Why you need SuccessFactors to salvage your SAP investment

Enterprise Insight Series

Copyright © 2008 SuccessFactors, Inc.

Unlock the Value:Gain the competitive edge by fully leveraging your company’s investment in human capital and legacy HR software.

Implement a robust Performance & Talent Management solution that extends your SAP HR technology

For years, organizations like yours have relied on Enterprise Resource Planning (ERP) software to help

manage employee transactions across the enterprise. It was during this time that SAP earned its

well-deserved reputation as one of today’s most robust and stable back-end HR systems.

The SAP Human Resource Information System (HRIS) was originally built to help administrators

automate transaction-based processes such as payroll and benefits enrollment. While such administrative

transactions remain necessary, most are now commodities which are unlikely to generate game-changing

business impact.

To stay competitive in today’s marketplace, organizations need to focus on more strategic initiatives

such as leveraging and optimizing the talent of their employees. Addressing this challenge is a new

breed of Strategic Human Capital Management (HCM) applications that support the “best practices” for

managing the performance of people in the workplace.

This whitepaper will explain the critical need for enhanced performance management for today’s

businesses, plus outline how you can seamlessly deploy the best-of-breed performance and talent

management solutions.

Unlock the Value Enterprise Insight Series

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Formulating a more powerful strategy for maximizing human capital

People make up the single largest investment for most businesses, comprising nearly 70% of total

operating costs. Unfortunately, most companies struggle to optimize their workforces, squandering the

true value of this critical investment.

To get the most out of their people, leading organizations leverage software and best practices to energize

their people, increase workforce productivity, and drive better financial results. These businesses think

strategically about their workforces and recognize the importance of investing in solutions that optimize

employee performance that’s aligned with both individual and organizational goals.

Utilizing powerful Strategic HCM software solutions, these organizations:

•Focusemployeesoncriticaltasks

•Increaseoverallemployeeproductivity

•Identifyandrewardtopperformers

•Investinongoingemployeedevelopment

•Placetherightpersonintherightjobtobesuccessful

•Ensurereadinesstoexecuteonchangingbusinessstrategies

While transactional HR applications have reached a relative parity in the market, the chasm is getting

wider between best-of-breed strategic HCM applications and functionality available from ERP vendors.

This difference between vendor offerings is not a mere set of feature-function benefits. It translates

into change management and quantifiable financial impact for your business. Evidence suggests that

best-of-breed Performance & Talent Management processes bring about better financial results,

including faster top-line and profitability growth relative to industry peers.



“�Companies�that�deploy�On-demand�Performance�and�Talent�Management�solutions�appear�to�achieve�on�average�2�percent�higher�annual�revenue�growth�within�three�years�of�deployment�relative�to�the�industry�norm,�with�some�achieving�up�to�3�or�even�4�percent.”

Saugatuck Technology Inc.*

*Source: “Strategic Talent Management Solutions and Superior Topline Growth” Saugatuck Technology Inc., March 31, 2008

http://www.successfactors.com/research/financial-advantages/


SuccessFactors: the leader in Performance & Talent Management

SuccessFactors is the leading provider of Performance & Talent Management solutions with more than

4 million end users in 185 countries. With SuccessFactors, your company can directly align every

executive, manager and employee with the mission of your organization. You’ll cover more ground,

faster, with the same resources — achieving the kind of success that moves markets.

Anintegratedsolution

The SuccessFactors Performance and Talent Management Suite is the industry’s first complete suite of HCM

applications delivered as a service, enabling organizations to rapidly source, align, develop, motivate, and

maintain a high-performance workforce. With seamless integration across each module, SuccessFactors

gives you the visibility to optimize the performance of your people to drive business results.


360 Degree Reviews

GoalManagement

RecruitingManagement

CompensationManagement

SuccessionManagement

Learning &Development

PerformanceManagement

Analytics &Reporting

EmployeeProfile

Optim

ize Workforce Cultiv

ate To

p Ta

lent

Bridge Strategy / Execution Gap


Among its many capabilities, the SuccessFactors Performance & Talent Management Suite seamlessly

extends your existing SAP investment with best-of-breed functionality. The functionality that is either not

available or not widely deployed by ERP vendors, includes:

•GoalManagement.Automates the process of creating, cascading, monitoring and assessing the

progress of company-wide goal completion.

