After my “spring conference tour” (HR2014 in Orlando, Mastering SAP & Payroll in Johannesburg, HR2014 in Nice, and SAPPHIRE/ASUG 2014), I have listed five key takeaways from my interactions with customers.
Customers are still struggling with the basics. Topics such as security/authorizations, reporting, organizational updates, portals, authentication, mobile enablement continue to plague customers. Throughout this exciting time of HR systems innovation, we often overlook that ‘business keeps happening’ (i.e., organizations are dynamic, employees need to get paid – and paid correctly). As consultants, we need to remember that we can’t mess up the basics as we are looking at the “new and shiny”.
There is significant interest from the SAP install base in HR Renewal and other ways to refresh the overall user experience for employees, managers, and HR Professionals. The update of the current portal interface using SAPUI5 (SAP’s take on HTML5) is a popular topic on the ground. Furthermore, and specific to HR Renewal (and other SAPUI5 services), knowing now that we can couple SAP Netweaver Gateway and SAP ECC provides customers with an even a lower TCO.
Hybrid (core HR on premise, full/partial talent in the cloud) will be commonplace for companies in the next 5-7 years. After talking with many organizations, the reality of integrations and their complications are here to stay. Integration strategy and middleware choice is increasingly important for customers running SAP HCM.
The “fury” over Fiori has been laid to rest. SAP Fiori is now included as part of the standard SAP maintenance fee for customers. It’s a pity that SAP customers had to fight for this like they did, but it does give some comfort in knowing that the user community is a force to be reckoned with when they believe something is unjust. The UI merging of HR Renewal, SAP Fiori, and SuccessFactors will seem to be a top priority. The vision of (since-departed) Vishal Sikka of a unified HTM5 UI may not be as farfetched as I originally thought.
HANA is still a nebulous term for customers (no pun intended), but some are starting to understand that it’s not just a database anymore. More and more professionals are starting to understand the importance of PaaS (Platform as a Service), and the capabilities of the SAP HANA Cloud Platform. As partners, many in the SAP eco-system look forward to the day when the HANA Marketplace will be as robust as AppExchange.
Feel free to comment below if you would like to add.
Over the past 5 weeks, several industry colleagues and I have traveled in the US (Las Vegas and Orlando) and Europe (Copenhagen) meeting with over 50 customers from over 20 countries for a seminar on SuccessFactors’ Talent Management.
The below list is in no particular order but reflects some important themes, questions, and comments:
Integration is still a main concern. Integration has always been central to SAP’s value proposition. The recent focus on cloud cannot derail this. I was fortunate to spend these sessions with fellow speakers from SAP. From the messaging and interactions with them, I can confirm that SAP / SuccessFactors is committed to continued investment in integration (they term them “iFlows”). This is a very good thing for customers, to ease the transition for using cloud technologies where practical. Prashanth Padmanabhan, SAP’s Senior Director, has written a recent blog on the topics for talent hybrid and full cloud integrations. Revisiting my list of concerns from nearly two years ago,many of these items are being addressed. (That blog post alone has gathered over 3,000 unique page views since June 2012).
Platform-as-a-Service (PaaS) will be the differentiator. Like other functional areas, the HANA Cloud Platform will be a critical piece for HCM to make the suite competitive in a very competitive cloud space (Workday, Oracle Fusion, Infor). The HANA Cloud Development environment is key to SAP’s eco-system. Worklogix is actively developing applications and excited about the opportunities here with the future HANA marketplace (think Apple’s App Store but for SAP).
In my opnion, HANA (as a database) is a distraction to HCM customers. Yes, SuccessFactors would like to dump its Oracle databases (and soon will), but we need to focus on the platform HANA so that customers and partners can develop apps on. This has been articulated by Vishal and Hasso as well, but hasn’t reached most customers yet. My hope is that this eco-system ramps up like salesforce.com has done.
Can we crack the User Experience nut? Most hybrid customers have two (if not three or four) portals by the time they implement SuccessFactors. How will we truly make the user experience seamless? This is an area I have a lot passion in, as I have worked with employee, manager and HR self service since 1998 when I was a wee lad at Price Waterhouse. We cannot be in the business of building and supporting “Frankenstein” portals (my term). However, the reality is that we need to support customers with their own internal realities. (For example, many customers will have to make sense of how their intranet, SharePoint, NetWeaver, and SuccessFactors sites/portals all come together). This isn’t new but is becoming a pervasive issue as we venture into hybrid customers adding SuccessFactors into the mix. Putting simple (and single) sign on aside, we still need to team together to figure out how this all will be transparent to the end user.
Access control (security authorizations) is a major pain point for hybrid customers. Since authorizations won’t (and can’t) magically port over from SAP to SuccessFactors (or vice versa), we need to put this at the top of our list during design sessions. Especially with customers using complex structural authorizations (including context-sensitive structural authorizations). This will be – GULP – a big area for SIs and customers to work out together.
Mobility, mobility, mobility! Should I say it again: mobility! I don’t need to mention how important this area is for SAP HCM / SuccessFactors in order to keep up with customer demand as well as the competition’s offerings. How to offer one customer-facing (i.e., employee-facing) mobile app (or apps?) will be a challenge, and will be huge over the next 5 years. If/when SuccessFactors will go device-agnostic (e.g., HTML5) is to be determined. (Secondary question: how does SAP Fiori come into play here – if it even does?). Mobility is another passion of mine, and one that I will speak on during next year’s HR2014 conference. Here are the session details.
