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SAP HCM strategy

SAP has invested heavily in cloud software in recent years and, by purchasing SAP SuccessFactors, paved the way in the long term for the complete replacement of on-premise by cloud software. Even today, a completely unrestricted migration to the SAP SuccessFactors cloud environment is, depending on the subject involved and complexity of requirements, not yet possible in every case. This applies in particular to the time management and payroll areas. The aim is clearly a complete migration of all HR modules to the cloud. Major investments from SAP are necessary in the coming years if this is to be achieved and all functional gaps closed.

Which on-premise options exist?

A complete transition to the cloud takes time, which is why SAP has developed three interim scenarios for on-premise SAP HCM:

SAP ERP HCM mainstream support

The current SAP ERP HCM solution (SAP Business Suite 7) can still be used until 31 December 2027, after which SAP will introduce standardised maintenance. Extended maintenance of the SAP ERP HCM solution can be licensed up to 31 December 2030 at SAP for a fee.

SAP ERP HCM in SAP S/4HANA compatibility mode

Operation of the existing SAP ERP HCM on-premise solution can also continue in so-called compatibility mode on the S/4HANA ERP system until 31 December 2025. Subsequent conversion to the SAP HCM for S/4HANA on-premise edition release is then necessary.

Switch to SAP HCM for S/4HANA as of Q4 2022

Customers who cannot or do not wish to migrate completely to SAP SuccessFactors by 2027/2030 can take up an interim solution from SAP: SAP HCM for S/4HANA on-premise edition. This version will be available as of Q4 2022 at the earliest. A carve-out and, consequently, operation of SAP S/4HANA on a dedicated server is possible, but no longer strictly necessary. The solution will be successively improved for operation with S/4HANA.

Timeline of on-premise options

Further developments are primarily restricted to statutory requirements and the user experience. It should also be noted that certain modules (e.g. Recruiting or JAVA components of the Learning module) will only be available in SAP cloud solutions. The right to make successive changes is reserved here. There are three planned SAP HCM ERP on-premise options with different timelines:

 

Functions in SAP HCM for S4/HANA

Personnel Management

  • Personnel Administration
  • Organisational Management
  • Benefits
  • Enterprise Compensation Management
  • Personnel Cost Planning and Simulation
  • Pension Fund (DE/CH)
  • MSS / ESS (WDA and Fiori)

Payroll Accounting

  • Payroll Accounting

Expenses

  • Travel Expenses Management (part of SAP S/4HANA)

Talent Management  

  • SAP Learning Solution
  • SAP E-Recruiting
  • Talent Management and Talent Development
  • Objective Setting and Appraisals

Time Management

  • Time Management
  • Shift Planning
  • Recording Working Times (CATS)

Public Sector

  • Budget Planning and Budget Management
  • Standalone
  • Shift Planning PS

Why change now to the cloud?

In the medium term, SAP will allow its customers to manage HR on the classic SAP HCM or, as of 2022, based on S/4HANA. On-premise will therefore remain a solution until at least 2040. Why should you as an enterprise come to terms today with the cloud or SAP SuccessFactors?

Major SAP investments inevitably flow into solutions such as SAP SuccessFactors, SAP Fieldglass and SAP Concur. Anybody who places their faith in innovation and wishes to move with the times will, sooner or later, need to change to Human Experience Management solutions from SAP. However, the switch need not be undertaken immediately, and customers often approach it in phases. Companies frequently opt for SAP SuccessFactors Talent Management in an initial step. A modular migration is possible subsequent to this until, for example, a new leading HR system is defined with the introduction of SAP SuccessFactors Employee Central. Modular architecture means that core processes can be continually supplemented with modules from the Talent Management area and commissioned in line with priorities set by the company. Moreover, in addition to being perfectly adapted to S/4HANA, SAP SuccessFactors also integrates well with classic SAP ERP solutions.

Discover the functions offered by the SAP SuccessFactors HR suite at a single glance:

SAP and HR Campus

A long-standing and reliable connection

HR Campus has been an SAP Gold Partner and leading implementation partner for SAP SuccessFactors and SAP Concur for many years. In our long-standing collaboration with SAP Switzerland, we have been pulling in the same direction and focusing on the consistent further development of Swiss specifics for SAP HXM as well as on a consistent pursuit of the best possible HR solutions for companies in Switzerland and the Principality of Liechtenstein.

 

SAP awards and certificates

 

 

 

 

Successful migration to SAP SuccessFactors

BKW Group

BKW Group

At BKW we were able to use the SuccessFactors solution to revise and digitise the entire HR processes. A successful project!

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Meier Tobler AG

Meier Tobler AG

Meier Tobler not only stands for new power in Swiss building services, but also for innovative power in HR. With the introduction of a holistic HR solution, Meier Tobler is showing foresight.

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Your contact

Are you looking for consulting in the area of SAP HCM strategy? Or would you like to learn more about the journey to the cloud? Tobias Mecke is looking forward to hearing from you.

Tobias MeckePhone | E-mail

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