Guide for SAP SuccessFactors

THE COMPREHENSIVE GUIDE FOR UPGRADING ® FROM SAP ERP HCM TO ® SAP SUCCESSFACTORS

Table of contents 01 02 Introduction Key Business Case Factors to Consider page 3 page 4 03 04 Assessing your Finding the Readiness Right Partner page 7 page 9 05 06 Deployment Tips and Tools for the Options Implementation Process page 12 page 15 07 08 User Adoption and Beyond the Change Management Implementation page 20 page 22 09 10 Conclusion Why Rizing for your Migration to the SAP Cloud page 23 page 24 / 2 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Introduction 01 Technology in the human resources space on-premise edition” as a bridge to give has moved rapidly since the 昀椀rst cloud additional time to those customers enterprise solutions were introduced just who are not ready to fully move to after the turn of the millennium. It began SAP SuccessFactors in the mid-term. initially with talent management tools, but now all of what an HR organization needs Whether or not customers migrate from to do can be done in the cloud. Today, on-premise SAP to SuccessFactors now, cloud solutions for HR remove not only the migrating to the cloud is inevitable because infrastructure burdens, but, more importantly, the systems of 20 and 30 years ago simply drive improved processes and continual were not designed to keep up with the innovation. pace of change and innovation in today’s business and consumer-driven market. The cloud is the path to innovation and This does not simply mean that technology ef昀椀ciency in HR and payroll. That is why needs to change – everything needs to companies running SAP ERP HCM all over change starting with how we think about the world are moving to cloud solutions like HR transactions from hire to retire; because SAP SuccessFactors to transform their HR business processes are not simply evolving. and payroll processes—SAP even has a program for this called Upgrade2Success. We are now seeing the tipping point from evolution to an outright reimagination of To ensure maximum return-on-investment what is possible and as a result, businesses (ROI) in moving to the cloud, SAP’s themselves are being completely and totally Upgrade2Success program combines recreated, redesigned, and reconstructed. three key elements that are vital to the Changing your core HR system — a system success of any project: that is arguably at the very center of every single business transaction — is a once in a PEOPLE: People with deep expertise in decade, or perhaps even a once in a lifetime, opportunity. SAP ERP HCM and SAP SuccessFactors. Given customers’ desire for innovation PROCESSES: Best practice approaches to keep pace with today’s HR needs, the to identifying the risks associated with motivation is there to move to the cloud. migrating from heavily customized legacy The good news is many SAP customers programs to new cloud technologies. have already upgraded from on-premise HCM to SAP SuccessFactors Employee TECHNOLOGY: Tools to simplify and Central, so there are many best practices, accelerate the migration. tools, and services provided by SAP and its partners that can ensure the smoothest implementation and best possible result. If you are an SAP on-premise customer, In this comprehensive paper, we will provide it is important to know that SAP is ending insight into the entire process of upgrading mainstream maintenance for SAP ERP to the cloud and SAP SuccessFactors from HCM in 2027. SAP SuccessFactors is the an on-premise HCM environment. We go-forward solution for HR. and the primary will take you through the necessary steps focus of SAP-led innovations in HR. from business case to implementation and ® In 2018 SAP announced an SAP S/4HANA adoption. We will also highlight the useful HCM on-premise solution, “SAP Human tools and services that can make things Capital Management for SAP S/4HANA, easier along the way. / 3 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Key Business Case Factors to Consider 02 Upgrading to the cloud begins with establishing a business case. In this step, organizations walk through each of their HR and payroll processes to drive improved processes and continual innovation. They identify key actions to take and tools to use from the exploratory phase to management of a live solution. This is important in ensuring the move to the cloud is supported by leadership and end-users alike. To achieve executive support for HR transformation, you will have to construct a solid business case to ensure you have the necessary investment. This is done by demonstrating how moving to the cloud will provide ROI and breaking down each area that the transformation will impact. In the table below, we have outlined how SAP SuccessFactors increases ROI over SAP ERP HCM in 13 key areas. How cloud ON-PREMISE CLOUD increases ROI SAP SuccessFactors is delivered with standard HR processes and work昀氀ows are cumbersome functionality for hire-to-retire HR transactions, to build and adapt to changing business needs. including work昀氀ow, alerts, noti昀椀cations, and Work昀氀ow This requires technical expertise. Work昀氀ows, alerts, approvals. HR administrators can create Build & noti昀椀cations, and approvals require separate work昀氀ows; more complex processes require Maintenance con昀椀guration and maintenance. Tracking and technical skills. Line-of-business users can troubleshooting require technical insight. handle the processing end-to-end via clear user interfaces (UI). SAP SuccessFactors is delivered with a fully Department and position structures are visible functional org chart that allows employees to to a manager. Company hierarchy structure search for others in the organization and to Visibility is not realistically functional in a manager or see the reporting structure. Three complete employee’s view without complex technical hierarchies; Reporting Structure, Position programming or add-ons. Structure, and Company Structure are all available. Empowerment of managers to initiate position SAP SuccessFactors Employee Central comes and employee transactions is available via with MSS built into the system. There are no Manager Self-Service (MSS). However, delivery of separate connections to portal or NetWeaver MSS requires the design capabilities and support required. Transactions can be processed Self-Service of numerous technical resources and a variety of in real-time. As a result, what you see in platform connections. Processing of transactions Employee Central is exactly what you get in is not real time. Support, troubleshooting and MSS – removing the need for reconciliation or testing are labor intensive. comparison between two different displays. Continued on next page > / 4 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

