Challenges in Transitioning from HCM to SuccessFactorsCategory: SAP SuccessFactors - EC & PMGM Posted:Apr 20, 2018 By: Ashley Morrison
The technology is advancing at an amazing speed. With this growing technology each and every organization wants their tasks should proceed in a smooth and easier manner, even the HR processes. Most of the organizations are already utilizing the SAP HCM solution to perform their HR operations, but at the same time looking to move towards the cloud-based HR solutions such as time management, talent management, payroll or core HR. There is no doubt that the SuccessFactors HCM suite is the best HR cloud solution due to its advantages such as rapid deployment, easy compliance with industry, improved flexibility, frequent updates, new features, and lower cost. These changes help to save the cost of the IT while developing the desired HR-centric platform, but still there are some challenges and important factors that should be considered while implementing SuccessFactors.
Most of the organizations that are already having the SAP HCM on-premise are assessing their options from moving towards the SuccessFactors cloud-based solution. The various operations involve in this suite are the talent management, payroll, a combination of core HR solutions, time management modules and functionality. The several points are considered in individual business cases like reducing the IT costs, offering a better user experience, implementing the important business processes, gaining newer cloud technology, lowering the in-house maintenance and the number of modified solutions.
Initially, the IT persons were responsible to implement the HR information system. But now the HR department is looking for a solution to carry out the HR related tasks and also specified the requirements. But the other services are generally allocated to the IT such as maintaining and deploying the on-premise solution, customization, integration, and many other activities.
The HR and IT team have the apprehensions about the transition of such kind of projects with a concern about the effect of these changes and its impact on the organization’s budgets. With the use of various applications such as payroll, time management etc, there are great concerns about the influence on employee critical functions, for example, ensuring that the payroll is distributed correctly and in a timely manner.
Few challenges in transitioning from SAP HCM to SuccessFactors:
When transiting towards the SAP SuccessFactors, it is required to integrate it with the existing SAP ERP HCM system. To do so it is essential to consider various factors.
1. SuccessFactors is an all-inclusive HCM solution that provides core human capital management functionality along with the talent management functionality. These functionalities are chosen by the governing body and associate the SuccessFactors to their core HCM framework, or they can bring off their request identified by the HCM system to SuccessFactors employee central. In this manner, at first, it is required to characterize the operational extent of the execution. It is suggested for the association who possess the talent management functionality ready, to devise the project into phases, consolidating the talent management modules together for the implementation. The organization should produce plans or roadmaps for the selected functionality, including the functional scope. This increases the combination procedure. SAP has provided two advance integration technologies that are connected with the talent hybrid flow, they are SAP NetWeaver process integration and SAP HANA cloud integration.
2. Many companies are using the Employee Central subscription, even though it can be expensive enough to utilize the talent hybrid scenario. Besides, it is required to choose the integration platform which could be a supplementary charge for some of the association, who are not utilizing the available middleware innovation. Before launching the SuccessFactors implementation, it is required to organize the policies and strategies, imparted and perceived by the organization. Likewise, it is essential to relate the similarity of the execution with the currently available solution and to ascertain that the integration meets the organization’s requirements. If a new implementation has to be launched in the organization, it is recommended to the companies to introduce the variations well in advance. The organization should also set the KPI’s i.e. the Key Performance Indicators in order to measure the performance. How can it be known that the new implementation is failing to offer a better ROI that is a return on investment? All these points are needed to be considered at the early stage of defining the policies and strategies.
3. Infrastructure is another significant element that should be considered while arriving at the modulation. In spite, of the fact that SuccessFactors solutions have fewer infrastructure issues, still it is required to consider them such as throughput, quality of data transfers, virtualization, and load balancing, etc. The customers have especially worried about these issues previously they settle on a choice on using a cloud-based arrangement. The organization on the other side ensures the protection of their information, and make it effortlessly available and accessible. As many of the companies have their own security policies, but then also security is the real worry for them. It is one of the critical factors for an organization to decide on the cloud solutions and to incorporate with their on-premise solution.
4. The SAP is concentrating on the eventual fate of client experiences, thus it is important to define the HR strategies and a particular guide. The user experiences on cloud-based SuccessFactors should be addressed, the extra highlights for SAP portal which increases the performance and productivity and better equivalent to the user experience for the SuccessFactors.
5. In the SAP talent hybrid model, the SuccessFactors goes about as an arrangement of records, and it is required to choose what information and data ought to be put away on it. In the event that it is required to execute the Employee Central, at that point it must be chosen whether to supplant the HCM with the Employee Central or it ought to continue as before. This must be taken care, as the decision made may affect the integration which is to be projected.
6. SAP conveys a proceeding with guide for both the talent hybrid and Employee Central which will append an extra content continuously. This spares the extensive time on growing and handling the customer integration as it covers almost core process integration. Knowing prior about the SAP planning helps to trace up the integration requirements with the SAP’s help which might affect the decision of implementing a specific solution.
Why one should make a transition from HCM to SuccessFactors?
The reasons to move from HCM to SuccessFactors are:
The outdated HR system has not encountered the requirements of the present HR system: In this competitive world, the HR system is increasing very rapidly, the older on-premise systems are not meeting the business needs as they don’t have the tools to measure the success and performance of their employee’s, employee engagement and training to retain, attract and increase their talent. By utilizing the SuccessFactors HCM suite, the managers are capable of aligning their HCM, data, and strategies around the new trends to a create greater employee experience that best suite its customer and business.
The SAP On-Premise HR Solutions will going to be redundant: Presently the cloud-based SuccessFactors is in economic consumption and it will continue in the future as well. An enormous number of clients has already transited into the cloud and as per the SAP’s guides, they are going to support the SAP HCM for a couple of years. The majority of the clients are already moving to the cloud-based HCM space and will leave the SAP HCM.
Switch to cloud-based system-Data and Analytics: The big data, predictive analysis, and internet of things are the most widely recognized words nowadays, these words are now flying up in the HR world as well. It is the SuccessFactors and other cloud-based HR tools that can offer an organization with information, which are influencing to increase the work environment, performance and reducing hazards. By knowing this information in an appropriate way will make the association’s structure more grounded and to accomplish their targets.
Key points to be considered while making a transition from SAP HCM to SuccessFactors:
Following are some of the strategic considerations that should be measured by any SAP HCM client while creating their cloud migration planning.
- Imperceptible ROI i.e. Return on Investment
- Measurable parameters for ROI when moving from HCM to SuccessFactors Employee Central
- Global and local agreement
- Integration planning
- Auxiliary Systems that are nourished from SAP HCM
- Time, benefits and payroll system
- Security and authorizations
- Global and local rollout strategy
Thus, by including these factors, one can make a transition to the SuccessFactors and has a scope to grow their skills. The organizations, which are implementing a cloud-based solution like SuccessFactors is a new experience. The organization may have issues related to the scope, timelines, methodology, and expectations, which affects the success of any project. All these factors need to be considered at the early stage by the organization which not only help in defining IT strategies but also helps to plan the implementation smoothly.
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