No Digital Transformation Without People Transformation

Wim Valstar

GTM CoE RISE with SAP for HXM

No Digital Transformation Without People Transformation

SAP S/4HANA and SAP SuccessFactors as Foundation for The Intelligent Enterprise

2PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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The business context is changing…

New safety protocols,

and remote workforce

Disrupted supply chains,

and product demand

Digital and distanced

customer experiences

Halt or minimize

non-critical spend

Real-time financial

insight and control

Rapid transformation

and innovation


Yesterday’s ERP could not keep pace…even before COVID-19

60%Of human tasks will be

automated by 2025

Strategic Priorities

Outcome-based Engagements

• Move to outcome- or performance-based

engagements

• Adopt intelligent bid management to

increase predictability and decrease risk

20%Of revenue will come

from products <3 years

old by next year

Enabling New Business Models

• Monetization of data

• Innovative partnerships

• Efficient order fulfillment and delivery

90%Of large enterprises will

generate revenue from

data as a service by 2020

Serving the Segment of One

• Provide solutions that fit the needs of

a single customer

• Capture customer requirements and

enable mass customization

Quickly adapting to change –

foreseen and otherwise –

is the critical, central capability

for every organization.

Systems and technology must

be an enabler to this change,

not an impediment.

Simon EllisProgram Vice President, IDC


.. and driving the need to become an Intelligent Enterprise

Engaged, empowered

workforce connected to

business purpose

Real-time, end-to-end

business view

Competition

everywhere

Key challenges Key requirements

Constant business

disruptions


Talent scarcity & rising

labor costs

Elevation of HR to the

CEO’s agenda

Changes in strategy & new

products and services

Sources: 1. The 22nd Annual Global CEO survey, PwC, 2019 2. https://hbr.org/2016/11/getting-reorgs-right; 3. https://go.manpowergroup.com/talent-shortage;

45% of companies cannot find

enough skilled workers1

to pursue marketopportunities

80% Organization restructurings fail to

achieve their goals2

55%Of CEO’s indicate that their

organisation is not able to innovate

effectively1

People Transformation is Key to SuccessThere is no digital Transformation without People Transformation

https://hbr.org/2016/11/getting-reorgs-right

https://go.manpowergroup.com/talent-shortage


1 2 3

One Vision. One Intelligent Platform. One Human Experience.Maximize your results with connected data, people, and experience

Business

Transformation

Focus on

Business Outcomes

Execute &

Experience

The Intelligent Enterprise End-to-end business processes Human eXperience Management


BUSINESS NETWORK

BUSINESS PROCESS

AND MULTIPLE SUBPROCESSES

LEAD TO CASH

DESIGN TO OPERATE

SOURCE TO PAY

RECRUIT TO RETIRE

Customer Manufacturing & Supply Chain

Finance & Procurement

Human Resources

APPLICATIONS

SUSTAINABILITY MANAGEMENT

EXPERIENCE MANAGEMENT

INTELLIGENT SUITE INDUSTRY CLOUD

BUSINESS TECHNOLOGY PLATFORMTECHNOLOGY

SAP DATA CENTER HYPERSCALERINFRASTRUCTURE

BUSINESS PROCESS INTELLIGENCE

End-to-end processes in an intelligent enterprise


BUSINESS TECHNOLOGY PLATFORM

AN

ALY

TIC

S

INTELLIGENT SUITE

INDUSTRY CLOUD

AN

ALYTIC

S

SPEND MANAGEMENT

HUMAN RESOURCES

CUSTOMER EXPERIENCE

DIGITAL SUPPLY CHAIN FINANCE

ERP

BUSINESS PROCESS

BUSINESS NETWORK

ACROSS ALL FUNCTIONS

APPLICATIONS

TECHNOLOGY

SUSTAINABILITY MANAGEMENT

EXPERIENCE MANAGEMENT

SAP DATA CENTER HYPERSCALERINFRASTRUCTURE

BUSINESS PROCESS INTELLIGENCE

SAP S/4HANA and SAP SuccessFactors as the core of the Intelligent Suite

10© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Key Capabilities

▪ Core HR & Payroll

▪ Talent management

▪ HR Analytics & Workforce planning

▪ Employee experience management

The Role & Value of “employee” data in ERP context

Enterprise Management

Reporting relationships Re-organizations

Workflow approvals Business & financial planning

Time entry & confirmations Cost management & allocations

Resource availability / assignments Resource scheduling & optimizations

Worker safety and compliance Workforce analytics


Out of the box integrated end-to-end process for a better work experience

Understand, manage, and optimize all aspects of workforce (employees and external workers) in line with business

