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Value Scenario in Detail

Drive Efficient HR Operations


Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 2


Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 3


Flexibility and Growth to Survive Today’s
Global Challenges

Globalization Economic Mergers and


Uncertainty Acquisitions

 Accommodate multiple  Increase efficiency  Standardize and


languages  Reduce cost of HR & FI automate multiple
 Comply with legal & tax versions of processes
 Increase transparency
requirements locally and  Consolidate disparate IT
globally systems
 Ensure data formats  Comply with business
and governance models

© SAP 2008 / Page 4


World-Class Organizations:
Cost Reductions through Process Automation

Source: Bersin 2008

More automation 92%


81%
Expansion to service Finance function 67%
41%
More Centers of Expertise 58%
45%
50%
Expansion to service HR function 33%
42%
Outsourcing 35%
Expansion to service Procurement function 42%
31%
Global Reach 42%
29%
Off-shoring 33%
27%
33%
Expansion to service IT function 17%
25%
Consolidate number of SSCs 18% Source: Hackett 2007
© SAP 2008 / Page 5
Proven Value of Shared Services
Reduced Costs, Increased Effectiveness

Stages of Maturity
32%

23%

15% 14%
8%
5%
1% 0.5%

No Shared Service Emerging Established Leaders

Net Cost Savings % Effectiveness Improvement %

Typical Profile
 Fragmented  Centralized  Automated  Highly Automated
 Varying Processes  Mostly Standard Transactions  Highly Integrated
Processes  Consistent Service  System Consolidation
 Varying Service Levels
 Comprehensive
Levels  Efficiency Metrics Metrics
 Governance

Source: ASUG/SAP 2006 Shared Services Study


© SAP 2008 / Page 6
What Does This Mean for your Business?

Top executive issues

 How do I improve efficiency within my HR organization?

 How do I reduce the administrative workload of my HR


professionals enabling them to support the business
strategy?

 How do I prove the value of HR operations with hard facts


and figures?

 How do I ensure compliance concerning HR policies and


procedures?

 What is the smartest sourcing strategy for HR?

© SAP 2008 / Page 7


HR Costs are High and Strategic Contribution
Is Hindered
Lack of infrastructure to
Lack of defined service quickly measure HR
delivery strategy operations
?

Fragmented, inefficient
manual processes

Inability to support the


business strategy

Inefficiency of HR process delivery leads to high cost, low quality, low employee
satisfaction, risk of non-compliance and lack of strategic business support.
© SAP 2008 / Page 8
Efficient HR Operations Reduce Costs and
Enable HR as a Strategic Partner

Clear sourcing strategy


Increased transparency
?

Automated HR
Processes

Increased efficiency of
HR Operations

Unified solutions and a flexible technology platform help organizations achieve HR service
© SAP 2008 / Page 9
excellence while maximizing resources and lowering costs
Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 10


SAP Delivers People and Talent Solutions
End-to-end processes across HR and the Enterprise

 Plan and Budget


Build the Workforce  Find and hire the right people quickly
 Effectively onboard to reduce time to productivity

 Calibrate/Assess performance and gauge potential


Develop a High Performing  Identify key positions, key skills, and talents
Organization  Develop successors and key contributors

 Enable and empower employees


Drive Efficient HR
 Automate HR processes through shared services
Operations
 Increase transparency of HR delivery programs

 Plan optimal workforce levels


Optimize Workforce
 Manage shifts, rosters, crews
Scheduling
 Track employee schedules, absences

 Standardize local and global HR processes


Automate Global HR and
 Track benefit plans and enrollments
Payroll
 Ensure compliance with ever-changing legal regulations

© SAP 2008 / Page 11


Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 12


Core HR
The Foundation for All HR Processes

Time & Attendance Employee Administration


 Planning, managing &  Master data
evaluating working times  Employee transfers
 Centralized or  Status change
decentralized
 Self-service capabilities
 Leave data
 Employee deployment

