HCM for Your Business

Elena Ordóñez
Senior Vice President
General Business Unit Human Capital Management

Deborah Schmidt
Vice President
Core Business Applications
Human Capital Management

Agenda

1 Human Capital Management for Your Business

2 mySAP HR Strategy and Initiatives

3 Leveraging Technology

4 mySAP HR: Putting it Together

 SAP AG 2002, HCN For Your Business , Elena Ordónez 2

1
 Framing Factors

People matter…
The best run e-
e -businesses stay that
way by strategically focusing on the
people in their workforce
This strategic focus is Human Capital
Management and it is crucial to the
success of the organization

more than ever

 SAP AG 2002, HCN For Your Business , Elena Ordónez 3

The Importance of Human Capital

“A manager's job …is to enable

staff to reach their dreams and achieve
growth. The ability to transform these
people and ideas is the key element of
every manager's responsibilities.”
Jack Welch 2002

 SAP AG 2002, HCN For Your Business , Elena Ordónez 4

2
 Constituents within the Business

Constituents
Your business is supported by multiple constituents…
constituents…

Suppliers Partners Employees Customers

The relationships you maintain with

your constituents can generate
competitive advantage and drive
business value

 SAP AG 2002, HCN For Your Business , Elena Ordónez 6

Focusing on the Employee: Human Capital Management

Focus
Employees represent the Human Capital of the business

Human Capital Management (HCM) represents

strategic focus on the employees throughout the
business

 SAP AG 2002, HCN For Your Business , Elena Ordónez 7

3
 Human Capital Management for Your Business

HCM for the Business means integrating employee

processes and information with business processes and
strategies to achieve optimal business results

Business Goals and Objectives

Recruitment, Transaction,
Employee- Engagement,
Deployment, Administration,
related Interaction,
Development, Compliance
processes Collaboration
Retention Support

Business Results

Ultimately, HCM is about giving the business insight about the workforce
to make better decisions and provide competitive business advantage

 SAP AG 2002, HCN For Your Business , Elena Ordónez 10

HR: Holding the key to Human Capital Management

HR’s Role in HCM is trusted advisor, guiding and supporting

the employee processes and information that contribute to
achieving these business results

Business Goals and Objectives

Recruitment, Transaction,
Employee- Engagement,
Deployment, Administration,
related Interaction,
Development, Compliance
processes Collaboration
Retention Support

HR is a consultant HR is a business HR is a service

partner to provider to the
HR’s Role to the business
organization
managers and
employees

Business Results

 SAP AG 2002, HCN For Your Business , Elena Ordónez 11

4
 Human Capital Management Solutions

HCM Solutions focus on three areas throughout the

business that support employees

Employee Relationship Management

Employee Lifecycle Management

Employee Transaction Management

HCM solutions utilize technology to understand, identify, leverage,

and ultimately increase the human capital of the organization, generating
business value and contributing to the bottom line

 SAP AG 2002, HCN For Your Business , Elena Ordónez 12

Agenda

1 Human Capital Management for Your Business

2 mySAP HR Strategy and Initiatives

3 Leveraging Technology

4 mySAP HR: Putting it Together

 SAP AG 2002, HCN For Your Business , Elena Ordónez 16

5
 mySAP Human Resources

mySAP HR Supports and Integrates the three focus areas of

HCM…
n Employee Lifecycle Management
n Employee Relationship Management
n Employee Transaction Management

mySAP HR

Business Results
Business Goals

Employee Employee Employee

Lifecycle Relationship Transaction
Management Management Management

Analytics

… to enable HR and the business to better leverage their human

capital to support business goals and achieve optimal business
results

 SAP AG 2002, HCN For Your Business , Elena Ordónez 17

mySAP HR

mySAP HR
Business Results
Business Goals

Employee Employee Employee

Lifecycle Relationship Transaction
Management Management Management

Analytics

 SAP AG 2002, HCN For Your Business , Elena Ordónez 18

6
 Employee Lifecycle Management

mySAP HR supports all phases of the employee lifecycle,

providing solutions that are integrated into planning and results

Business Goals and Objectives

What do we want to accomplish? What human capital d o we need?

