SuccessFactors for Human Capital Management in Banking & Insurance. Dr. Christian Acosta-Flamma Vice President, SAP AG

SuccessFactors for Human Capital Management in Banking & Insurance Dr. Christian Acosta-Flamma Vice President, SAP AG

Dynamics in the Banking Industry Affecting HR Undergoing massive transformations from crisis combined with advent of advanced technologies and increased regulatory scrutiny Business Model Restructuring Establish compensation plans with reduced scrutiny Decrease in employee retention Hindered succession planning Investment in high value locations Ongoing M&A activity Core banking modernization Cristina Ramirez Operational Cost & Complexity Erosion of margins High levels of IT spend driven by complex siloed system landscapes Pressure on internal costs to serve and operate Increased Digital Presence Self-service banking Channel integration Implementing multichannel requires wide array of skill sets Regulatory Burdens Regulatory rules & auditing requirements Investing in compliance activities as a result of new regulations Tightened controls on employee behaviors 2013 SAP AG. All rights reserved. 2

Implications of Banking Dynamics on HR Retention challenges after post-crisis layoffs Establish focus and accountability, resulting in clear correlation between performance and pay Branch employees concerned with job security while being asked to promote other channels Loss of key talent Continue 100% workforce compliance to continually changing regulations and consumer protection acts Recruitment & training of multi-channel workforce requires multi-channel strategies 2013 SAP AG. All rights reserved. 3

Best Practices for HR in Banking Establish and communicate clear business goals Enable customer multichannel experience and align it through employee engagement Create clear linkage between compensation, succession, development based on performance Establish and promote social business strategy to foster knowledge sharing and innovative collaboration Provide custom functions to support competitive differentiation Accurately match development and compliance initiatives 2013 SAP AG. All rights reserved. 4

Banking and the Cloud Imperative Of banks surveyed believe that cloud computing will 93% transform their organization and/or industry Of banks surveyed have completely or 14% extensively adopted cloud solutions Of banks expect cloud to amplify and accelerate other technology megatrends (e.g., big data, 76% mobility, analytics) Source: SAP Performance Benchmarking, 2012 Cloud Study with Knowledge@Wharton 2013 SAP AG. All rights reserved. 5

SuccessFactors for State of the Art Human Capital Management Assemble complete, end-to-end, global solutions across all HR functions 80% Of money center banks trust the growth of their organization to SuccessFactors Create beautiful business applications designed for how people work Enable more effective adoption by delivering content and building community and ecosystem 70% Of operating expenditure is spent by the average bank on employees Deliver a flexible and extensible architecture to start anywhere, go everywhere 1% Of revenue returned with adoption of SuccessFactors Source: SuccessFactors Benchmarking 2013 SAP AG. All rights reserved. 7

SuccessFactors Integrated HCM Solution across the Entire Employee Lifecycle Learning Recruiting Performance Core HR Social Collaboration HR Analytics Content Integration Extensibility Best of Breed suite of solutions 2013 SAP AG. All rights reserved. 8

SuccessFactors Core HR Next generation HR cloud system of record HR transactions and on-boarding Learning Recruiting Performance Core HR Social Collaboration HR Analytics Position management Time-off management Reporting, compliance, and auditing Localized for over 50 countries and over 35 languages Content Integration Extensibility Global payroll for over 20 countries We were able to merge 20 different HR processes into one out of the box solutions that was intuitive to our millennials. Paul Eisenberg, Technology Advisor 2013 SAP AG. All rights reserved. 9

SuccessFactors Talent Solutions Attract, develop, and retain a 21st century workforce Thoughtful on-boarding Learning Recruiting Core HR Social Collaboration HR Analytics Proactive learning Performance and goals Succession and development Performance Compensation and rewards Content Integration Extensibility Recruiting Thanks to SuccessFactors, all employees are evaluated using shared and transparent criteria, creating a much fairer and consistent performance management system worldwide. Simone Martina, Head of Global Compensation 2013 SAP AG. All rights reserved. 10

SuccessFactors Workforce Analytics Solutions Make confident business decisions with powerful workforce insights Learning Recruiting Performance Core HR Social Collaboration HR Analytics Workforce Analytics: Drive factbased business decisions with over 2000 pre-defined workforce metrics and KPI s Workforce Planning: Plan your future workforce based on business need and trends: from global talent shortages to an aging workforce Content Integration Extensibility HR is one of our biggest production systems and we need to be able to make fast decisions; SuccessFactors helps us to do just that. We can now respond to queries within an hour, some answers take only two minutes to retrieve. - Klaus Jarstad, Senior HR Consultant, DNV 2013 SAP AG. All rights reserved. 11

SAP Jam: Social Business Collaboration Bring together people to solve business problems and drive results Learning Recruiting Performance Core HR Social Collaboration HR Analytics 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 Content Integration Extensibility with SuccessFactors, we ve transformed performance management into a series of meaningful conversations about working together toward corporate goals - Matthew Kleinman, VP, Organizational Effectiveness 2013 SAP AG. All rights reserved. 12

Deliver Proven Results: Transform Human Capital Management with SuccessFactors Generate Cost Savings Increase Productivity Deliver Strategic Alignment Produce Business Results (15.2)% decrease in turnover 3% average increase in productivity 5.5% Increased focus on priorities 1% revenue added back to profit 13.7% increase in internal job fill rate 4.9% increase in high performers 17% increase in right training (13.8)% decrease in low performers 14% increase in project completion 1-8+ weeks faster communication 2013 SAP AG. All rights reserved. 14