•LearningandDevelopment.Supports management, delivery, and measurement of learning

content and activities.

•PerformanceManagement.Streamlines the performance appraisal process and helps transform

the often rushed and tedious once-a-year performance review into an ongoing performance

management process that ties employee performance to bottom-line business results.

•CompensationManagement.Allows organizations to effectively implement pay-for-performance

initiatives by integrating and aligning goal management, performance management, and

compensation processes with a single integrated application.

•SuccessionManagement.Helps organizations gain greater visibility into their employees’ skills

and background, identify and anticipate leadership gaps, and perform necessary planning and

analysis to ensure there is adequate bench strength throughout the organization to ensure

workforce continuity.

•RecruitingManagement.Streamlines the process of identifying, screening, selecting, hiring,

and on-boarding internal and external job applicants.

•EmployeeProfile.Gathers employee performance data and profile information, such as work

experience and educational background, and puts it into a centralized, master data repository

that can be accessed at any time, from any place.

•BusinessAnalyticsandReporting.Draws data from each application module enabling

extensive views into the performance of the entire organization, including goal achievement,

performance review ratings, and compensation.

•ContentPacks.Delivers rich libraries of goals, development advice, competencies, job

descriptions, wage data, interview questions and other general and industry-specific best

practice tool-kits.



Building a bridge from SAP into the future of enterprise softwareSuccessFactors Performance & Talent Management Suite seamlessly integrates with your current SAP installation, as well

as any future product migrations, including Oracle, PeopleSoft, or HR outsourcing. SuccessFactors’ HCM system features:

•IntuitiveOperation.SuccessFactors sports an easy-to-use graphical user interface (GUI). Because of its unified

and consistent operation across all applications, employees, managers, and executives can quickly master the

system and begin putting its incredible power to work for your company.

•SeamlessSAPIntegration.SuccessFactors utilizes industry-standard technologies to enable frictionless system

integration and single sign-on capabilities with SAP. Plus because SuccessFactors data is instantly shared across

all modules, the system greatly facilitates data flow, navigation and analytical reporting functions while

eliminating duplicate data entry.

•MaximumFlexibility.Modular by design, SuccessFactors makes it easy to add new HCM functionality whenever

you want — without negatively impacting your entire ERP system. Plus, SuccessFactors’ HCM functionality can be

configured to match your company’s specific business requirements and workflow processes.

•FasterROI.As a hosted application, SuccessFactors naturally takes much less time and effort to deploy than

typical ERP installations. In fact, most companies can be up and running on the system in just three to six weeks.

And with no hardware or software to maintain, you also enjoy a drastic reduction in your total cost of system

ownership. The result? A much quicker return on investment (ROI) for your company.


SuccessFactors and SAP — The Best of Both WorldsSuccessFactors offers a tried and tested integration that lets organizations quickly expand their investment in SAP with the best of performance and talent management. Our in-house SAP expertise guides the integration process and gets customers “live” quickly and cost-effectively.

SAP HRIS

Full Integration • SAP Expertise • Fast Time to Value

SuccessFactors


Web-based delivery for the 21st century and beyond

Today’s competitive business environment not only demands a new breed of strategic people

management applications, it also requires a new way of delivering these solutions—one that allows

for a continuous stream of innovation.

Hosted, web-based solutions present the ideal delivery method, offering an easy path to implementing

powerful Performance & Talent Management throughout your organization. Industry analysts agree

that on-demand next-generation offerings are now the standard because they help your business align,

develop, motivate, and maintain a high-performance workforce more rapidly.

Today’s best-of-breed solutions, like SuccessFactors, have been natively designed for the web and can

be easily integrated into existing HRIS applications or payroll systems. Because these solutions are

delivered as “Software as a Service,” up-front costs are not only straightforward, they are also very

predictable. Plus, shorter implementation times mean quicker time-to-value for your company.


The new Software as a Service model for delivering Software reduces implementation adoption

risks and ensures full alignment between customer and vendors.

