Enterprise Insight Series   Unlock the Value:   Gain the competitive edge by fully leveraging   your company’s investment ...
Unlock the Value	                                                                                   Enterprise Insight Ser...
Unlock the Value	                                                                                                         ...
Unlock the Value	                                                                                          Enterprise Insi...
Unlock the Value	                                                                                      Enterprise Insight ...
Unlock the Value	                                                                                                  Enterpr...
Unlock the Value	                                                                                     Enterprise Insight S...
Unlock the Value	                                                                                        Enterprise Insigh...
Unlock the Value	                                                                                          Enterprise Insi...
Unlock the Value	                                                                                    Enterprise Insight Se...
Unlock the Value	                                                                                  Enterprise Insight Seri...
Copyright © 2008 SuccessFactors, Inc.
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Why you need SuccessFactors to salvage your SAP investment


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This little white paper, which I wrote back in 2008, pretty much explains why SAP simply HAD to pay $3.4 billion price tag for buying SuccessFactors at the highest premium for a business cloud application. Aah the fun days of disrupting the giants!

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Why you need SuccessFactors to salvage your SAP investment

  1. 1. Enterprise Insight Series Unlock the Value: Gain the competitive edge by fully leveraging your company’s investment in human capital and legacy HR software.Copyright © 2008 SuccessFactors, Inc.
  2. 2. Unlock the Value Enterprise Insight Series Implement a robust Performance & Talent Management solution that extends your SAP HR technology For years, organizations like yours have relied on Enterprise Resource Planning (ERP) software to help manage employee transactions across the enterprise. It was during this time that SAP earned its well-deserved reputation as one of today’s most robust and stable back-end HR systems. The SAP Human Resource Information System (HRIS) was originally built to help administrators automate transaction-based processes such as payroll and benefits enrollment. While such administrative transactions remain necessary, most are now commodities which are unlikely to generate game-changing business impact. To stay competitive in today’s marketplace, organizations need to focus on more strategic initiatives such as leveraging and optimizing the talent of their employees. Addressing this challenge is a new breed of Strategic Human Capital Management (HCM) applications that support the “best practices” for managing the performance of people in the workplace. This whitepaper will explain the critical need for enhanced performance management for today’s businesses, plus outline how you can seamlessly deploy the best-of-breed performance and talent management solutions.All rights reserved. 2
  3. 3. Unlock the Value Enterprise Insight Series Formulating a more powerful strategy for maximizing human capital People make up the single largest investment for most businesses, comprising nearly 70% of total operating costs. Unfortunately, most companies struggle to optimize their workforces, squandering the true value of this critical investment. To get the most out of their people, leading organizations leverage software and best practices to energize their people, increase workforce productivity, and drive better financial results. These businesses think strategically about their workforces and recognize the importance of investing in solutions that optimize employee performance that’s aligned with both individual and organizational goals. Utilizing powerful Strategic HCM software solutions, these organizations: • Focus employees on critical tasks • Increase overall employee productivity • Identify and reward top performers • Invest in ongoing employee development • Place the right person in the right job to be successful • Ensure readiness to execute on changing business strategies While transactional HR applications have reached a relative parity in the market, the chasm is getting wider between best-of-breed strategic HCM applications and functionality available from ERP vendors. This difference between vendor offerings is not a mere set of feature-function benefits. It translates into change management and quantifiable financial impact for your business. Evidence suggests that best-of-breed Performance & Talent Management processes bring about better financial results, including faster top-line and profitability growth relative to industry peers. “ ompanies that deploy On-demand Performance and C Talent Management solutions appear to achieve on average 2 percent higher annual revenue growth within three years of deployment relative to the industry norm, with some achieving up to 3 or even 4 percent.” Saugatuck Technology Inc.* *Source: “Strategic Talent Management Solutions and Superior Topline Growth” Saugatuck Technology Inc., March 31, 2008 http://www.successfactors.com/research/financial-advantages/All rights reserved. 3