Benefits Organizational
Management Management
 Benefits administration  Org structures
 Self-service  Reporting lines
capabilities  Planning & simulation

Global employment
 International transfers &
assignments
 Global reporting
Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 14


Employee Administration
Master Data

Allowances
Working times
Absences

Address/
Personal data
•Localized information

Tax and Social


Security information

Salary
information Work center
Cost center
Position
Employee Administration
Summary

KEY FUNCTIONALITIES BUSINESS BENEFITS


 Master data for all HR relevant  Automation of all basic personnel
employee processes processes
 Extensible infotype framework  Global reach (languages, currencies,
 Automation of data entry steps for regulatory requirements...)
standard processes (e.g. hiring)  Consistent real-time data for all basic
 All records are consistency checked HR processes
real-time and stored with time stamp
Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 17


Organizational Management
Basic Structures Within SAP Data Model

Enterprise Structure
TFC Client
Personnel Structure

Employee Company
Externals Active Retirees United States Canada Mexico
Group Code

Employee Personnel
Trainee Non-Exempt Exempt Los Angeles New York San Francisco
Subgroup Area

Personnel
Corporate Production
Subarea

Organizational Structure

Executive
Board
Org. Units

Financials HR Manufacturing Person

Jobs Manager Supervisor. Director

Positions Mgr of HR
Organizational Management
Summary

KEY FUNCTIONALITIES BUSINESS BENEFITS


 Allows modeling of complex organizational  Flexibly plans and maps the organizational
structures and multiple views (e.g. matrix) levels of your company to control and
 Automatically checks data for consistency simplify processes
in real-time  Creates transparency and supports
 Contains powerful reporting and analytics decision making e.g. for reorganizations
 Organizational structure is basis for  Is the foundation for process excellence
authorizations and security using workflow and authorizations
enterprise-wide
Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 20


Time & Attendance
Process Overview

Clock in/out Cross-Application Self-Service / Time Manager‘s


Mobile
Time Sheet Inter-/Intranet Workplace

Payroll
Time Evaluation
Time & Attendance
Summary

Key Functionalities Business Benefits


 Plan Shifts  State-of-the-art planning and data-entry
 Maintain and record time data Technologies
 Clock in/out  Easy-to-use mechanisms for monitoring time
 Manage time accounts management
 Generate wage types for payments &  Record data once and reuse across your
deductions enterprise
 Calculate incentive wages  Intuitive user interfaces tailored to the individual
 Use data in other business processes needs
Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 23


Management of Global Employees
Process Overview

Person ID: Valid within


the enterprise & for the
lifetime of the employee
Global Employee

During Assignment

Transfer

Preparation
of Relocation

Planning of
Repatriation
Global Assignment

Start of global End of global


assignment assignment
Management of Global Employees
Summary

KEY FUNCTIONALITIES
 Supports full lifecycle (assignment planning,
payroll transfer, repatriation).
 Central person ID allows tracking global
employees during all international transfers.
 Authorizations ensure that different HR users
can only access data relevant for them.
 Assignments are planned in alignment with
company policy.

BUSINESS BENEFITS
 Single point of information for all involved
parties, supporting efficient negotiation and
transfer management.
 Automatic information transfer from home to
host country and vice versa.
 Reduces communication times and
transaction costs.
 Provides consolidated data and training
history for employees, critical for talent
management processes.
Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 26


Untapped Employee Potential

Lack of and competition


for available talent
• Shortage of skills
• Loss of key talents Inadequate training and
development programs
• Inability to measure skill gaps
• Risk of non-compliance
?

