1 delivering first class services

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2010 SAP AG. All rights reserved. / Page 1

Del iver ing f i rs t c lass em ployee serv ic es

using SAP HCM

Steffen LichtenbergerSAP AG

February 8th, 2011
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SAP HCMIn tegrat ed p la t form, com prehensive HCM c apabi l i t i es

Performance andSuccession

Management

LearningRecruiting

Planning andAnalytics

HCM ServiceDelivery

Talent Management

Scheduling andDeployment

Performance Management Succession Management

Competency Management

Compensation Management

Global HR andPayroll

Employee Administration

Organizational Management

Global Employee Management

Benefits Management

Payroll and Legal Reporting Manager Portal

Employee Portal

Employee Interaction Center

SAP Interactive Forms by Adobe

Duet

Workforce Analyticsand Measurement

Workforce Planning

Time and Attendance

Shift/Roster Planning

Scheduling Optimization

Recruiting

Onboarding

Classroom Training

E-Learning

Employee DataOrganizational Data

Competency Data
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HR operat ional ef f ic iencyStandardizing All Core HR Processes

Automation of paper-intensive and time-consuming processes

Standard processes andworkflows

Regulatory support for 48countries

HR Proces s

Ef f ic iency and Compl iance

EmployeeAdministration

OrganizationalManagement

GlobalEmployee

Management

BenefitsManagement

Time &Attendance

Payrolland LegalReporting

HCMProcesses &

Forms

Your Organization

A typical 10,000-employeecompany handles over one

million employee-relatedtransactions annually, eachcosting 1050 U.S.dollars.

SAP Benchmarking ProgramMay 2009
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Core HRThe Foundat ion for A l l HR Proc esses

Time & Attendance Planning, managing &

evaluating working times

Centralized ordecentralized

Self-service capabilities Leave data

Employee deployment

EmployeeAdministration Master data

Employee transfers

Status change

OrganizationalManagement Org structures

Reporting lines Planning & simulation

Global employment International transfers &

assignments

Global reporting

BenefitsManagement Benefits administration

Self-servicecapabilities


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Employee Admin is t ra t ionMaster Data

Salaryinformation

Address/Personal dataLocalized information

Tax and SocialSecurity information

Work centerCost center

Position

Working timesAbsences

Allowances


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SAP Em ployee Fi le Manage m ent by Open Tex toverv iew

SAP 2010 / Page 6

SAP Employee File Management by Open Text is thestrategic SAP solution for personnel digital files

Key benefits of the EFM solution are:

complete management of all employee documents

Employee documents Talent related documents

Applicant documents

immediate availability of digital personnel files to all users

faster and more efficient work in HR Departments

less time for filling and searching no copying and distribution of paper files

less storage space needed

complete and seamless integration into SAP HCM

complementing our HR solution offering


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ExecutiveBoard

ManufacturingHRFinancials

DirectorSupervisor.Manager

Org. Units

Jobs

TFC

MexicoCanadaUnited States

San FranciscoNew YorkLos Angeles

ProductionCorporate

Client

CompanyCode

PersonnelArea

PersonnelSubarea

RetireesActiveExternals

ExemptNon-ExemptTrainee

EmployeeGroup

EmployeeSubgroup

Personnel StructureEnterprise Structure

Organizational Structure

Person

Positions Mgr of HR

Organizat ional ManagementBasic St ruc ture s Wi th in SAP Data Model


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Nak isa OrgChar t

OrgChart Easy-to-Use Interface & Advanced Printing

OrgChart allows clear visibility into organizational structures, roles, skills and responsibilities for

effective business and social communication and collaboration. The new user interface makes interaction with OrgChart simpler and more intuitive for all end-users. It

provides a Web 2.0 style interaction with improved flow and consistency.

Flexible, advanced OrgChart printing allows improved readability of org charts in print format. New

features include: tile printing, fit to page, and customized headers & footers where users can add custom

images and signatures.

* Sample product images. Subject tochanges.

Flash-Based OrgChart OrgChart Printing Wizard


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Eff ic iency in HR Operat ionsAchieved with SAP HCM Service Delivery

Employees

Managers

Applicants

Retirees

Remote HR

ApproveRequest Complete

Request Approve

Direct

HCMdata

Acce

sschannel

Duet and

Atlantic

SAP InteractiveForms software

by Adobe

Portal / Self-Services

MobilesolutionsKiosks

Wincor Nixdorf

Widgets

SharedService

Center


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Em ployee Sel f -Ser v ice Personal In for mat ionNavigat ion Star t Page


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HCM Serv ic e Del iveryProcess and Forms: Automation Across Multiple Roles

Services initiated by any user:manager, employee, de-central HR

Choose the employee

Choose the service

Choose the process

Enter the data


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Sel f Ser v ices t hrough a K i oskExt end Sel f -Serv ic es t o ALL Employees


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K iosk Hardw areComplet e Secur i ty Around Personal In form at ion

User-friendly navigation via touchscreen or trackball

Integrated thermal printer

Self-explanatory user guidance

Retract function preservesconfidentiality of forgotten printouts

Documents left in the system areblackened

Systems feature vandalism protection

and are dust and dirt resistantSecure dual-factor authentication

(card & password)

Many configurable security options

Key Benefits


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Leave Request: 130,000 p.a.