< Continued from previous page How cloud ON-PREMISE CLOUD increases ROI Adapting the on-premise environment for SAP SuccessFactors delivers maintenance new and changing business needs – or to take and enhancements in biannual releases that advantage of SAP enhancements – requires are installed on your platform automatically. Agility technical resources to 昀椀rst maintain the system Technical resources may be engaged to at the current level of support packages. This activate and con昀椀gure enhancements; but the process requires multiple resources across IT and core functionality is always at the latest level the business area and spans at least 6-8 weeks. offered by SAP. SAP delivers localization to countless countries. SAP SuccessFactors delivers localization for an ever-growing number of countries. Multi-Country The complexity of con昀椀guring the on-premise Deployment across various countries is less environment for each country and language Con昀椀guration requires technical resources. complex in the cloud model, requiring less time and effort. Training The system is not intuitive, therefore requiring more time and materials to ensure users are Interfaces and work昀氀ows are intuitive, Costs prepared. requiring limited to no training material. Client is required to maintain their own separate Client maintains no landscape. The servers landscape – servers and back-up servers and are maintained by SAP and are available in Server procedures. The hardware and manpower local countries to support security concerns. Infrastructure add costs to the client that are sometimes SAP maintains back-up and is responsible for availability, response time and security not considered. of the servers. SAP SuccessFactors offers extensibility through Partner pre-built add-ons available Extending Customization and modi昀椀cations are possible in the SAP App Center. Some minor additional with ABAP coding. Modi昀椀cations result in customizations may also be made by the the Solution increased maintenance efforts ongoing. HR Administrator. Extensions do not affect the core product and, thus, do not result in increased maintenance complexity. Client must build custom apps using SAP SuccessFactors comes delivered a mobile Going interface readily available out of the box. Users SAP Fiori or other technology and must can download the app from the mobile app create the infrastructure to deliver and Mobile store on android or iOS and have full access to manage mobile capability. the system, including org charts and forms. Requires the client to deploy and implement As simple as activating role-based permissions. Self-Service Portal Work Packages. ESS/MSS requires ESS/MSS functionality is embedded, and no con昀椀guration, as well as technical Scalability additional con昀椀guration required. development for related portal con昀椀guration. Cloud solutions are economically focused on Mainstream maintenance will end in 2027. future development–enabling clients to agilely Keeping the solution will require further adapt to business and technology changes. Building for maintenance and increase costs. If moving The expense of hardware and technical the Future to SAP S/4HANA, client has the option to resources to manage the landscape can be continue on-premise until 2030 with additional redirected to innovation. Cloud models 昀椀t Compatibility Packs. our rapidly changing global environment, enabling organizations to keep pace with the competition forward. Continued on next page > / 5 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

< Continued from previous page How cloud ON-PREMISE CLOUD increases ROI Years of historical data resides within the There’s no loss of on-premise data when Historical on-premise environment and life-cycle moving to cloud with Rizing Lyra, available Data management processes and servers are on the SAP App Center. Rizing Lyra delivers a 3D view of all historical data accessible within required which demand technical resources. a SuccessFactors tile. Inherent within on-premise security are layers The role-based permissions model is the authorizations framework leveraged in of complexity and speci昀椀c skillsets needed cloud HCM and can be maintained by HRIS Security to maintain the software such as SAP Basis administrators directly in the UI. It is intuitive and SAP Security expertise. and easy to maintain. To assess current costs of your on-premise system for comparison with a cloud system, there are things to examine that will not factor in the cloud. Primarily, those are infrastructure costs but others as well. In an on-premise environment, there are server and other hardware component costs, physical infrastructure costs like electricity and cooling, software infrastructure costs, redundant system costs, disaster recovery costs, platform costs, maintenance fees, support and help desk, as well as IT and operational personnel to manage it all. Much of that is eliminated with a cloud subscription service like SAP SuccessFactors because you are passing the infrastructure burden on to the vendor. Those are not the only cost reductions, or potential savers that come with cloud. Innovation is important, and often helps to bring about ef昀椀ciencies that save time and money. The cloud offers a faster route to innovation through more frequent and automatic updates. Part of that innovation is improved analytics and reporting. How much could you save if you better knew how your HR processes were performing? Tools within SAP SuccessFactors, as well as partner-built options such as Rizing Lyra, can provide user-friendly, modern reporting and analytics that dig deep into your HR processes. Finally, employee engagement is central to the modernized user experience and self-service capabilities of cloud HR software. Managers and employees can perform tasks that would have otherwise been relegated as repetitive and menial work for an HR employee. In the cloud, these HR tasks are also delivered in a uni昀椀ed suite, giving companies the ability to leverage pre-built integrations for a single user experience, as well as a single system to maintain. Savings come through more productive HR staffers, and the reduction of hours on things such as entering and 昀椀ling paid time off information. That is just one example of something that is done without HR intervention by the employee or manager in the system. There are many factors that can help you build a strong business case for upgrading to the cloud, the key is identifying which best 昀椀t your organization. There are real savings to be had in a cloud transformation. To achieve those savings, it is best to be prepared for the move. / 6 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Assessing your Readiness 03 Moving your on-premise systems to Assessing your readiness prior the cloud may seem daunting. That initial step of building a business case to your move to the cloud will will help, but even more knowledge is help you ease your business power. Assessing your readiness for transformation project by: Employee Central can give you a path to a successful implementation. There are activities you can undertake ahead • Identifying any signi昀椀cant and of a move to the cloud that will save costly roadblocks. time and avoid pitfalls in the long run. Many of the customer concerns around • Gaining a complete overview moving to Employee Central revolve around of all customizations in having too complicated of an on-premise SAP ERP HCM. system with too many customizations for cloud to be able to support their • Identifying any technical requirements. Integrations that might delay Look at your the project. • Itemizing risks and planning Current System for a mitigation strategy. When properly assessing your readiness, • Providing better insights to the you should be looking at your current Employee Central team entering system, while also checking for signi昀椀cant roadblocks that may come along during the design sessions. your implementation process. Here are some • Better planning, budgeting, important steps to take in assessing your readiness for Employee Central: and estimating all efforts. • First up, and perhaps one of the greatest • Identifying any data quality issues causes of insecurity for customers, or gaps that could potentially hinder is creating a list of SAP ERP HCM customizations. These customizations are the future cloud deployment. often created to align with an established • Breaking down internal cloud process. When moving to HCM in the cloud, it is time to start thinking about if project skillsets and experience those processes can be updated. to plan for the impending cloud project. / 7 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

