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TRANSCRIPT
What is SAP’s go-forward solution for Core HR Time and Payroll?
Kontich, March 16th 2017
Program for today
Flexso Core HR, Time & Payroll Seminar
• 13h30 Welcome & registration
• 14h00 Introduction
• 14h10 SAP roadmap for core HR, Time & Payroll
• 15h30 Options to move core HR to the cloud
• 16h30 Drink & appetizers
Your hosts for today
Flexso Core HR, Time & Payroll Seminar
• Lorenz Hendrickx Flexso for People
Partner
• Werner Smeets Flexso for People
Partner
• Frans Smolders Director HCM Solution Management
Employee Central at SAP SuccessFactors
What’s in it for you?
Flexso Core HR, Time & Payroll Seminar
• SAP vision & direction for core HR, time & payroll
• Which options do you have to move your core HR to the cloud
• Offer key handles for your crucial SAP roadmap decisions
› Short-term
› Mid-term
› Long-term
We are Flexso, experts in HRLorenz Hendrickx – Flexso for People
Some fact & figures
What we achieved
• 200 consultants
• 32 million euro
• 20% growth per year
• 5% attrition
• 120 active customers
• Top in Belgium
• 25 countries
• 4500 Cronos consultants
Experts in HR solutions & servicesSome of our customers
Some of our SuccessFactors customersSome of our SuccessFactors customers
visit www.flexso.com
SAP roadmap for core HR, time & payrollFrans Smolders – SAP/SuccessFactors
Options to move your core HR to the cloudWerner Smeets – Flexso for People
How to transition your HR to the cloud?
Talent Hybrid
Cloud transition for SAP ERP HCM
1
TalentAnalytics
Time & Attendance
Payroll
PA & OM
SAP S/4HANA OnPremise
Side-by-Side
4
TalentAnalytics
Personnel Admin. (PA) for some countries &
Org. Mgmt. (OM)
Time & Attendance
Payroll
PA for rest of the countries
SAP S/4HANA OnPremise
2
Core Hybrid
PA & OMTalent Solutions
Workforce Analytics
Time & Attendance
Payroll
SAP S/4HANA OnPremise
3
Full Cloud
PA & OMTime & Payroll
Talent SolutionsWorkforce Analytics
SAP S/4HANA OnPremise
Productized Integrations
Deployment options for time & payroll
1. SuccessFactors EC with SAP Time & Payroll
On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA
2. SuccessFactors EC with SAP SuccessFactors Managed Payroll
SAP payroll offered in private partner cloud on SAP paper
3. SuccessFactors EC with SuccessFactors EC Time & Payroll
Fully cloud based payroll solution on top of SuccessFactors Employee Central
4. SuccessFactors EC with 3rd party solution for Time and/or Payroll
3rd party solutions on top of SuccessFactors Employee Central
SuccessFactors EC with SAP Time & Payroll: what is it?
What is it? Keep your SAP Time/Payroll on-premise as well make the most of the innovation that SAP offers in the
cloud HR Suite
Use case? Leveraging your existing SAP on-premise investments while moving to the cloud at your own pace with
minimal risk
Key Capabilities Benefits Standard packaged integration SFSF Employee Central – SAP ERP HCM
Make us of the HR Renewal enhancements (like HR Fiori Apps, Payroll Control Center) to improve the usability of SAP ERP HCM
Core HR/Time/Payroll remains available if you move to S/4HANA
Legal patches and bug fixes by SAP and managed legal change support and maintenance by customer
Guided path to the cloud
Leverage your SAP ERP HCM Time/Payroll investment
No impact on interfaces/time/payroll
Seamlessly integrated user experience via HR Renewal features
Connecting SuccessFactors EC to SAP ERP or S/4HANA
Productized integration
• Business Integration Builder built and maintained by SAP
• Based on SAP Cloud Platform and SAP ERP add-on
• Included in SF EC licensing
• Concept based on configuration (e.g. for additional infotypes
no ABAP coding required)
• Country dependencies supported
Use case for Business Integration Builder?
• For initial data migration (from SAP ERP HCM to SF EC)
• For data replication from live SF EC system back to SAP
ERP HCM
SAP Time & Payroll integration: how does it work?
HR core data & time/payroll specific data
• Maintain all HR core data in Employee Central (master)
• Time & payroll specific data directly in the SAP via ‘mash
ups’ or via Fiori apps (optional)
• No need to logon to multiple applications!