Software as a Service is now the standard choicefor Strategic HCM Applications

Old ModelERP

New ModelSuccessFactors

Purchase

Implementation& Upgrades

Risk

Incentives

Big upfront costs includingongoing maintenance

Lower cost, paid as value is received

Slow and expensive viasignificant IT resources

Fast time to value

Customer owns risk SuccessFactors owns risk

Maximize upfront deal sizeCustomer success as

evidenced by renewals


ERP software: Past its prime As your company has probably already discovered, legacy enterprise applications such as SAP, Oracle (PeopleSoft,

E-Business, Siebel, JD Edwards) and Lawson are not only limited in functionality, but must also support an out-dated,

architecturally-constrained software model.

ERP software, originally built in the 1980s, inherited many built-in deficiencies and hidden costs, including:

•UsabilityShortfalls.Designed for administrators performing specific transactional processes, most ERP

applications feature unintuitive user interfaces, complex functionality, and steep learning curves.

•InflexibleWorkflow.As business needs change, your company must be able to react quickly to create and

rollout new workflow processes. But with their static workflow rules, most ERP systems cost your company

precious time and capital to implement all but the most minor of changes.

•UnwieldyReporting.Your senior management requires ready access to Performance & Talent Management data

if they are to make quick decisions that could affect the long-term health and wellbeing of your business. But with

most ERP systems, managers and executives must first submit a request to a system administrator, and then wait

for a report to be generated.

•CustomizationSnafus.Customizing an off-the-shelf ERP system to meet your specific needs can be a

time-consuming and expensive process. Therefore, any customization your company undertakes will likely delay

the rollout and return on investment (ROI) of your Performance & Talent Management solution.

•IncompatibleUpgrades.Adding a new application such as Performance & Talent Management to your existing

ERP system often means upgrading to an entirely new release of the product.

•HardwareandITExpense.ERP solutions, by definition, come with the ongoing expense of maintaining the Web

servers and other required hardware. Compare that to a hosted solution that requires no additional hardware

investment and prevents hidden costs.



Summary

Most ERP solutions began their lives as transactional payroll systems built solely for administrators.

While these systems may excel at administrative process automation, a new breed of best-in-class

solutions addresses more strategic initiatives such as Performance & Talent Management and

productivity. As HR organizations move beyond tactical functions and begin aligning their workforce with

their corporate goals, they require a more strategic set of HCM applications. SAP customers can optimize

their current ERP system by integrating the SuccessFactors Performance & Talent Management

Application Suite, a best-in-class solution that delivers greater functionality, usability, and flexibility for

deployment across the enterprise.



Alex Shevelenko Director,BusinessTransformationSolutions

Alex Shevelenko is Director of Business Transformation Solutions at SuccessFactors where he oversees

the development and implementation of technology-enabled talent management solutions to maximize

business results.

Mr. Shevelenko has over a decade of experience in providing strategic advice and delivering

transformational technology solutions to Global 2,000 corporations.

Prior to joining SuccessFactors, Mr. Shevelenko held positions at technology providers Salesforce.com

and Microsoft and a leading strategy consulting firm, Mercer Management Consulting / Oliver Wyman.

Mr. Shevelenko worked with a variety of industries including retail, healthcare, private equity,

manufacturing, information technology, finance, and public sector organizations.

Mr. Shevelenko holds an MBA from Stanford Graduate School of Business and dual-degree from the

University of Pennsylvania cum laude: B.S. in Economics from the Wharton School of Business and B.A.

in International Relations from the College of Arts & Sciences. Mr. Shevelenko is the U.S.A. recipient of

2004 Award from the Association of Management Consulting Firms & Foundation for Excellence in

Management Consulting.



About SuccessFactors

SuccessFactors delivers easy-to-use technology that helps businesses of all sizes align, develop and

motivate employees. With a suite that includes solutions for goal alignment, performance management,

compensation, succession planning, learning, recruiting, and workforce analytics, SuccessFactors

offers the most innovative HR technology available today. Visit www.successfactors.com to learn more.

The Enterprise Insight Series

This ongoing set of guides is designed to provide HR professionals in large companies with insights

and solutions that can be applied in everyday efforts. Contributing authors include HR experts, as well

as leading companies that have improved business results by using the latest HR technologies.

Visit www.successfactors.com to download more of the Enterprise Insight Series:


Copyright © 2008 SuccessFactors, Inc.