• In examining your current HCM your team is stuck doing things the old system state, in addition to examining way. Not all existing processes should be processes and forms, you will look at migrated, some should be discarded for new and updated processes that 昀椀t with work昀氀ows—both HR and non-HR. You will also take inventory of any SAP upgraded technology and modern HR SuccessFactors Talent Modules you may demands. already be running, and look at shift Transformation often comes for customers in planning, compensation, and self-service the form of employee self-service. This might capabilities. come as a change for your organization, • Beyond that, you will look at a list of where HR administrators are relied upon things in your SAP ERP HCM system, as to initiate processes. In a self-service well as current interfaces and programs environment, managers and employees on which your HCM process relies. conduct many HR transactions. Addressing For each of these areas, it is important to user adoption should be part of your strategy. consider potential impacts they may have Finally, you may have deployed custom on an Employee Central implementation, programs, Infotypes, and objects in your as well as possible mitigation strategies SAP HCM on-premise system. These custom for that impact. solutions need to be examined early for successful Employee Central adoption. Identifying Roadblocks If some of the functionality addressed in your on-premise customizations will be necessary in your SAP SuccessFactors system, it’s to Success important to know what tools are available Roadblocks to a successful Employee for extensibility in the cloud. For example, Central implementation can be both the SAP Cloud Platform is a differentiator technical and involve cultural and mindset in the HR space for bigger projects, and SAP SuccessFactors also offers user-friendly shifts. If employees are unable to adjust to extensibility options within the solution for the new HCM system, that can impact the smaller additions. project negatively. They need to be ready for the change. These custom solutions also tie into data Change management experts will be key migration and data cleansing. There are costs to keeping your stakeholders in the loop associated with conversions and keeping and ensuring consistent communication historical data. Think about your data early throughout the Employee Central evaluation. and 昀椀gure out your strategy. One option The amount of change management that is for keeping your historical data accessible required is reliant upon your current self- without propping up an old system is Rizing service landscape. We will cover change Lyra—we will expand on historical data options in a later section. management in more detail later in this paper. The goal of implementing a new HCM A good partner will help you 昀椀nd the best system in the cloud should be real HR solutions for extensibility and data migration, transformation. That cannot be done if as well as help alleviate any other roadblocks you may discover. / 8 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Finding the Right Partner 04 Finding the right implementation and The right partner for implementation sustainment partner is crucial to your can be maintained into the sustainment cloud transformation project’s success. phase. A partner’s ability to communicate Care must be taken when selecting your a comprehensive sustainment plan in the partner, as the decision can be just as request for proposal (RFP) stage with 昀氀exible important as the choice of software for support options for organizations should be your business. strongly merited. Partner review sites such as Raven Intel can RFP and Tenders to provide a nice base for 昀椀nding a partner that 昀椀ts your needs, but there is deeper analysis that needs to be done. Find a Partner There are all sorts of partners in the Oftentimes, a company will put out a bid to enterprise technology ecosystem. There tender as a way of evaluating and 昀椀nding an are those that implement a wide range of implementation partner for their software. This is a great way to become educated not competing technologies without speci昀椀c expertise in a single software set. There are only on who is working in the space, but also companies, like Rizing, that are focused solely on the product itself by way of information on SAP SuccessFactors for HCM. There are provided by partners in their responses. others that provide niche services for speci昀椀c However, RFPs and other tenders (RFIs, modules or processes. RFQs) can also be a double-edged sword for In the case of SAP software projects, organizations due to the amount of time and customers should be looking to work with effort that they tend to add to pre-project partners who employ consultants with the cycles, and the risk of choosing partners based on procurement rules rather than on relevant certi昀椀cations needed in the speci昀椀c software and bring a unique set of expertise other criteria that may be important down that is relevant to the project’s focus. Finding the line during software deployment. the partner or combination of partners that In order to make the most effective use of can help you complete your implementation your RFP evaluation, at a minimum, the work and maintain your system requires organization should take into consideration looking at several traits. the following as part of the overall process: Organizations should be seeking to work with a partner with sector speci昀椀c experience Time and Process that are able to articulate the unique HCM processes embedded in unique industries. Does the time it will take to do an RFP cycle For example, in the retail sector, there is a make sense for the business? It is common need for trusted advisors in the areas of for organizations to spend more time employee self-service and the need to tailor doing a lengthy evaluation, only to have it the cloud mobile functionality deployment actually lead to delays in getting a project accordingly. going for a variety of reasons (e.g. budget / 9 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

goes elsewhere, did not like the responses, • Solution Information – Can the partner underestimated the required budget demonstrate a clear understanding of and could not get appropriate 昀椀nancing, what your organizational needs and procurement invalidated chosen partner). objectives are, and clearly describe a In many instances where it is not a pro- solution and path towards attaining them? curement requirement to do an RFP, it may • References – Does the partner have make more sense to just begin with a short speci昀椀c references in good standing list of three to four partners. These could that are relevant to the work you are be consulting 昀椀rms that have worked with attempting to do? your organization before or who have been referred to the business. Having them do a • Project Pro昀椀les – Can the partner short proposal and presentation may often provide resource biographies that could get you what is needed relatively quickly and be available for the project start date avoid a lengthy bid and tender affair. and a guarantee that they will not switch resources? Note: It is unlikely that Information partners will agree to a de昀椀nitive team in a response, but showing the willingness What information does the business need to to