1 Delivering First Class Services

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Delivering first class employee services using SAP HCM

Steffen Lichtenberger SAP AG February 8th, 2011
2010 SAP AG. All rights reserved. / Page 1
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SAP HCM
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Integrated platform, comprehensive HCM capabilities

Performance Management Succession Management Competency Management Compensation Management Recruiting Onboarding
Recruiting Performance and Succession Management
Classroom Training E-Learning

Learning
Talent Management
Employee Data Organizational Data Competency Data
Global HR and Payroll Employee Administration Organizational Management Global Employee Management Benefits Management Payroll and Legal Reporting
Scheduling and Deployment Time and Attendance Shift/Roster Planning Scheduling Optimization
Planning and Analytics
HCM Service Delivery
Workforce Analytics and Measurement Workforce Planning
Manager Portal Employee Portal Employee Interaction Center SAP Interactive Forms by Adobe Duet
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HR operational efficiency
Standardizing All Core HR Processes HR Process Efficiency and Compliance
Employee Administration
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Automation of paperintensive and timeconsuming processes Standard processes and workflows
HCM Processes & Forms
Organizational Management
Regulatory support for 48 countries
Payroll and Legal Reporting
Global Employee Management
Your Organization
Time & Attendance Benefits Management
A typical 10,000-employee company handles over one million employee-related transactions annually, each costing 1050 U.S. dollars.
SAP Benchmarking Program May 2009
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Core HR
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The Foundation for All HR Processes
Time & Attendance

Planning, managing & evaluating working times Centralized or decentralized Self-service capabilities Leave data Employee deployment
Master data Employee transfers Status change
Benefits Management
Benefits administration Self-service capabilities
Org structures Reporting lines Planning & simulation
Global employment
International transfers & assignments Global reporting
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Master Data
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Allowances Working times Absences
Address/ Personal data

Localized information
Tax and Social Security information
Salary information
Work center Cost center Position
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SAP Employee File Management by Open Text

overview
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SAP Employee File Management by Open Text is the strategic SAP solution for personnel digital files Key benefits of the EFM solution are:
complete management of all employee documents Employee documents Talent related documents Applicant documents immediate availability of digital personnel files to all users faster and more efficient work in HR Departments less time for filling and searching no copying and distribution of paper files less storage space needed complete and seamless integration into SAP HCM complementing our HR solution offering
SAPSAP AG. All rights reserved. / Page 6 2010 2010 / Page 6
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Basic Structures Within SAP Data Model
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Enterprise Structure Personnel Structure

Externals Active Retirees
Employee Group
TFC
Client
United States
Canada
Mexico
Company Code
Trainee
Non-Exempt
Exempt
Employee Subgroup
Los Angeles
New York
San Francisco
Personnel Area
Corporate
Production
Personnel Subarea
Organizational Structure
Executive Board Org. Units Financials HR Manufacturing
Person
Jobs
Manager
Supervisor.
Director
Positions
Mgr of HR
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Nakisa OrgChart
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Flash-Based OrgChart
OrgChart Printing Wizard * Sample product images. Subject to changes.
OrgChart Easy-to-Use Interface & Advanced Printing

OrgChart allows clear visibility into organizational structures, roles, skills and responsibilities for effective business and social communication and collaboration.
The new user interface makes interaction with OrgChart simpler and more intuitive for all end-users. It provides a Web 2.0 style interaction with improved flow and consistency. Flexible, advanced OrgChart printing allows improved readability of org charts in print format. New features include: tile printing, fit to page, and customized headers & footers where users can add custom images and signatures.
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Efficiency in HR Operations
Achieved with SAP HCM Service Delivery
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Duet and Atlantic
SAP Interactive Forms software by Adobe
Portal / SelfServices
Mobile Kiosks solutions Wincor Nixdorf
Shared Service Center
Widgets
Access channel
Employees Managers Applicants Retirees Remote HR
Direct Request Request Approve Approve Complete HCM data
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Employee Self-Service Personal Information