(based on 15,000 employees with 5,000 leave requests per month)

Social Benefits Options: 130,000 p.a.

(e.g. 1,100 elections per month)

Annual. Stock Award Program /

Saving for Stock Program for

Subsidized Shares : 75,000 p.a.

(Usage: 12,000 / 2,000 times per year)

ESS Value @SAP


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SAP introduced the ESS for Payslip Online in 2002 and achieved a costreduction (based on 12000 employees) of 120,000.

100.000 Stamps

10.000 Paper and Printing 10.000 Personnel costs

ESS Value @SAP: Paysli p Online
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Financial

Human Resources

Procurement

Call Center

System & Processes

Shared Ser v icesA Definition

Agency

Agency

Agency

Decentralized

Run agencies

autonomously Different, separate

processes and systems

Different IT andfunctional staff

Strengthen enterprise

oversight Same, but

disconnectedprocesses andsystems

Standardized

Agency Agency Agency

Shared

Services

Onsite, semi-autonomousprovider to source services

Accountable to customer

Performance monitoredagainst defined SLAs/MOUsand targets

Service excellence focus,financial, social and politicalROI

Governance/Ownership

Agency Agency

Agency

Services funnelled to

existing agency ordepartment

No service levelagreements, noperformance targets

Solely cost focus,financial ROI

Centralized

Agency

Agency Agency

Offsite Access to commercialsector capabilities

Cost reduction is primarymotivator

Profit center for provider

Cost and effort to managerelationship with provider

Potential political impact

BPO/Outsourcing


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Value Dr iver for Shared Ser vic esRequirements of C-Level HR Executives

CHRO/VP HR

Improvecost-income ratio

Decrease SG&A

costs:

Vendor costs

Labor costs

System costs

Facility costs

Enable regulatorycompliance

Increased data accuracy and

reliability

Improve governance model

Adopt more quickly to

changing regulatory

requirements

Better risk management

Flexibility for growthand acquisitions

Focus on core

competencies

Reduce share of

administrative work

Rapid post-merger

integration

Improve customersatisfaction

Improve process quality

Perform benchmarking

and continuous

improvement

Fulfillment of SLA

Perform customer

surveys

Easy-to-use self-

services

Enable globalsimplification

Pool-process know how

Drive global

standardization and

cross-border delivery

Consistent messagingfor policies and inquiries

Increase operational

agility

Depth ofintegration

Processesand IT

Labor Mix

Scope

Functional

Geographical

Organizational

On-shore

Near-shore

Off-shore

Harmonization

Standardization

Automation

Self-services

Make (shared,non-shared)

Buy (BusinessProcess Outsourcing)

Shared Services value drivers


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The SAP Shared Serv ic e Fram ew ork for HR

Communication front end betweenService Center and client

Inbound and outbound communication withclients of the service center are improved bytight integration between communicationfront-end and business applications

Self-Services help enable process

constituents

Process facilitation:

Data from several client organizationsprocessed at the Shared Service Center

Logical aggregation of information asapplicable

Data exchange with back ends

Governance

Manage delivery against defined KPIs

Shared Serv i ces Framew orkProduct Catalogue; Multifunctional back-end capability; IT-Architecture

Portal Solutions; additional Self Services; Processes and Forms;

SLA Cockpit; track pe rformance and enable com pliant operations

F& A HR ITProcure-

ment

Real-

Estat e /

Fac i l i ty

Enablers

Enablers

Enablers

Shared ServicesProcess Management


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Employee Authen t i ca t ion ExampleShared Service Center Can Inform the Employee in a Secure Way

Employee

SAP ERP Human Capital Management

Communication Platform Shared Service Framework

System provides authentication data (Infotype 0816)

Employee creates

authenticationdata in ESS

Agent receivesphone call

Employee has a query that

needs employeeauthentication

Agent authenticates the employee,

creates a service request, completesquery and service request

Employee

Employeecalls

Whats the added value?