try to provide the “A” team and to make an informed partner decision? If your ensure no “bait and switching” of 昀椀nalized organization requires or prefers the RFP resources should be the ask for any route, it will be imperative that the questions organization looking to procure the best you ask in your tender get you as much support possible. relevant information that you need about your potential partner. Recommended areas Costing to inquire about would include some of the following: How can we do an apples-to-apples • Company Overview – General history of comparison of pricing amongst different Not all partners the company, how long they have been RFP bids? This is the constant challenge structure their pricing in business, where they are based, what when doing a tender, as it is possible to get the same, even for services and products they provide, etc. widely different costing in the responses similar scope. • Specializations and Differentiators – that are sent back from partners. What makes this partner unique in their It is therefore important to have a clearly space and separates them from their de昀椀ned scope in a response that can serve competition? as the basis for comparison from one • Bench Strength – How many consultants partner to another. Additionally, while the does the partner have, where are they procurement team may love the price point located globally, and are they direct of the lowest bid, this should be only one employees of the company? factor in the evaluation of a partner selection. Not all partners structure their pricing the • Certi昀椀cations and Credentials – Does the same, even for similar scope. There could partner have the appropriate and speci昀椀c be important differences in intellectual certi昀椀cations to do the job needed? property, resource seniority, on-site versus • Project Experience – Does the partner remote time, project management and minor have relevant and recent project scope variations that could make a large experience that demonstrate a track- difference in bid numbers. Pay attention to record of success? Is this experience the details and be sure to get as transparent analogous to what your company will a breakdown as possible on the partner’s be attempting with your project? pricing model. / 10 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Education and Experience Not every consultant on a project needs the Professional Certi昀椀cation for it to be Make a Good Partner successful. However, it is vital to have individuals with that top-level experience Experience is something that every company and knowledge in key areas. It is about is looking for in an implementation partner. 昀椀nding the right balance: The consultants When it comes to your work, you will doing con昀椀gurations in the background do want individuals that have experience. not necessarily need to be professionally Employees come and go, and they could certi昀椀ed, but it is important for the leads on be taking valuable experience with them. the project to be at that level. Professionally Good partners maintain a consulting certi昀椀ed consultants have seen the staff that has direct project work, and SAP SuccessFactors solution work in a preferably professional SAP SuccessFactors real-world situation, and can better help plan for future developments and anticipate certi昀椀cations. 昀椀xes before they come. It is important to note there are two different 1 types of SAP SuccessFactors certi昀椀cations , Ensuring the and they require vastly different experience and knowledge to acquire: Right Partner Fit In conversations with partners, you should be wary of any that want to use boilerplate SAP SuccessFactors Associate pricing and scope. A good partner takes time to listen, assess your needs and provides Certi昀椀cation a tailored experience that will ensure your The Associate Certi昀椀cation covers the fundamental knowledge for software implementation is the right 昀椀t. SAP SuccessFactors con昀椀gurations You will also bene昀椀t from partners that are and solution implementations. adept at project management, rather than just focusing on technical work. A high touch SAP SuccessFactors Professional and project management-based approach will allow you to consider all functionality and Certi昀椀cation provide turnkey services when your team cannot meet capacity. A high touch partner Professionally certi昀椀ed individuals will feel almost like an extension of your must have real-world experience, with three complete SAP SuccessFactors business because they have taken the time to understand it, which means proper project implementations in the past 36 months where they played the lead role. management and a system that works for your organization. Finally, do not forget about references. A good partner should have them, and you Earning the Professional Certi昀椀cation level should ask for them. This is an HR project of customer satisfaction over the course after all, we certainly would not want to of three implementations requires a deep forget references. knowledge of the product, and it is important to have people like that leading your project. Professionally certi昀椀ed consultants can anticipate the pain points and identify leading practices in an SAP SuccessFactors project because they have experienced them 昀椀rsthand. 1 “What is the difference between SuccessFactors Associate Certi昀椀cation and Professional Certi昀椀cation?,” SAP Training, https://training.sap.com/help-center/faq/faq/what-is-the-difference-between-successfactors- associate-certi昀椀cation-and-professional-certi昀椀cation, (October 2019) / 11 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Deployment Options 05 You may decide on your deployment options before picking your implementation partners, or you may bring the partner along to decide which deployment option works best for you. Organizations take different paths to the cloud. Some decide to go full cloud immediately and replace all on-premise systems. Many, driven by investment constraints, take a more iterative approach. Sure, it would be nice to get all the process and user experience upgrades in the cloud immediately, but it is important to 昀椀nd the deployment option that works best for your organization. We have broken these down into four buckets where customers will fall: Side-by-Side, Core Hybrid, SAP S/4HANA on-premise, and Full Cloud. SAP S/4HANA SIDE-BY-SIDE CORE HYBRID FULL CLOUD ON-PREMISE 1 2 3 4 Talent PA & OM PA & OM PA & OM Analytics Talent Solutions Talent Solutions Payroll Personnel Admin. (PA) Workforce Analytics/ Workforce Analytics/ Talent Solutions & Org. Mgmt. (OM) SAP Analytics Cloud SAP Analytics Cloud Workforce Analytics/ SAP Analytics Cloud From 1508 through Early Adopter program – Productized integrations with SAP CPI (Except for EC Payroll) PRODUCTIZED INTEGRATIONS Time & Attendance Time & Attendance Time & Attendance Payroll Payroll Payroll PA ERP ERP S/4HANA ERP / 12 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