Attract/Hire Deploy Influence Develop Retain

Business Results and Measurement

What are the results? Were we successful?

Personnel Cost Performance

e-Recruiting e-Learning
Planning Management

Project Resource Compensation Training and Event Employee

Planning Management Management Retention

Analytical Career & Succession

Reporting Planning
 SAP AG 2002, HCN For Your Business , Elena Ordónez 19

mySAP HR e-Recruiting

Objective
n A comprehensive, next generation, global recruiting solution combining
talent relationship management, applicant tracking, self services, and
reporting and analysis with a focus on both internal and external
applicants

Components
n Talent Warehouse
n Recruiting Services
n Analytics
n Collaboration

Benefits
n Improve alignment of the recruitment function with the company
strategy
n Reduce recruiting administrative costs
n Strengthen employer branding
n Increase employee retention

 SAP AG 2002, HCN For Your Business , Elena Ordónez 20

7
 Personnel Cost Planning and Simulation

Objective
n A complete personnel cost planning process that provides modeling
tools to simulate multiple planning scenarios (e.g. best case, worst
case, and standard) and enables continuous plan monitoring to react
quickly to changed business strategies

Components
n Planning preparation
n Data Collection
n Cost planning

Benefits
n Simulate future development based on scenarios & assumptions
n Analyse effects of headcount changes
n Target-actual comparisons

 SAP AG 2002, HCN For Your Business , Elena Ordónez 21

Project Resource Scheduling and Deployment

Objective
n Integration to project and resource management solutions, supporting the
complete project lifecycle, providing an organization with better control of
project-related activities and resources, reducing the number of redundant or
ineffective projects.

Solutions
n Professional Services
u Integration to mySAP CRM for consulting deployment and opportunity management
(Focus: Professional Services)
n Project Resource Planning
u Integration to mySAP PLM for internal project management (Focus: internal projects,
such as IT)
n Resource Program Management
u New solution to manage project portfolios with integration to staffing and deployment

Benefits
n Increase profitability through smarter usage of resources
n Integration to company information for a holistic approach to resource
deployment, scheduling, and management

 SAP AG 2002, HCN For Your Business , Elena Ordónez 22

8
 Performance Management

Objective
n An end-to-end performance management process, integrating company
planning and objectives with measurable employee objectives,
employee appraisals, and compensation planning and administration,
delivered through employee and manager self-services

Components
n Integration to the Balanced Scorecard
n Continuous feedback process
n Integration to compensation planning and administration

Benefits
n Improvement of employee contribution to business performance
n Standardized company process for employee review & appraisals
n Support solution for performance-oriented compensation

 SAP AG 2002, HCN For Your Business , Elena Ordónez 23

SAP Learning Solution

Objective
n A comprehensive, blended learning solution that provides innovative
ways of sharing knowledge, cutting-edge instructional design
methodologies and didactics, the linking of training to business
objectives, and new, cost-effective ways of developing and aggregating
content

Components
n A Learning Portal
n A Learning Management System
n An Authoring Environment
n Content Management

Benefits
n Increase value & motivation of the workforce
n Increase revenue with direct billing
n Decrease cost by lessening travel costs
n Increase effectiveness of training based on own learning strategy

 SAP AG 2002, HCN For Your Business , Elena Ordónez 24

9
 mySAP HR

mySAP HR

Business Results
Business Goals

Employee Employee Employee

Lifecycle Relationship Transaction
Management Management Management

Analytics

 SAP AG 2002, HCN For Your Business , Elena Ordónez 25

Employee Relationship Management: Employee Portal

mySAP HR delivers services through the Employee Portal,

enabling employees to build collaborative, interactive
relationships

SAP Employee
Portal
Employee Interaction Platform

Mobile
Employee Expert Finder

Help Employee
Desk Self- Service

Portal Manager
Self-
Service
Employee Voice Manager
Recog.