SuccessFactors: Instant Value Delivered for Blackrock Execution Gap Need to understand BlackRock s talent, with consistent assessment, including several layers of leadership across functions and regions Integration of BlackRock s and Barclays Global Investors existing people processes and systems Results & Adoption Collective decisions based on a single set of data facilitate a strong calibration and decision making process allowing fact based promotions of 1,600 leaders. 98% of Managing Directors and 99% of Directors used Calibrated Talent Review SuccessFactors is a unique partner because they listen to us, and like us they are focused on innovation, innovation, innovation. Joe Crowley, HRIS Director 2013 SAP AG. All rights reserved. 15

SuccessFactors: Butterfield Bank Prepares for the 21st Century Workforce Execution Gap Limited understanding of impact of individual goals. Lack of management visibility across different silos and jurisdictions. Replace an outdated decentralized HR solution with a global centralized solution to align workforce, and standardize means of assessing performance and goals. Results & Adoption Established clear line of sight for executives through management dashboards. Increased employee development through internal promotions - 145 internal promotions on a base of 340 in past 5 years Transformed performance appraisals, empowering employees and enabling managers to see contributions made by individual staff Everybody understands what the impact of their job has on organisational goals. Everybody Elizabeth Depledge, Senior Manager, Head of Human Resources 2013 SAP AG. All rights reserved. 16

Best Run Customers in the Cloud 30 million cloud users 1.2 million connected companies from 190 countries collaborating on >$600B worth of commerce annually. That s 3X-50X the size of any other business network 2 Million Cloud user comprise largest deployments 2013 SAP AG. All rights reserved. 17

SuccessFactors is the Clear Leader Among Analysts 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 Source: Gartner Magic Quadrant for Talent Management Suites, March 2013; Forrester Wave for Talent Management, March 2013 2013 SAP AG. All rights reserved. 18

Leveraging the Best of the Best Deliver a future-proof HCM roadmap #1 Enterprise Applications #1 Cloud HR Software 40 years of business software leadership supporting 14,000 global HCM customers 10+ years of cloud HCM. 25M users to provide ongoing feedback and validation 2013 SAP AG or an SAP affiliate company. All rights reserved. 19

SAP HCM Customers: Start Anywhere, Go Everywhere Extend your On-Premise Investments to our Cloud Talent Management/ Workforce Analytics Start with Recruiting, Learning, Performance and/or HR Analytics or the entire suite Pre-defined integrations delivered and supported by SAP Core HR Start with Employee Central for subsidiaries and geographies or move completely Pre-defined Integrations with SAP ERP, SAP HCM Payroll, leading providers like Kronos and AonHewitt available SAP continues to support your On-Premise Investments 2013 SAP AG or an SAP affiliate company. All rights reserved. 20

SAP Banking Incumbency and Expertise 97% of the major Banks in the Forbes 2000 are SAP customers. World s Most Admired Banks are members of the SAP Executive Advisory Council for Banking 97% Banking 12,000+ bank customers globally Multi-industry support on a single platform Deep industry-specific capabilities Embedded preconfigured best practices Clear industry road map Retail Aareal Bank CBA Citizens Bank Nationwide Building Society RBC Standard Bank UniCred Commercial Credit Suisse Deutsche Bank ING NAB Nedbank Westpac Source: SAP analysis of Forbes 2000 rankings (May 2013) and SAP customer database as of May 2013 2013 SAP AG. All rights reserved. 21

Your Technology Partner for Co-innovation SAP for Banking: Industry team with over 2,000 resources dedicated to quickly deliver your solution Leveraging breakthrough innovations 40 years of delivering value to banks Clear road map specific to banking s unique issues 2013 SAP AG. All rights reserved. 22

Dynamics SuccessFactors Why SuccessFactors? Next Steps Next Steps Experience Contact Engage Initiate it yourself at the next SAP event close by or check out SAP global event, or solutions for banking your account team to schedule a meeting SAP contact Name SAP Mail address with SAP in Design thinking workshops Contact: your SAP contact the benchmarking process with a free Value Assessment at valuemanagement.sap.com/ 2013 SAP AG. All rights reserved. 23

SAP HCM Hybrid Scenarios And On-Premise Options for Core HR and Analytics

On-premise Solutions Cloud Solutions Cloud transition scenarios for SAP customers Leverage existing investments, connect with delivered integrations Talent Hybrid Two-tier HCM Full Cloud HCM Talent Solutions, Workforce Planning, Workforce Analytics Talent Solutions, Workforce Planning, Workforce Analytics Cloud Core HR Cloud Core HR Subsidiaries Cloud HR Core HR (Employee Central) Talent Solutions Workforce Planning and Workforce Analytics Delivered and Maintained Integration Core HR SAP ERP Headquarters Core HR SAP ERP SAP ERP 2013 SAP AG or an SAP affiliate company. All rights reserved. 26

Continued Support for SAP On-Premise Core HR SAP HCM: Proven across 14,000 productive global customers, supporting Organization Management HR Administration Benefits Enrollment and Administration Global Payroll for 51 Countries Time and Attendance Management Self-service Shared Services From the moment we went live with SAP ERP Human Capital Management, we had quick access to HR data from across our more than 40 operating companies with employees that converse and work in eight different languages. 2013 SAP AG or an SAP affiliate company. All rights reserved. 27

Optional On-premise Workforce Analytics Leverage existing on-premise SAP NetWeaver BW/SAP BusinessObjects investments Analytics Capabilities Executive HR Reporting (~100 pre-defined metrics, delivered via RDS) Advanced HR Analysis (~20 Analysis workspaces, delivered via RDS) Planning Capabilities Operational Headcount Planning (delivered via RDS) 2013 SAP AG or an SAP affiliate company. All rights reserved. 28