Time & payroll processing
• After data is entered and validated in Employee Central
this becomes available in your SAP Time/Payroll system
• Keep running your time & payroll as you do today
SAP Time & Payroll integration: user interface?
Mash-ups Home Page Tiles/URL Links Menu OR Fiori Launchpad
Deployment options for time & payroll
1. SuccessFactors EC with SAP Time & Payroll
On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA
2. SuccessFactors EC with SAP SuccessFactors Managed Payroll
SAP payroll offered in private partner cloud on SAP paper
3. SuccessFactors EC with SuccessFactors EC Time & Payroll
Fully cloud based payroll solution on top of SuccessFactors Employee Central
4. SuccessFactors EC with 3rd party solution for Time and/or Payroll
3rd party solutions on top of SuccessFactors Employee Central
SAP SuccessFactors Managed Payroll: what is it?
What is it? Move your SAP Time/Payroll systems to the cloud to reap benefits as well make the most of the
innovation that SAP offers in the cloud HR Suite
Use case? For complex, highly customized, modified SAP on-premise payroll systems that are typically deeply
interwined with SAP Time Management
Key Capabilities Benefits SAP on premise Time/Payroll is migrated to the cloud and managed by
SAP payroll partner
Base of solution includes OM/PA, time management, compensation &benefits, payroll and interfaces
Standard packaged integration SFSF Employee Central – SAP ERP HCM
Legal patches and bug fixes by SAP and managed legal change support and maintenance by partner
Guided path to the cloud
Does not require to re-implement Time/Payroll (“lift & shift”)
Optimize the cost of running Payroll
Move to an OPEX from CAPEX model for software
Allows to divest of HR IT infrastructure & free up internal resources tied up with time/payroll system management
SAP SuccessFactors Managed Payroll: model overview
Customer
• Single support experience
• Standard Cloud Service Level
Agreements
• Legal/compliance patches and bug fixes
• Subcontract Hosting and AMS as
described in the Managed Payroll Service
Catalogue
• One vendor for subscription, managed
services and support
• Move from maintenance and
infrastructure to subscription-based
model
• Hosting and AMS as described in the
Managed Payroll Service Catalogue
• Must provide time & payroll migration
direct to customer
On-Premise vs Managed Payroll
or
Infrastructure, Hosting, Backup, Disaster Recovery
Implementation/Migration
Version Updates
Legal Changes
Application Management Services
Mgmt. of technical environment of Payroll instance
Payroll Operations Ongoing Configuration(e.g. new wage type)
Payroll Operations Transactional Services
Infrastructure, Hosting, Backup, Disaster Recovery
Implementation
Version Updates
Legal Changes
Payroll Operations Ongoing Configuration
(e.g. new wage type)
Payroll Operations Transactional Services
On-Premise Payroll Managed Payroll
Customer FlexsoEPI-Use
Deployment options for time & payroll
1. SuccessFactors EC with SAP Time & Payroll
On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA
2. SuccessFactors EC with SAP SuccessFactors Managed Payroll
SAP payroll offered in private partner cloud on SAP paper
3. SuccessFactors EC with SuccessFactors EC Time & Payroll
Fully cloud based payroll solution on top of SuccessFactors Employee Central
4. SuccessFactors EC with 3rd party solution for Time and/or Payroll
3rd party solutions on top of SuccessFactors Employee Central
SAP SuccessFactors EC Payroll: what is it?
