service Matters to our Clients
Why Service Matters to our Clients HCM TECHNOLOGY From Hire CLIENT SUCCESS To Retire Support Compliance Insights 40M+ employees globally 68M+ tax statements Data on 740k+ clients 1,000+ U.S. compliance changes globally annually Copyright © 2020 ADP, LLC 41
Slide 42: How We've Evolved
How We’ve Evolved Simplified and improved service delivery • Deployed co-located / intact teams that collaborate across traditional functions in common strategic service locations • Nurtured an environment where associates grow their careers • Uncovered opportunities to improve operational efficienc
Slide 43: OneADP Service Strategy
OneADP Service Strategy Simplified and improved service delivery • Hire the right people and create agile teams • Promote collaboration across teams • Employ self-service in tools • Empower associates • Build culture of trust and inclusion Copyright © 2020 ADP, LLC 43
Slide 44: Building a Digital Service Mindset
Building a Digital Service Mindset ADP has a powerful combination of associate expertise and digital capabilities to meet our clients’ needs Eliminating Work Automating Work Working Smarter Enabling Growth Copyright © 2020 ADP, LLC 44
Slide 45: Advanced Capabilities Across the Client Journey
Advanced Capabilities Across the Client Journey Client Client data Client and Associate onboarding extraction and entry service experience Intelligent Smart Data Chat and Automation Processing Chatbot Copyright © 2020 ADP, LLC 45
Slide 46: Intelligent Automation – Onboarding Clients Faster
Intelligent Automation – Onboarding Clients Faster We are onboarding new clients faster than Manual Today Future Review Review Review before using Intelligent Automation capabilities Digitized sales order and Robotic Process RPA Automation used to complete the implementation setup process Setup Setu
Slide 47: Smart Data Processing Leveraging NLP and ML
Smart Data Processing Leveraging NLP and ML Smart Data Processing combines: Deep Learning AI Image Identification Natural Language Processing Unsupervised Classification Smart Data Processing digitally reads and Clustering data, extracts it, and configures it in ADP systems for quality, accuracy, an
Slide 48: Enhanced Service Experience with Chatbot
Enhanced Service Experience with Chatbot Every SBS chat begins with A.V.A. 900K client interactions were handled by A.V.A., the ADP Virtual A.V.A. over the last 18 months Assistant, will help you A.V.A. answers questions across over 150 different topics get the answers you need. And client satisfact
Slide 49: Results to stakeholders
Results to stakeholders Value-added client interactions and data insights Empowered Improved client associates satisfaction Lower cost ADP revenue digital and and margin self-service benefit Copyright © 2020 ADP, LLC 49
Slide 50: Q&A
Q&A with Carlos, Matt, & Don Copyright © 2020 ADP, LLC