objectives, and with clear financial impact

Recruit to Retire process

Recruit to Retire

Lifecycle of an internal worker

Worker‘s travel and expense management

Lifecycle of an external worker

Plan Staff Onboard Work Travel Pay & Close

Hire to Retire

Travel to Reimburse

External Workforce

▪ Get workforce

engaged and

productive, quickly

▪ Provide insights to

make better talent

decisions – aligning to

key business and

financial priorities

▪ Drive new and

meaningful

experiences that link

purpose to

performanceSAP SuccessFactors SAP Analytics CloudSAP S/4HANA Cloud SAP Concur SAP Fieldglass

Sub P

rocesses

* Recruit to Retire is also known as Total Workforce Management


Lead to CashDeliver unprecedented

customer experience

Source to PayManage procurement

and spend like never

before

Design to OperateDevelop and manufacture

the most innovative products

SAP’s Integrated Intelligent Suite

Business Technology Platformincluding SAP Cloud Platform Integration Suite

Business

Processes

Business

Applications

Recruit to RetireDeliver seamless workforce experience S

ub

pro

ce

sse

s

SAP C/4HANA

SAP Digital Supply Chain

… …SAP S/4HANA

… …

Seamless

user

experience

One

workflow

inbox

End-to-end

process

blueprints

Aligned

domain

models

Consistent security

& identity

management

Embedded

& cross-product

analytics

Coordinated

lifecycle

management


From technical integration to interoperability on many levels

How the SAP way is different and unique – Beyond DATA integration

Data

HANA

User Experience

Analytics

Single-Sign-On

Identity Management

Workflow

Central dataservices

Central busi-ness services

Monitoring

Lifecyclemanagement

Technical integration

Fiori, digital assistant

SAP Analytics Cloud, SAP

Digital Boardroom

Simplified access for all

solutions

SAP Cloud Identity Access

Governance

Currencies, holiday

calendar, exchange rates, ...

E.g. time sheet for

multiple solutions

Central

monitoring

across solutions

Shared provisioning,

configuration, updates,

admin tools,.One database across solutions

Common workflow engine, one

inbox for all solutions


▪ Blend & analyze live data from the entire enterprise for

effective organizational plans and workforce decisions

▪ Quickly respond to short-term needs with accurate

assessments and “What-if?” scenarios

▪ Effectively measure top- and bottom-line impact by

allocating costs and delivering real-time financial

accuracy

▪ Cross application analytics for all domains within your

organisation

▪ Richer, consistent employee experience across the

entire organisation and LoB’s

▪ Increased productivity in operations with realtime

decision making and impact analysis

▪ People strategies linked to business priorities: align goals

for each worker

▪ Proactive compliance management and risk mitigation

for all workers

Combining HR, Financial and Operational Data Business Benefits of Technology Enabling End-to-End Business Processes


The on-your-terms and on-your-timeline

transformation to an intelligent enterprise.


The RISE with SAP package helps you accelerate your HXM path to tangible

transformation outcomes, with flexibility.

. . . by building your people

foundation for successful business

transformation and bridging the gap

between finance and HR to

measure profitability, plan and

forecast accurately, and manage

compliance.

. . . with the training required to

support the change and drive

adoption of new technology as well

as increase the speed of innovation

by developing people’s skills.

. . . with easy access to people and

finance data; simple, intuitive

experiences for payroll; and time

tracking that result in smooth

operations and planning.

Structure for success . . .Reskill your project

and technical teams . . .

Operationally transform

your business . . .


Everyone has

a unique starting point.

Early adopters of cloud ERP

ready to go further

Digitally driven businesses that

need to scale with speed

Edge innovators that need to

focus on their core

Established companies facing complex,

customized, on-premise systems

PUBLIC

March 2021

HXM Move Simplifying People Transformation to the Cloud


• SAP portfolio strategy

• What is HXM Move?

