SAP Success Factors With SAP S/4HANA: Benefits, challenges And Practices
This article aims to outline the critical challenges in contemporary organizations: managing a constantly changing business environment, improving efficiency and performance, and strengthening the decision-making process.
Including SAP SuccessFactors into SAP S/4 HANA or using both releases mean an integration of Human Capital Management and Enterprise Resource Planning applications.
In this article, it is imperative to focus on the integration of SAP SuccessFactors with SAP S/4HANA; benefits, challenges and practices.
SAP SuccessFactors and SAP S/4HANA Introduction
SuccessFactors is a software solution that is part of the system family Human Capital Management and functions in the cloud to provide different departments of a business such as human resources or personnel departments.
This is for the purpose of enhancing employees’ commitment, performance and organizational efficiency.
S/4HANA, on the one hand, is a combined solution of enterprise resource planning (ERP) designed on the basis of HANA in-memory database.
It has a broad capability in offering functions in different sizes and types of organizations including finance, supply chain, production and purchasing.
S/4HANA helps in real time processing and analysis of data so that real time decision making can be done for improving the performance.
Recommending reading:- Overview about SAP successfactors and S/4HANA.
Advantages of Standard Link between SAP SuccessFactors and SAP S/4HANA
Unified Data Management
SuccessFactors management in connection withS/4HANA guarantees the synchronicity and accuracy of HR and business data.
This unification minimizes data duplication and inconsistencies in the database, hence, leading to better decision-making across the organization.
Read the benefits of unified data management.
Improved Employee Experience
When well integrated, one gets a smooth end to end solution that is non-disruptive to the employees’ experience.
Literally, all the data related to the employment contract, training and development, performance appraisal and payroll are available to the employee through a single portal that increases satisfaction and engagement levels.
Enhanced Reporting and Analytics
Integrating data from HR and ERP systems allows the use of such high-level analysis as the performance of employees, financial indicators, and organizational productivity.
This approach allows for more accurate planning for the organization’s strategic directions and future tendencies.
Streamlined Processes
The integration of the systems also minimizes and /or automates many of the Human Resource and financial processes.
For instance, records such as the transfer, promotion or dismissal of an employee will simultaneously update the human resources records in both systems thus minimizing errors resulting from manual input and intervention.
Compliance and Risk Management
Integrated systems facilitate compliance with regulatory requirements through ensuring adequate records are kept and are consistent.
This is quite relevant especially for multinational organizations operating under different legal systems and regulations.
Issues in Connecting SuccessFactors and S/4HANA
Data Migration and Synchronization
Data migration from old systems and orchestrating data integration between SuccessFactors and S/4HANA are realized as challenging.
Inconsistencies in the structure, a format to use, or the quality of the data that one has to work with can also be a real headache.
There’s a differentiation between migration and synchronization, read here.
Customization and Configuration
SuccessFactors also have highly flexible features and further, S/4HANA has a higher level of customization.
Many of these customisations and configurations have to be aligned during integration and this endeavor must be done in a way that is coherent and does not interfere with other elements.
Change Management
Different departments involved are: human resource, financial and IT groups are some of the departments affected by integrated system implementation.
Resistance to change must be dealt with by the provision of effective change management strategies that will enhance easy implementation and reduction of challenges.
Security and Privacy Concerns
Human resources management entails working with the employee’s and financial information, which is incorporated into ERP systems.
Strict security policies should be implemented, and all the provisions of data protection acts should be followed to protect such information.
Technical Complexity
The backend processes that include the creation of proper communication links, setting up of application middleware and managing of APIs are complex and specialized and need to be safeguarded and tested well to work at their best.
SAP SuccessFactors and SAP S/4HANA Integration: Top Recommendations
Define Clear Objectives and Requirements:
First of all, you should describe the goals and requirements of integration systematically.
Determine the interface points, that is, the business processes that must be linked, the results expected at the end of the linking process, and the actual data items to be transferred between the systems.
Conduct a Thorough Data Assessment
Carry out a detailed analysis of the data that is to be migrated and subsequently integrated.
Localization of data quality problems, discrepancies, and deficit.
It is recommended to purge the data and harmonize them to conform to the requirements of the new systems.
You can read about the step by step data quality assessment process here.
Develop a Detailed Integration Plan
Develop an integration plan that describes the extent, schedule and cost, and assimilation of change.
It is also necessary to set regular intermediate targets to assess the progress of integration and solve the problems that might appear during the process.
