SAP HCM transition strategies (Part 1)

 

SAP offers two solutions for SAP Human Capital Management (SAP HCM): SAP HCM for S/4HANA and SuccessFactors (Cloud). In this blog (part 1), I will share my insights on the SAP HCM solution for S/4HANA, discussing the suitable options for the transition to SAP HCM for S/4HANA or directly to SAP SuccessFactors.

The following 3 scenarios will give you an overview of the possibilities:

  1. Mainstream Support for SAP ECC
  2. Compatibility Packs
  3. Direct switch to SAP HCM for SAP S/4HANA
SAP HCM Strategies Afbeelding 3

Option 1: Mainstream Support for SAP ECC

This first option concerns using Mainstream Support for SAP Enterprise Core Components (ECC, including HCM) until 2027. The support can be extended until 2030.

This option is available for the following releases:

  • EHP6 FOR SAP ERP 6.0 (release level: 6.06) – support non-Unicode and Unicode deployments
  • EHP7 FOR SAP ERP 6.0 (release level: 6.17) – support non-Unicode and Unicode deployments
  • EHP8 FOR SAP ERP 6.0 (release level: 6.18) – support Unicode deployments

Option 2: Compatibility Packs

In this second option you can upgrade to S/4HANA (From Q4 2022). The Compatibility Packs for SAP HCM (until 2025) can also be used in S/4 HANA.
With a subsequent switch to HCM for S/4HANA, support is guaranteed until (at least) 2040.

Option 3: Direct switch to SAP HCM for SAP S/4HANA

The last option is an upgrade to S/4HANA including the new SAP HCM for SAP S/4HANA from Q4 2022 (But before 2027). Support for this 3rd option is available until (at least) 2040. Standard Fiori apps can be used in HCM for S/4HANA as well as in SAP ECC, which makes the tasks more intuitive and therefore leads to an increase in process efficiency.

Functional scope of SAP HCM for SAP S/4HANA solution

For a long time, it was unclear whether the two functionalities of SAP Travel and Talent Management would be available in SAP HCM for S/4HANA.It is now certain that both functionalities are available. E-Recruiting and the SAP Learning Solution will also be part of the functionality of SAP HCM for SAP S/4HANA from 2022.

The complete range of functionalities can be found in the figure below.

SAP HCM Strategies Afbeelding 4

Conclusion

SAP relies on replacing the current HR solutions with SAP SuccessFactors.

It's clear that SAP focuses its innovation efforts in this area. Transitioning from an SAP ERP system to SAP SuccessFactors can be complex and time-consuming. In my opinion, the 3 options above for transitioning from SAP HCM to S/4HANA gives companies more time to prepare for this change. Benefits and challenges in transitioning to SAP SuccessFactors will be discussed in Part II of this Blog.

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About the author

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Tomislav Đekić

Tomislav is our SAP HCM & SuccessFactors Consultant at Expertum

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