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July 27, 2015

Building A HCM Roadmap for Existing SAP HCM Customers Part 3 (Final)

Example of a Roadmap for an existing SAP HCM On-premise customer

Current Customer Background

XYZ divides its services into three service portfolios; Infrastructure, Applications, and Business Process Outsourcing. Infrastructure services includes maintaining the operation of part or all of a client's computer and communications infrastructure, such as networks, mainframes, "midrange" and Web servers, desktops and Laptops, and printers. Applications services involves the developing, integrating, and/or maintaining of applications software for clients. Business process outsourcing includes performing a business function for a client, like payroll, call centers, insurance claims processing, and so forth.

Employees

The Americas: 80,000 employees (Out of that around 60,000 employees are in US)

EMEA: 40,000 employees (Out of that around 30,000 employees are in UK)

APAC: 8,000 employees (Out of that around 5,000 employees are in ANZ)

Current Global HCM Landscape

          SAP HCM (ECC 6.0, EhP 1) PA & OM module is deployed in 54 countries

          Integrated SAP On premise Payroll module (Net Pay) and Time Management (with Time Evaluation) is deployed in five countries:

-      United States (15,500 hourly or salaried non-exempt, 44,500 salaried exempt, Managers  Administrative support and HR & Payroll specialists)

-      Canada

-      Australia & New Zealand

-      UK

          Interface with third party payroll software or provider exists in other countries

          Interface with various third party Talent Management software across the globe.

          No integrated ESS, MSS, HR Admin/HR Professional roles or mobility.

          Fragmented HCM Analytics which doesn't cover all HCM functions in all the countries.

          Blended Reporting Solution - Standard SAP reports , InfoSet Query , SAP Query , Tax Reporter , B W and Custom ABAP reports

          External vendors and internal systems, 84 Inbound and outbound interfaces

XYZ's Business Challenges

 

One of XYZ's strategic pillars is to attract and retain talent for growth and for innovation.   The XYZ Human Resources (HR) division is on a transformation journey to restructure the HR Division and upgrade their Human Capital Management (HCM) processes & technology to support future growth and innovation.

XYZ developed a number of guiding principles when forming the requirements for the HCM Program - these are:

-     Supports HR transformation vision

-     Simplify the way we work & how we interact with each other

-     Effective use of the talent pool

-     Empowering and engaging staff

-     Standardized practices across the enterprise

-     One source of integrated data

-     Enterprise wide reporting capability

-     Elimination of paper through seamless workflow

-     Available to all staff and easily accessible (including mobility)

-     Support future business needs

 

The Project and Approach

 

The Scope of the XYZ's HCM Program is to implement the full suite of SuccessFactors Solutions. The modules being implemented are:

-     Employee Central

-     Employee Central Payroll

-     Recruitment , Onboarding & Recruitment Marketing

-     Performance & Goals

-     Learning

-     Succession

-     Compensation

-     Workforce Analytics

-     JAM

-     Benefit Focus

 

 The overall Program Timeframe will be a 24 month program. The following is the Roadmap of the program:  


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July 20, 2015

Building A HCM Roadmap for Existing SAP HCM Customers Part 2

In order for HR to truly deliver on the promise of being "business partners," it needs to tell the story of business scenarios that are predicted to happen in the future, across all levels of the organization, which they do not already know about, and then provide recommendations on how to fix or exploit those scenarios.
We believe cloud technologies (Workforce Analytics) combined with the power of in memory computing such as HANA can certainly help here which traditional BI solutions could not achieve to do in so many years.
User Experience for core modules
In today's time UX (based on UI5/HTML5) plays a significant role in how we all work. SAP has shown its commitment towards the existing SAP HCM on-premise customers by investing in the new UX named HR Renewal for those customers who due to business reasons would like to continue to use on premise solution for core HCM and use SuccessFactors talent cloud in a hybrid situation. 
HR Renewal 2.0 based on EhP7 provides a beautiful user experience to satisfy the new generation of employees and their expectations. This also offers host of new functionalities and features along with pre-build integration with add ons such as SuccessFactors HCM Integr 1.0, SuccessFactors HCM Integr 2.0, SFSF Global Payroll 1.0 and SFSF EC Integration 1210.