Leverage Standard Integration Tools and Frameworks
SAP offers integration layers like Cloud Platform Integration (CPI) and the Integration Suite that offer easily usable connection standards out-of-the-box for connecting SAP SuccessFactors with S/4 HANA.
These tools can be used in making the integration as efficient as possible in order to reduce the level of complications.
Ensure Data Security and Compliance
It is advised that during the integration process proper security measures are put in place to ensure that the data is secure from unauthorized access.
Adhere to rules especially those outlined under data protection laws like GDPR by implementing data governance rules.
Test Extensively
They include; Ensure that testing is done to establish the effectiveness of a link.
It is recommended to conduct the unit testing, integration testing and the user acceptance testing to reveal any loopholes.
Be particularly keen when it comes to synchronization, how processes are handled as well as how the interfaces look like.
Implement Change Management Strategies
Implement strategies that would help to cope with change for different people involved in the integration process.
It is necessary to offer training or guidelines to the employees so they can adopt the LMS and work freely with it.
Monitor and Optimize
Once the integration process is done, one should start reviewing the performance of the integrated system.
Note down the suggestions of the users, understand the various deficiencies in the integration and apply transformations to augment its performance.
To conclude it is necessary to consider integration scenarios with third-party and the integration use cases.
Employee Central Integration
Employee Central in SuccessFactors is the central module of the solution that contains organizational data of the employees and their master data, as well as controls the human resource processes within the organization.
S/4HANA connectivity with Employee Central comes with the duplication of data where employee data is refreshed in both systems to feed processes which include payroll, time management, and benefits.
Read about central integration in this article.
Payroll Integration
Integrating SAP SuccessFactors Employee Central Payroll with SAP S/4HANA pays great benefits by standardizing the transfer of data of the employees, results of the payroll and financial positions with no delays.
This integration helps in the reduction of the amount of data entry required, increasing accuracy in payroll processes.
Talent Management Integration
Talent management modules like recruiting, onboarding, performance management, and learning when connected with S/4HANA give an extensive vision of the employee cycle.
It allows organizations to maintain coherency between the foreseeable employee-management methodologies and the organizational goals and objectives and foster employee growth and management of succession plans.
Finance and Controlling Integration
Since SuccessFactors is an SAP solution it can synchronize data with S/4HANA Finance and Controlling modules enhancing the transfer of HR related data.
This integration aids in compliance with the generally accepted accounting practices, budgeting, and cost applications that help the organization achieve a proper evaluation of labor expenses and financial results.
Time and Attendance Integration
SuccessFactors and S/4HANA integration gives results on work hours, additional working hours, leave balances, and overtime.
Thus, this integration enables it to meet the labor regulations’ requirements as well as optimizing the number of employees to be paid and avoiding the payment of excessive wages.
Case Studies: Successful Integrations
Case study 1
The first case describes the situation in the global manufacturing company that is on the verge of suffering significant losses due to globalization.
A manufacturing firm operating in various parts of the world experienced some problems in the employee management and consolidation of its financial statements.
In the case of adopting SAP solutions, the company was able to have a single HR and ERP through implementation of SuccessFactors Employee Central and S/4HANA.
It facilitated efficient collection and processing of the employee information as well as accurate payrolls which resulted in optimal management of the labor cost.
Case Study 2
This one focuses on the Healthcare Organization, and from the analysis of this case, it is clear that new knowledge has been gained in addressing the challenge outlined in the case.
A healthcare organization understood the importance of talent management in its organization and wanted to develop and increase the employees’ engagement.
Hence, implementing SuccessFactors Recruiting, Onboarding, Performance Management modules connected to S/4HANA helped the organization in obtaining a perfect talent management system.
The integration was used to track the candidates effectively, Onboard processes were enhanced as well as offered performance information whereby employee satisfaction and retention were enhanced.
Case Study 3
An extensively staffed retail chain sought for a way to improve its time and attendance as well as its payroll.
The organization’s goal to approximate and automate time records and payroll accuracy as well as manage compliance with labor laws was attained once the SuccessFactors Time Management module was properly implemented with the S/4HANA system.
This integration also helped in achieving real time visibility on the availability of workforce, which helped in proper workforce planning and scheduling.
Future Trends and Innovations
Artificial Intelligence and Machine Learning:
Additional features such as Artificial Intelligence or Machine Learning can complement the functionalities of both SuccessFactors and S/4HANA by extending the automation, predictive analytics, etc.
