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Technology in the human resources space has been advancing rapidly since the early 2000s when cloud enterprise solutions were first introduced. It all started with talent management tools, but now, thanks to the cloud, HR organizations can handle all their needs efficiently.
Cloud solutions have not only lifted the burden of infrastructure but also brought about improved processes and ongoing innovation. The cloud has become the gateway to innovation and efficiency in HR and payroll.
That’s why companies worldwide that are using SAP ERP HCM are embracing cloud solutions like SAP SuccessFactors to revolutionize their HR and payroll processes. It’s an exciting time for HR professionals!Embracing SAP SuccessFactors for Modern HR Solutions
If you’re currently using SAP on-premise for your HR needs, it’s important to be aware that SAP will be ending mainstream maintenance for SAP ERP HCM in 2027.
Changing your core HR system, which lies at the heart of every business transaction, is a significant opportunity that arises perhaps once in a decade, or even once in a lifetime.
Many SAP customers have already successfully upgraded from on-premise HCM to SAP SuccessFactors Employee Central, which means there are numerous best practices, tools and services available from SAP and its partners like VC ERP Consulting to ensure a smooth implementation and achieve the best possible results.
In this comprehensive blog, we aim to guide you through the entire process of upgrading to the cloud and SAP SuccessFactors from an on-premise HCM environment.
Experts at VC ERP understand that innovation and keeping up with today’s HR needs are crucial for businesses and we’re here to support you every step of the way.10 Factors to Evaluate for a Successful Move to SAP SuccessFactors
Embarking on a cloud upgrade journey starts with building a strong business case. During this phase, organizations thoroughly evaluate their HR and payroll processes with the goal of driving improvements and fostering continuous innovation.
Businesses carefully identify the necessary actions to take and tools to utilize, starting from the initial exploration all the way to managing a live cloud solution. It is crucial to gain support from both leadership and end-users to ensure a smooth transition to the cloud.
In order to gain executive buy-in for HR transformation, it becomes vital to develop a compelling business case that secures the required investment. This involves showcasing how the move to the cloud will deliver a return on investment (ROI) and thoroughly examining the areas that will be impacted by the transformation.
In the table below, we have outlined how SAP SuccessFactors enhances ROI compared to SAP ERP HCM in 10 key areas.
| Description | SAP HCM | SAP SuccessFactors |
| Workflow Build & Maintenance | Building and adapting HR processes and workflows to accommodate changing business needs can be challenging and time-consuming. | Pre-built features for managing the entire hire-to-retire HR transactions, which includes workflow, alerts, notifications, and approvals. Create workflows and easily navigate the processing tasks from start to finish through intuitive user interfaces |
| Visibility | The company-wide hierarchy structure may not be easily functional or practical for managers or employees without complex technical programming or additional add-ons. | SAP SuccessFactors includes a comprehensive org chart feature that provides employees with the ability to search for colleagues within the organization and view the reporting structure. It encompasses three complete hierarchies: Reporting Structure, Position Structure and Company Structure, offering a holistic view of the organization’s organizational setup. |
| Self-service | Manager Self-Service (MSS) in SAP SuccessFactors enables managers to initiate position and employee transactions, granting them empowerment in HR processes. However, the implementation and delivery of MSS necessitate the involvement of multiple technical resources and the establishment of various platform connections. It is important to note that transaction processing may not occur in real-time. Additionally, providing support, troubleshooting, and conducting testing for MSS can be resource-intensive and laborious. | SAP SuccessFactors Employee Central includes Manager Self-Service (MSS) as an integrated feature within the system. There is no need for separate connections to a portal or NetWeaver. Transactions initiated through MSS can be processed in real-time, ensuring timely updates. This eliminates the need for reconciling or comparing information between different displays, as the data in Employee Central accurately reflects what is seen in MSS. |
| Agility | To adapt the on-premise environment for evolving business needs or leverage SAP enhancements, technical resources are needed to maintain the system at its current support package level. This process involves multiple resources from IT and the business area and takes around 6-8 weeks. | SAP SuccessFactors automatically installs bi-annual releases, which include maintenance and enhancements. While technical resources may be involved in activating and configuring enhancements, the core functionality is always up to date with the latest SAP offerings. |
| Localization | Configuring the on-premise environment for different countries and languages in SAP requires technical resources due to the complexity of localization requirements delivered by SAP to numerous countries. | In the cloud model, SAP SuccessFactors provides localization for an increasing number of countries. Deploying the system across multiple countries is less complex and requires less time and effort compared to the on-premise model. |