  4. 4. Unlock the Value Enterprise Insight Series SuccessFactors: the leader in Performance Talent Management SuccessFactors is the leading provider of Performance Talent Management solutions with more than 4 million end users in 185 countries. With SuccessFactors, your company can directly align every executive, manager and employee with the mission of your organization. You’ll cover more ground, faster, with the same resources — achieving the kind of success that moves markets. An integrated solution The SuccessFactors Performance and Talent Management Suite is the industry’s first complete suite of HCM applications delivered as a service, enabling organizations to rapidly source, align, develop, motivate, and maintain a high-performance workforce. With seamless integration across each module, SuccessFactors gives you the visibility to optimize the performance of your people to drive business results. gy / Execu Strate tion id ge Ga Br p Goal Performance Management Management egree Revie 0D ws 36 Analytics Recruiting Reporting Compensation Management Management Employee Optim nt Profile Tale i ze W op Succession Learning eT Management Development or or at i v kf ce C ultAll rights reserved. 4
  5. 5. Unlock the Value Enterprise Insight Series Among its many capabilities, the SuccessFactors Performance Talent Management Suite seamlessly extends your existing SAP investment with best-of-breed functionality. The functionality that is either not available or not widely deployed by ERP vendors, includes: • oal Management. Automates the process of creating, cascading, monitoring and assessing the G progress of company-wide goal completion. • earning and Development. Supports management, delivery, and measurement of learning L content and activities. • erformance Management. Streamlines the performance appraisal process and helps transform P the often rushed and tedious once-a-year performance review into an ongoing performance management process that ties employee performance to bottom-line business results. • ompensation Management. Allows organizations to effectively implement pay-for-performance C initiatives by integrating and aligning goal management, performance management, and compensation processes with a single integrated application. • uccession Management. Helps organizations gain greater visibility into their employees’ skills S and background, identify and anticipate leadership gaps, and perform necessary planning and analysis to ensure there is adequate bench strength throughout the organization to ensure workforce continuity. • ecruiting Management. Streamlines the process of identifying, screening, selecting, hiring, R and on-boarding internal and external job applicants. • mployee Profile. Gathers employee performance data and profile information, such as work E experience and educational background, and puts it into a centralized, master data repository that can be accessed at any time, from any place. • usiness Analytics and Reporting. Draws data from each application module enabling B extensive views into the performance of the entire organization, including goal achievement, performance review ratings, and compensation. • ontent Packs. Delivers rich libraries of goals, development advice, competencies, job C descriptions, wage data, interview questions and other general and industry-specific best practice tool-kits.All rights reserved. 5
  6. 6. Unlock the Value Enterprise Insight Series Building a bridge from SAP into the future of enterprise software SuccessFactors Performance Talent Management Suite seamlessly integrates with your current SAP installation, as well as any future product migrations, including Oracle, PeopleSoft, or HR outsourcing. SuccessFactors’ HCM system features: • ntuitive Operation. SuccessFactors sports an easy-to-use graphical user interface (GUI). Because of its unified I and consistent operation across all applications, employees, managers, and executives can quickly master the system and begin putting its incredible power to work for your company. • eamless SAP Integration. SuccessFactors utilizes industry-standard technologies to enable frictionless system S integration and single sign-on capabilities with SAP. Plus because SuccessFactors data is instantly shared across all modules, the system greatly facilitates data flow, navigation and analytical reporting functions while eliminating duplicate data entry. SuccessFactors and SAP — The Best of Both Worlds SuccessFactors offers a tried and tested integration that lets organizations quickly expand their investment in SAP with the best of performance and talent management. Our in-house SAP expertise guides the integration process and gets customers “live” quickly and cost-effectively. SAP HRIS SuccessFactors Full Integration • SAP Expertise • Fast Time to Value • aximum Flexibility. Modular by design, SuccessFactors makes it easy to add new HCM functionality whenever M you want — without negatively impacting your entire ERP system. Plus, SuccessFactors’ HCM functionality can be configured to match your company’s specific business requirements and workflow processes. • aster ROI. As a hosted application, SuccessFactors naturally takes much less time and effort to deploy than F typical ERP installations. In fact, most companies can be up and running on the system in just three to six weeks. And with no hardware or software to maintain, you also enjoy a drastic reduction in your total cost of system ownership. The result? A much quicker return on investment (ROI) for your company.All rights reserved. 6
