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Author's profile photo Filip Misovski

ICYMI – The Business Case for SuccessFactors Extensions

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Extensibility enables us to innovate in the cloud and bring world-class HR “Add-on” solutions to customers faster.  However, it is sometimes difficult for customers to understand the value of Extensibility when looking at their current deployments of on-premise HCM and SuccessFactors.  Why? 

Imagine you told people from the year 2007 that they can either buy a Nokia phone for $49 or a 64GB Smartphone for $749.  Their reference point for a cell phone was a system that holds “master data” of contacts and makes “transactions” like calling other people and sending text messages. Nobody believed that people from 2007 want to know something about the phone storage or the concept of apps as extensions to the core “transactions”.   Yet today, the idea of a 64GB smartphone is a normal daily routine for all of us (unless you are a retro fan and love your Nokia).

The 2007 moment when smartphone revolution started is exactly how it feels today with Extensibility in Human Capital Management.  We are on a transition not only to the Cloud for HR processes, but to a “Smart HCM”.  Partners like Accenture continue to be excited about the possibilities and advancements they can deliver with the SAP HANA Cloud Platform.  Early adopters at customers like Timken and SAP HR & IT are already realizing the potential firsthand.  Some may still not understand the value and fear the costs as barrier for adoption.  So let’s talk about these costs and value customers get with Extensions on the SAP HANA Cloud Platform.

Read here further about the two major paths on how to unlock “Smart HCM” at your company.

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      Author's profile photo Luke Marson
      Luke Marson

      Thanks for posting this Filip. There is definitely a huge value to extensions and I applaud you helping to spread the word. Customers don't yet fully understand the value, but it's just a matter of time until they begin to get how much value extensions bring.

      Author's profile photo Filip Misovski
      Filip Misovski
      Blog Post Author

      Thanks Luke!  I appreciate your thought leadership and support on making this topic mainstream with HR customers.  I agree this is a journey we are on and certainly one that can be enticing for both SuccessFactors and On-premise HCM customers (not to mention the new, up-and-coming S/4HANA wave). The power and potential we have with HCP + MDF is second to none in the industry.

      Author's profile photo Chris Paine
      Chris Paine

      Let us consider and digest this metaphor, as I think it quite apt! Should every company now go out and implement extensions? Very much like in the early days of smart phones these are not for all. However, similarly to the early days of smart phones there exists a business advantage to those companies that are willing to see and take the benefit. The current SAP implementation cycle is in full swing towards "standardization" but I think we need to consider why this is the case rather than blindly follow the mantra. The good thing is, things like the SAP marketplace are reducing the risk for customers. You can leverage prebuilt solutions to solve your business problems. Perhaps there hasn't been such a risk adverse time to "jump onboard" as now. This is innovation, this is how to show your CIO that cloud is the way forward, but also be SAP safe! I look forward to the future!

      Author's profile photo Jagan Gunja
      Jagan Gunja

      One possibility for value-adding vendors would be to build extensions for public use. However there may be risks her, unless there is a proper validation of these by a client.  There could be an opportunity for certifiers also!