1 Side-by-Side Many SAP ERP HCM customers begin their cloud journey with a Side-by-Side scenario. This is when an organization picks certain cloud modules to supplement on-premise capabilities. Talent modules are most common as add-ons, and that is how many cloud HCM vendors got their start. SAP SuccessFactors offers a best of breed approach, which gives you the ability to choose certain modules to essentially dip your toe in the cloud space. That is not something that all competing vendors offer. Others may require you to purchase the entire suite, including core HR capabilities. 2 Core Hybrid When going with Core Hybrid, companies make the move to upgrade to a core HR system in the cloud. For SuccessFactors customers, that means replacing SAP ERP HCM with Employee Central along with all other necessary modules. What makes this hybrid is that time and attendance and payroll functions are kept on-premise through traditional SAP payroll. 3 SAP S/4HANA On-Premise SAP is offering current users of SAP ERP 6.0 the option to remain on-premise for HCM until 2030 as they migrate to SAP S/4HANA on-premise. This is ideally a relatively simple upgrade that deploys compatibility packs that enable the current on-premise HCM environment to be fully functional with SAP S/4HANA. This option only works for the on-premise version of SAP S/4HANA. SAP is currently completing requirements to enable this on-premise version with an expected release in 2022. This gives those late adopters some extra time to assess readiness for the cloud. In this scenario, much like core hybrid, payroll and time management functionality stays on-premise. 4 Full Cloud Full cloud is exactly as it sounds—all HR and payroll processes are conducted in cloud environments, including payroll with Employee Central Payroll. Here, the customer will have fully upgraded their HR suite, including Employee Central, analytics, and all modules. This is the goal for all journeys to the cloud but the pace in which organizations reach this future state will vary and the most effective partners will be able to recommend the sequence of steps that will mitigate risk for your company. / 13 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

How to Find the Right Deployment Option for You In order to take advantage of the speed, innovation, agility, improved experience, and ROI that the cloud offers, the ultimate goal is to transition to an “all cloud” environment. Agreeing on your businesses priorities and understanding both the upstream and downstream implications, both from a functional and technical point of view is the key to deciding which deployment model is right for you. SAP ERP HCM Time & Attendance Payroll PA & OM Business and Users Core HR satisfied? Yes – Expand No – Replace Need Talent and/or Local HRIS burning / Keep Payroll and Move all to cloud RoW consolidation T&A on-premise 1 2 3 4 Talent Hybrid Side-By-Side Core Hybrid Full Cloud Agree that full cloud is the end game and build out a complete roadmap. TIP Understand the implications, then begin the journey. / 14 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Tips and Tools for the Implementation Process 06 Once you have chosen your partner and Know Your Workbooks selected your deployment preference, there are many things you can do Inside and Out to better prepare for a successful Robust workbooks are imperative, and it is important to know your workbooks. They SAP SuccessFactors implementation. There are tasks that you may not have help you understand your system and make considered before getting started but the right decisions. become readily apparent as you are in Workbooks help review functionality that the middle of a project. Sometimes these is already live. It is important to know that are technical, sometimes they are more thoroughly because you need to know people focused. how that functionality will 昀椀t with the new Likewise, there are actions to take modules coming in. Reviewing workbooks throughout the project that will optimize frequently will ensure you know when consultant advice is needed for modules your implementation. Throughout this section, we will discuss some key actions that you to get along well. should take throughout the upgrade process. De昀椀ne workbook ownership at each phase of the implementation ahead of time. As you Before You Get Started go along you need to bring in teams to do cross-module reviews of workbooks so that integrations are planned appropriately. Have a Plan for Deploying Instances Workbook ownership is critical post-Go You need to be aware of how instances Live, most notably with the scheduled will be deployed in the cloud. For example, SAP SuccessFactors release program. SAP SuccessFactors Employee Central We will dig into managing releases later. comes standard with three instances, while Recruiting and Onboarding come with two. It is important to manage those instances Rizing Blueline can replace because it greatly bene昀椀ts the integration your current management of modules if you can do cross module of con昀椀guration settings con昀椀guration and testing—this will not via spreadsheets with the work if your Employee Central instance is one step ahead. capability to automatically Make a plan ahead of time for how you will generate workbooks. The use the instances provided for development, TIP app allows you to manage testing, and deployment. Engage your all information in a single consultants early and often to determine place during implementation, whether it makes sense to purchase more planning, and execution. instances from SAP. Learn more / 15 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

The More Training the Better Ongoing Strategies Training should build an understanding of Before and During all modules for your implementation team, Implementation so that they are put in the best position to succeed. That training should go beyond Now that you have done your due diligence PowerPoint and be hands-on. Again, cross- in preparing for your implementation, there module training should be happening. are also overarching steps you should Making sure your employees are properly take in implementing SAP SuccessFactors trained is an essential piece of user adoption Employee Central. and change management. Offering a variety of training options that enable your employees to succeed, while also selling Creating Universal De昀椀nitions them on the features and capabilities in the system, will maximize the value of De昀椀ning your organizational structure is important. This includes examining your investment. legal entities, business units, divisions, departments, locations, and cost centers. Planning Ahead for Updates These are important because there is potential for additional layers if needed SAP SuccessFactors updates on a biannual using Metadata Framework (MDF) basis, so it is likely to change in some way functionality during the implementation. in the middle of an implementation. There You should also focus on the design of your is a possibility that the new updates will Role Based Permissions (RBP) and security. impact your system during your project, You want to minimize the permission and you need to have a plan in place for roles for simplicity’s sake and to reduce managing changes. Stay on top of the maintenance. Think holistically about how release calendar, and make sure to be ready each of your permissions will complement to handle any con昀椀guration changes that could be necessary. We will discuss release SAP SuccessFactors functionality. management in further detail later. It is also important to 昀椀gure out what sorts of job descriptions your company uses, and how those positions fall within a hierarchy. This will set you up for easier HR automation in the future. When doing this, and for all Follow the SAP SuccessFactors release HR-related items, make sure to use standard schedule. Pay attention to the release notes naming conventions to reduce translation before the updates go live to avoid having to cost and effort. TIP go back and make unexpected changes. To bring these de昀椀nitions into your system, MDF allows customers to create custom objects and functionality in SAP SuccessFactors Employee Central as required. MDF provides the ability