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Unlocking the Power of Cloud-Based HR Transformation

Unlocking the Power of Cloud-Based HR Transformation: Migrating from SAP On-Premise to SAP SuccessFactors

In today's digital world, businesses are always looking for new ways to improve their operations and grow. One important change happening soon is that support for on-premise SAP HCM will end in 2027. This means that companies need to move their old systems to the cloud before that happens. Some companies have already started this process, but others need to be aware that waiting too long could cause problems like not having enough resources or facing higher costs. 

As businesses consider their options, they are also thinking about using new technology, like cloud-based solutions. SAP recommends its ERP HCM customers to use SAP SuccessFactors for their digital HR transformation. However, it's important to think about how the current SAP HCM system fits into the company's IT strategy, including costs, hardware and ongoing maintenance. It's also crucial to evaluate if the HR and payroll systems are ready for the transition. 

Time is running out, so businesses need to choose a migration strategy for their on-premise SAP HCM soon. It may seem overwhelming, but don't worry. We'll explain everything you need to know and give you some key points to consider for this migration. 

    Benefits of Migrating to SAP Moving SuccessFactors

    Migrating to SAP SuccessFactors can yield significant cost savings for enterprises. SAP SuccessFactors and SAP SuccessFactors Employee Central Payroll offer numerous benefits with features like real-time payroll processing, automation, enhanced visibility into payroll costs and compliance management, streamlined tax filing and improved employee self-service functionality. Transitioning from SAP on-premise to SAP SuccessFactors payroll not only saves time and money, but also enhances visibility, accuracy, compliance and self-service capabilities for employees. 

    SAP SuccessFactors Core HR: One reliable, consistent system of record for all people related data. 

    SAP SuccessFactors Time Tracking: Increased data accuracy for hourly paid workers - enabling you to meet employee expectations for a simple, accurate and individualised time sheet. 

    Employee Central Payroll (ECP): Process all aspects of payroll with an unparalleled breadth of features, great user experience and mobile capability 

      SAP On-Premise to the Cloud: Your Options

      While considering the migration from SAP on-premise, businesses have two options: 

      1. h4S4: The Intermediate Step: 

      Moving to h4S4 is an intermediate step that can serve as a transition phase. But keep in mind that is not a long-term solution. Businesses should view it as a steppingstone towards embracing the cloud-based SAP SuccessFactors platform. 

      2. ECP: The Final Destination: 

      The true solution lies in moving from traditional on-premise SAP ERP HCM to the modern, cloud-based SAP SuccessFactors platform. This shift ensures long-term scalability, flexibility and future-proofing your HR processes. 

        The end of maintenance for SAP HCM on-premise is 2027 (extended maintenance till 2030). However, SAP S/4HANA (H4S4) compatibility packs will only be supported until December 2025. This shortens the break-even time and makes it a non-viable option. The migration from on-premise to the cloud is key to keeping your system live, updated and secure. As more and more businesses move to cloud-based systems, it’s important to understand the process of migrating from legacy systems to the cloud.
        Jeroen Wielens, Global Product Manager SAP Payroll

        The Journey to the Cloud

        As businesses increasingly recognise the benefits of moving their operations to the cloud, the migration to SAP SuccessFactors has become a crucial consideration. To ensure a successful transition, organisations need to carefully consider the following: 

        Plan Ahead: Early planning is crucial for a smooth transition. Research various cloud providers, assess your needs and partner with the right vendor who can assist you in developing a robust migration plan.

        Do Your Homework: Not all cloud providers are created equal. Compare features, pricing and capabilities to select the provider that best aligns with your organisation's requirements. Ensure they have a deep understanding of your unique landscape and can deliver a seamless transition. 

        Communicate with Your Team: Ensuring effective communication with your team is essential for successful cloud migration. Working with an expert will help ensure that all stakeholders in your business are aware of the plan and that the transition to the cloud is successful. Additionally, it will enable you to keep everyone informed of your progress and aid with key decision-making throughout the process. 

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            Migration Process and Payroll Considerations:

            As the number of businesses migrating to the cloud increases, integrating essential HR functions becomes critical. 

            Why Move to Employee Central Payroll? 

            Are you unsure why you should move to Employee Central Payroll? Here are 3 key benefits to keep in mind: 

            1. Maintain Investments in SAP Payroll 

            • Solve short-term needs without a massive rip/replacement 
            • Keep existing payroll investments 
            • Say goodbye to re-doing payroll calculations and configuration 
            • Make the most of the ability to migrate existing data, such as employee data and payroll results 

            2. Reduce Long-term Total Cost of Ownership (TCO): 

            • Simple and low-cost upgrades 
            • Reduced change management costs (no physical infrastructure needed) 
            • Reduced technical (basis) costs, due to less maintenance required 
            • Improved integration with Employee Central (less maintenance, better system performance) 

            3. Future-proof & Simplify: 

            • Stay ahead of the curve with twice-yearly innovations 
            • Dedicated payroll landscape that allows you to update at your discretion 
            • No timeline limits 
            • Revise old processes to standardise, improve and automate 
            • Utilise newer functionality such as Payroll control center 
            • Remove unnecessary and expensive customisations

            Additionally, businesses should consider the customisations and standardisation required during the migration process. By conducting a detailed study of existing custom objects and assessing the feasibility of configuration or replacement with Employee Central functionality, organisations can avoid unnecessary modifications and costly rework. 

              Partner Managed Cloud for SAP SuccessFactors Solutions:

              To ensure a smooth transition and ongoing support, businesses can opt for partner-managed cloud services. These services offer dedicated business process outsourcing (BPO) support for various HR functions, including payroll, finance, tax and recruitment. Partner cloud solutions, such as those offered by SD Worx, provide flexibility, scalability and extensive payroll expertise in a hyper-scale infrastructure. 

              Migrating from SAP on-premise to SAP SuccessFactors is a crucial step for businesses seeking to accelerate their digital HR transformation. By leveraging the benefits of cloud-based solutions, organisations can achieve streamlined HR processes, enhanced data accuracy and future-proof their operations. With careful planning, a knowledgeable partner and a well-executed migration strategy, businesses can unlock the full potential of SAP SuccessFactors and drive their HR function towards a more efficient and agile future. 

                Introducing SD Worx - your new expert partner

                Advisory and Implementation Services: 

                Count on SD Worx as your expert partner for all your HR technology needs. We offer comprehensive advisory and implementation services to optimise your HR investment, including business blueprinting, data conversion or migration, custom code development, user concept definition and testing and validation. 

                Application Management Services: 

                As your HR partner, SD Worx provides application management services to ensure smooth business operations and maximise the efficiency of your HR system. Standard application management services include proactive monitoring, transport management, EWA analysis (application-specific and software update checks) and more. Additional management services cover functional support, custom code maintenance, maintenance services, application performance tuning and user roles and profiles maintenance. 

                Additional Technical Services (non-recurring): 

                We also offer additional application management services to keep your business running smoothly. These services include functional support, custom code maintenance, maintenance services, application performance tuning and user roles and profile maintenance. We help you optimise the efficiency of your HR system. 

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