What is SAP SuccessFactors?
SAP SuccessFactors is a cloud-based business suite for your Human Resources department. With this software, you face the increasing challenges in human resources management and exploit your full potential by simplifying all of your personnel processes. SAP SuccessFactors includes extensive HR capabilities with recruiting, applicant management, onboarding, a learning management system, performance management, talent management, succession planning, and social and business collaboration tools. The suite has a modular structure and the modules can be combined as required.
Supported by analysis functions, HR managers can better plan employee strategies and evaluate the results more easily. In addition, best practice scenarios with predefined content, automations, and self-services can significantly simplify daily administrative tasks.
The basis for a future-proof investment is the seamless integration of the cloud solution into on-premise systems.
SAP SuccessFactors Modules
Deployment Options for Transformation to the Cloud
SAP offers basic deployment options that differ in their split between on-premise and cloud functionalities. The nuts and bolts of launching is to handle on-premise and cloud like a system and not think in two worlds.
In the Talent Hybrid scenario, all HR core components, such as personnel administration, organizational management, payroll, and time management continue to be maintained in SAP ERP HCM. The exception is the Talent Management Suite from SuccessFactors. This includes, for example, e-recruiting, a very dynamic environment that is subject to many technical innovations, such the publication of vacancies in social networks. The advantage here lies with cloud service providers who can keep up with the high pace of innovation, which is often not possible for in-house IT due to a lack of manpower or lack of know-how.
The disadvantage of the Talent Hybrid: It should be noted that in case of doubt, media breaks can occur because the user interfaces and the navigation concept are completely different. However, SAP is working on a holistic approach to ensure an optimal user experience with a consistent user interface across the system boundaries.
In the side-by-side scenario, SAP SuccessFactors Employee Central is implemented for one part of the organization, while the rest remains in the legacy system. This scenario is suitable for companies that already use SAP ERP HCM, but that, due to acquisitions or subsidiaries, do not yet manage all HR master data in one central on-premise system or use multiple systems. A multinational company could, for example, first decide to move a country division to SuccessFactors and move on to the remaining parts of the company in a second phase. Interfaces ensure that the data from both solutions remain synchronized and that global reporting is possible.
Core Hybrid is an intermediate scenario in which time management and / or payroll continue in SAP ERP HCM. Often, this scenario is selected by customers who want to move to the cloud incrementally. In the first phase, most self-service processes are implemented within Employee Central and linked to the time and billing processes in SAP ERP HCM using standardized (pre-packaged) integrations. As SAP continuously develops SuccessFactors and creates additional functional standards through important collaborations with partner companies, billing and time recording can be migrated to the SAP SuccessFactors cloud in a later phase.
The Full Cloud scenario may sound revolutionary to many companies, as all HR processes and data, including billing and time management, are stored on an external database. The advantage is obvious: There is no need for your own IT infrastructure and staff to manage it. But even in this case, a connection to SAP ERP is often necessary, because non-HR functions such as accounting (SAP ERP Financials) and logistics (SAP ERP Operations) continue to require access to HR master data.
The Main Reasons for HR Processes in the Cloud
The Road Map of SAP for HCM Solutions
SAP Relies on Cloud Solutions
In 2011, SAP acquired SuccessFactors to provide its customers with one of the best cloud-based HR solutions. Since then, the number of customers using SAP SuccessFactors solutions has steadily increased. The investment strategy is based on the growing trend to shift HR processes to the cloud.
In the past, human resources management was primarily about mapping processes around billing and time management. Today HR is much more than a part of corporate culture. For example, an HR system determines how talent is found and addressed, or how employees in the organization work together. In addition, intelligent services and digital assistants help with day-to-day work so that HR can focus on value-adding tasks. Many of these things could hardly be realized on the SAP ERP HCM on-premise platform, or only with a great deal of effort. This is why SAP SuccessFactors creates important benefits for driving the digital transformation of HR in the company:
- The omission of the infrastructure
- Modern user interfaces
- Standardization and simplification of processes for HR and employees
- Quickly available and easier to consume new product developments.
A system change should be considered in good time, as SAP will continue to maintain the classic SAP HCM on-premise until 2025. In addition, only selective and no substantial improvements can be expected.
SAP Plans New On-Premise HR Solution for SAP S/4HANA
Even though many customers have already switched to SAP SuccessFactors, SAP understands that every customer has individual requirements and must set their own pace for switching to a new HR system. For this reason, some SAP customers would like to continue using their HR solution in an on-premise environment for the foreseeable future. To support this customer requirement, SAP plans to offer a new on-premise solution for HR management. The new solution is planned for 2023, while the maintenance for it should run at least until 2030.
The solution is based on SAP ERP HCM and offers a comparable range of functions (except for the applications SAP E-Recruiting and SAP Learning Solution). It should be implemented on a separate instance and be tightly integrated with SAP S/4HANA.
Starting in 2023, customers should be able to license the new solution and begin migration by using planned migration tools and services. Since the underlying solution will be based on SAP ERP HCM, it can be assumed that this conversion can take place without disrupting business operations.