December, 2013 SuccessFactors for Human Capital Management in Professional Services

December, 2013

SuccessFactors for Human Capital Management in Professional Services

© 2014 SAP AG. All rights reserved. 2

Dynamics SuccessFactors Why SuccessFactors? Next Steps

Dynamics in the Professional Services Industry Affecting HR

Operational Efficiency

Productization of Services

Client Sophistication

Globalization

Increased customer service expectations

Strict service level and contract requirements

Demand for increased visibility and faster invoicing

Sub-contractor risk management Local, near shore, and offshore

sourcing for optimal sourcing mix International growth, resulting in

supplier and commodity challenges

Leveraging networks to identify new client opportunities

Responding rapidly to increase project profitability and customer satisfaction

Lack of standardization of procurement processes

Lack of speed and accuracy in subcontractor invoicing

Insufficient allocation of costs to projects or contracts

Industry trends putting increased margin pressure on firms



Implications of Professional Services Dynamics on HR

Retention challenges as the market picks up and employees have other options

Establish focus and accountability, resulting in clear correlation between performance and pay

Without the right resources, organizations could miss out on wins or fail to deliver services, resulting in lost revenue opportunities

Loss of key talent

Recruitment and training of multichannel workforce requires multichannel strategies



Best Practices for HR in Professional Services

Establish and communicate clear business goals

Create clear linkage between compensation, succession, and development based on performance

Establish and promote social business strategy to foster knowledge sharing and innovative collaboration

Optimize workforce of near, off, and best shore resources

Accurately match supply of your talent to the demand



Professional Services and the Cloud Imperative

Source: SAP Performance Benchmarking,

Of professional services industry companies surveyed believe cloud computing will transform their organization and/or industry

96%

Of professional services industry companies surveyed see cloud computing as a driver for innovation and differentiation

56%

Of professional services industry companies surveyed expect a major impact on company performance within five years

88%



SAP Cloud Solutions Power Operations Across Professional Services

From the front to the back office enabled in the cloud

BUSINESS NETWORK BUSINESS TO BUSINESS COLLABORATION

SOCIAL People-to-People Collaboration

PEOPLE CUSTOMER MONEY SUPPLIER

MARKETPLACE

PARTNER/ISV APPS

CUSTOMER APPS

SAP HANA CLOUD PLATFORM

APP DEV & INTEGRATION SERVICES | DATABASE SERVICES | INFRASTRUCTURE SERVICES | INTEGRATION

LINE-OF-BUSINESS CLOUD APPLICATIONS

SUITE ONHANA

BW ONHANA

MANAGED CLOUD

BUSINESS

SUITE


Challenges in Professional Services With talent supply chain for the HR lead

Dynamics SAP Cloud Innovation Why SAP? Next Steps

Decrease in turnover

(14)%

Decrease in hire date to billable

(33)%

Of revenue returned with adoption of SuccessFactors

1%

Attract and hire the best talent quickly

Develop or buy the right skills

Reduce attrition

Workforce optimization

Match client demand to supply

Source: SAP Performance Benchmarking

Coleman, Susan

Is something missing here?



SuccessFactors, an SAP companyDelivering one set of HR solutions across the entire employee lifecycle

SuccessFactors is a “Leader” in Gartner’s Magic Quadrant and a “Leader” in Forrester’s Wave

SuccessFactors delivers Streamlined and collaborative

recruiting Clear, accurate, and consistent

performance reviews More effective leadership due

to better success plans

Content Integration Extensibility

HR AnalyticsLearning

Social CollaborationRecruiting

Performance

Core HR

Coleman, Susan

Just checking if this is correct as "success plans" or if "succession plans" was intended here. If it's not "succession plans," I would reword this. The term "success plans" is a bit too vague. Try to find a better example of how effective leadership is enabled



SuccessFactors Employee Central (core HR)Next-generation core HR system of record in the cloud

HR transactions and onboarding

Position management

Time-off management

Reporting, compliance, and auditing

Localized for over 50 countries and over 35 languages

Global payroll for over 20 countries

“When they got to deal with HR data at a strategic level, you could see the lights go on. The senior leaders really bought into the process and they’re absolutely delighted with what we can do.” – Rupert Brown, Vice President of Human Resources




Performance

Core HR



SuccessFactors Talent SolutionsAttract, develop, and retain a 21st century workforce

Thoughtful onboarding

Proactive learning

Performance and goals

Succession and development

Compensation and rewards

Recruiting

“We have the ability to open up or restrict our courses as much as we need to. Plus, SuccessFactors really lets us redesign and rework the standard reports to do whatever we need to.” – Andre Walter, Instructional Designer, North American Region




Performance

Core HR



SuccessFactors Workforce Analytics SolutionsMake confident business decisions with powerful workforce insights

SuccessFactors Workforce Analytics: Drive fact-based business decisions with over 2,000 predefined workforce metrics and KPIs

SuccessFactors Workforce Planning: Plan your future workforce based on business need and trends, such as global talent shortages