What is it? Cloud payroll solution hosted by SAP, completely embedded in EC and leveraging latest innovations such
as the Payroll Control Center
Use case? For customers who choose to manage payroll in-house based on best practice standardization of a
traditional SAP Payroll in a cloud environment
Key Capabilities Benefits Based on the proven SAP Payroll engine (latest version)
Standard point-to-point integration EC to EC Payroll (no HCP needed)
Available only with EC + all components of SAP HCM replaced by EC (incl. org chart/position mngt, time off/timesheet, etc) or 3rd party solutions
Supports 40 countries (goal to cover all 55 SAP countries + 40 partner countries)
Legal changes for Employee Central and Employee Central Payroll via the SFSF Upgrade Center
Full, integrated cloud solution
Re-implement payroll based on best practice standardization of a traditional SAP Payroll (“carve out & migrate”)
Implementation & migration services available
Optimize the cost of running Payroll
Move to an OPEX from CAPEX model for software
Allows to divest of HR IT infrastructure & free up internal resources tied up with time/payroll system management
EC Payroll leverages HCM Payroll, but it is not the same
EC is complete Core HR System of Record in the cloud
• All HR events are managed in EC
• Payroll data is either replicated to payroll or maintained using UI mashups
Functions/features of EC Payroll are limited to the payroll use case
• EC Payroll does not use SAP (on premise) time management/evaluation. Instead,
EC Payroll uses EC Time Off / Time Sheet (or 3rd party certified by SAP)
• Org management, benefits, workflow, ESS/MSS, etc is used from EC
EC Payroll has higher level of standardization than SAP HCM Payroll
• Allowed: schemas/rules, pay functions/operations, BADI’s, custom objects, etc
• Not allowed: modifications, enhancement spots, deployment of payroll 3rd party
products (only after approval & certification SAP – seen note 2167337)
User Roles
Data Flow
Natively integrated solution
New end-to-end payroll experience
• Native integration into Employee Central
• See all payroll processes on one calendar
• Drill down into process view and take action
• Validation rules point out potential errors
Integrating your time solution
• SAP SuccessFactors Employee Central Time or WorkForce
Software is system of record
• It’s ok to leverage SAP interfaces to feed time data and to
use SAP time evaluation
SFSF EC Payroll vs Managed Payroll
SuccessFactors EC Payroll SuccessFactors Managed Payroll
For all SAP SFSF EC customers Only for SAP ERP payroll customers
System of record is SFSF EC and/or 3rd party solutions for processes
like time and benefits
SAP SFSF EC becomes the system of record for Core HR, while
keeping SAP ERP time/benefits/payroll (often outside standard)
Hosted in an SAP data center (governed by SAP SFSF EC Payroll
service catalog)
Hosting and AMS are subcontracted to a partner (governed by
Managed Payroll service catalog)
Requires a simplification and re-implementation of payroll No simplification or re-implementation of payroll required
More standardized payroll (reduces payroll complexity - e.g. no
modifications, etc)Allows for complex payroll
Replaces SAP Time with SFSF EC Time Off/Timesheet or third party
integration solutionKeeps SAP Time functionality
One vendor for subscription, licences, service and support One vendor for subscription, licences, service and support
Combines best of SuccessFactors and third partyCombines best of SAP and SAP SuccessFactors solutions (integrates
with SFSF EC)
Deployment options for time & payroll
1. SuccessFactors EC with SAP Time & Payroll
On-premise time & payroll solution, part of SAP ERP HCM or SAP S/4 HANA
2. SuccessFactors EC with SAP SuccessFactors Managed Payroll
SAP payroll offered in private partner cloud on SAP paper
3. SuccessFactors EC with SuccessFactors EC Time & Payroll
Fully cloud based payroll solution on top of SuccessFactors Employee Central
4. SuccessFactors EC with 3rd party solution for Time and/or Payroll
3rd party solutions on top of SuccessFactors Employee Central
SuccessFactors EC with 3rd party solutions: what is it?
What is it? Make the most of the innovation that SAP offers in the cloud HR Suite while integrating with 3rd party
time & payroll solutions
Use case? For customers who choose to outsource time and/or payroll to 3rd party provides while keeping the
master data within own hands
Key Capabilities Benefits Many productized integrations available with 3rd party solutions
(delivered by SAP or partners)
Custom integrations can be setup using SAP Cloud Platform (license included in EC subscription)
Application maintenance, hosting & support by 3rd party provider
Guided path to the cloud
Pragmatic solution for international companies with small local branches
Outsourced time/payroll solution
Master of your own employee data
Integrations can be setup (no double data entry)
SAP SuccessFactors EC with 3rd party solutions
SuccessFactors integration strategy
• Odata is the API for all business data access/exchange
• Easily understand and consume OData API
Many standard delivered productized integrations
• Pre-packaged solutions for number of 3rd party solutions
• Based on SAP Cloud Platform
Additional integration content provided by partners
• Flexso RDS solution for 3rd party time & payroll solution
• Partnerships with local providers
What does it mean for your SAP ERP HCM ifyou migrate to S/4HANA?
