SAP SuccessFactors Human Capital Analytics

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1 SAP Statement of Direction SAP SuccessFactors Human Capital Analytics

2 Table of Contents 3 Breaking Down The Barriers 5 Our Vision for Human Capital Analytics 6 How We Will Deliver on Our Vision 9 We Set the Bar 2 / 12

3 SAP SuccessFactors Human Capital Analytics Data is the new oil. That s what legendary venture capitalist Ann Winblad told CNBC in a segment on Squawk Box. In a Forbes piece, 1 Perry Rotella writes, Under the leadership of the CIO, companies must begin treating data as an enterprise-wide corporate asset and enable sharing of data about customers and products which often provides opportunities to upsell, cross-sell, and create customer service and retention plans that are aligned with a customer s true value to the organization. Under the leadership of the CHRO, companies must also treat data about their employees as an enterprise-wide corporate asset to effectively and efficiently drive the future strategy and growth of the business through its talent. BREAKING DOWN THE BARRIERS Today, technology has ceased being a barrier and has become an enabler to doing meaningful and value-based analytics. It s now surprisingly simple to adopt and apply analytics. But for most organizations, human capital analytics remains the most powerful, yet untapped, lever to make dramatic impacts on the business. So what s holding organizations back from adopting human capital analytics effectively? If the results are so clear, why aren t more organizations jumping on the analytics band-wagon? After all, only 14 percent of organizations use solutions for Organizations that embrace human capital analytics outperform those that don t 30% Greater stock returns 2 15x Better improvement in customer satisfaction 4 22% Higher return on equity 3 2.5x Greater talent mobility 2 Twice as likely to improve leadership pipelines 2 2x more likely to improve recruiting High-impact Talent Analytics: Building a World-class HR Measurement and Analytics Function, Bersin by Deloitte. 3. HR Systems Survey, Sierra-Cedar. 4. Human Capital Management Trends, Aberdeen Group. 3 / 12

4 some combination of workforce analytics, strategic workforce planning, and predicative analytics 3. Most organizations stumble over the following areas: Capability/Capacity: They don t have the right analytics expertise embedded in their organization, and existing resources cannot scale their efforts for the entire organization. Clarity/Quality: There s too little or too much data, which makes it difficult to analyze, and HR is unclear on what business issues require attention. Complexity: HR and talent data itself is complex and often comes from multiple sources and systems, making it difficult to aggregate. Technology/Priority: They don t have the tools to fully analyze the problem, and their requests to those who do have the tools lack priority over other internal demands. Traditionally, an organization s large investments in enterprise business intelligence tools and data warehouses have put restrictions on HR organizations to leverage the same. Unfortunately, since these tools aren t built with HR in mind, it s difficult and takes time to capture and assemble data and develop applications to draw insights. With a typical backlog for BI resources, HR requirements often fall in the queue behind the needs of sales, finance, and operations, and in the real world, decisions don t wait for data. Workforce data needs to be available now, or decision makers will rely on their instincts and anecdotal advice to move forward. A unique challenge for people and HR data is that it gets more scrutiny than other information because it s varied and dynamic, and there are data privacy rules and regulations. People will constantly question the source of the data, the definitions, and the variables you use to draw insights from data that they wouldn t challenge in a financial setting. Company leadership, management, and HR all have great hope that predictive analytics will be the magic wand that solves all of its issues, but there is still significant skepticism. What do we mean by the term human capital analytics? Operational and compliance reporting Analytics and intelligence embedded directly within HR and talent solutions for hiring, learning, transfers, raises and promotions, performance management, compensation planning, succession planning, etc. Workforce planning and detailed forecasting Human capital analytics does not replace the need for business intelligence (BI) solutions that work across the enterprise, but do take away the need to put HR-specific requests in the often-backlogged BI queue residing within IT. 4 / 12

