In response to these flaws in earlier talent management solutions - the focus on the efficiency vs. effectiveness, the lack of appropriate design for business managers, and the lack of support for cross-functional integration - demand has emerged for a new strategic talent management process and a new generation of automation solutions to support that process.

This new concept defines strategic talent management as a set of integrated business processes designed to attract, develop, assess, reward, and retain people with the required skills and competencies to meet an organization's current and future business needs.

In contrast to the earlier, more narrow definition which focused on HR efficiencies, this new concept of talent management focuses explicitly on the achievement of business objectives: growing revenues, enhancing profitability, and building greater shareholder value.

The new concept also views the business manager as integral to the talent management process and vital to its success. HR practitioners are in a key support role, but they share ownership of the process with business managers. Strategic talent management is not viewed as the exclusive domain of HR professionals.

The broader concept also views talent management as an activity that spans multiple functions. Recruiting, performance management, compensation, succession planning and employee development & learning are not individual silos. Rather, they are seen as related functions within an overall solution.