In the last two parts of our 3-part blog series, “SAP HXM strategy”, we mentioned that significant changes are pending when using SAP systems for HR management. All companies that have been using SAP HCM, will have to seek an alternative sooner or later. Since there are various options for it, we are presenting you with all the concrete ones in the last part.
Select target system for the conversion
To show the various alternatives available, a look at the timeline is necessary. The previous SAP HCM is the starting point here. However, this system can only be used till 2027. Though extended support is announced until 2030, it only considers exceptional cases. Therefore, it is necessary to choose an alternative during this period.
There are two routes from which you can choose. In the first route, you can opt for converting your entire system to S/4HANA. In this case, the system uses new technology, but also works on-premise. Hence, the changes are comparatively small. Additionally, SAP assures support for S/4HANA until 2040, deeming it as a long-term solution.
There are also alternatives available to the on-premise option. For instance, you can use S/4HANA in a private cloud or a public cloud, as per your preference. The second long-term route is the HXM Cloud. Here, you benefit in terms of ease of use and administration. Furthermore, the new approach offers you with many opportunities to improve the relationship with employees.
Different ways of implementation
Not only do you have the option of different target systems, but ways to achieve the transition can also be alternative. If you are planning to use HXM Cloud in the long term especially, there are numerous options. One of the options is to switch directly to this system. Although, you must keep in mind that this option is still in the development stage. For example, some features like SuccessFactors time tracking are being added only recently. Also, the SuccessFactors Next Generation Payroll is not available in some countries yet. Hence, this step is recommended only if you can work with pre-existing functions.
The second alternative is the implementation of a hybrid system. This means that you must avail a cloud service, beforehand. As for the functions that are unavailable, you can use the previous systems for them. You also have the option to set up an S/4HANA private cloud.
An alternative to the former options would be to wait and watch. You still have a few years till 2027, before which the HXM cloud offers might grow. This way, you have control to make a switch whenever required functions are available. Consequently, this will reduce risk, and you will get to choose an upgrade that is risk-averse. However, the period might be uncertain and a limiting factor for conversion. Hence, a carefully planned strategy is necessary if you choose this alternative.
SAP decision tree
The strategy that is suitable to you depends on a variety of factors. The system which you are using is one of the many important factors. While how you visualise your human resource management in your company is another important factor. If a purely business administration set up satisfies you, then we recommend HCM. Else, if your focus is on your talent, then switching to HXM would benefit.
In order to link different requirements to their solution, SAP has developed a decision tree. Here, you are able to select the combinations that suit your company. And based on these selections, SAP finds you a compatible option. In the case of new customers, the decision is quite apparent. Hence, it pays off to rely on the cloud right from the beginning.
If you are a pre-existing user of SAP, you should consider the need for Employee Central in your set-up. In a lot of companies, this is not the case. Then, you should ask whether you are interested in fundamentally revamping your HR processes. If your answer is affirmative, then you would have to contemplate offloading your infrastructure onto the cloud. If the answer is yes again, then SAP recommends implementing HXM elements with a private cloud. This decision-making process is found in many companies. Although, you still have options; six options exactly, according to SAP.
Furthermore, there are different implementation options for each of these alternatives. Conversion of individuals can take place immediately. Also, you can introduce the adjustments one service at a time. All this highlights that intensive consultation and careful planning is a must! Hence, it is advised to deal with the transition at the earliest. Delaying the decision will limit your options of implementation. And before you know, time will have already passed.
The Zalaris Cloud as an alternative
Lastly, we would like to brief you on the Zalaris Cloud as an alternative. Here, we offer you a comprehensive solution for the HXM. The Zalaris Cloud is an ideal option for those with a focus on content-related topics. This way, you get to avoid numerous administrative tasks. Additionally, your employees can do activities that they prefer. Resultantly, they can contribute to the development and growth of your company.
Using Zalaris Cloud, you gain high-level flexibility while adapting services precise to your requirements. You get the opportunity to also outsource only individual applications. We can also take over the processes completely for you. This makes it possible to select a system that optimally suits your workflows, without a task-burden.
Conclusion: Decide now on an SAP HXM strategy
From the three blogs, we can conclude that an exciting period is ahead for SAP users. SAP has developed an entirely new system to make their innovative vision a reality. The new direction has been quite evident with the addition of clouds. Moreover, the shift in their perspective on people using the HXM pushes this new strategy. This would also boost employee satisfaction. Resultantly, improving motivation and lowering fluctuation. Additionally, SAP has announced the end of support for SAP HCM on-premise. This makes the transition inevitable. Hence, the use of this technology can be deemed worthwhile.
Yet, there are various ways to implement these changes. Hence, a precise analysis of your former systems is a requirement. You also need to clearly establish your goals, which would help you find the perfect system for your needs. Our experts at Zalaris will be more than happy to accompany you on this journey.