5 Organizations that want to roll out effective human capital analytics have to be able to present the right information, at the right time, for the right problem, and be ready to justify the sources for their information. Analytics is a solution that requires vision, strategy, technology, and change management. OUR VISION FOR HUMAN CAPITAL ANALYTICS The ability to make sense of business-critical data quickly is essential. Our vision is to transform the culture of business, so human capital analytics is an integral part of everyday work life, and easily and seamlessly leveraged in key decisions, when and where it s needed. Our vision builds on the premise that analytics should be accessible and simple to understand for HR professionals as well as managers and leaders who are generally time-poor, may lack the analytical skills to read and interpret charts, and need advice and guidance not more data so they can know: What happened in the past? Reporting accurately and comprehensively on past performance Why did it happen? Analyzing the data we have to understand why events took place the way they did What will or what is likely to happen? Understanding what s likely to happen if we keep doing what we re doing or we make a change What is the best that could happen among many likely scenarios and the range of available approaches to take? Knowing the best approach the organization can take based on what we know and what we can model We see the future of human capital analytics as a one-stop shop for all talent insight. Why? Because it s one that must deliver personalized, relevant intelligence about your most important asset your people in a timely and proactive manner by naturally incorporating big data and machine learning behind the scenes to get HR professionals need to make sense out of more data quicker than ever. Vendors that have access to large amount of HCM and business data, like SAP SuccessFactors, are in the best position to bring experience, insights, benchmarking and guidance, helping HR professionals to get on top of their data and increase their value to their business. Holger Mueller, Principal Analyst & VP, Constellation Research, Inc., April / 12

6 smarter. It s a simple and guided approach to analytics to help you get beyond a fixed set of charts and tables to identify your organization s actual workforce challenges and opportunities, and arrive at insights that drive action and impact results. We will drive this transformation by investing in research and development according to these key themes: Relevant: Practical, clear insights and recommendations about what should be done, not just data that has to be interpreted Predictive: Predictive insights, so you and your information are ahead of the curve Real-time: Faster access to data and insights for greater agility and responsiveness HOW WE WILL DELIVER ON OUR VISION SAP SuccessFactors will continue to lead the human capital analytics market and remains SAP s go-forward solution for the HR line of business. SAP continues to invest in the development of SAP SuccessFactors Human Capital Analytics in the cloud, both embedded in the HCM suite and as a purpose-built analytics application that specifically addresses HR and business needs for workforce intelligence. SAP SuccessFactors Workforce Analytics and Workforce Planning will continue to allow stand-alone deployments or as part of the SAP SuccessFactors HCM Suite, automating the collection of data from any source and ensuring data quality for a rich, comprehensive view of workforce performance. Investments in SAP SuccessFactors Human Capital Analytics include, but are not limited to, establishing SAP HANA as its platform based on the leading in-memory technology, leveraging SAP HANA Cloud Integration (HCI) and SAP Predictive Analytics on the back end, and more expansiverole-based capabilities to support managers, HR professionals, and analysts and even more extensive predefined content for all users. SAP Cloud for Analytics is SAP s solution for all analytics in the cloud, and SAP SuccessFactors will be a key source for workforce data. SAP SuccessFactors will integrate with SAP Cloud for Analytics to make it simple to access workforce data and metrics and analyze them against data sourced from different cloud and on-premise applications. SAP customers with investments in onpremise solutions for enterprise BI (i.e., SAP BusinessObjects BI) and agile visualization (i.e., SAP Lumira) can also integrate with SAP SuccessFactors using standard APIs to address cross-enterprise reporting, analytics, and planning use cases that involve HCM data. Our road map priorities for SAP SuccessFactors Human Capital Analytics include: Predictive Made Practical and Simple Our capabilities benefit from SAP s investments in predictive analytics, which combines classic data-mining, data-modeling, and scoring procedures that statisticians and analytics professionals have been practicing for decades. Combined with automation of the many aspects of prediction, line-of-business users can make forward-looking decisions directly and in practice with SAP SuccessFactors. 6 / 12