“With the information revealed from the SuccessFactors analytics tool, we are now armed with the knowledge we need.” – Bob Myer, Senior Vice President and Chief Human Resources Officer




Performance

Core HR



SAP Jam: Social Business CollaborationBring people together to solve business problems and drive results

Empower employees to work and communicate more effectively

Connect your customers, partners, and employees with information, applications, and processes

Drive results in your social network and your applications

“SuccessFactors is enabling HR to have better business conversations with the local CEOs. Our HR leaders can now have a much more meaningful and structured conversation, supported by real business insight.” – Riccardo Sebastiano Piaggi, Group Head of Organization



Recruiting

Performance

Core HR

Social Collaboration



Beautifully Designed to Engage and Empower EveryoneAnytime, anywhere, wrapped in social



Modular, Deployed at Your PaceStart anywhere, go everywhere


Recruiting

CoreHR

Onboarding

LearningSuccession

and Development

Performanceand Goals

Workforce Planning

HRAnalytics

SocialCollaboration

PayrollCompensation

Start Here

Start Here

Start Here

Start Here

Start Here

Start Here

Start Here

Start: Solve an immediate pain point (e.g. learning)

Group: Leverage more than one to solve a bigger pain (e.g. core HR + onboarding)

Replace: Move all HCM to the cloud

Leverage on-premise HCM investments

Use these 2 points only if selling to HCM installed

base



Leveraging the Best of the Best to Deliver a Future-proof HCM Roadmap Situational – use to reinforce that the power and

strength of SAP is behind the SF solution

#1 Enterprise Applications #1 Cloud HR Software

40+ years of business software leadership supporting 15000 global HCM customers

10+ years of cloud HCM. 25 million users to provide ongoing feedback and validation



Deliver Proven Results: Transform Human Capital Management with SuccessFactors

(15.2)%Decrease in turnover

1% Revenue addedback to profit

5.5%Increased focus on priorities

17%Increase in right training

13.7%Increase in internal job fill rate

1-8+ Weeks faster communication

4.9%Increase in high performers

14%Increase in project completion

3%Average increase in productivity

Generate Cost Savings

Increase Productivity

Deliver Strategic Alignment

Produce Business Results

(13.8)%Decrease in low performers



Kleinfelder

C-level executives reaching retirement age

No system to facilitate manager training

Career development was disconnected from talent management systems

Performance reviews now occur at all levels

Compensation is now tied to performance

Culture has shifted to emphasize performance

Significant cost savings with learning management online delivery

Results and Adoption

As an employee owner of Kleinfelder, we are really proud of what we do and the people we have working for us. And we are equally as proud to partner with an organization like SuccessFactors.

Mary Jane Riccardi, Senior Learning and Development Manager”“

Execution Gap



Utilizing their incredible technology and expertise, we were able to hire over 60,000 temporary contractors in an eight-week time frame – no small feat. Additionally, we now have gathered valuable information about the buying habits of our applicant base. We now have knowledge that will significantly reduce waste in advertising spend going into this year. I would choose SuccessFactors all over again.

“”

Integrity Staffing Solutions

Todd Bavol, CEO

With Amazon.com as a primary client, Integrity Staffing/ISS is tasked with filling over 60,000 warehouse positions across the U.S. during the holiday season, but lacked the multi-faceted yet integrated technology to do this efficiently

Visitors: 285% increase

Applications: 243% increase

Talent community: 373% increase

Search engine traffic: 650% increase

Aggregator traffic: 54% increase

Career site traffic: 212% increase

Results and Adoption

Execution Gap



Best-run Customers in the Cloud

1.2 million connected companies from 190 countries collaborating on >$600 billion worth of commerce annually. That’s 3x-50x the size of any other business network

30 million Cloud users

2 million Cloud deployments



SuccessFactors is the clear leader among analysts

Source: Gartner “Magic Quadrant for Talent Management Suites”, March 2013; Forrester Wave for Talent Management, March 2013

Gartner’s 2013 Magic Quadrant for Talent Management Suites

The Forrester Wave™: Talent Management, Q1 2013

The leader in all six IDC Integrated Talent Management MarketScope Reports for 2012

The leader in the 2012 Nucleus Research HCM Value Matrix



Unmatched SAP expertise and traction

Consulting, Audit, and TaxAccentureAtosCrowe HorwathDeloitteKPMGPwCWipro…

IT Services

CSCDimension DataIBMInfosysItelligenceMindTreeSavvisSofttek…

Professional services firms run SAP

19 out of the

Top 20 Midmarket makes up 70% of customer base

Deep industry-specific capabilities

Embedded, preconfigured best practices

Clear industry roadmap

12,000+ customers worldwide



SAP: Your Technology Partner for Co-innovation

SAP for Professional Services:

