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SAP Reimagines HR Business Process of Recruit to Retire for its Intelligent Enterprise Suite

By Frank Bareis, Jochen Thierer and Neetin Datar

SAP recently held its virtual SAPPHIRE NOW conference and our Board members took the opportunity to share their evolved vision of the Intelligent Enterprise. This evolved vision is singularly focused on customers’ success along resiliency, profitability and sustainability business outcomes. They stressed on the importance of integration and innovation to make the Intelligent Enterprise tangible for our customers especially in today’s business environment.

In their keynotes, they prominently referred to the 4 mega business processes of an Intelligent Enterprise (see Figure 1). These 4 mega processes are also driving SAP’s Product Engineering focus & prioritization. Since these business processes traverse multiple SAP systems and run across the entire value chain they need to be harmonized and seamlessly integrated, rather than simply having point-to-point integrations.

  • Lead to Cash: enables enterprises to manage all aspects of customer experience, from the initial interaction to order fulfillment and service delivery. Within the SAP portfolio this includes integration of SAP C/4HANA to SAP S/4HANA.
  • Recruit to Retire: empowers enterprises to understand, manage and optimize all aspects of their workforce (both internal and external workers). Within the SAP portfolio this includes integration of SAP SuccessFactors, SAP Concur, SAP Fieldglass, and SAP Ariba to SAP S/4HANA.
  • Source to Pay: optimizes all purchasing processes for an enterprise. Within the SAP portfolio this includes integration of SAP Ariba to SAP S/4HANA
  • Design to Operate: helps enterprises create a digital mirror of their entire supply chain – from design to planning, manufacturing, logistics and ongoing maintenance. Within the SAP portfolio this includes integration of Digital Supply Chain solutions to SAP S/4HANA.

And, as you can see in Figure 1, Recruit to Retire business process (also known in the industry as Total Workforce Management) is clearly at the very heart of it. Our customers are looking to listen, understand, and act on external market conditions as well as workforce signals to steer their company and the entire value chain in real time in order to deliver an exceptional customer and workforce experience.

 

Recruit to Retire Business Process – Reimagined

SAP has reimagined the whole end-to-end Recruit to Retire business process and has broadened its definition to go beyond the traditional confines of HR. Recruit to Retire is about managing and optimizing all aspects of the total workforce in line with the business objectives and with a clear financial impact. Our vision for Recruit to Retire is to streamline a worker’s lifecycle at a company (i.e. Plan – Staff – Onboard – Work – Travel – Pay & Close) to enable an agile talent strategy while driving desired business outcomes.

The three main sub processes within Recruit to Retire are (see Figure 2):

  • Hire to Retire: this end-to-end business process manages the entire lifecycle of an internal worker or employee. It includes out-of-the-box integration between SAP SuccessFactors, SAP GRC and SAP S/4HANA solutions.
  • Travel to Reimburse: this end-to-end business process handles all aspects of worker’s travel and expense management. It includes out-of-the-box integration between SAP SuccessFactors, SAP Concur and SAP S/4HANA solutions.
  • External Workforce: this end-to-end business process manages the lifecycle of an external worker. It includes out-of-the-box integration between SAP Fieldglass, SAP SuccessFactors,  SAP Ariba, SAP Concur and SAP S/4HANA solutions.

 

Intelligent Enterprises are Integrated Enterprises

To deliver the mega business process of Recruit to Retire and all of its sub processes in a seamless manner to our customers, SAP is going beyond the technical point-to-point integration of these solutions. SAP is delivering out-of-the-box end-to-end business process integrations and in close concert with the Intelligent Enterprise – Suite Qualities. These Suite Qualities are – seamless user experience, one workflow inbox, aligned domain model, consistent security & identity management, process blueprints, coordinated lifecycle management and embedded & cross-product analytics. This is illustrated in Figure 3 below.

It is important to note that each of the 4 mega processes will follow the same Suite Quality standards. For example, SAP has invested heavily in defining and aligning one data model for people data across all our business applications. This is a big deal because now people data is consistent and semantically understood across all SAP applications. It solves the challenge of consistent data that is foundational in making Intelligent Enterprise a reality.

Each of the Suite Qualities plays a critical role in enabling true end-to-end business process integration which in turn delivers significant business value for our customers. These are captured in Figure 4.

“Social distancing” and “Remote work” are now the norm. It’s especially critical during these unprecedented times that HR processes along with other lines-of-business processes are integrated, harmonized, and running smoothly to provide the business continuity and agility that every company seeks.

As you may have seen in our previous blog “HR business process of Hire to Retire in SAP’s Integrated Intelligent Enterprise just got a triple shot of espresso!” we are already delivering on our vision of Recruit to Retire – beginning with the Hire to Retire sub process. Lots more innovations are targeted for the upcoming releases, so stay tuned.

 

Connecting the dots – SAP SuccessFactors HXM, Recruit to Retire and SAP’s Intelligent Enterprise Suite

For years, HR technology has been focused on process automation and data quality.  Both of those are good things.  Process automation drives efficiency, freeing up HR to make more strategic contributions to organizational success.  And data quality means the organization has a better foundation to make accurate business decisions when it comes to the workforce.  But now, the focus is shifting to experience, which has been driven by the introduction of all kinds of new technologies and employee expectations. Unless we start to rethink things, the value associated with current HR technology will begin to flatten.

Experience is a new way of thinking about how we use technology, moving beyond traditional HCM approaches and beginning to look at things not just from the perspective of the organization, but the perspective of the employee.  This is SAP SuccessFactors’ HR vision for customers: Human Experience Management, or HXM. With HXM, we put every employee at the center of what powers the organization.   This allows HR to lead and have an impact on their company’s business results.

With the Recruit to Retire business process within SAP’s Intelligent Enterprise Suite, we are ensuring that SAP SuccessFactors HXM solutions are well integrated with all other LoB processes and solutions within SAP’s portfolio, This enables people master data, insights and outcomes to be ingrained in not only HR but also throughout the entire enterprise.

In delivering the above strategies we have clearly signaled to our customers that we have doubled down on our unique and time-tested selling proposition of being able to run the world’s most mission-critical business processes integrated and based on one data model. Like our Board members re-iterated at SAPPHIRE NOW, SAP clearly aims to provide best-of-breed business applications (e.g. HXM, Finance, Travel, External Worker) and best-of-suite solutions (Intelligent Enterprise Suite). And, this is terrific news for our customers as they look to become Intelligent Enterprises and be the best run businesses.

 

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