What is SAP s go-forward solution for Core HR Time and Payroll? Kontich, March 16th 2017

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2 What is SAP s go-forward solution for Core HR Time and Payroll? Kontich, March 16th 2017

3 Flexso Core HR, Time & Payroll Seminar Program for today 13h30 Welcome & registration 14h00 Introduction 14h10 SAP roadmap for core HR, Time & Payroll 15h30 Options to move core HR to the cloud 16h30 Drink & appetizers

4 Flexso Core HR, Time & Payroll Seminar Your hosts for today Lorenz Hendrickx Flexso for People Partner Werner Smeets Flexso for People Partner Frans Smolders Director HCM Solution Management Employee Central at SAP SuccessFactors

5 Flexso Core HR, Time & Payroll Seminar What s in it for you? SAP vision & direction for core HR, time & payroll Which options do you have to move your core HR to the cloud Offer key handles for your crucial SAP roadmap decisions Short-term Mid-term Long-term

6 We are Flexso, experts in HR Lorenz Hendrickx Flexso for People

7 What we achieved Some fact & figures 200 consultants 32 million euro 20% growth per year 5% attrition 120 active customers Top in Belgium 25 countries 4500 Cronos consultants

8 Experts in HR solutions & services Some of our customers

9 Some of our SuccessFactors customers Some of our SuccessFactors customers

10 visit

11 SAP roadmap for core HR, time & payroll Frans Smolders SAP/SuccessFactors

12 Options to move your core HR to the cloud Werner Smeets Flexso for People

13 How to transition your HR to the cloud?

14 Cloud transition for SAP ERP HCM Talent Hybrid Core Hybrid Full Cloud Side-by-Side Talent Analytics PA & OM Talent Solutions Workforce Analytics PA & OM Time & Payroll Talent Solutions Workforce Analytics Talent Analytics Personnel Admin. (PA) for some countries & Org. Mgmt. (OM) Productized Integrations Time & Attendance Payroll PA & OM Time & Attendance Payroll Time & Attendance Payroll PA for rest of the countries SAP S/4HANA OnPremise SAP S/4HANA OnPremise SAP S/4HANA OnPremise SAP S/4HANA OnPremise

15 Deployment options for time & payroll 1. SuccessFactors EC with SAP Time & Payroll On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA 2. SuccessFactors EC with SAP SuccessFactors Managed Payroll SAP payroll offered in private partner cloud on SAP paper 3. SuccessFactors EC with SuccessFactors EC Time & Payroll Fully cloud based payroll solution on top of SuccessFactors Employee Central 4. SuccessFactors EC with 3 rd party solution for Time and/or Payroll 3 rd party solutions on top of SuccessFactors Employee Central

16 SuccessFactors EC with SAP Time & Payroll: what is it? What is it? Keep your SAP Time/Payroll on-premise as well make the most of the innovation that SAP offers in the cloud HR Suite Use case? Leveraging your existing SAP on-premise investments while moving to the cloud at your own pace with minimal risk Key Capabilities Standard packaged integration SFSF Employee Central SAP ERP HCM Make us of the HR Renewal enhancements (like HR Fiori Apps, Payroll Control Center) to improve the usability of SAP ERP HCM Core HR/Time/Payroll remains available if you move to S/4HANA Legal patches and bug fixes by SAP and managed legal change support and maintenance by customer Benefits Guided path to the cloud Leverage your SAP ERP HCM Time/Payroll investment No impact on interfaces/time/payroll Seamlessly integrated user experience via HR Renewal features

17 Connecting SuccessFactors EC to SAP ERP or S/4HANA Productized integration Business Integration Builder built and maintained by SAP Based on SAP Cloud Platform and SAP ERP add-on Included in SF EC licensing Use case for Business Integration Builder? For initial data migration (from SAP ERP HCM to SF EC) For data replication from live SF EC system back to SAP ERP HCM Concept based on configuration (e.g. for additional infotypes no ABAP coding required) Country dependencies supported

18 SAP Time & Payroll integration: how does it work? HR core data & time/payroll specific data Maintain all HR core data in Employee Central (master) Time & payroll specific data directly in the SAP via mash ups or via Fiori apps (optional) Time & payroll processing After data is entered and validated in Employee Central this becomes available in your SAP Time/Payroll system Keep running your time & payroll as you do today No need to logon to multiple applications!

