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Digitizing HR Management with SAP HCM Transformation by T-Systems

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Key Takeaways

⇨ SAP ERP HCM is SAP’s standard HR management application that supports a wide range of HR operations and digitizes them. 

⇨ However, mainstream maintenance for SAP ERP HCM will end in 2027. Companies should see this as an opportunity to modernize their HR systems by moving to the cloud.

⇨ With extensive experience in implementing SAP HCM for SAP S/4HANA, T-Systems can simplify the process and achieve the desired results with minimal time to value, while also ensuring compliance with local and industry regulations.

In today’s rapidly changing business world where automation and artificial intelligence play a major role, human capital is still a factor that can determine the success of a business. Companies need to have an ERP system that supports management of core HR functions such as recruitment, training, onboarding, payroll processing and benefits management. This means that the expectations on HR teams have shifted from being managing people to becoming business partners who work closely in line with the business strategy at tactical levels.

To enable HR business partners to effectively meet these demands, they need an ERP system that provides a data-driven approach. SAP ERP HCM is SAP’s standard HR management application that supports a wide range of HR operations and digitizes them.  However, mainstream maintenance for SAP ERP HCM will end in 2027. Companies should see this as an opportunity to modernize their HR systems by moving to the cloud. There are two alternative offerings for organizations running SAP ERP HCM which will be discussed in turn.

SAP Human Capital Management (HCM) for SAP S/4HANA (SAP H4S4)

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SAP H4S4 is the closest experience to the existing completely on-premises SAP ERP HCM. It provides a similar experience for users but with SAP S/4HANA capabilities and mainstream maintenance through 2040. Through advanced analytics and artificial intelligence, it also helps build efficient HR operation workflows.

SAP SuccessFactors HCM

With AI for HR self-service, recruitment, performance management, and more, SAP SuccessFactors provides a solution for all HR needs. It is a cloud-based single source of people and skills data for HR and entire businesses. SAP SuccessFactors HCM also supports SAP’s generative AI assistant Joule, a copilot that makes it easier for users to find information and answer questions.

Just as organizations are dedicating significant effort to move to SAP S/4HANA a similar effort must be shown in digitizing HR systems and keeping them up to date. This is a crucial part in driving the achievement of overall organizational goals. With the support of an experienced implementation partner, companies can make an accelerated move to any of SAP’s advanced HR systems of their choice and integrate third-party solutions for enhanced employee experience.

T-Systems’ complete SAP portfolio supports all operating models and cloud platforms, including public and private clouds, to accelerate the digital transformation of HR management. T-Systems’ SAP experts support transformation in every phase from initial needs assessment, framing a customized, industry-specific roadmap to final implementation and support. With extensive experience in implementing SAP HCM for SAP S/4HANA, T-Systems can simplify the process and achieve the desired results with minimal time to value, while also ensuring compliance with local and industry regulations.

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