7 Getting predictive algorithms is never an end unto itself. In fact, the only thing that counts is the decision that a professional would make based on the information provided. Our approach is to reduce barriers to adopting predictive analytics by delivering practical solutions that aim to make things simpler for the user by seamlessly integrating highly guided predictive functionality into business processes where it makes sense. It s about action, not just algorithms. Machine Learning Continuing with investments in predictive modeling, machine learning and optimization capabilities that will become deeply embedded in SAP SuccessFactors HCM suite as well as in workforce analytics and planning. Integrated Business Planning Leveraging SAP s experience with solutions in business and operational planning to expand workforce planning capabilities in the cloud and enable better cohesion for the integrated business planning process among strategy, finance, operations, and HR. People Analytics, When and Where You Need It Expanding investments in enriching user experience with easy-to-use reporting and analytics across the SAP SuccessFactors suite, with special focus on analysts and managers. Our goal is to increase user agility and eliminate any effort to get access to intelligence, whether it s a manager making a recruiting decision or investing in training for the team in order to start a new project, or an analyst investigating transfer and promotion practices in the organization or evaluating leadership bench strength. We have the technology, expertise, and ecosystem to accelerate your journey in adoption workforce analytics, and to help you improve your business results. Together, SAP and SuccessFactors have invested more than 30 years of leadership in human capital analytics. We were first to market with strategic workforce planning, the first company to offer analytics and workforce planning as part of a comprehensive HCM suite, and we re transforming the landscape with SAP HANA as the platform. Imagine the possibilities if: You knew your initiative to improve retention would have a 1 in 3 chance of success, compared with success rate of only 10 % in past years initiatives, to ensure a high ROI and reduced loss of talent You could confidently select the right person for the right seat in critical roles by choosing from employees with a higher likelihood of success and lower flight risk You were informed about potential performance and retention challenges ahead of annual and ongoing performance and talent reviews 7 / 12

8 What this means for our customers is: Increased implementation speed, going from months or weeks to days Simplification and automation of the processes to integrate multiple sources of data and enhance data quality, ensuring consistent measurement and confidence in data Massive scalability in back-end architecture to manage data and end-user access Institution of manager self-service of reports and metrics, reducing demand on the center of excellence for reporting and analytics Eliminating data latency, going from monthly and weekly refreshes and pre-aggregating data in a traditional warehouse to seeing instant updates based on transactional changes and realizing aggregations in real time Making it easy to access predictive analytics libraries embedded in SAP HANA Enabling modern API-based integration with source systems and visualization tools Rapid innovation as is expected of cloud solutions, with new features and enhancements in every release We continue to simplify the reporting and analytics tools and technologies in SAP SuccessFactors and grow our extensive libraries of ready-to-use content, predefined benchmarks, and analyses to help HR professionals, business leaders, and managers easily engage their data to address the ever- Concept preview: Quickly focus on hot spots and understand what is happening in your organization, where and why SAP SuccessFactors Human Capital Analytics is addressing the top reasons for dissatisfaction, including data not readily available and reducing the skills needed through simplifying analytics and automating the processes to providing human capital insights. Mark Smith, CEO & Chief Research Officer, Ventana Research 8 / 12