19 SAP Time & Payroll integration: user interface? Mash-ups Home Page Tiles/URL Links Menu OR Fiori Launchpad

20 Deployment options for time & payroll 1. SuccessFactors EC with SAP Time & Payroll On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA 2. SuccessFactors EC with SAP SuccessFactors Managed Payroll SAP payroll offered in private partner cloud on SAP paper 3. SuccessFactors EC with SuccessFactors EC Time & Payroll Fully cloud based payroll solution on top of SuccessFactors Employee Central 4. SuccessFactors EC with 3 rd party solution for Time and/or Payroll 3 rd party solutions on top of SuccessFactors Employee Central

21 SAP SuccessFactors Managed Payroll: what is it? What is it? Move your SAP Time/Payroll systems to the cloud to reap benefits as well make the most of the innovation that SAP offers in the cloud HR Suite Use case? For complex, highly customized, modified SAP on-premise payroll systems that are typically deeply interwined with SAP Time Management Key Capabilities SAP on premise Time/Payroll is migrated to the cloud and managed by SAP payroll partner Base of solution includes OM/PA, time management, compensation & benefits, payroll and interfaces Standard packaged integration SFSF Employee Central SAP ERP HCM Legal patches and bug fixes by SAP and managed legal change support and maintenance by partner Benefits Guided path to the cloud Does not require to re-implement Time/Payroll ( lift & shift ) Optimize the cost of running Payroll Move to an OPEX from CAPEX model for software Allows to divest of HR IT infrastructure & free up internal resources tied up with time/payroll system management

22 SAP SuccessFactors Managed Payroll: model overview One vendor for subscription, managed services and support Move from maintenance and infrastructure to subscription-based model Customer Single support experience Standard Cloud Service Level Agreements Legal/compliance patches and bug fixes Subcontract Hosting and AMS as described in the Managed Payroll Service Catalogue Hosting and AMS as described in the Managed Payroll Service Catalogue Must provide time & payroll migration direct to customer

23 On-Premise vs Managed Payroll On-Premise Payroll Managed Payroll Payroll Operations Ongoing Configuration (e.g. new wage type) Payroll Operations Transactional Services Payroll Operations Ongoing Configuration (e.g. new wage type) Payroll Operations Transactional Services Legal Changes Legal Changes Version Updates or Version Updates Implementation Implementation/Migration Infrastructure, Hosting, Backup, Disaster Recovery Infrastructure, Hosting, Backup, Disaster Recovery Application Management Services Mgmt. of technical environment of Payroll instance Customer EPI-Use Flexso

24 Deployment options for time & payroll 1. SuccessFactors EC with SAP Time & Payroll On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA 2. SuccessFactors EC with SAP SuccessFactors Managed Payroll SAP payroll offered in private partner cloud on SAP paper 3. SuccessFactors EC with SuccessFactors EC Time & Payroll Fully cloud based payroll solution on top of SuccessFactors Employee Central 4. SuccessFactors EC with 3 rd party solution for Time and/or Payroll 3 rd party solutions on top of SuccessFactors Employee Central

25 SAP SuccessFactors EC Payroll: what is it? What is it? Cloud payroll solution hosted by SAP, completely embedded in EC and leveraging latest innovations such as the Payroll Control Center Use case? For customers who choose to manage payroll in-house based on best practice standardization of a traditional SAP Payroll in a cloud environment Key Capabilities Based on the proven SAP Payroll engine (latest version) Standard point-to-point integration EC to EC Payroll (no HCP needed) Available only with EC + all components of SAP HCM replaced by EC (incl. org chart/position mngt, time off/timesheet, etc) or 3 rd party solutions Supports 40 countries (goal to cover all 55 SAP countries + 40 partner countries) Legal changes for Employee Central and Employee Central Payroll via the SFSF Upgrade Center Benefits Full, integrated cloud solution Re-implement payroll based on best practice standardization of a traditional SAP Payroll ( carve out & migrate ) Implementation & migration services available Optimize the cost of running Payroll Move to an OPEX from CAPEX model for software Allows to divest of HR IT infrastructure & free up internal resources tied up with time/payroll system management

