Telefónica: Going Digital with SAP SuccessFactors Solutions to Keep Employees Connected

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1 Telefónica: Going Digital with SAP SuccessFactors Solutions to Keep Employees Connected 1 / 6 One of the world s largest telecommunications companies, connecting people is at the heart of everything Telefónica S.A. does. As part of its drive to equip employees with the digital tools they need, Telefónica deployed SAP SuccessFactors solutions marking a cultural shift to digital tools for greater accessibility, flexibility, and transparency.

2 Connecting and Empowering Employees with SAP SuccessFactors Solutions Telefónica S.A. Madrid, Spain Industry Telecommunications Before: Challenges and Opportunities Replace more than 175 legacy HR platforms across 170 employing entities and 21 countries with one system and one source of data Enable data-driven decisions and promote continuous improvement Provide mobile access to shared- and self-service tools to lower costs and make work easier Products and Services Mobile, landline, Internet, video, TV, and telecommunications services Employees 127,000 Revenue 52 billion SAP Solutions SAP SuccessFactors HCM Suite, including the SAP SuccessFactors Employee Central solution; SAP SuccessFactors Mobile app; SAP Jam collaboration platform; and SAP Preferred Success service Why SAP Cloud-based solutions used by millions that enable near-limitless scalability to support growth Flexible, intuitive, and user-friendly digital tools that give employees control over how they work and encourage collaboration and engagement Standardized processes and centralized data that optimize HR workflows and capabilities After: Value-Driven Results Contributed to 41% HR cost reductions over four years Provided one source of truth for employee data Strategically shifted to shared services and centers of HR excellence Unified HR processes on one digital platform to improve accessibility and provide a common employee experience SAP SuccessFactors solutions underpin our digital transformation of HR. The technology has brought all core employee data into one place and acted as a platform to enable further benefits. Catherine Leaver, Global HR Transformation Director, Telefónica S.A. 2 / 6

3 Bringing people together Over the years, Telefónica S.A. has evolved and adapted, embracing new technologies to make communication faster, easier, and better. With the development of digital technologies continuing to accelerate, Telefónica is constantly looking for new ways to connect its customers, drive productivity, and strengthen innovation. To achieve these goals, it strives to have the best team, a customer-centric culture, and an agile organization. Telefónica owns global brands, such as Movistar, Vivo and O2 serving more than 343 million customers in 21 countries to bring voice, video, TV, text, and social media to the palms of our hands. Aiming to transform HR services and systems within its business, Telefónica set out on a journey to consolidate HR systems, transform its HR processes, and implement shared services. Catherine Leaver, global HR transformation director at Telefónica, remarks: We used many different systems to manage our core HR processes and, as a result, we lacked a common source of people data and connected HR processes. This created complexity for our people and did not offer the visibility, flexibility, and efficiency we desired. To put this into perspective, we ran 175 HR systems with 150 different user interfaces to serve 127,000 employees. 3 / 6

4 Transforming HR for the digital age Eager to ensure HR excellence that would help drive business performance and transformation, Telefónica wanted to standardize processes across the business and introduce shared services. One key goal was to make high-quality self-service tools easily available to all employees as part of the business end-to-end digitalization strategy. Leaver comments, As part of the wider digitalization and transformation of HR, we chose SAP SuccessFactors solutions as the core technology, which also underpins our shared-services initiative. With SAP SuccessFactors solutions, Telefónica brought all employee data into one system, establishing a single source of truth and enabling the company to decommission multiple legacy systems. The cloud methodology enabled quick deployment of the first solutions. For example, Telefónica deployed the SAP SuccessFactors Performance & Goals solution globally in just 100 days and the SAP SuccessFactors Recruiting and SAP SuccessFactors Learning solutions in 6 months. The company is now in the final phase of implementing the SAP SuccessFactors Employee Central solution on a country-by-country basis completing each country deployment in less than 12 months. 4 / 6

5 Driving cultural change Today, Telefónica has successfully rolled out SAP SuccessFactors solutions to support HR processes across 21 countries and has consolidated HR shared services into three major hubs in Argentina, Peru, and Spain for all Spanish-speaking businesses. Leaver notes: We have significantly improved the traceability and transparency of people data across our organization. Maintaining good data quality is a topic that impacts all parts of the HR team and, in some areas, has led to a real shift in the way people work which is essential for working with digital tools. 100% Driving digitalization and self-service enablement 1 solution Moving from 175 disparate HR systems The cultural shift to fully online self-service tools is driving accessibility, flexibility, and self-management for all employees. But culture change is not only about providing a better global tool. Telefónica is working hard to drive user adoption especially of the functionality that requires proactive employee engagement, rather than purely transactional usage. To get people engaged requires time and commitment from Telefónica and also from SAP, notes Leaver. We see this shaping the road map to incorporating new and exciting functionality like continuous learning, for example, which the business needs and employees want. 41% Underpinning and enabling HR cost reduction over 4 years 5 / 6

6 SAP Technical Business Transformation Study Industry Company PUBLIC Taking HR to the next level Telefónica is currently working to roll out SAP SuccessFactors solutions across the enterprise, including layering analytics onto its HR platform. SAP SuccessFactors solutions have created a strong foundation for our HR transformation and our journey toward digitalization. We are maximizing the use of data while enabling selfservice and a better employee experience, says Leaver. Without SAP SuccessFactors solutions, we would not have been able to implement shared services in certain parts of the group and would have struggled to standardize process and deliver on our targeted cost-reduction goals. This is far from the end of the journey. SAP SuccessFactors solutions will continually evolve, and Telefónica will continue to drive an optimal employee experience grounded in simplification and digitalization. 6 / 6

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