Gaps in successor
pipeline ?
• No successors for key ?
positions
No insight into employee
• Risk of business performance and potential
disruption • Inability to identify & nurture
talents
• Inability to pay for performance

No identification and development of top performers and prospective successors = talent


and leadership gaps = potential business disruptions and poor business performance
Effectively Identify, Develop & Retain Talent
SAP Software Helps You Maximize Workforce Potential

Transparency and tools to find and


hire the best people faster
• Optimized recruiting process
• Reduced time to productivity for new Highly skilled workforce
hires • Increased workforce productivity
• Reduced risk of non-compliance

Visibility of key talent


demand and supply
needs
Insight into workforce
• Succession plans for
key positions in place
performance
• Proactively identify, • Nurture and retain talents
develop, and track • Increased employee
potential successors satisfaction and motivation
through pay for performance

Insight into global workforce = ability to tap into employee potential = leadership
continuity and alignment with key business objectives
Integrated Human Capital Management
One integrated platform for the best people & talent

Key Features
 Eliminates redundant processes & reduces integration costs
 Wide breadth of functionality across the whole HCM spectrum
 Unmatched global capabilities

Talent Management

Performance, Compensation
and Succession
Management Classroom
Recruiting
Training and
E-Learning
Employee Data
Organizational Data
Competency Data
Global HR
and Payroll Scheduling and
Administration Deployment

Planning and HCM Service


Analytics Delivery
Integrated Talent Management
Building Blocks Shared Across HCM Processes Optional Slide

Employee Data
Organizational
Data
Skills &
Qualifications

SAP BUSINESS SUITE


Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 31


Why SAP?
A Foundation for Shared Services

State-of-the art shared services delivery platform


 Architecture enables leveraging economies of scale
 Automation improves efficiency in administrative
processes
 Shared Services Framework and self-services
improve service experience

The ability to control and anticipate


 Increased control of processes across the entire
company
 Supports governance of service provider–consumer
relationship
 Allows for better decision making based on
comprehensive insight

Automation powers transformation


 Automates labor-intensive administration processes
 Frees line operations from administration work
 Enables HR and Finance to become a business
partner
© SAP 2008 / Page 32
WITH…
Fully integrated Human Capital Management

 Performance Management
 Succession Management
 Competency Management
 Compensation Management
 Recruiting  Classroom Training
 Onboarding Performance &
Succession  E-Learning
Management
Recruiting Learning
Talent Management
 Manager Portal
 Employee Portal Employee Data
Organizational Data
 Shared Services  Workforce Analytics
Competency Data
Framework Planning & Measurement
 SAP Interactive HCM Service and Analytics  Workforce Planning
Forms by Adobe Delivery
 Duet

Global HR Scheduling &


and Payroll Deployment

 Employee Administration
 Time and Attendance
 Organizational Management
 Shift/Roster Planning
 Global Employee Management
 Scheduling Optimization
 Benefits Management
 Payroll & Legal Reporting
AND…
A Platform for Multi-functional Shared Services

Multifunctional
Shared Services Organizations

HR Finance IT Procurement Facility


 Fleet Mgmt
 Purchase
 Org. Change  Accounts  Incident Mgmt.  Office Mgmt
 HR Admin Payable  Infrastructure  Logistics  Property Mgmt
 Accounts Mgmt  Supply Mgmt
 Time Mgt  Restaurant &
Receivable  Application mail services
 Event Mgmt
 Payroll
 Travel& Mgmt
 Sourcing  Relocation
 Pensions Expense
 Infrastructure
 Expatriate  Vendor
Mgmt and technical
Requests facility Mgmt
 Recruitment  General Ledger

Shared Services Framework

© SAP 2008 / Page 34


AND….
A Solid Backbone for BPO

Global HRO provider partnerships

Business process outsourcing


(BPO) services
delivered by
Regional and local HRO provider partnerships
leading providers “powered by
SAP”

A solid backbone for BPO Selected clients


SAP – company and BPO powered by SAP
AMD, Apple, Atlas Group Holdings, Avaya
technology program
Global Connect, Canal Plus, Celanese, Celestica,
Commission for Social Care Inspection, DuPont,
The most robust
Unique support to Faurecia, Ferro, Fifth Third Bancorp, Hospira,
process software Incitec Pivot, Infineon, Intel, Kao Corporation,
BPO partners
platform Lenovo, Matsushita Panasonic, Medtronic,
Northamptonshire County Council, Pitney
SAP’s undisputed Standardized best- Bowes, Powerwave, Preh, Rhodia, Sal.
long-term viability practice deployments Oppenheimer, SCA Hygiene, Schindler,
Schneider Electric, Sensata, State of Florida,
Sumitomo Trust & Banking, and Whirlpool