26 EC Payroll leverages HCM Payroll, but it is not the same EC is complete Core HR System of Record in the cloud Data Flow All HR events are managed in EC Payroll data is either replicated to payroll or maintained using UI mashups Functions/features of EC Payroll are limited to the payroll use case EC Payroll does not use SAP (on premise) time management/evaluation. Instead, EC Payroll uses EC Time Off / Time Sheet (or 3rd party certified by SAP) Org management, benefits, workflow, ESS/MSS, etc is used from EC User Roles EC Payroll has higher level of standardization than SAP HCM Payroll Allowed: schemas/rules, pay functions/operations, BADI s, custom objects, etc Not allowed: modifications, enhancement spots, deployment of payroll 3rd party products (only after approval & certification SAP seen note )

27 Natively integrated solution New end-to-end payroll experience Native integration into Employee Central See all payroll processes on one calendar Drill down into process view and take action Validation rules point out potential errors Integrating your time solution SAP SuccessFactors Employee Central Time or WorkForce Software is system of record It s ok to leverage SAP interfaces to feed time data and to use SAP time evaluation

28 SFSF EC Payroll vs Managed Payroll SuccessFactors EC Payroll For all SAP SFSF EC customers System of record is SFSF EC and/or 3rd party solutions for processes like time and benefits Hosted in an SAP data center (governed by SAP SFSF EC Payroll service catalog) Requires a simplification and re-implementation of payroll More standardized payroll (reduces payroll complexity - e.g. no modifications, etc) Replaces SAP Time with SFSF EC Time Off/Timesheet or third party integration solution One vendor for subscription, licences, service and support Combines best of SuccessFactors and third party SuccessFactors Managed Payroll Only for SAP ERP payroll customers SAP SFSF EC becomes the system of record for Core HR, while keeping SAP ERP time/benefits/payroll (often outside standard) Hosting and AMS are subcontracted to a partner (governed by Managed Payroll service catalog) No simplification or re-implementation of payroll required Allows for complex payroll Keeps SAP Time functionality One vendor for subscription, licences, service and support Combines best of SAP and SAP SuccessFactors solutions (integrates with SFSF EC)

29 Deployment options for time & payroll 1. SuccessFactors EC with SAP Time & Payroll On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA 2. SuccessFactors EC with SAP SuccessFactors Managed Payroll SAP payroll offered in private partner cloud on SAP paper 3. SuccessFactors EC with SuccessFactors EC Time & Payroll Fully cloud based payroll solution on top of SuccessFactors Employee Central 4. SuccessFactors EC with 3 rd party solution for Time and/or Payroll 3 rd party solutions on top of SuccessFactors Employee Central

30 SuccessFactors EC with 3rd party solutions: what is it? What is it? Make the most of the innovation that SAP offers in the cloud HR Suite while integrating with 3 rd party time & payroll solutions Use case? For customers who choose to outsource time and/or payroll to 3 rd party provides while keeping the master data within own hands Key Capabilities Many productized integrations available with 3 rd party solutions (delivered by SAP or partners) Custom integrations can be setup using SAP Cloud Platform (license included in EC subscription) Application maintenance, hosting & support by 3 rd party provider Benefits Guided path to the cloud Pragmatic solution for international companies with small local branches Outsourced time/payroll solution Master of your own employee data Integrations can be setup (no double data entry)

31 SAP SuccessFactors EC with 3rd party solutions SuccessFactors integration strategy Odata is the API for all business data access/exchange Easily understand and consume OData API Many standard delivered productized integrations Pre-packaged solutions for number of 3 rd party solutions Based on SAP Cloud Platform Additional integration content provided by partners Flexso RDS solution for 3 rd party time & payroll solution Partnerships with local providers