SAP enabling
Technologies Company

 SAP AG 2002, HCN For Your Business , Elena Ordónez 26

10
 Employee Portal: Expert Finder

Objective
n An easy-to-use web application to find employees with certain tasks,
knowledge, skills or experience and provide functionality to get in
contact with the found expert (e.g. for daily work, projects)

Components
n Expert profile
n Workflow-scenarios
n Expert search functionality
n Communication brokers

Benefits
n Shorten search time for the right resource
n Supports the creation of networks of knowledge
n Recognizes employees as valuable experts

 SAP AG 2002, HCN For Your Business , Elena Ordónez 27

Employee Portal: Employee Self-Service

Objective
n An employee-facing portal to empower employees
to view, create, and maintain both personal and
company data anytime, anywhere using multiple
access technologies.

Components
n 80+ ready-to-use individual ESS services
available in 32 languages for 34 countries
n Life and Work Events

Benefits
n SAP Employee Self-Service (SAP ESS) allows employees easy access
to the right information to do their jobs
n SAP ESS empowers employees to view, create, and maintain data any
time, anywhere using multiple access technologies
n SAP ESS is an effective means for providing real-time access and data
maintenance capabilities to the source or owner of the data

 SAP AG 2002, HCN For Your Business , Elena Ordónez 28

11
 Employee Portal: Manager Self-Service

Objective
n A line manager-facing portal that provides
intuitive, easy-to-use web applications services
and reporting capabilities that give managers
a single point of access to manage their
employees and budgets efficiently, effectively,
and proactively

Components
n Team Management
n Recruitment
n Quota Planning
n Financial Planning and Management
n Web Cockpit

Benefits
n Assemble the right teams to deliver on company goals
n Obtain the right information to make proactive business decisions
n Leverage existing HR technologies to demonstrate ROI

 SAP AG 2002, HCN For Your Business , Elena Ordónez 29

mySAP HR

mySAP HR
Business Results
Business Goals

Employee Employee Employee

Lifecycle Relationship Transaction
Management Management Management

Analytics

 SAP AG 2002, HCN For Your Business , Elena Ordónez 30

12
 Employee Transaction Management

mySAP HR supports and integrates all the employee transactions

necessary to run the business
mySAP HR
Solutions
Time Management

Analysis and Compliance

n Payroll

Payroll n Benefits

Integration
n Time Management

Reporting
n Personnel Management

n Ad Hoc Query

Benefits n HR Analytics

n Outsourcing

Personnel Management n Concurrent

Employment
Globalization n Global Employee
Management
Standardization and Consolidation
For 34
Countries

 SAP AG 2002, HCN For Your Business , Elena Ordónez 31

Concurrent Employment

Objective
n A comprehensive Concurrent Employment solution that includes main
core HR processes for the US and Canada country versions.

Components
n New ways of storing, viewing, and accessing Person information
uThe Person ID is used to track the individual within the entire enterprise for
the lifetime of the employee
uA new user interface allows easy navigation from one personnel assignment
to another of the same person.
n Personnel Administration, Benefits, Time Management and Payroll
uThese processes have been enhanced to better support companies handling
concurrently employed persons.
uLegal reports for USA and Canada have been enhanced to enable reporting
on person or personnel assignment level

 SAP AG 2002, HCN For Your Business , Elena Ordónez 32

13
 Management of Global Employees

Objective
n Supports a global enterprise along its processes managing a global
employee to work abroad.
n Business practices and processes can be applied to employees who are
working abroad under local terms of employment, on an extended
business trip and/or Expatriates.