• New product investments

• Migration options

• How we personalize the journey

Agenda


> 10,000 customers

Continuity investments focused primarily across

Core HR and Payroll

Mainstream maintenance through 2027

SAP HCM for SAP S/4HANA, on-premise edition – until 2040

> 7,500 customers

Innovation investments focused on

human experience management (HXM)HCM with trusted global scale, embedded intelligence,

flexibility, robust ecosystem, and connectivity beyond HR

New strategic investment to enhance innovation

and expedite local / industry needs

On Premise Cloud

SAP ERP HCM SAP SuccessFactors HXM Suite*

SAP portfolio strategy

*SAP SuccessFactors Human Experience Management Suite


HXM Move: The Next Generation of Upgrade2SuccessOur program to help SAP ERP HCM customers move to the cloud

Enhanced Roadmaps

across 4 Key Areas

1. Core HR

2. On-Premise and Cloud suite

integration

3. Time Management

4. Payroll

▪ Move from license and

mainteance to software as a

service (SaaS)

▪ Favorable commercial terms

with On-Premise to Cloud

trade-in credit

▪ HXM Move Consulting (Partner

or SAP Services led)

▪ Environmental scan

▪ Personalized roadmap

▪ Best practices

▪ Migration tools

Personalized

Journey

Flexible Commercial &

Deployment Options

Massive Product

Investment


“Employee Central is a

powerful cloud platform that

carries the SAP localization

DNA. However, compared to

our SAP HCM on-premise

solution, we still need more

flexibility to better meet local

regulatory requirements.”

“SuccessFactors does not yet

have a native cloud Payroll”

“Data integration between

Employee Central and SAP

Payroll & Time Management

is best of breed. But we still

need to better orchestrate the

data maintenance process

across systems."

“We have a complex and

highly adapted Time

Management in ERP and we

can´t move that to EC Time

because of missing

functional parity.”

”We see the value of cloud-based Core HR and like the Intelligent

Enterprise vision. We would like to start the journey now. But we

need SAP to make the move to cloud-based Core HR more

seamless.”

We hear your concerns about moving Core HR to SuccessFactors

Core HR PayrollOn-Premise + Cloud Time Management

“We are ready to move our Time and Payroll to the cloud. But is

the cloud ready for us?”


Enhance functionality

across cloud Core HR to

improve configurability and

localization

Reinvent Payroll to ease

compliance, elevate

employee experience and

reduce TCO

Streamline suite integration

and UX with SAP ERP HCM

Aggressively accelerate

innovation and capabilities

in cloud Time Management*

▪ Accelerate development for SAP SuccessFactors core HR with focus on local regulatory requirements

▪ Maximize the value of the first migration step: SAP SuccessFactors core HR in a hybrid landscape

▪ Accelerate organic innovation in Time & Payroll: future-proof for the decades to come

Enhance Core HR Accelerate Payroll

Innovation

Elevate the Hybrid

Experience

Build Time

Functional Parity

SAP SuccessFactors Core HXM: Four investment areasRoad Map

*Building “getting people paid” use cases


SAP Human Capital Management for SAP S/4 HANA, Private Cloud Edition

(SAP HCM PCE)

A new offering for customers to move HCM as stand-alone or embedded in their ERP stack into the S/4

private cloud edition.

▪ Move to cloud at own pace

▪ Safeguard prior investments by converting existing systems

We see this option as a hybrid transition solution for customers with complex time and payroll

requirements and who need additional time to move fully to the cloud without losing any functionality.

SAP S/4HANA PCE

HCM for S/4 PCE

SAP ERP

SAP HCM

Lift & Shift


SAP S/4HANA & SAP SuccessFactors: A fit for every HR organizationProviding options to meet the needs of all customers journey to the cloud at their pace

SAP S/4HANA Public CloudSAP S/4HANA Private CloudSAP S/4HANA On-PremiseComplete, modern, SaaS ERPCloud value, traditional flexibility & full

scopeTotal control and individualization

SAP ERP HCM /

S/4HANA Compatibility Pack /

H4S4

Transition StateTransition State

SAP HCM PCE

Target State

HXM CloudHybrid On-Premise

As a Product

SAP Core Human Capital Management, private cloud edition

SAP Time Tracking, private cloud edition

SAP Payroll, private cloud edition

SAP ERP Private Cloud

As a Service

SAP H4S4 PCE

Cloud option for selected complex

customers not ready for SAP

S/4HANA

Optional two-step journey

(optional path, may potentially be skipped)