Agent is able to authenticate the employee with the security questions by checking the given answers

Agent is able to answer the query on the salary statement directly in the first call

Service costs are reduced due to short processing time - Service transparency and quality is ensured

TCO is reduced not expensive integration projects needed/one vendor process support

Is my overtime correctly calculatedfor my salary statement ?


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Shared Serv ic es Pow ered by SAPBenchmark Data Proves Significant Cost Savings

Our Customers have Achieved Significant Benefits using Our Solutions

Tangible Benefits* % impact

Operating Cost

Reduced Maverick IndirectSpend

Staff efficiency

3-5%

5-10%


Operating Cost 25 40%

Payroll HR Cost per Employee

Improved recruitment costs Improved process cost by

Employee Self-Service

10-30%20-30%

10-15%

14%


Operating cost

Increase office spaceefficiency

20-30%


Operating Cost

Reduced Integration cost Hardware & Operations Software Maintenance and

implementation

15-20%20-50%20-70%

Several Sources: e.g. ASUG benchmark data; Hackett Group


Operating cost

Accounts Payable Accounts Receivable

Budgeting & forecasting Cash management Collections management Credit management Customer billing Fixed asset management General Ledger and

Finance Closing Internal Auditing Regulatory and compliance Risk management Tax accounting and

reporting Treasury Reduced DSO

- Working Capital Cost Increased DPO

- Working Capital Cost

20-50%20-50%

50-80%50-70%50-65%25-35%40-70%20-35%45-75%

50-70%40-60%

40-60%

5-10%

35-55%5-25%

5-25%

Function*Saving topeers

Finance 49-61%

Human Resources 16-49%

Procurement 30-49%

IT 8-39%

Overall Cost Saving Potential


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HCM Global izat ion w i t h Loc al izat ion

SAP delivers HCM processes for 48 countries based onGlobalization with Localization

Including payroll, legal reporting, benefits, and time management

Global processes for worldwide standardization of company business

processes Local best practices and legal compliance

A single database instance for multiple countries

Local look and feel

Languages (over 30)


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HCM Global Payro l lSummar y Today: SAP and Par t ner Countr y Vers ions

Country versions providedby SAP (48)

Angola (Arinso) Bolivia (Arinso) Botswana (EPI-USE) Cameroon (Arinso) Chad (Arinso) Denmark (KMD) Ecuador (Arinso) Guernsey / Channel Islands

(EPI-USE)

Iceland (Applicon) Isle of Man (EPI-USE)

Israel (Hilan, Malam) Jersey (EPI-USE) Kenya (EPI-USE) Luxembourg (Arinso) Mauritius (EPI-USE) Morocco (Arinso) Mozambique (EPI-USE) Namibia (EPI-USE) Nigeria (Arinso, EPI-USE) Peru (BCTS) Romania (Integrator)

Rwanda (EPI-USE) Serbia (EPI-USE) Tanzania (EPI-USE) Uganda (EPI-USE) United Arab Emirates(EPI-

USE) Uruguay (Conex,

Soluziona) Vietnam (EPI-USE) Zimbabwe (EPI-USE) .

Argentina Australia Austria Belgium Brazil Bulgaria Canada China Croatia

Cyprus Czech Republic Colombia Finland France Germany Greece (planned) Hong Kong Hungary India Indonesia Ireland Italy

Japan Malaysia Mexico Netherlands New Zealand Norway Philippines Poland Portugal Russia (SAP ERP 6.0) Slovakia Slovenia

Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand

Turkey Ukraine United Kingdom United States

(including Puerto Rico) Venezuela Chile (EHP 5)

Country versions providedby partner solutions (28)


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Global izat ion/Local izat ionSummary

Key Functionalities

Supports multiple languages, currencies, timezones

Local best practices / legal compliance for 49countries

Delivery of legal changes

Consolidated reporting One source of global data integrated in other

business processes

Business Benefits

True global business insight

Ease of use

Delivery of information in native language Compliance with country-specific requirements,

both legal and cultural

Single instance for multiple countries - lowercost of ownership

Example: Singapore


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Ex per t s Agr ee . . . SAP Is #1 i n HCM

# 1 in HCM according to AMR, Forrester,Gartner, and IDC

Customers in 110 countries around the world

Interlocking product strategy and organicgrowth

"SAPs leadership position stems from its ability to offer not just core HRproducts for personnel record keeping and employee benefits, but also a slew ofcomplementary services and analytics technologies that enable organizations toeffectively hire and retain, measure, and reward the performance of their keyemployees while boosting their productivity.

IDC, December 2006

Worldwide HCM Applications 2005 Vendor Shares: Top Vendors in Core HR; eRecruiting; Incentive, Performance,

and Workforce Management; SaaS; and Large, Midsize, and Small Customer Segments, IDC Doc # 204424


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Thank you!