Navigation Start Page
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HCM Service Delivery

Process and Forms: Automation Across Multiple Roles
Services initiated by any user: manager, employee, de-central HR
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Choose the service
Choose the employee Choose the process Enter the data
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Self Services through a Kiosk
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Extend Self-Services to ALL Employees
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Kiosk Hardware
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Complete Security Around Personal Information

Key Benefits
User-friendly navigation via touch screen or trackball Integrated thermal printer Self-explanatory user guidance Retract function preserves confidentiality of forgotten printouts Documents left in the system are blackened Systems feature vandalism protection and are dust and dirt resistant Secure dual-factor authentication (card & password) Many configurable security options
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ESS Value @ SAP
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Leave Request:
130,000 p.a.
(based on 15,000 employees with 5,000 leave requests per month)
Social Benefits Options:
130,000 p.a.
(e.g. 1,100 elections per month)
Annual. Stock Award Program / Saving for Stock Program for Subsidized Shares :
(Usage: 12,000 / 2,000 times per year)
75,000 p.a.
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ESS Value @ SAP: Payslip Online
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SAP introduced the ESS for Payslip Online in 2002 and achieved a cost reduction (based on 12000 employees) of 120,000.
100.000 10.000 10.000
Stamps Paper and Printing Personnel costs
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Shared Services The Basic Idea
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Shared Services is a service delivery model that enables organizations to apply economic principles of demand and supply to internal business processes Execution excellence of global, seamless, standardized processes Customer perception of service quality Benchmarking and continuous improvement Consistent messaging for policies and inquiries Increased data accuracy, integrity, and reliability Cost reduction through process efficiencies and economies of scale Adapt more flexibly to growth and acquisitions
Relieve your business from its administrative burden so it can focus on its strategic mandate
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Shared Services
A Definition
System & Processes
Financial Human Resources Procurement Call Center
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Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency
Decentralized
Standardized
Centralized
Services funnelled to existing agency or department No service level agreements, no performance targets Solely cost focus, financial ROI
Shared Services
Onsite, semi-autonomous provider to source services Accountable to customer Performance monitored against defined SLAs/MOUs and targets Service excellence focus, financial, social and political ROI Governance/Ownership
BPO/ Outsourcing
Offsite Access to commercial sector capabilities Cost reduction is primary motivator Profit center for provider Cost and effort to manage relationship with provider Potential political impact
Strengthen enterprise Run agencies oversight autonomously Same, but Different, separate disconnected processes and systems processes and Different IT and systems functional staff
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Value Driver for Shared Services

Requirements of C-Level HR Executives
Improve cost-income ratio
Decrease SG&A costs: Vendor costs Labor costs System costs Facility costs
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Enable regulatory compliance

Increased data accuracy and reliability Improve governance model Adopt more quickly to changing regulatory requirements Better risk management
Flexibility for growth and acquisitions

Focus on core competencies Reduce share of administrative work Rapid post-merger integration
CHRO/VP HR
Enable global simplification
Pool-process know how Drive global standardization and cross-border delivery Consistent messaging for policies and inquiries Increase operational agility
Shared Services value drivers

On-shore Near-shore Off-shore Functional Geographical Organizational
Improve customer satisfaction

Improve process quality Perform benchmarking and continuous improvement Fulfillment of SLA Perform customer surveys Easy-to-use selfservices
Scope Labor Mix Processes and IT Harmonization

Standardization Automation Self-services
Depth of integration
Make (shared, non-shared) Buy (Business Process Outsourcing)
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The SAP Shared Service Framework for HR
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Communication front end between Service Center and client

Inbound and outbound communication with clients of the service center are improved by tight integration between communication front-end and business applications Self-Services help enable process constituents
Shared Services Process Management
Shared Services Framework