to de昀椀ne objects, 昀椀elds, behavior, and the look and feel of the application through a web- based user interface, without coding, and enables admins to create business rules to implement custom logic. / 16 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Mind the Data That saves time and resources and 昀椀nding a way to streamline con昀椀gurations in a Additionally, always have data migration consumer-grade interface like Blueline on your mind. There are tools that assist will only serve to make the project more with this, which we will detail, but having successful. skilled HRIS resources in place to support the migration effort will lead to greater success. Optimizing a If you do not have this internally, seek out that role from your implementation partner. Global Project Of course, when you are looking at how data migrates, you also need to be aware of which If you are implementing SAP SuccessFactors systems will be integrated with Employee in multiple countries, there are often unique things to consider in order to make the Central. Are these the same as your SAP ERP on-premise system or are they different? process go smoothly. When organizations What work will need to be done to ensure implement SAP SuccessFactors Employee these integration needs are met? This is Central globally, they are often replacing disparate systems and varying HR processes. best to know early. The goal of a global implementation Finally, do not skimp on reporting. You want should be to unify technology and process to make sure your reporting requirements are wherever possible, allowing a company’s HR globalized before working with your partner department to operate more smoothly as it on con昀椀guration work. Better reporting will reaches internationally. lead to greater insight into the system and more positive outcomes. As Employee Central customers implement their systems in different countries, there are Take a Proven Practice Approach some important things to keep in mind that will ultimately create a more ef昀椀cient project. The goal of a global A lot of what we are discussing here— Here are important tips to consider: implementation should be to unify technology de昀椀ning roles, keeping data migration at the top of your list—are proven and Design a Global Template and process wherever best practices that have been discovered possible, allowing through hundreds of Employee Central Every country will have different laws around a company’s HR time management, bene昀椀ts and payroll, for department to operate implementations. It is going to bene昀椀t your own project greatly to factor in what example. Countries will also require different more smoothly as it has worked for others before—it will save translations to different languages. That reaches internationally. time and allow you to focus more on your does not mean every Employee Central company’s unique needs. deployment in a new country has to be done from the ground up. There are ways to automate those best practices with partner-built products It is important to build a global template of items that will work across all countries— such as Rizing Blueline. With Blueline, business processes, con昀椀gurations, naming you are provided a proven implementation process that is delivered through a user- conventions, training materials, global friendly interface. There are also practice RICEF (Reports, Interfaces, Conversions, Enhancements, Forms) design decisions and templates for testing out industry-speci昀椀c more. This template will give your company con昀椀gurations, as well as automatically generated XML when you do make those a head start whenever it needs to deploy in a new country. con昀椀gurations. Make your project easier by taking into Meet with stakeholders from each country account the experience of those that have before the global project to 昀椀gure out what been there before. It is possible that someone can be taken globally and what needs else has done something that will work for local 昀氀avor. your own process and take you most of the way to the 昀椀nish line without doing your own discovery phase. / 17 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Harmonize Foundation Objects Establishing a Smooth Globally On-Premise to Cloud Before implementing Employee Central, there are organizational steps that can be taken Data Migration to ensure an easier project. Harmonizing As we touched on above, data migration is organizational structures, pay structures, and something you should always have at the top job structures company-wide are helpful from of your mind. In moving from SAP ERP HCM an employee data perspective—these are the on-premise to SuccessFactors Employee foundational objects of the system. Central, there are likely to be con昀椀gurations Organizational structures are most and data that you’d want to carry over from important—they need to be aligned from one system to another. The good news is a business unit perspective. Job structures that with the Employee Central subscription, are also a good thing to have harmonized, SAP offers a tool that helps with that data it will make it easier down the road from a transition called Infoporter. recruitment perspective. Pay structures are Infoporter offers an easier migration path nice to globalize, but we often see customers from SAP ERP HCM to Employee Central that have necessary differences across through pre-built integrations that can locations. be enabled via con昀椀guration without development effort. This helps expedite Create Standard Approvals your data migration and replication process. and Work昀氀ows Take employee data replications, for example. When migrating, you will replicate With approvals and work昀氀ows, it is best to approach them with the 90 percent rule. an employee from Employee Central, and in doing so the ERP may generate a That means the global template for approvals will take your implementation 90 percent of new personnel number, even though that employee already exists. The issue then the way there, leaving the 昀椀nal 10 percent becomes that the employee’s master data is for local speci昀椀cs. The same can be done for many HR processes and transactions. then replicated to the new personnel number. With Infoporter, this issue will be resolved Build Strong Central Governance because it ensures that existing personnel numbers are reused during replication It is vital that the governance of the global because employee key mapping tables are project itself is very tight, no matter where updated throughout the migration. the implementation is occurring. All key Any good SAP ERP HCM to Employee Central stakeholders need to be aligned with the migration will use Infoporter. Make sure that idea of a global template and you need to your project team and partners are aware have a strong process in place to protect of it, because it will save plenty of time and the global template. ease the challenge of data migration. For example, it is a good idea to have a design decision team that reviews all design decisions to ensure that requirements coming from different countries are met with the global template in mind as much as possible. Effective governance will tie all the other work together in harmonizing a global implementation. Utilizing all these steps will create a more ef昀椀cient rollout for your global organization. / 18 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Archiving Historical HR Information Moving Payroll Data to the Cloud You may not need all the data in your Quickly and Accurately on-premise system to move to the cloud Perhaps the most important set of data system. However, there is the possibility when it comes to employee happiness is that you will need to have that information payroll data. Nobody wants to mess with a later. It may come in handy for analysis payroll system that works. Employees that do later, or you may need it for regulatory not receive their paychecks accurately and and compliance reasons. on-time are much more likely to look for a Some companies have propped up an new job—and who could blame them? on-premise instance—paying for its That means data replication is essential management and maintenance—for the sole when moving from SAP on-premise payroll purpose of ensuring that historical data is to Employee Central Payroll in the cloud. 