Experience the Shift – Move from SAP ERP HCM to SAP SuccessFactors

⇨ SAP's decision to end mainstream maintenance by 2027 emphasizes the urgency for organizations to transition from on-premises solutions to cloud-based platforms like SAP SuccessFactors, which offer scalability, agility, and enhanced innovation.

⇨ SAP SuccessFactors provides significant advantages over SAP ERP HCM, including a superior user experience with built-in self-service capabilities, faster innovation through automatic bi-annual updates, and one integrated system for streamlined HR workflows.

⇨ The transition to SAP SuccessFactors enables seamless data integration and extensibility, allowing HR teams to quickly adapt to changing needs without extensive technical resources, thereby improving operational efficiency and responsiveness.

SAP’s decision to end mainstream maintenance in 2027 implies more than just a timeline. It has broader implications for organizations relying on on-premises solutions, driving necessary changes and decisions. While the benefits of cloud cannot be overstated, the move to the cloud offers scalability, agility, and innovation.

For the HR function, this is even more critical as building more sustainable and future-proof HR solutions that cater to both, the organization, and its people, is indispensable. While the drivers for transitioning SAP ERP HCM to the Cloud are many, transitioning from on-premises SAP ERP HCM solutions to cloud-based solutions like SAP SuccessFactors provides a number of benefits like streamlined data management, advanced analytics and insights, scalability and easy access, and greater customizations and integrations.

However, although SAP ERP HCM and SAP SuccessFactors cover many of the same process areas, SAP SuccessFactors offers distinct advantages in for example, the following aspects:

Enhanced User Experience with Self-Service: With a unified, self-service platform, employees can easily access information related to compensation, benefits, performance, training etc. all in one place. With better visibility into such information, organizations can not only foster more collaboration between employees and HR, but also empowers HR to deliver better services. In SAP HCM, while self-service is enabled through an SAP Enterprise Portal, NetWeaver Business Client or Fiori and requires configuration and customization of the different services you want to activate (project). In SAP SuccessFactors, no added installation is required as it is built-in and functionally part of the SAP SuccessFactors solution’s design. Upon creation of the user, a log-on information email is issued, providing access to the SuccessFactors functionalities and visibility on the data. Role-based Permission controls what data employees have access to. SAP SuccessFactors also has native mobile capabilities that enable users to interact with their organization and data seamlessly, without any additional licenses or implementation / configuration.

Faster Innovation with Opt-in Updates: To stay ahead, organizations need to constantly innovate and need their systems to be always updated with new functionalities. However, updating SAP ERP HCM is not only complex, but also time-consuming and resource intensive. Typically, it involves team effort with technical resources to download and apply it to the system, and functional resources for testing. Upgrade typically time consuming especially if customized which increases complexity, as code conflicts must be resolved and tested.
On the other hand, SAP SuccessFactors is automatic updated bi-annually which ensures all users benefit from the latest features and improvements without manual intervention. The new functionalities are also opt-in which gives users control over which features they wish to activate and incorporate into their workflows. This approach allows users to adopt new capabilities at their own pace, ensuring flexibility and customization according to their needs.

One integrated system for HR workflows: SAP SuccessFactors provides a comprehensive platform that integrates all HR functions. This means creating workflows in SAP SuccessFactors is flexible and allows dynamic changes. With SAP SuccessFactors, HR can create and configure workflows, including dynamic workflows, activated by a business rule defining the logic based on standard data structures. These dynamic rules are flexible and is a part of standard functionality that can be changed by an HR person within 30 minutes. In contrast, in SAP ERP HCM, technical skilled resources are required to set up specific, technical module that allows to set up workflows set up within SAP. This not only requires set up and maintenance expertise, but it is also custom-made to order and requires at least 3 days for an IT person to change.

Native Data Integration: Cloud enables data captured once, which flows through the intelligent enterprise with end-to-end processes. Auditing and correcting data that has become old, wrong, or outdated because of lack of integration is a long and costly effort. Data integration between different modules in SAP ERP HCM is difficult and cumbersome. For example, in SAP ERP HCM, modules such as OM, Learning, Recruiting, Performance Management, & Compensation have separate sets of Infotypes that do not integrate with each other and extracting meaningful employee and talent data requires custom reports, to be written in ABAP by a technical programmer. In SAP SuccessFactors, most HCM modules are natively integrated, for example Core is built in the same data environment and integrates cleanly with Onboarding and Recruiting. For example, processes such as hiring a candidate and moving data from Recruiting to Onboarding and in Hiring at the click of a button. For integration to the rest of the SAP product portfolio ready-to-run integrations and suite capabilities are delivered as well as APIs and functionalities to create end-to-end services, replacing insular processing or data.

Seamless Extensibility: For storing custom employee data specific to industry, organizations often struggle with technical expertise that is required for this in SAP ERP HCM and can extend the process to days or weeks. SAP SuccessFactors addresses this need through its extensibility features, allowing HR teams to quickly create custom fields and configure objects directly from the admin center. Unlike SAP ERP HCM, which requires technical programming and significant development time, SuccessFactors makes adding custom fields a matter of minutes, complete with API visibility. Additionally, the SAP Business Technology Platform (BTP) provides further customization options when standard extensibility isn’t sufficient. For integrations, SuccessFactors offers an Integration Center that simplifies the creation and monitoring of data imports and exports, streamlining tasks that previously required lengthy programming efforts in SAP ERP HCM. This approach enables HR teams to respond quickly to changing needs and disruptions without prolonged technical projects.

Understanding the gains – Calculate the potential ROI of moving to the cloud

Businesses must become more agile and adopt digital solutions and move from traditional, admin-heavy systems to user-friendly cloud platforms. However, organizations sometimes struggle to build a convincing business case for such transformative initiatives including securing funding and ensuring operational readiness. An ROI evaluation can enable organizations to understand the moving parts of such a transformation.

To support customers in understanding and transitioning from SAP ERP HCM to SAP SuccessFactors HCM, SAP Customer Evolution for HCM aims to provide specialized tools and services to help accelerate the move. It lays down a clear path for customers by defining the value of SAP SuccessFactors HCM, understanding its capabilities, the transition process, and the product roadmap. SAP SuccessFactors Employee Central provides flexible, global core HR functionality to help meet the expectations of your people and the needs of your organization.

Developed in cooperation with external agency (Enterprise Strategy Group) and based on based on customer interviews, industry benchmarks and customer research, the SAP ROI Calculator considers hardware, software implementation costs, maintenance and support costs and potential process improvement and productivity gains.

Find the SAP ROI Calculator HERE.