Product Catalogue; Multifunctional back-end capability; IT-Architecture Portal Solutions; additional Self Services; Processes and Forms; SLA Cockpit; track performance and enable compliant operations
Process facilitation:
RealEstate / Facility
F&A
HR
IT
Procurement
Data from several client organizations processed at the Shared Service Center Logical aggregation of information as applicable Data exchange with back ends
Enablers Enablers Enablers
Governance
Manage delivery against defined KPIs
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Employee Authentication Example

Shared Service Center Can Inform the Employee in a Secure Way
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Employee
Is my overtime correctly calculated for my salary statement ?
Employee
Employee creates authentication data in ESS
Employee calls
Agent receives phone call
Employee has a query that needs employee authentication
Agent authenticates the employee, creates a service request, completes query and service request
Communication Platform Shared Service Framework
System provides authentication data (Infotype 0816)
SAP ERP Human Capital Management Whats the added value?

Agent is able to authenticate the employee with the security questions by checking the given answers Agent is able to answer the query on the salary statement directly in the first call Service costs are reduced due to short processing time - Service transparency and quality is ensured TCO is reduced not expensive integration projects needed/one vendor process support
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Shared Services Powered by SAP

Benchmark Data Proves Significant Cost Savings
Our Customers have Achieved Significant Benefits using Our Solutions
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Tangible Benefits* Operating cost Accounts Payable Accounts Receivable Budgeting & forecasting Cash management Collections management Credit management Customer billing Fixed asset management General Ledger and Finance Closing Internal Auditing Regulatory and compliance Risk management Tax accounting and reporting Treasury Reduced DSO - Working Capital Cost Increased DPO - Working Capital Cost
% impact
Tangible Benefits* Operating Cost Payroll HR Cost per Employee Improved recruitment costs Improved process cost by Employee Self-Service
% impact 25 40% 10-30% 20-30% 10-15% 14%
Tangible Benefits* Operating Cost Reduced Maverick Indirect Spend Staff efficiency
% impact
20-50% 20-50% 50-80% 50-70% 50-65% 25-35% 40-70% 20-35% 45-75% 50-70% 40-60% 40-60% 5-10% 35-55% 5-25% 5-25%
3-5% 5-10%
Overall Cost Saving Potential

Function* Finance Human Resources Procurement IT Saving to peers 49-61% 16-49% 30-49% 8-39%
Tangible Benefits* Operating cost Increase office space efficiency
% impact
20-30%
Tangible Benefits* Operating Cost Reduced Integration cost Hardware & Operations Software Maintenance and implementation
% impact
15-20% 20-50% 20-70%
Several Sources: e.g. ASUG benchmark data; Hackett Group

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HCM Globalization with Localization
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SAP delivers HCM processes for 48 countries based on Globalization with Localization
Including payroll, legal reporting, benefits, and time management Global processes for worldwide standardization of company business processes Local best practices and legal compliance A single database instance for multiple countries Local look and feel Languages (over 30)
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HCM Global Payroll

Country versions provided by SAP (48)
Argentina Australia Austria Belgium Brazil Bulgaria Canada China Croatia Cyprus Czech Republic Colombia Finland France Germany Greece (planned) Hong Kong Hungary India Indonesia Ireland Italy Japan Malaysia Mexico Netherlands New Zealand Norway Philippines Poland Portugal Russia (SAP ERP 6.0) Slovakia Slovenia
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Summary Today: SAP and Partner Country Versions

Country versions provided by partner solutions (28)
Angola (Arinso) Bolivia (Arinso) Botswana (EPI-USE) Cameroon (Arinso) Chad (Arinso) Denmark (KMD) Ecuador (Arinso) Guernsey / Channel Islands (EPI-USE) Iceland (Applicon) Isle of Man (EPI-USE)
Israel (Hilan, Malam)