49% available should the need for it arise. This The data replication itself plays a major role may be necessary in many situations, but in the length and cost of moving from one it can also be a costly method for keeping system to another. information around to use later. Tools from SAP partners can help automate Employees will start a There is an alternative. Rizing Lyra offers the process of payroll data replication from on- new job search after data archiving functionality that allows your premise to the Employee Central Payroll in the company to keep its historical data without cloud. These are offered by consultancies such * maintaining a license for an instance that your as SpinifexIT and TIK. Your implementation just 2 payroll errors employees will not be using. The data can partners will be able to 昀椀nd the solution that then be accessed and analyzed with Lyra’s works best for your organization. Automating user-friendly reporting and analytics tools. this process can save time, money, and So, if keeping historical data is necessary provide an accurate result. for your organization, know that there are options to keep it around without migrating it directly into your new SAP SuccessFactors system. Rizing Lyra can help accelerate your move to the cloud by allowing you to transfer legacy data and decommission legacy systems. Lyra also provides TIP robust data reporting and data analytics that combine your previous core HRIS history with new and ongoing information. Learn more * The Workforce Institute at Kronos Incorporated. / 19 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

User Adoption and Change Management 07 We have talked about many of the and culture. However, there are some general guidelines to follow for effective technical and con昀椀guration aspects of an implementation but there is one truth change management that involve the stages that remains: The greatest system in of formulating, planning, implementing, the world is not worth anything if it is managing, and sustaining the change. not adopted by employees. That is why To formulate the change, it partially focusing on user adoption and change encompasses what we discussed in building management within your project is a business case and assessing readiness. essential. Users must be sold on the new You need to identify and clarify the need for features and functionality and must be ready for the change those may bring change, and you need to de昀椀ne the scope of the change. These are important steps to their daily work. in order to kick off a successful change management program within your overall Implementing Change project. Management and Planning is where you will de昀椀ne your change management approach, including User Adoption your levels of stakeholder engagement and the transition to the new software and Change Management is the process, tools, integration with business operations. Then and techniques used to manage the people you move on to the implementation phases, side of change and is all about avoiding which is where those stakeholders and the surprises for your stakeholders. User adoption project team deliver the project outputs. and change management go hand-in-hand, The process of change management does and you will 昀椀nd some of the processes required to do both well can be similar. not stop with the implementation of the software. It continues through measuring Successful change management ultimately adoption rates, change outcomes, and means that a project is more likely to meet change bene昀椀ts. The change management objectives, stay on schedule, and stay on plan should be adjusted wherever these budget. With effective change management, measurements fall short. This begins your business will be at a higher level the ongoing process of sustaining the of readiness for the new software, your change through ongoing communication, stakeholders will be more satis昀椀ed, your consultation and stakeholder representation. leaders and employees will be more engaged in the process, and you will have more Setting up a good change management commitment to the change overall. All that program will make the process of user leads to greater end-user adoption. adoption much easier. Enabling user adoption can be done by excelling at The approach you take for change three key factors: Communication, management will vary by your organization’s Super Users, and Training Materials. individual needs such as structure, history, / 20 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Communication Training Materials Good communication that drives A blended learning approach is user adoption begins before the recommended to ensure all employees feel SAP SuccessFactors subscription is comfortable. This can include in-tool videos, even purchased. presentation decks, in-person training, quick Employees want to know how the change user guides, and more. will ultimately help them. Show them that Training should also be done on a rolling self-service does not mean off-loading tasks basis—your implementation is likely to be an from HR to the managers and employees, agile one, so your training should be as well. but how it becomes easier and faster to do Introduce new aspects of the system at the simple HR tasks on their own, rather than pace that you are implementing them, to give waiting for HR to help them. users a chance to absorb what is new. Once It is also about building an argument about the users are in the system, you should be how the new system impacts employees soliciting feedback and always looking for positively long-term. It enables them to ways to improve software and process. better track their performance and goals, In both good change management and The right understand how they are on track to their good user adoption strategies, active and communication to the promotion, and so on. visible executive sponsorship and frequent right stakeholder via These communications shouldn’t just come communication is important. These will get the most impactful from HR. Oftentimes it is more impactful to employees engaged in the process—as will media. have key executives and representatives providing a structure to change management and user adoption processes. in the organization push the bene昀椀ts of the change. Integrating the technical and people sides of your implementation by considering Super Users how each technical change impacts each employee persona is necessary to deliver Select key employees from each department the most successful implementation. or function to become experts on the system. They can be leveraged as liaisons between the project team and employees, and to provide mentorship and support. Make sure your training Consider this part of building long-term program is evergreen adoption through educated users. so any user, new or TIP experienced, can go back to it later. / 21 