| Server Infrastructure | You are responsible for maintaining your own separate landscape, including servers, backup servers and related procedures. However, the costs associated with hardware and manpower required for maintenance are often overlooked, adding additional expenses. | In this scenario, you are not responsible for maintaining any landscape. The servers are managed and maintained by VC ERP helping you to address security concerns. VC ERP is responsible for ensuring server availability, response time and security including backups. |
| Training Costs | Due to the system’s lack of intuitiveness, additional time and resources are required to adequately prepare users. This includes allocating extra time for training, documentation, and support materials to ensure users are well-prepared and can effectively navigate the system. | Interfaces and workflows are intuitive, requiring limited to no training material. |
| Extension Capabilities | ABAP coding allows for customization and modifications within the system. However, it’s important to note that making modifications can lead to increased maintenance efforts in the long run. | SAP SuccessFactors provides extensibility options through pre-built add-ons from partners available in the SAP App Center. HR administrators can also make minor additional customizations. These extensions do not impact the core product and therefore do not introduce increased maintenance complexity. |
| Mobility | You are responsible for developing custom apps using technologies such as SAP Fiori or other suitable options. Additionally, they need to create the necessary infrastructure to support the delivery and management of mobile capabilities for these custom apps. | SAP SuccessFactors provides a mobile interface that is readily available out of the box. Users can easily download the app from the mobile app store on Android or iOS devices and gain full access to the system, including features like organizational charts and forms. |
| Security | On-premise security entails inherent complexity, requiring specific skill sets such as SAP Basis and SAP Security expertise to effectively maintain the software. | SAP SuccessFactors leverages a role-based permissions model as its authorizations framework. HRIS administrators can conveniently maintain these permissions directly in the user interface (UI). The model is intuitive and user-friendly, making it easy to manage and update. |
SAP SuccessFactors enables faster innovation through frequent automatic updates. It offers improved analytics and reporting, enhancing cost and time savings by providing insights into HR processes. The modernized user experience and self-service capabilities boost employee engagement.
Cloud HR Software, SAP SuccessFactors unifies tasks, integrates pre-built solutions and reduces manual work, leading to increased productivity and savings. Upgrading to the cloud offers real cost benefits and assessing system readiness is crucial for a successful transition. VC ERP Consulting can help evaluate your system readiness.Assessing Your Organization’s Readiness for SAP SuccessFactors with VC ERP
Moving your on-premise systems to the cloud may seem like a daunting task. However, building a solid business case is just the first step. Assessing your readiness for Employee Central, with the expertise of VC ERP, can provide you with a clear path to a successful implementation. Save time and avoid potential challenges in the long run by undertaking specific activities prior to the move. VC ERP understands the concerns customers may have, especially when it comes to complex on-premise systems with numerous customizations. We ensure that your requirements are fully supported in the cloud, addressing any potential gaps or limitations. According to VC ERP, assessing your readiness prior to your move to the cloud will help you ease your business transformation project by:
- Assessing and identifying any significant and costly roadblocks
- Performing a comprehensive overview of all customizations in SAP ERP HCM
- Identifying any technical integrations that might potentially delay the project
- Itemizing risks and developing a mitigation strategy
- Equipping the Employee Central team with enhanced insights for effective design sessions
- Improving planning, budgeting, and accurate estimation of all project efforts
- Identifying and addressing any data quality issues or gaps that could impede future cloud deployment
- Evaluating internal cloud project skill sets and experience to effectively plan for the upcoming cloud project
Seize the power of Cloud for HR success with SAP SuccessFactors Today!
Upgrading to the cloud for your HR system offers better engagement, reduces IT and HR workload and improves employee experiences. It aligns with the expectations of a connected workplace, placing employees at the center and boosting retention and attraction of talent.
A consumer-grade experience is expected, and HR should lead in providing it. Employee-centricity benefits both talent and customer retention. The move to the cloud enables intelligent decision-making, empowers employees, and sets your company apart from competitors. The SAP SuccessFactors ecosystem, implemented by VC ERP Consulting, provides support for a successful transformation.
Are you ready to lay the foundation for a successful HR upgrade to SAP SuccessFactors Today? Get in touch with the best SAP Implementation Partner in India, VC ERP Consulting.
Call +974 31239246 (MENA), +91 7948998911 (India), Whatsapp +254 111229970 (Kenya), Call +1 469 9156026 (North America), or drop an E-mail at sayhello@vc-erp.com