Jersey (EPI-USE) Kenya (EPI-USE) Luxembourg (Arinso) Mauritius (EPI-USE) Morocco (Arinso) Mozambique (EPI-USE) Namibia (EPI-USE) Nigeria (Arinso, EPI-USE) Peru (BCTS) Romania (Integrator) Rwanda (EPI-USE) Serbia (EPI-USE) Tanzania (EPI-USE) Uganda (EPI-USE) United Arab Emirates(EPIUSE) Uruguay (Conex, Soluziona) Vietnam (EPI-USE) Zimbabwe (EPI-USE) .
Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand
Turkey Ukraine United Kingdom United States (including Puerto Rico) Venezuela Chile (EHP 5)
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Globalization/Localization
Summary
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Example: Singapore
Key Functionalities Supports multiple languages, currencies, time zones Local best practices / legal compliance for 49 countries Delivery of legal changes Consolidated reporting One source of global data integrated in other business processes
Business Benefits True global business insight Ease of use Delivery of information in native language Compliance with country-specific requirements, both legal and cultural Single instance for multiple countries - lower cost of ownership
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Experts Agree . . . SAP Is #1 in HCM
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# 1 in HCM according to AMR, Forrester, Gartner, and IDC Customers in 110 countries around the world Interlocking product strategy and organic growth
"SAPs leadership position stems from its ability to offer not just core HR products for personnel record keeping and employee benefits, but also a slew of complementary services and analytics technologies that enable organizations to effectively hire and retain, measure, and reward the performance of their key employees while boosting their productivity. IDC, December 2006
Worldwide HCM Applications 2005 Vendor Shares: Top Vendors in Core HR; eRecruiting; Incentive, Performance, and Workforce Management; SaaS; and Large, Midsize, and Small Customer Segments, IDC Doc # 204424
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Thank you!
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1 Delivering First Class Services

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PD

Delivering first class employee services using SAP HCM

Integrated platform, comprehensive HCM capabilities

Classroom Training E-Learning

Planning and Analytics

HCM Service Delivery

Workforce Analytics and Measurement Workforce Planning

2010 SAP AG. All rights reserved. / Page 2

Automation of paperintensive and timeconsuming processes Standard processes and workflows

HCM Processes & Forms

Regulatory support for 48 countries

Payroll and Legal Reporting

Global Employee Management

2010 SAP AG. All rights reserved. / Page 3

The Foundation for All HR Processes

Time & Attendance

Allowances Working times Absences

Address/ Personal data

Tax and Social Security information

Work center Cost center Position

2010 SAP AG. All rights reserved. / Page 5

SAP Employee File Management by Open Text

Enterprise Structure Personnel Structure

2010 SAP AG. All rights reserved. / Page 7

OrgChart Printing Wizard * Sample product images. Subject to changes.

OrgChart Easy-to-Use Interface & Advanced Printing

2010 SAP AG. All rights reserved. / Page 8

Duet and Atlantic

SAP Interactive Forms software by Adobe

Mobile Kiosks solutions Wincor Nixdorf

Shared Service Center

Employees Managers Applicants Retirees Remote HR

Direct Request Request Approve Approve Complete HCM data

2010 SAP AG. All rights reserved. / Page 9

Employee Self-Service Personal Information

2010 SAP AG. All rights reserved. / Page 10

HCM Service Delivery

Choose the service

Choose the employee Choose the process Enter the data

2010 SAP AG. All rights reserved. / Page 11

2010 SAP AG. All rights reserved. / Page 12

Self Services through a Kiosk

Extend Self-Services to ALL Employees

2010 SAP AG. All rights reserved. / Page 13

Complete Security Around Personal Information

2010 SAP AG. All rights reserved. / Page 14

ESS Value @ SAP

(based on 15,000 employees with 5,000 leave requests per month)

Social Benefits Options:

(e.g. 1,100 elections per month)

2010 SAP AG. All rights reserved. / Page 15

ESS Value @ SAP: Payslip Online

100.000 10.000 10.000

Stamps Paper and Printing Personnel costs

2010 SAP AG. All rights reserved. / Page 16

Shared Services The Basic Idea

2010 SAP AG. All rights reserved. / Page 18

Value Driver for Shared Services

Enable regulatory compliance

Flexibility for growth and acquisitions

Shared Services value drivers

Improve customer satisfaction

Scope Labor Mix Processes and IT Harmonization