In dealing with human resources, AI can help in supporting employees’ questions through chatbots, while in the field of planning and strategy, ML can help in estimating the trends concerning human resources and using them to develop comprehensive talent solutions.
Internet of Things (IoT)
SuccessFactors integration with IoT can help monitor the employee’s health and safety, equipment usage, and facility to improve performance.
This integration can be useful for carrying out preventive and predictive maintenance, increasing safety at the workplace, and increasing process effectiveness.
Read about what exactly is IOT in this article.
Advanced Analytics and Data Visualization
Modern technologies like big data, business intelligence and data visualization can help to see more far-reaching information on HR and company’s performance.
People in organizations can use such interfaces to have live Android dashboards and reports to track KPIs, trends, and make right decisions.
Cloud and Hybrid Deployments
As organizations press on to utilize cloud technologies, configuring SuccessFactors and S/4HANA in cloud or hybrid models is likely to increase.
Concerning innovative integration, it was evidenced that cloud integration has proved to be more scalable, flexible and cost effective in managing infrastructure changes in organizations.
Employee Experience Platforms
Implementing SAP SuccessFactors with other platforms that are designed to target the experience of each employee can definitely improve the overall morale and health of the employees, as well as increase productivity.
These are more social interface platforms that have tools using which employees get individual attention, self-services, and wellness initiatives, all of which create a healthy culture at the workplace.
Blockchain Technology
Blockchain can offer protection, clear and pure data exchange between SuccessFactors and S/4HANA.
For example, blockchain can be applied to securely authenticate the personnel’s records as well as work experience and compliance with the labor laws to decrease the threat of deceit and guarantee data authenticity.
Read in detail about Blockchain Tech.
Augmented Reality (AR) and Virtual Reality (VR)
These applications of AR and VR technologies can help transform the traditional training and development structures.
These technologies integrated with SAP SuccessFactors and SAP S/4HANA can offer realistic training, virtual training, SOP training and accredited training which can develop the skills and interest of the employees.
Mobile and Remote Workforce Solutions
Such business models as remote and mobile workers require sound mobile solutions.
Connecting mobilization features with SAP SuccessFactors and SAP S/4HANA helps to introduce the real-time communication and work performance features for the employees with mobile HR and ERP capabilities.
Natural Language Processing (NLP)
By applying NLP, voice and text interaction with the HR and ERP systems can be enhanced.
Merging NLP powers can make the user interplay more natural and smooth, and in certain employee-centered work processes, such as data input, report creation, or searching for data, employees can speak to the applications directly in plain English.
Employee Wellness and Mental Health Programs
As awareness for employee’s health continues to gain attention, it will be easy to incorporate wellness and mental health routines in SAP SuccessFactors.
These include a stress management tool, wellness diary and an optional counseling service, which can also be incorporated to show a healthier and, therefore, a more effective team.
Robotic Process Automation (RPA)
RPA when implemented in the organizations’ digital landscape complementing SAP SuccessFactors and SAP S/4HANA handles manual and rule-based activities like data entry, payroll processing and report consummation.
RPA is beneficial as it automates routine tasks executing them correctly, quickly, and making human employees available for more valuable initiatives.
Predictive Analytics
Workforce planning and management can be made effective through the use of predictive analytics because of the probability analysis that is availed by this type of analytics.
Application of predictive analysis on SAP SuccessFactors and SAP S/4 HANA can aid the organization in identifying the trend of employee turnover, and influencing the recruitment methodologies, and labor demand estimations.
Gamification
To effectively increase the input in the employee engagement or motivation, several gamification elements can be incorporated into the SAP SuccessFactors.
Through the application of game elements into training, performance appraisal and wellness programs, the organizations ought to expect higher levels of engagement.
Integrated Talent Marketplaces
Applying best-in-class SAP solutions within the framework of unified talent marketplaces in SAP SuccessFactors can help advance employees’ internal careers.
When organizations help their employees find internal job openings, gig work, and upskilling initiatives, they can benefit from being more skilled and less likely to leave the workforce.
Conclusion
The prospect of syncing both a company’s HR and ERP systems through the implementation of SAP SuccessFactors and SAP S/4HANA is an attractive option.
The advantages of such integration are better data quality, factors enhancing employee satisfaction, and several optimizations.
AeonX provides business solutions affiliated to Successfactors and S4/HANA
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