  7. 7. Unlock the Value Enterprise Insight Series Web-based delivery for the 21st century and beyond Today’s competitive business environment not only demands a new breed of strategic people management applications, it also requires a new way of delivering these solutions—one that allows for a continuous stream of innovation. Hosted, web-based solutions present the ideal delivery method, offering an easy path to implementing powerful Performance Talent Management throughout your organization. Industry analysts agree that on-demand next-generation offerings are now the standard because they help your business align, develop, motivate, and maintain a high-performance workforce more rapidly. Today’s best-of-breed solutions, like SuccessFactors, have been natively designed for the web and can be easily integrated into existing HRIS applications or payroll systems. Because these solutions are delivered as “Software as a Service,” up-front costs are not only straightforward, they are also very predictable. Plus, shorter implementation times mean quicker time-to-value for your company. Software as a Service is now the standard choice for Strategic HCM Applications Old Model New Model ERP SuccessFactors Big upfront costs including Lower cost, paid as value Purchase ongoing maintenance is received Implementation Slow and expensive via Fast time to value Upgrades significant IT resources Risk Customer owns risk SuccessFactors owns risk Customer success as Incentives Maximize upfront deal size evidenced by renewals The new Software as a Service model for delivering Software reduces implementation adoption risks and ensures full alignment between customer and vendors.All rights reserved. 7
  8. 8. Unlock the Value Enterprise Insight Series ERP software: Past its prime As your company has probably already discovered, legacy enterprise applications such as SAP, Oracle (PeopleSoft, E-Business, Siebel, JD Edwards) and Lawson are not only limited in functionality, but must also support an out-dated, architecturally-constrained software model. ERP software, originally built in the 1980s, inherited many built-in deficiencies and hidden costs, including: • sability Shortfalls. Designed for administrators performing specific transactional processes, most ERP U applications feature unintuitive user interfaces, complex functionality, and steep learning curves. • nflexible Workflow. As business needs change, your company must be able to react quickly to create and I rollout new workflow processes. But with their static workflow rules, most ERP systems cost your company precious time and capital to implement all but the most minor of changes. • nwieldy Reporting. Your senior management requires ready access to Performance Talent Management data U if they are to make quick decisions that could affect the long-term health and wellbeing of your business. But with most ERP systems, managers and executives must first submit a request to a system administrator, and then wait for a report to be generated. • ustomization Snafus. Customizing an off-the-shelf ERP system to meet your specific needs can be a C time-consuming and expensive process. Therefore, any customization your company undertakes will likely delay the rollout and return on investment (ROI) of your Performance Talent Management solution. • ncompatible Upgrades. Adding a new application such as Performance Talent Management to your existing I ERP system often means upgrading to an entirely new release of the product. • ardware and IT Expense. ERP solutions, by definition, come with the ongoing expense of maintaining the Web H servers and other required hardware. Compare that to a hosted solution that requires no additional hardware investment and prevents hidden costs.All rights reserved. 8
  9. 9. Unlock the Value Enterprise Insight Series Summary Most ERP solutions began their lives as transactional payroll systems built solely for administrators. While these systems may excel at administrative process automation, a new breed of best-in-class solutions addresses more strategic initiatives such as Performance Talent Management and productivity. As HR organizations move beyond tactical functions and begin aligning their workforce with their corporate goals, they require a more strategic set of HCM applications. SAP customers can optimize their current ERP system by integrating the SuccessFactors Performance Talent Management Application Suite, a best-in-class solution that delivers greater functionality, usability, and flexibility for deployment across the enterprise.All rights reserved. 9
  10. 10. Unlock the Value Enterprise Insight Series Alex Shevelenko Director, Business Transformation Solutions Alex Shevelenko is Director of Business Transformation Solutions at SuccessFactors where he oversees the development and implementation of technology-enabled talent management solutions to maximize business results. Mr. Shevelenko has over a decade of experience in providing strategic advice and delivering transformational technology solutions to Global 2,000 corporations. Prior to joining SuccessFactors, Mr. Shevelenko held positions at technology providers Salesforce.com and Microsoft and a leading strategy consulting firm, Mercer Management Consulting / Oliver Wyman. Mr. Shevelenko worked with a variety of industries including retail, healthcare, private equity, manufacturing, information technology, finance, and public sector organizations. Mr. Shevelenko holds an MBA from Stanford Graduate School of Business and dual-degree from the University of Pennsylvania cum laude: B.S. in Economics from the Wharton School of Business and B.A. in International Relations from the College of Arts Sciences. Mr. Shevelenko is the U.S.A. recipient of 2004 Award from the Association of Management Consulting Firms Foundation for Excellence in Management Consulting.All rights reserved. 10
  11. 11. Unlock the Value Enterprise Insight Series About SuccessFactors SuccessFactors delivers easy-to-use technology that helps businesses of all sizes align, develop and motivate employees. With a suite that includes solutions for goal alignment, performance management, compensation, ­ uccession planning, learning, recruiting, and workforce analytics, SuccessFactors s offers the most innovative HR technology available today. Visit www.successfactors.com to learn more. The Enterprise Insight Series This ongoing set of guides is designed to provide HR professionals in large companies with insights and solutions that can be applied in everyday efforts. Contributing authors include HR experts, as well as leading companies that have improved business results by using the latest HR technologies. Visit www.successfactors.com to download more of the Enterprise Insight Series:All rights reserved. 11
  12. 12. Copyright © 2008 SuccessFactors, Inc.