End-to-end suite to manage the full employee lifecycle
SuccessFactors is default HCM solution for S/4HANA
SAP S/4HANA is the next-generation business suite
• Built on most advanced in-memory platform SAP HANA
• Modern design principles with the SAP Fiori (UX)
• Simplifications (data model, business processes, etc)
• Innovations (IoT, Big Data, business networks, mobile)
• S/4 HANA as on-premise edition or as cloud edition
SuccessFactors is the next-generation HCM solution
• End-to-end suite to manage employee lifecycle
• Productized integration (built and maintained by SAP) to
integrate with S/4HANA and other SAP solutions
• No plans to “simplify” SAP ERP HCM (focused on
localization support and UX)
Move at your own pace
S/4 HANA transition options for HCM
SAP ERP HCM (Available in S/4HANA OnPremise only)SuccessFactors Employee Central
Clo
ud
So
luti
on
sO
n-p
rem
ise
So
luti
on
s
4
Deploy all On-premise with SAP ERP HCM in same instance
(part of compatibility pack)
SAP ERP HCM
1
Deploy S/4 HANA On-premise, move
HCM to cloud
HCI*
2
Deploy S/4 HANA cloud, move HCM to the cloud
HCI
3
Deploy all On-premise: continue to keep SAP ERP
HCM separate
SAP ERP HCM
ALE
Included in S/4HANA OnPremise Edition as it is today
SAP ERP HCM for existing customers
S/4HANA OnPremise including SAP ERP HCM
Organization Management
HR Administration
Benefits Enrollment and Administration
Payroll Processing
Employee Self-Service
Manager Self-Service
HR Shared Services
SAP Employee File Management Application by Open Text
SAP Organizational Visualization by Nakisa
• Need to migrate SAP ERP HCM processes to SuccessFactors at the same time as migrating your SAP ERP business suite to S/4 HANA?
• SAP ERP HCM available on S/4HANA OnPremise Edition as a part of compatibility pack to minimize disruption for HR
• Allows you to deploy SuccessFactors at your own pace
• All enhancements of HR Renewal available in S/4HANA OnPremise for existing SAP ERP HCM customers to transform user experience
Key Message
What does it mean?
Compatibility packs in S/4HANA
Compatibility packs
• grant a timely restricted use right (2025) for specific capabilities
› which the customer has licensed for his SAP Business Suite environment
› which the customer would like to use in his SAP S/4HANA implementation
• come at no additional cost for SAP S/4HANA (on-premise)
• are documented in the Feature Scope Description (FSD - chapter
"compatibility“ - see note 2269324)
Not all SAP ERP HCM functionalities are supported – e.g.
• JAVA based Employee & Manager Self Services
• SAP Learning Solution
• SAP E-Recruiting
Wrap-up and Q&A
Comparison of optionsSAP ERP HCM Time/Payroll SAP SFSF Managed Payroll SAP SFSF EC Time/Payroll SAP EC & 3th party interface
Future readiness At least till 2025 At least till 2025 Go-forward solution > 2025 Go-forward solution > 2025
Cost model CAPEX OPEX OPEX OPEX
LicensesEmployee Central
Included in S/4HANA licenses
Employee Central
SAP SuccessFactors Managed
Payroll
Employee Central
Employee Central Payroll
Employee Central
3rd party license
Implementation costEmployee Central
(HR Renewal)
Employee Central
Lift and shift project cost
Employee Central
Employee Central Payroll
Employee Central
3rd party setup
Business continuityNo impact on business logic time and
payroll
No impact on business logic time
and payroll (lift & shift)
Complete redesign
(requires a simplification and re-
implementation)
Complete redesign
Technical responsibility Client
Partner provides application
management, hosting and support
services
SAP provide application
management, hosting and support
services
SAP or Partner provide application
management, hosting and support
services
Availability Yes YesNot yet for Belgium (country-
specific part built within weeks)Yes
Roadmap and impact analysis
SuccessFactors & Workforce Software implementations
Integration of SFSF EC with SAP ERP HCM & S/4 HANA
Lift & Shift together with partner EPI-Use
Integrations with 3rd party solutions
S/4 HANA, Fiori and HCP developments/integrations
…
Interested in pilot for SAP SFSF EC Payroll? Let us know!
Service offering for cloud transition
flexso.com – [email protected]
Veldkant 33a – B-2550 Kontich
Avenue Pasteur 23 – B-1300 Wavre
89A Rue Pafebruch – L-8308 Capellen
Contact Flexso