SAP Fiori? Should you consider this and why?

SAP Fiori is the new user experience (UX) for SAP software. The intent of SAP is to make Fiori as HCM mobile standard, with role-based, beautiful apps centered on the most broadly and frequently used business functions to replace existing HCM mobile apps offering an user experience consistent with the broader HCM Renewal program which is unaffected for the remaining HR processes (as SAP Fiori only covers seven simple HR processes whereas HCM UX Renewal covers all HR processes).
Putting customers on transition path to a long-term unified user experience across all business functions - anywhere, any time it applies modern design principles for a completely reimagined user experience. 

Where to start and when?

As the SuccessFactors catch line says "Start anywhere. Go everywhere". I think that is very much applicable to all existing SAP HCM customers. The only caveat here is that there is no software constraint as such regarding where you should start and which direction you go however it all depends on your current HCM/business landscape, strategic approach and your transformational goals.  

Possible way to go forward for existing customers

To understand the complexity and types of existing SAP HCM customers let us see if we can divide the entire SAP HCM customer base in to the following categories and see what solution will help them:



* In case of customer not having SAP on premise Payroll and Time management and having a Cloud strategy in place can decide to move completely to SuccessFactors Cloud HCM or can decide to move sequentially as the case may be.

** In the case of customers having on premise SAP Payroll and Time Management functionalities in place can decide to go first for Hybrid then slowly move into the full cloud HCM.



July 15, 2015

Building A HCM Roadmap for Existing SAP HCM Customers Part 1

For the last five years, human resource (HR) departments across the globe have been challenged to remain relevant and up-to-date with their HCM processes and technologies. This trend shows no sign of abating. The HCM marketplace has seen an extraordinary amount of acquisition and consolidation activity in the last couple of years. Since the time SAP purchased SuccessFactors for $3.4 billion (app. 10 times of the SuccessFactors 2011 revenue) towards the end of 2011. Others like Oracle jumped into the fray two weeks later by spending $1.9 billion to acquire HCM solution provider Taleo. 

For the last five years, human resource (HR) departments across the globe have been challenged to remain relevant and up-to-date with their HCM processes and technologies. This trend shows no sign of abating. The HCM marketplace has seen an extraordinary amount of acquisition and consolidation activity in the last couple of years. Since the time SAP purchased SuccessFactors for $3.4 billion (app. 10 times of the SuccessFactors 2011 revenue) towards the end of 2011. Others like Oracle jumped into the fray two weeks later by spending $1.9 billion to acquire HCM solution provider Taleo. 


The propelling factor for SAP purchasing SuccessFactors was the tremendous growth that Workday, Cornerstone on demand and SuccessFactors had in a short period of time. So SAP and other on-premise ERP vendors were losing their license money as clients were moving away from license based model to a subscription based model.

Before we analyze the trend it is good to have the right perspective of the SAP HCM market. It is undisputed that SAP offers the best and broadest on premise based core HCM (HRIS, Time and Payroll) functionality in the market. The solution is used by 7600+ customers and the largest BPO providers of all sizes and in all industries all over the globe. SAP Globalization Services and SAP Partners are offering a localized payroll in 53 countries that can be run from a single instance.

The biggest challenge for the existing On-premise HCM customers with significant investments in the on-premise core HCM solution is to decide how and when they should make the move to cloud. There is no denying that most of the HCM community are in the early stages of their multiyear shift from client server OnPremise software (i.e. SAP HCM, Oracle EBS, PeopleSoft) to the next generation of cloud based offerings (i.e. SuccessFactors, Workday, Oracle Fusion).


Why HCM? Why is it that the HCM cloud-based solutions such as Workday, CornerStone on demand and SuccessFactors seem to have taken off so fast? Why not another area, like core financials, for example?

Probably the answer lies in the maturity of the solution, degree of integration between the solution and the core business. Take for example SAP FI/CO which has been strong and matured product in all areas with little to no integration required for outside 3rd party products. There's no denying that this solution is tightly woven into the core business of the organization. You can say the same thing for production planning, Sales and Distribution (SD) etc. 

