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      SAP HCM for SAP S/4HANA or SAP SuccessFactors?

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      Many companies with an on-premise installation for SAP HCM are faced with the question of what migration scenarios are available and how to approach them in the most effective way. This blog serves to provide some guidance on how to approach and evaluate these scenarios.

      To continue using on-premise functionalities, SAP offers various solution scenarios:

      • SAP HCM ECC currently available until 2030
      • SAP HCM embedded in S/4 HANA currently available until 2025
      • SAP HCM for S/4HANA from Q3 2022 until probably 2040

      While the first two scenarios represent transitional technologies in the sense of an overall HCM strategy, the fundamental direction is determined by answering questions surrounding: on-premise retention, a move to the cloud, and desired operating models (operations). Regarding the path to cloud, the cloud solution SAP SuccessFactors offers an alternative from SAP. This available solution is SAP's strategic platform solution for HCM.

      Regardless of the technical challenges, such as integration, and interfaces and technologies used, companies must first ask themselves the following key questions before deciding on one or the other solution option: which modules or components are covered by each solution and in what form? How many customer-specific enhancements are available and how relevant are they? How do I want to operate and run my HCM processes and the systems that support them in the future? The scope of services of the two SAP solutions for the HR core processes does not differ significantly.

      However, there are two differences to be noted:

      • The core components, Payroll and Time Management, will also be based on the proven scope of services and flexible functions in SAP HCM for S/4HANA. This indicates that the proven solutions will continue to be available for customers. The corresponding solution in the context of SAP SuccessFactors will not (be able to) map this - based on a very tight integration with the master data component SAP Employee Central and the necessary standardization of cloud applications.

      • The integration of modern master data management with extensive process support for recruiting, talent management, collaboration and employee support in a fully user-focused interface is what SAP will offer and develop in SAP SuccessFactors today and in the future. This also makes these scalable solutions interesting for "lateral entrants". In return, the Talent Suite of SAP HCM for S/4HANA offers investment protection and continuous further development to existing customers in particular.

      These differences show that the decision on the basic orientation is not a "yes/no" question, but rather must be answered in a more differentiated manner. In addition to these purely functional questions, another aspect is the operating mode (operations) already mentioned with the following components:

      1. Provision of the solution (hosting)

      2. Maintenance and further development of the solution (application management)

      3. Operation of the solution (business process management)

      This mode of operation has a direct impact on future costs and necessary resources. In a standardized cloud solution, components a) and b) will largely pass to the cloud provider. Integration and interface issues usually remain.

      If the above-mentioned "yes/no question" is now answered with "as well as", the so-called hybrid scenarios become interesting. Here, current and future solutions from both worlds are combined and, if necessary, transferred in steps to a target scenario. Hybrid models should be considered as an alternative solution.

      In order to be able to answer the question concerning the changeover strategy, a complete inventory of precisely those functionalities, operating models and plans for digitization and automation is urgently required. Which solution options are considered and which migration path is ultimately taken depends on the company's situation, goals, and needs. Such an HCM roadmap must be individually tailored to each company, as there is no universally applicable solution recommendation for a course of action.

      However, the fact that a switch to a HANA database is inevitable for the use of future on-premise solutions is undisputed - regardless of whether a transitional solution or a long-term solution is preferred. Strategic decisions must take this into account. Sooner or later, consideration should be given to using the SAP SuccessFactors cloud solution.

      Stability and innovation with Natuvion's SAP HCM team.

      Whether on-premise, cloud, or hybrid system landscapes - in the area of SAP Human Capital Management/SAP Human Resources, the team of experts delivers innovative services for the various fields encompassing human resources management. In addition to specialist consulting and operational support services for personnel administration, payroll and travel expense accounting, and time management, Natuvion's range of services also includes the topics of security, authorizations and data protection, migration and transformation, as well as the topic of test data management and depersonalization. The team provides efficient support in the area of integration and operation of on-premise models to ensure complete transformation from both a functional and system operation perspective.

      The services at a glance:

      • Support for the transformation strategy - HCM Roadmap
      • SAP SuccessFactors Migration (SAP HCM & Non-SAP)
      • SAP HCM Merge & Separation (Extraction & Carve Out)
      • SAP HCM Migration (SAP & Non-SAP)
      • SAP HCM Data Cleansing & Re-Numbering
      • SAP HCM Implementation
      • SAP HCM Application Maintenance
      • SAP HCM Data Protection & Compliance

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