Employee Central

Time Tracking

EC Payroll / Next Gen Payroll


▪ Move HCM to Public Cloud

▪ 3 Deployment options for upgrading to SuccessFactors HXM

SAP ERP HCM to SuccessFactors HXM transformation options

Talent Hybrid1

SAP Business Technology Platform (Including Pre-Packaged Integration)

Talent Management

Analytics

Talent Management

Analytics

Core HR

Payroll

Time & Attendance

Talent Management

Analytics

Core HR

HXM Suite3Core Hybrid2

Upgrade

▪ Talent & Analytics

Upgrade ▪ Talent & Analytics

▪ Core HR

Upgrade ▪ Talent & Analytics

▪ Core HR

▪ Time and Payroll

SAP ECC or SAP S/4HANA

(On Premise)

SAP S/4 HANA Private Cloud Edition

HXM Public Cloud

Core HR

Payroll

Time & Attendance

ERP

ERP

ERP

Payroll

Time & Attendance

On-Prem or Private

Cloud (Customer choice)


Transition Path - Customer Profile D (Innovate HR & Private Cloud)

Full HXM Cloud

Replace Time

Mgmt

Replace EC Payroll with

Next Gen Payroll

Transition to Next Gen Payroll and Time

Tracking in one step, e.g. country by country

▪ Existing SAP ERP HCM/Payroll customer

▪ Interested in moving to SAP SuccessFactors Employee Central

SF EC + Time Off +

EC Benefits

SF Time Tracking

SF Next Gen Payroll

SAP ERP HCM

& Payroll Lift & shift, any

hyperscaler, on

SAP paper

Modernize Core HR*;

Move to harmonized

integration layer

(potentially automated)

Start modernization of

Time Management with

adoption of Time Off;

Adopt EC Benefits

Gradual de-modification & standardization

Gradual migration of personnel data from on-Premise into new/enhanced EC components

Replace SAP Payroll

with Next Gen Payroll

Replace legacy Time

Management and

standardize Payroll

1

2

* EC adoption can also be the first

step, followed by lift&shift to PCE

Replace PT and PY in one step,

e.g. country by country3

SAP Time/Payroll

SF ECSF EC + Time Off +

EC Benefits

SAP Time/Payroll

SF EC +Time Off + EC

Benefits

SF Time Tracking

SF EC + Time Off +

EC Benefits

SF Time Tracking

SAP Payroll

SAP ERP HCM &

PayrollSAP SuccessFactors Employee Central

+ S/4 HANA Private Cloud Edition Best in class hybrid

(EC+ ECP)

On-Premise Private Cloud

SF EC Payroll

Public Cloud


Customer

Migration with HR

Leading Practices

Timeline

Roadmap

(Phase 0)

Rapid

Consultative

Transformative

Success

Checklist

Roadmap

(Phase 0)

Evaluation Roadmap Migration

~4 months

~8 months

~12 months

On-Premise

HCM Analysis

Governance Model

Assessment

HR Leading Practices

To Be Architecture

Product Direction & Roadmaps

Business Case Support

Peer Match

The HXM Move Migration Services Approach

Overview of what’s included in an HXM Move approach


How to bring your On Premise data and structures

to the SAP SuccessFactors cloud?

▪ Different data models

▪ Custom data fields and custom Infotypes

▪ Historical data

Solution: SAP’s Infoporter tool

▪ Part of SAP SuccessFactors Employee Central

▪ Part of the Integration add-on for SAP ERP

▪ Mappings between On Premise and Cloud structures

and data

▪ FREE of charge

▪ Built and maintained by SAP Product Management

Provides the setup and basis

for Productized Integrations

SAP is better with SAPMigrating your SAP ERP HCM data to HXM

IT0015

IT0002

Employee Data

IT0001

IT0006

IT0008

Org Unit

Position

Job

Organizational

Data

mapping

conversion

transport

storage

Infoporter

https://help.sap.com/viewer/233c80fafd2e4105a926a299068cfe92/1902/en-US

https://help.sap.com/viewer/233c80fafd2e4105a926a299068cfe92/1902/en-US


HXM

Only with SAP can you truly reinvent human experiences to accelerate business growth

Contact information:

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Title

Address

Phone number

Thank You

Appendix

No Digital Transformation Without People Transformation

Documents

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