SAP customers represent 19 out of Top 20 professional services firms

Creating tightly integrated, end-to-end business solutions

Leveraging key breakthrough Innovations

40 years of value for professional services firms



Initiate

the benchmarking process with a free value assessment at valuemanagement.sap.com

Engage

with SAP in Design Thinking workshops

Contact: your SAP contact

Contact

your account team to schedule a meeting

SAP contact Name

SAP Mail address

Next steps

Experience

it yourself at the next SAP event near you or check out SAP global events, or solutions for professional services

http://valuemanagement.sap.com/sapglobal

http://www.sap.com/events/index.epx

http://www.sap.com/events/index.epx

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Thank you

Contact information:

F name MI. L nameTitleAddressPhone number

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 25

SAP + SuccessFactorsDelivering a combination of unique capabilities

This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement

#1 Core HR #1 Talent Management

10+ years experience in the cloud,delivering enterprise-class SaaS

3,500+ customers/~15 million users

Largest cloud customer with 2 million users

34 languages – customers in 168 countries

41 years of business software and solutions experience and expertise

15,000+ SAP HCM customers

Unmatched multi-country availability: 51 countries provided by SAP + 28 by SAP partners

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 26

Why hybrid?

A journey to the cloud for every customer, at your own pace

Replace applications as needed; no need to switch everything overnight

Proven today – hundreds of customers already run SuccessFactors and the SAP Business Suite

Strong roadmap of enhancements and new functionality, with huge R&D investment to ensure successful delivery

Benefit from increasing integration of SAP and SuccessFactors

Complement and extend your on-premise core HR applications

Use a phased approach to transform your organization

Deploy an integrated suite of talent management applications at your pace

Make the most of your investment

Take advantage of easy implementation

A roadmap that fits your future

SAP HCM hybrid scenarios and on-premise options for core HR and analytics

Needs some speaker notes but this section to be used with HCM install base only



SAP HCM customers: Extend your On-premise Investments to our Cloud

SAP will continue to support on premise solutions and existing customer investments.

Customers can leverage existing on premise investments and extend with cloud talent and workforce analytics solutions.

SAP has delivered pre-defined integrations between the on-premise and cloud solutions to enable faster and more effective implementations.



SAP ERP HCM: Core HR and Payroll

Organization managementBuild, maintain, and align organizational structures

HR administrationImprove insight into the workforce with a foundation of consistent, accurate data

Benefits enrollment and administrationSupport development and management of employee benefit plans

Payroll processingProcess and enable accurate, on-time payrolls across the enterprise

Employee self-serviceImprove employee productivity by automating processes

Manager self-serviceIncrease productivity and reduce operational burdens

HR shared servicesDeliver accurate, consistent, and timely responses to employees and managers

SAP Employee File Management by OpenTextConsolidate, centralize, and search employee documentation

SAP Organizational Visualization by NakisaPlan and model organizations, view organizational charts



SAP ERP HCM: Time and Attendance

Time planning and forecastingBase decision making for capacity planning on demand forecasts

Shift, roster, project optimizationOptimize demand coverage, shift creation, and execution

Time scheduling and analysisManage service execution with time analysis and automatic scheduling

Workforce mobility servicesGain accurate and on-time resource allocation for critical organizational procedures

Time and absence calculationOptimize work schedules, time allocation, and absence management for payroll processes

SAP Workforce Scheduling and Optimization by ClickSoftwareImprove workforce efficiency with forecasting, planning, execution, and analysis



SAP HCM Analytics

Embedded analyticsInteractive visualization within the context of specific transactions focuses attention on areas of greatest need

Executive HR reportingReporting cockpit to enable HR executives and business partners to monitor key HCM metrics and react to trends quickly and effectively

Advanced HR analysisDrill down into details and explore your workforce data to answer questions, uncover problems, and validate hunches more quickly

Operational headcount planningAlign workforce plans with financial budgets. Reduce time spent on budgeting and improve the accuracy of the budget by providing one integrated process for all stakeholders



SAP ERP HCMStrategy and direction

Optimize how people do things

Consumer-grade

Anywhere, anytime

Leverage the performance of SAP HANA

In-memory transactional analytics

Optimized payroll process

Continued investment

Process efficiency in 50+ countries

Out-of-the-box global compliance

Globalization Consumability In-Memory Computing



Cloud transition scenarios for SAP customers Leverage existing investments, connect with delivered integrations

Clo

ud

So

luti

on

s

Talent Hybrid

Core HR

SAP ERP

Talent Solutions,Workforce Planning,Workforce Analytics

Core HR (SuccessFactors Employee Central)

Talent SolutionsWorkforce Planning and

Workforce Analytics

Full Cloud HCM

SAP ERP

Cloud HR

Two-Tier HCM

Core HR

SAP ERP

Headquarters

Subsidiaries

Cloud Core HRTalent Solutions,

Workforce Planning,Workforce Analytics

Cloud Core HR

On

-Pre

mis

e S

olu

tio

ns Delivered and Maintained Integration

Documents

December, 2013 SuccessFactors for Human Capital Management in Professional Services