Components
n Management of Global Employees Processes
uPlanning of global assignment
uPreparation for Relocation
uTransfer
uRepatriation
n Payroll for global employees
uAn efficient payroll process enables information exchange from one country
payroll to another, for trailing payments, split and off-shore payroll

 SAP AG 2002, HCN For Your Business , Elena Ordónez 33

Employee Transaction Management

Other New Initiatives

n Country version for Finland
n New delivered solutions for FMLA and Domestic Partners (US)
n Reconciliation and reporting
n Wage Type configuration tool

 SAP AG 2002, HCN For Your Business , Elena Ordónez 34

14
 Agenda

1 Human Capital Management for Your Business

2 mySAP HR Strategy and Initiatives

3 Leveraging Technology

4 mySAP HR: Putting it Together

 SAP AG 2002, HCN For Your Business , Elena Ordónez 35

Challenges for today’s HR

HR faces increasing demands for…

n Integrated end-to-end Human Resource process support
n Support of process change management
n Employee and manager empowerment
n Support of distributed, mobile workforce
n Support of additional automated processes as strategic ROI’s
opportunities are discovered

Costs increase as…

n In-house and hosted solutions
uAre implemented
uAre integrated
n End-user education becomes necessary for many different applications

Inefficiencies occur as…

n Users need to access multiple applications for similar information
n The big picture is lost among disparate systems

 SAP AG 2002, HCN For Your Business , Elena Ordónez 36

15
 Technology Powers Strategic HR

Technology empowers the Workforce, allows for new

collaborative HR processes, and increases process
visibility within and outside the organization

mySAP HR leverages mySAP Technology to empower

the workforce through…

Portals
Web Services and Applications
Collaborative Exchanges

 SAP AG 2002, HCN For Your Business , Elena Ordónez 37

How Can mySAP Technology Help?

Integrating
Exchanges third party HCM
Connecting to process,
Suppliers
content and
services
suppliers
Web Services and
Applications
HCM Processes
Integrating the Business
and Solutions
Process
(SAP and non-
Portals SAP)
Enabling the Interaction
Employee
Portal

 SAP AG 2002, HCN For Your Business , Elena Ordónez 38

16
 Agenda

1 Human Capital Management for Your Business

2 mySAP HR Strategy and Initiatives

3 Leveraging Technology

4 mySAP HR: Putting it Together

 SAP AG 2002, HCN For Your Business , Elena Ordónez 39

my SAP HR - Business Figures

mySAP HR Customers:
n Over 7,800 customers worldwide
n Over 6,000 customers live
n Over 4,300 payroll customers live

mySAP HR Licences:
n Over 32 Mio. of master records
n Over 9 Mio. ESS users

 SAP AG 2002, HCN For Your Business , Elena Ordónez 40

17
 mySAP HR – The Business Ecosystem

Partners
n Global and local Service Partners with
dedicated mySAP HR practices
n Over 60 Software Partners People
n Content Partners with focus on
n Over 500 HR developers worldwide
e-Learning and e -Recruitment
in 5 development centers
n Hardware Partners
n Dedicated HR Consultants
n ASP/Hosting Partners worldwide
n Over 100 Technical Support
Consultants
n Customer development projects

Processes
n Solution Manager
n 7x24 worldwide support and services
n ISO9001 certified
n Education program

 SAP AG 2002, HCN For Your Business , Elena Ordónez 42

Human Capital Management for your Business

With mySAP HR ...

n Your employees, processes, and
information are seamlessly
connected
n Your talent, experience, innovation,
and collaboration is aligned to goals
and strategies
n HR is empowered to deliver HCM
Human Capital strategies
Management for n Business value is generated and
your Business… proven
n Technology is leveraged to provide
mySAP HR for the platform to build relationships
your Business
…throughout your business

 SAP AG 2002, HCN For Your Business , Elena Ordónez 43

18
 The Importance of Human Capital

“Human, not financial capital

„
must be the starting point and
ongoing foundation of a successful
strategy.

Christopher A. Bartlett
Sumantra Ghohsal
MIT Sloan Management Review, Winter 2002

 SAP AG 2002, HCN For Your Business , Elena Ordónez 44

Thank You
mySAP Human Resources
Human Capital Management for Your Business
Elena Ordóñez
Senior Vice President
General Business Unit Human Capital Management

Deborah Schmidt
Vice President
Core Business Applications
Human Capital Management

19