enables organizations to overcome multiple HXM adoption barriers identified by SAPinsiders. When building a business case for adopting HXM strate- gies, organizations using SAP solutions should focus on the potential return on investment (ROI) benefits that can be de- rived. SAPinsider’s research indicates that implementing a cloud-based HXM system with a foundational HR solution like time and attendance management, leads to a positive ROI, as highlighted by 27% of the respondent organizations who re- Insider ported their HXM and SAP S/4HANA strategies outperformed Perspective their peers, suggesting the potential of such an approach. These organizations demonstrate a much higher adoption rate of foundational HR technologies, most notably in time and “No plans to adopt or attendance management (83%) (Figure 4). Time and attendance management is the only HR technol- evaluate HXM as we are ogy to attain over 80% adoption rate, demonstrating the criti- uncertain about cal role it plays in meeting the requirements of deskless SuccessFactors HXM Suite workers, and offering streamlined experiences in line with to- available only in the cloud. day’s workforce expectations. SAP Time and Attendance In Aerospace, we use it Management by WorkForce Software, an SAP Solution Exten- tightly connected to our sion, stands out in this regard. It offers modern workforce management solutions and a proven track record of delivering supply chain and other ROI. The Solution Extension can enhance native SAP applica- areas of our SAP tions, facilitating workforce visibility and promoting better em- implementation. We are not ployee experience and engagement, which respondents allowed (in these times of war, etc.) to connect a identified as the principal drivers of HXM system adoption among respondent organizations. cloud-based solution to our However, despite the availability of such solutions, 36% of ERP solution. Therefore, the respondent organizations identify themselves as ‘laggards’ who are assailed by budget constraints or competing priori- integration won’t be ties. When comparing technology adoption, leaders signifi- streamlined if we move to SuccessFactors locally (our cantly outpaced laggards, especially in key foundational HR global HR SuccessFactors is areas such as time and attendance management (83% vs. stand alone and therefore 43%), learning and development applications (78% vs. 38%), recruitment tools (72% vs. 38%), payroll solutions (72% vs. requires duplicate data 58%), and core HR solutions (72% vs. 38%). entry currently).” And while leading organizations aim to integrate more ad- vanced HR technologies such as HR analytics, intelligent au- – IT MANAGER, EMEA AEROSPACE AND DEFENSE tomation (including AI and RPA), and cloud-based development and extension platforms like SAP BTP, laggards are looking to catch up with an approach focused on implementing founda- tional HR technologies. Regardless of current HR technology adoption maturity, organizations need a strategic roadmap aligned with core business objectives and employees’ evolving needs. A move toward an interconnected and employee-centric model ap- SAPinsider Benchmark Report | HCM and SAP S/4HANA 5