32 What does it mean for your SAP ERP HCM if you migrate to S/4HANA?

33 SuccessFactors is default HCM solution for S/4HANA End-to-end suite to manage the full employee lifecycle SAP S/4HANA is the next-generation business suite Built on most advanced in-memory platform SAP HANA Modern design principles with the SAP Fiori (UX) Simplifications (data model, business processes, etc) Innovations (IoT, Big Data, business networks, mobile) S/4 HANA as on-premise edition or as cloud edition SuccessFactors is the next-generation HCM solution End-to-end suite to manage employee lifecycle Productized integration (built and maintained by SAP) to integrate with S/4HANA and other SAP solutions No plans to simplify SAP ERP HCM (focused on localization support and UX)

34 On-premise Solutions Cloud Solutions S/4 HANA transition options for HCM Move at your ownpace SuccessFactors Employee Central SAP ERP HCM (Available in S/4HANA OnPremise only) Deploy S/4 HANA On-premise, move HCM to cloud Deploy S/4 HANA cloud, move HCM to the cloud Deploy all On-premise: continue to keep SAP ERP HCM separate Deploy all On-premise with SAP ERP HCM in same instance (part of compatibility pack) HCI HCI * ALE SAP ERP HCM SAP ERP HCM

35 SAP ERP HCM for existing customers Included in S/4HANA OnPremise Edition as it is today Key Message Need to migrate SAP ERP HCM processes to SuccessFactors at the same time as migrating your SAP ERP business suite to S/4 HANA? SAP ERP HCM available on S/4HANA OnPremise Edition as a part of compatibility pack to minimize disruption for HR Allows you to deploy SuccessFactors at your own pace All enhancements of HR Renewal available in S/4HANA OnPremise for existing SAP ERP HCM customers to transform user experience S/4HANA OnPremise including SAP ERP HCM Organization Management HR Administration Benefits Enrollment and Administration Payroll Processing Employee Self-Service Manager Self-Service HR Shared Services SAP Employee File Management Application by Open Text SAP Organizational Visualization by Nakisa

36 Compatibility packs in S/4HANA What does it mean? Compatibility packs grant a timely restricted use right (2025) for specific capabilities which the customer has licensed for his SAP Business Suite environment which the customer would like to use in his SAP S/4HANA implementation come at no additional cost for SAP S/4HANA (on-premise) are documented in the Feature Scope Description (FSD - chapter "compatibility - see note ) Not all SAP ERP HCM functionalities are supported e.g. JAVA based Employee & Manager Self Services SAP Learning Solution SAP E-Recruiting

37 Wrap-up and Q&A

38 SAP ERP HCM Time/Payroll SAP SFSF Managed Payroll SAP SFSF EC Time/Payroll SAP EC & 3th party interface Comparison of options Future readiness At least till 2025 At least till 2025 Go-forward solution > 2025 Go-forward solution > 2025 Cost model CAPEX OPEX OPEX OPEX Licenses Employee Central Included in S/4HANA licenses Employee Central SAP SuccessFactors Managed Payroll Employee Central Employee Central Payroll Employee Central 3rd party license Implementation cost Employee Central (HR Renewal) Employee Central Lift and shift project cost Employee Central Employee Central Payroll Employee Central 3rd party setup Business continuity No impact on business logic time and payroll No impact on business logic time and payroll (lift & shift) Complete redesign (requires a simplification and reimplementation) Complete redesign Technical responsibility Client Partner provides application management, hosting and support services SAP provide application management, hosting and support services SAP or Partner provide application management, hosting and support services Availability Yes Yes Not yet for Belgium (countryspecific part built within weeks) Yes

39 Service offering for cloud transition Roadmap and impact analysis SuccessFactors & Workforce Software implementations Integration of SFSF EC with SAP ERP HCM & S/4 HANA Lift & Shift together with partner EPI-Use Integrations with 3rd party solutions S/4 HANA, Fiori and HCP developments/integrations Interested in pilot for SAP SFSF EC Payroll? Let us know!

40 Contact Flexso flexso.com Veldkant 33a B-2550 Kontich Avenue Pasteur 23 B-1300 Wavre 89A Rue Pafebruch L-8308 Capellen

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