But when you look at SAP HCM then the immediate thought that comes to mind is that though SAP HCM did very well in the core products such as Personnel Administration and Organizational Management (HRIS), Time Management (Time and Attendance), Multi country Payroll and Enterprise Compensation Management (ECM) but was very weak on UI, ESS/MSS,HCM Analytics and Talent Management. In other words unlike Financials HR has struggled with the challenge of tightly integrating itself into the fabric of the business. Hence you would need one or more 3rd party solutions in the above mentioned areas to complete the process. Talent Management which is volatile and rapidly changing is becoming more and more relevant in last few years. The cloud products with 4 quarterly release and multi-tenancy fits the bill perfectly. And that is another reason why HCM like CRM is a better fit for cloud adaptation.

So the future of HCM is definitely cloudy - it's inevitable that SAP customers will adopt cloud HR technology, in this case mostly SuccessFactors because it's from and supported by SAP. As we all agree that move to Cloud HR is undeniable. We will explore in this article what is the pace at which various customers may adopt Cloud HCM technology. 

SAP has a interesting situation with their HCM customer base. Some want Cloud HCM now - even yesterday - and if they don't get it from SAP they will go elsewhere. Some are very content with their on-premise HCM software and don't see much need to change. And then there is a big group between those two extremes that is going with hybrid solutions - it's not 'either/or' for them but 'both/and' when it comes to on-premise and cloud. 


Basically for the existing SAP HCM on-premise customers there are three possible choices:

HCM Enterprise Cloud

In this case client moves all its HCM processes e.g., core and Talent into SuccessFactors HCM solution.

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Hybrid

In the Hybrid option the core is in On premise HCM and the Talent Management is in the SuccessFactors.

Side-By-Side (Two-Tier HCM)

In this case the smaller subseries or countries with lesser number of employees are in the cloud but the parent company where most of the employees are in the on premise SAP HCM solution.

Now that we are clear about possible deployment options let us explore how to decide your right cloud solution. We will try to find out the right mix through the following questions:

Do you have a cloud strategy for your Organization? 

As we have discussed previously that there is no denying that cloud is not about "if" but it is more about "when" and "how". If the organization already has a cloud strategy then it is important to know the roadmap for the entire organization and when HCM comes into the picture. It is always better to plan it out either as a big bang move or a move which is more strategic and sequential.

If the organization doesn't have one then probably the time is right now to build a roadmap to the cloud for the entire organization or for HCM as the case maybe.

Current business, IT and HCM Landscape

This makes a huge difference. If it is a large company where a huge investment is already made on the on-premise infrastructure for ERP then it is only to be expected that there is a lot of investment that has also gone in for the integration to make sure business continuity is maintained. Normally these type of enterprise have fragmented Talent Management process but the core (which is normally responsible for 75-85% of all integration points) is tightly integrated with inside and outside world. 

These type of enterprise could be there in one country or multiple countries. The types of business the company is involved in also makes an impact e.g., manufacturing setup which is rapidly expanding into new economies. Hybrid and side by side could be a good option for them. Hybrid will makes sure that they are taking advantage of the recent development on the on-premise SAP HCM solution such as HR Renewal 2.0, Fiori, HANA use in HCM etc. but also in a position to make use of the SF Talent cloud. Side by side will allow them to expand quickly and cost effectively into new territories and also work as future case studies for the entire organization when they decide to move to the cloud.

Do not compare SAP HCM functionalities and features with that of SF but Compare SF capabilities to your business requirements

We are seeing this trend across the industry where we see organizations are concerned about how PA & OM (SAP HCM) compares with Employee Central (SF). Actually in our opinion this is not the right way of looking at it. Remember when you first time thought of moving into SAP HCM from legacy systems. At that time your main goal was to re-look at the business requirements afresh as things do change with time and then see if SAP HCM is the right software for you or not. Something similar is required here e.g., you want to move into Employee Central (EC) so your concern basically are if it will full fill your current and future business processes, if it would support your organization structure, reporting structure, workflow, internal and external interfaces and integration, overall reporting etc. then do that due diligence but you will gain nothing by comparing PA and OM capabilities to EC's functional and technical capabilities.

Is Time Management and net Payroll in house?