9 widening range of questions and scenarios about their people. We provide real-time data and insights that you can have confidence in bringing credibility to HR and positively influencing the business. WE SET THE BAR SAP SuccessFactors has proven success both in terms of number of customers and length of service than any other organization delivering human capital analytics software as a service to its customers today. Our solution is more than 30 years in the making (via the acquisition of Infohrm, world leader in workforce analytics and planning), and validated by organizations across all regions. Our reporting and analytics are fully capable and bring value to our customer globally. Our strategic workforce planning addresses the long-term scenario planning needs of customers to ensure that they have access to the appropriate workforce supply to shape future business success. Our extensive experience in quickly integrating with various HR and talent management solutions (from SAP and third parties), as well as finance, sales, and operations, ensures that our customers can use any data from any source. Our comprehensive library of metrics definitions and benchmarks, and support for multiple languages, helps to institute standardization and mutual understanding within an organization, and across organizations and industries, and significantly accelerate a definition process that can otherwise consume large number of resources. Our best practices and support help customers interpret and make sense of their data correctly, while our Strategy Bank offers real intervention strategies to address critical workforce challenges. SAP SuccessFactors delivers well-defined solutions to simplify how HR professionals and business leaders can make data-based decisions with confidence: We wrote the book on HR metrics! While most organizations now measure something within HR, what has been missing is a definitive standard around defining, selecting, analyzing, and action planning on HR metrics. The Metrics Standard reference guide provides those. The SAP SuccessFactors Workforce Analytics application is founded on the measurement framework described in this reference guide. In the solution, users will find explanations for the formulas, reasoning, and related data for each metric. 9 / 12

10 Streamlined yet robust transactional reporting in real time Embedded analytics and intelligence in every part of the HCM suite, so managers and HR professionals have information at hand and can get answers to new questions quickly Workforce Analytics with curated content beyond just tools, so HR can accelerate the process of delivering metrics, analyses, and benchmarks, and provide guidance on how to interpret and know what to do with the insigh With Headlines, we identify hotspots requiring managerial attention, interpret and prioritize findings, and then push relevant information in succinct, accessible language, to tell managers precisely what they need to know Headlines: A Fresh Approach to Telling Stories with Data SAP has killed two big birds with one impressive stone: They are putting a powerful analytics and reporting tool in the hands of human resources leadership - and they ve made it very easy to use. This is especially evident in the 100-day time-tovalue their customers are experiencing on average. While the Headline feature is a great example of the product s visualization capabilities, the greatest value as I see it comes from their extensive library of metrics packs. Kyle Lagunas, Talent Acquisition Analyst, Solution Provider Briefing, Brandon Hall Group, January / 12

11 Workforce Planning that s predictive and helps you manage risk to business Simple, easy-to-use, and modern visualization tools that bring insights to life and make it easy to turn information into intelligence With role-based security and permissions, information is shared securely and confidently Cloud-based, mobile-friendly for rapid, scalable deployment and access Our relentless attention to the security and compliance of our solution puts us in a unique position in the market one that s tough to duplicate. SAP and SuccessFactors together have dedicated, seasoned teams of industry experts and strict processes that safeguard critical applications and data and certify that our solutions meet: Privacy considerations Security requirements Global and regional contexts (data center footprint and language requirements) Compliance requirements HR professionals can benefit from the wealth of knowledge and experience embedded in the applications for personal growth and development, which in turn means they can better serve their customer the business. This all positions HR within the organization as key a partner, and brings agility to HR and the business. Real business impact Health insurer improves first-year voluntary turnover by 13.5 percent, representing a conservative direct cost avoidance of nearly $6 million Retailer identifies $50 million profit opportunity by linking engagement to store financials Hospital saves $4 million in temporary hires by increasing supply of labor Media company improves customer service scores by 10 percent in a single year by identifying and rectifying the cause of employee turnover 11 / 12 vq116

12 ABOUT SAP SUCCESSFACTORS SAP SuccessFactors provides the leading cloudbased HCM suite, which helps HR drive business execution with solutions that are complete, beautiful, and flexible enough to start anywhere optimizing your workforce today and preparing them for tomorrow. SAP SuccessFactors solutions are supported by a global partner ecosystem and the experience and commitment of SAP. With approximately 26 million subscription seats globally, we strive to delight our customers by delivering innovative solutions, content and analytics, process expertise, and best practices insights from serving our broad and diverse customer base. Today, with more than 3,900 customers, we serve organizations of all sizes across more than 60 industries in more than 177 countries using our application suite in 35 languages. ABOUT SAP As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 293,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit 12 / 12

13 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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