Proxy functionality needs to be killer. In fact, I will call proxy (or delegation) management the third (or fourth?) killer app (this is self-proclaimed, but where can I copyright this???). SuccessFactors has done a nice job with proxy management. You can both manage proxy assignments, as well as use the proxy functionality easily within the tool. Compared to SAP HCM functionality, customers will be enthused. On premise SAP HCM has always struggled with transactional and approval authorization (in part why Worklogix built the Proxy Manager product).
Social collaboration is great, but its benefits are not yet well understood. SAP Jam is a great tool (we use it internally, during our SuccessFactors trainings, as well as to share knowledge within the SAP/ SuccessFactors eco-system), but many customers don’t understand its context in the (corporate) world. They ask: “Why do I need a LinkedIn / Facebook for the enterprise if I have access to LinkedIn and Facebook?” We need to evangelize on the importance and power of team collaboration, especially with video at our disposal. (Can you imagine what the internet would be without YouTube, Vimeo, SlideShare, MOOCs, Khan Academy?). SAP has a huge asset with Sameer Patel who I think is doing a great job in this area. You should follow him on Twitter you are not already: @SameerPatel
Being clear with messaging around on premise and cloud innovation will be important for SAP/SuccessFactors. We need to be clear with customers that there is HCM innovation happening in both SAP’s on premise (e.g., SAP Fiori and HR Renewal) and cloud offerings (SuccessFactors, HCP, Jam). This is a good thing for customers, as they move to cloud at their own pace but are still looking for continuous improvement with their current HRIS investment. We know where massive innovation is happening, but we do need to remember that some customers will either never have an option to go to the cloud, or won’t have the opportunity to get there sooner than they wish.
I want to thank SAPInsider for supporting my idea back in February 2013 for this SuccessFactors seminar. It was a huge success and, as always, the events in all three cities were interactive, engaging, and educational for all involved.
Like some of you, I will be attending SAP’s annual customer conference next week, SAPPHIRENOW, May 14-16 in sunny Orlando, FL. It is also co-located with ASUG, the annual customer-focused conference for SAP’s largest user group. The event is an exciting conference since we get to hear directly from SAP, on hot topics and the overall roadmap. Specifically, within HCM there will be much focus on several topic areas which I will be listening for.
Here’s my top 5 list of SAP HCM topics I will be looking for during the conference:
1.What will HANA do (and be) for HCM? Jarret Pazahanick wrote a nice piece on HANA for HCM on SCN here. With some of the topics on the roadmap and under consideration (e.g. Compensation and Benefits modeling), it makes me wonder how (and when) on premise customers will consider using HANA. Of course, after yesterday’s announcement of SAP HANA Enterprise Cloud, SAP’s direction is clear for those companies ready for cloud. For those on premise customers, there is still more information they need to understand what HANA can deliver for them. I will be looking next week at how HANA’s value can be realized for both customers on premise and those seeking cloud-based HR solutions.
2. What options do customers have for a refreshing User Experience? (i.e. what about HR Renewal and the other options that customers have for improved usability?). I wrote a blog on HR Renewal a few weeks back which you can read here, where I talk about “refreshing the UI”. Certainly, the new HR Renewal will be a welcome option for many customers (already on, or upgrading to ECC 6.0, Enhancement Package 6). Robert Moeller, Solution Owner, Core HR at SAP, also just wrote a nice piece on this here on SCN, around Feature Pack 3 of HR Renewal which became available on March 13, 2013 to customers. Also, if you haven’t listened to the recent podcast from Insight Consulting Partners, please check it out here. I was honored to join Insight Consulting Managing Partner Steve Bogner, and podcast members Brandon Toombs and Martin Gillet. Both Brandon and Martin will be at SAPPHIRE this year as well.
3. Any news about Payroll in the Cloud from SAP? If you haven’t already read this piece from Holger Mueller, do yourself a favor a read his blog “And suddenly…Payroll matters again!“. SAP has been very light around this topic since the SuccessFactors acquisition. The question on the table of course is whether SAP will build out a full cloud payroll solution, or keep with their instantiated hosted payroll offering (complimented with vendors like ADP). Next week, I will be keen on understanding if there is any buzz on the ground at SAPPHIRE regarding a payroll cloud initiative.
4. Continue feeling the customer pulse around on premise v. hybrid v. full cloud On Tuesday, I will be co-presenting asession on a success story of how our organization, Worklogix, helped a leading pharmaceutical company with their global ECM (SAP Compensation) on premise solution. You can view the abstract of this session here if you would like to attend. There is also a variety of SuccessFactors sessions as well, which you can see here. I will continue to meet with customers (existing and prospective) to get their perspective on this critical topic area – always one fiercely debated with lots of strong opinions.
5. Understand the traction around mobile HCM. I wrote a blog on mobility and held an HR Forum Q&A for the Insider Learning Network which you can check out the transcript here. Did you know SAP has a store like iTunes, and specifically for the HR Line of Business? Check out SAP’s apps, as well as those from software vendors who drive innovation in this great eco-system like Worklogix, EPI-USE, and hyperCision. I will be looking to understand SAP’s direction with mobile applications, especially with regards to pricing and future innovation both using SAP HCM (Afaria as MDM and SUP as MEAP) as well as SuccessFactors offerings.
Whoever is going, please drop by booth (pod) #2027b to say hello to me and the rest of the Worklogix team who will be in the Exhibit Hall. Hope to see some of you soon!