Providing a Central Human Capital Management Solution

While maintaining several subsidiaries in different locations

The solution diagram above shows how SAP Cloud Platform Integration works together with other services as a solution for implementing the ‘providing a central HCM solution across subsidiaries’ use case.

Business Scenario

Large companies often have subsidiaries in different locations, even spanning across countries. Frequently, these companies lack a central view over all human resources-related processes and data. It wasn’t so long ago that human resources software was kept in a standalone system, used only by clerks who worked only in that system. Today, human resource departments need to be more strategic and companies have recognized the importance of centralized human-related transactions and management across subsidiaries to gain a more holistic view of the company.

Many customers may be considering moving their on-premise human resources systems to the cloud to optimize business processes. This results in having modern cloud systems for some subsidiaries and existing on-premise systems in others. Companies may have landscapes that include SAP SuccessFactors, SAP ERP, and SAP S/4HANA; to provide a centralized view in SAP SuccessFactors, these systems need to be integrated.

The ‘Providing a Central HCM Solution Across Subsidiaries’ use case is applicable across many industries. Employee costs may constitute as much as 70% of the total costs incurred by many companies. Companies need to, for example, exchange employee-related data with the finance department for budget planning or share cost center assignments and payroll postings. Consequently, they want to keep on-premise systems such as SAP ERP and/or SAP S/4HANA, and tightly integrate them with human resources systems in the cloud, such as SAP SuccessFactors

Solution

Businesses can automate processes across subsidiaries using SAP Cloud Platform Integration with different human-resource-related systems, for example, SAP ERP and SAP S/4HANA as the backend and SAP SuccessFactors as the core human resources solution and system of records. This solution enables them to realize a cost-effective and secure means of exchanging employee, organization, time, and cost center data. Companies can establish end-to-end processes, from human resources to finance, while having a great user experience in the cloud.

Prepackaged integration content can accelerate the implementation and automation in a hybrid (on-premise and cloud systems) deployment model. SAP SuccessFactors Employee Central can act as the system of truth while SAP ERP HCM and SAP S/4HANA HCM act as replicating systems for new hires and all updates. Such a solution can integrate more than 2200 organizational objects. SAP Cloud Platform Integration provides scalability and flexibility, with the capabilities to build integration scenarios for customized business processes. Integration developers can use predefined integration packages on the SAP API Business Hub under https://api.sap.com/.

Before implementing this use case, customers need to take the time to plan their project. As a first step, integrate SAP SuccessFactors and SAP S/4HANA and/or SAP ERP. For more information, including the necessary configurations, use the SAP Best Practices Explorer, filtering on “SAP Cloud Platform Integration.”

When connecting to on-premise systems. SAP recommends using the SAP Cloud Connector to achieve secure connectivity. For more information, see how to configure Connectivity to SAP Cloud Connector.

We recommend that you jump-start your integration project by using predefined content provided in the SAP API Business Hub. Before adding transactional data, implement the predefined integration content, to ensure that master data is working sufficiently.

Here’s an example of how a company’s planning phase may look:

  • Replicate data from on-premise SAP S/4HANA and/or SAP ERP systems to SAP SuccessFactors:

a. ERP to SAP SuccessFactors Employee Central Cost Center replicates cost centers from SAP ERP and/or SAP S/4HANA to SAP SuccessFactors.

b. ERP to SAP SuccessFactors Employee Central Employee and Organizational Data replicates employee master and organizational management data from SAP ERP and/or SAP S/4HANA to SAP SuccessFactors Employee Central.

  • Replicate data from SAP SuccessFactors to on-premise SAP S/4HANA and/or SAP ERP systems:

a. SAP SuccessFactors Employee Central to ERP Employee and Organizational Data replicates employee master and organizational data from SAP SuccessFactors Employee Central to SAP ERP and/or SAP S/4HANA.

b. SAP SuccessFactors Employee Central Integration with SAP S/4HANA Cloud - Employee availability data replication replicates employee availability information from SAP SuccessFactors Employee Central to SAP S/4HANA Cloud. 

Some additional data replication options you might want to consider are listed below; they each depend on the processes that have been implemented in your various cloud and on-premise systems.

Integration packages for replication from SAP SuccessFactors to SAP ERP and/or SAP S/4HANA focusing on employee and organizational data:

If you’re using SAP products for time management, onboarding, talent management, competency, or learning, consider the following packages:

Below is an example of what a company’s implementation phase could look like:

  1. Set up and configure the SAP cloud connector to achieve connectivity from SAP Cloud Platform Integration service to on-premise SAP systems. Conduct connectivity tests from the integration service to SAP S/4HANA and/or SAP ERP on-premise systems to ensure a successful connection.
  2. Configure the prepackaged content chosen during the planning phase and deploy it to SAP Cloud Platform Integration. Each integration package contains a configuration guide that details the package-specific configurations you need to follow.
  3. Monitor the integration flow message processing state using the SAP Cloud Platform integration web tooling Operating and monitoring SAP Cloud Platform Integration.

Bill of Material – SAP Cloud Platform Components for Licensing Considerations

SAP SuccessFactors Employee Central includes SAP Cloud Platform Integration at no additional cost. The usage rights and the packages that include SAP Cloud Platform Integration are detailed in the corresponding Product Supplement: Cloud Contract (https://www.sap.com/about/cloud-trust-center/cloud-service-level-agreements.html ) > Product Supplement > search for “SAP SuccessFactors HCM Suite”

Other Required Components

Capability

Function

SAP S/4HANA

An intelligent ERP solution that enables companies to capture every opportunity in today’s digital world, SAP S/4HANA removes common obstacles associated with legacy ERP applications, such as batch latency, complex landscapes, and annually driven-processes.

SAP ERP

The digital core that enables businesses to integrate end-to-end cross functional next generation business processes so that companies can become intelligent.  

SAP Cloud Connector

SAP Cloud Connector ensures secure data transfer when writing to on-premise SAP systems