This is an easy option here. If you do not have Time Evaluation (clock in and out, CATS etc.) in SAP HCM and use a 3rd party solution such as Kronos etc. and if you do not process net Payroll in house then your move to Enterprise cloud with everything but Time Management and Payroll could relatively less cumbersome and business non-disruptive.

Employee central offers good possibilities to integrate EC with SAP ECC as well as 3rd party Time and Payroll solution to continue with what you had before (business as usual). This also gives you an opportunity to look at Employee Central Payroll in the cloud and explore the possibilities of looking at Kronos and other 3rd party Time solutions which are closely integrated with EC.

A serious thought about Integration in the cloud world

Integration in the on premise world was a real challenge. One would remember that during every open enrollment season some of the Benefits vendors would invariably change and as a result of that the organization now has to make sure that all the inbound and out bound interfaces are rebuild. The process of interface building has remained the same but the technology has changed. Now with cloud integration platforms such as HANA, PI, Dell BOOMI, MuleSoft, Cast Iron, Informatica cloud etc. the technology is utilizing the available APIs to make it much easier to build interfaces between cloud to cloud, cloud to on premise or on premise to cloud.

So in other words one should not fear the integration aspect of cloud computing. It may make your life a bit easier.

What about Benefits?

In North America it is not very common to see SAP HCM on premise customers using SAP's Benefits module. They may be using a variety of 3rd part vendors. The employee Benefits for North America simply put has been a real administrative burden for most of HR departments across the country. But now companies like BenefitFocus (for US) and Thomsons Online Benefits (international) is supporting the growing need for employee benefits administration and communication amongst multinational employers. These companies aimed to take the "administrative chunkiness" out of benefits. These software's would like to make it easy, they want to make it mobile, and they want to make it fun. 

The goal of these companies is to help an employer to manage all their benefits -- all types of benefits -- in one place through a web-based software platform for electronic enrollment and eligibility management.

Benefit Informatics offered by most of these web based solutions are primarily enhancing the client reporting with a very accessible set of online tools. Benefit Informatics offers clients and broker partners a value-added plan analysis solution that brings a multitude of data together into one location with access to user-friendly reporting. This will be especially beneficial for clients to help manage new reporting requirements under Health Care Reform.


Importantly companies both on premise (SAP HCM) and cloud (SuccessFactors) can take advantage of this cloud based Benefits platform.

HCM Analytics? Why should you care?

So many industry analysts report big data and workforce analytics as one of the big trends in HR technologies these days. But the adoption numbers do not show great progress over the past 15 years. There appears to be a disconnect between the prediction/hype and what is really happening. 


The world of analytics has shifted emphasis over the past two decades - from looking at the past to Looking at the future. 


Organizations that made this shift realized the basic fact that the billions and billions of pieces of information being produced every single day can be used to answer, fairly accurately, what will probably occur at some given point in the future.


Although predicting the future sounds mystical and straight out of science fiction (like in movies such as The Minority Report and Paycheck, where predicting the future for all facets of life is the norm), the reality is that we're already doing this today and you are being impacted by these predictions in almost every aspect of your day-today life - it's called predictive analytics.


July 14, 2015

Infosys is a Gold sponsor of SuccessConnect 2015

SuccessConnect is one-of-a-kind conference that brings together SuccessFactors, its partners, customers, and thousands of HR practitioners, experts and leaders from across the globe. This event provides an excellent opportunity for attendees to share and discuss the latest developments in your industry and technological solutions and strategies for attracting, developing, engaging and retaining the best workforce talent to achieve your organizational goals.

How has been your HCM Transformation journey so far? Have you considered to take advantage of the best practices offered by cloud solution and analytics? Meet our experts to understand how Infosys uses its HCM Transformation framework to make your business cloud ready, optimize your processes, policies and align the solution landscape to maximize the ROI and achieve business goals.

Infosys is a Gold sponsor at SuccessConnect 2015 - flagship event of SuccessFactors (An SAP company) - which will be held from August 10 to August 12 in Las Vegas, Nevada, US. We will be showcasing our SuccessFactors and SAP HCM capabilities in booth # G22.

Looking forward to meet you at the event.

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