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Beyond the Implementation 08 After your SAP SuccessFactors CALENDARING system goes live, you will have Here is where you will align your release implemented many new and improved management to the biannual release functions and processes. However, as calendar—from product roadmap updates 1 SAP SuccessFactors is a cloud system, to the release in production. Along the way it is updated frequently—twice per year you will plan for when release summaries, starting in 2020. That means there are release details and webinars, and the plenty of innovative features that will preview instance are available. come along, and you want to have a plan in place to be ready for those. That plan CONFLICT PREVENTION is what we call Release Management. Establishing roles and responsibilities, particularly with multiple modules receiving 2 Release Management updates, will be vital to the long-term success of the release management program. When you have an on-premise system, releases are once per year at most, and many TRAINING organizations typically would not even update This is self-explanatory. Users need to it that often. Keeping up to date with the latest be trained on updates that may impact on-premise releases can be a major technical 3 task, along with the change management that their job processes. User education is an Your cloud system will comes with the refreshed system. essential piece. be most successful if you manage, prioritize, In the cloud, because you are not managing and prepare for the hardware, those upgrades arrive auto- MINIMIZING UNINTENDED IMPACT releases. By keeping matically. That does not mean they show up It is important to document your systems, beyond the generalized system documen- your instances current, suddenly in the system—most SAP Success- you will be getting Factors updates will give an opt-in option. tation provided by SAP SuccessFactors. the most out of your You should be keeping track of con昀椀gura- tion workbooks, administrator and support It is bene昀椀cial to opt-in to receive 4 SAP SuccessFactors the latest your software has to offer. guides, system and program change system. histories, and governance team meeting SAP SuccessFactors is now on a biannual minutes. Rizing Blueline is an option for release schedule for all modules, except automating the tracking of changes made mobile and recruiting, which are monthly. to the system as well as administering That means you always have the opportunity to have the most up-to-date HR technology custom con昀椀gurations. available. There’s no reason to be intimidated by the PARTNER frequency of updates. Instead, use the time This is where you work with your stakeholders to validate that the updates you must set up a process. A good release 5 are meeting business requirements, capture management approach includes 昀椀ve phases: user feedback, and overall measure the Calendaring, Con昀氀ict Prevention, Training, success of each release. Minimizing Impact, and Partner. / 22 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Conclusion 09 Employees remain the most valuable It is a big decision to make the change from asset at any company. Your HR system on-premise to the cloud for your HR software, is an important way to connect with but the reality is all companies will make prospective employees, hire and onboard that move eventually. Making this upgrade new employees, and measure the success now will therefore set you apart from your of your current employees. Having a system competitors and allow your employees to seize that drives better engagement with HR, opportunities in innovation, customer service, while also reducing the impact on IT and and collaboration for many years to come. HR professionals, is something that can be To help you on that journey, there exists a achieved with an upgrade to the cloud. robust SAP SuccessFactors ecosystem with The transformation is about more than new a broad range of implementation skillsets, software. It is a transformation around how solutions, and methodologies to help ensure we live our lives and meeting the expectation the transformation is a successful one with the to have that same level of connection at highest level of value to your organization. work. Putting the employee at center of Building that business case for cloud adoption everything enables you to build the processes and SAP SuccessFactors is becoming easier that increase happiness, and in turn increase and easier. Now, the important piece will be retention and make your company one that ensuring you have the right plan in place for is a more attractive place to work. implementation and ongoing management. There are the same increasing expectations With this guide, we are con昀椀dent you for a consumer-grade experience in all parts as an SAP ERP HCM customer have the of your organization, but your HR system foundation for a successful HR upgrade to should be a leader in that charge. Employee- SAP SuccessFactors in the cloud. centricity can go beyond attracting and retaining the best talent, it is also about attracting and retaining customers. The two go hand-in-hand, but it starts with your human capital. This may be a new way of thinking for your organization, but that means you are writing a new chapter in your company’s history. You are helping employees become more intelligent and empowered. With the wealth of data and analysis tools available in the cloud, you are giving HR the ability to predict with accuracy and react with speed. / 23 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

Why Rizing for your Migration to the SAP Cloud 10 Rizing has a successful track-record of helping SAP HCM on-premise clients create a clear business case for their move from SAP ERP HCM to SAP SuccessFactors Employee Central. We help customers achieve increased ROI with cloud by maximizing the unique bene昀椀ts of cloud. Our deep knowledge of SAP ERP on-premise is a key differentiator in helping clients adapt their current processes to SAP SuccessFactors and realize the tangible value of moving to 1 the cloud. We speak HR and we know SAP. Our consultants are experts in human resources and payroll management – and are professionally certi昀椀ed in SAP SuccessFactors. We can 2 translate from SAP on-premise speak to cloud and help paint the picture of the lower total cost of ownership (TCO), combined with user adoption of a consumer-grade solution. We can help design and implement an approach that aligns with your business objectives, maximizes your software investment, and enables you to move to the cloud with con昀椀dence 3 and success. Clients will bene昀椀t from the most experienced and tenured SAP We have delivered professionally certi昀椀ed consultants in the industry. 25% of all global Employee Central implementations, the most of any SAP SuccessFactors partner in the world. rizing.com | [email protected] © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved. This document is provided for information purposes only, and the contents are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or 昀椀tness for a particular purpose. We speci昀椀cally disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Rizing, Lyra, Blueline, and other Rizing products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Rizing LLC or a Rizing af昀椀liate company in the United States and other countries. SAP SuccessFactors, SAP S/4HANA is/are the trademark(s) or registered trademark(s) of SAP SE in Germany and in several other countries. All other product and service names mentioned are the trademarks of their respective companies.