© SAP 2008 / Page 35


Agenda

1. Key trends and issues


2. SAP solution overview
3. Core HR
2.1. Employee Administration
2.2. Organizational Management
2.3. Time & Attendance
2.4. Management of Global Employees
2.5. Talent Management
4. Why SAP? Top reasons
5. SAP customers

© SAP 2008 / Page 36


Customer Quotes

“The employee interaction center controls all our workflows between the
front and back office and gives us an exact overview of our productivity and
service performance at any point in time. The seamless integration of the EIC
with our SAP HR environment was a very positive experience.”
Heiner Fels, Head of HR Business Services, Deutsche Lufthansa AG

“We want to make service excellence an unmistakable feature of Siemens


personnel services and ensure that the success story continues.”
Bernhard Grunow, Manager, Siemens Personnel Services

“Together with SAP, we have revamped and efficiently reorganized our HR


processes. The portal-based self-services and the employee interaction
center perfectly supplement each other: all HR services can be accessed by
our employees and managers in an efficient, consistent, and comfortable
way!”
Jens Häfker, Head of HR Services Direct Consulting, Dresdner Bank AG

“We are handling the requests of 9,000 SAP employees in the Americas as
well as requests that are dispatched to us from other regions. The EIC is a
great tool that globally supports our first- and second-level expert HR service
representatives.”
Amy Shillingford, Head of SAP HR Shared Service Center Americas

“The employee interaction center offers optimized system support for our
business service center. The clear responsibilities of the front and back end
lead to optimized operations, increased process quality, and better service in
all kinds of payroll issues.”
Thomas Fischer, Project Leader, BASF IT Services
© SAP 2008 / Page 37
ABB


SAP Employee Self-Service marks
a quantum leap. Shop-floor
workers can now access the
corporation’s electronic
information channels, including


the intranet, and are fully
integrated with HR processes.

Jan-Christoph Schüler
HR Manager, ABB AG

QUICK FACTS
Company Objectives Why SAP
 Name: ABB AG  Reduce HR costs through greater efficiency and  Standardization and harmonization of HR processes
 Location: Mannheim, Germany increased productivity  Delivery of key HR functionality such as the EIC
 Industry: Engineering, construction, and operations  Improve HR service standards
 Products and services: Power systems, automation  Free up HR staff to focus on strategic tasks Benefi ts
solutions, and robotics  Significant cost savings and reduced workload in HR
 Revenue: US$29.2 billion (ABB Group) SAP® Solutions and Services  Wide acceptance by shop-floor staff due to ease of use
 Employees: 110,000 (ABB Group)  Employee portal and manager portal in SAP® ERP  Excellent foundation for employee communication on a
 Web site: www.abb.com  Employee interaction center (EIC) functionality found in larger scale across the entire corporation
 Implementation partner: Wincor Nixdorf International the SAP ERP application
GmbH Existing Environment
Implementation Highlights  SAP ERP
Challenges and Opportunities  Set up kiosk terminals for self-service in the production  SAP ERP Human Capital Management solution
 Overcome the drawbacks of paper-based facilities
 HR processes  Enabled unattended, remote installation and updates of
 Improve communication with shop-floor employees that do kiosk terminals
not have access to computers or e-mail at work  Integrated EIC functionality with the SAP NetWeaver®
Portal component

© SAP 2008 / Page 38


Joint SAP/Partner Business Process
Outsourcing (BPO)

© SAP 2008 / Page 39


Shared Service Center Customers

© SAP 2008 / Page 40


© SAP
2008 /
Page

Thank you! 41

© SAP 2008 / Page 41


Appendix I
Customer Success by Industry

© SAP 2008 / Page 42


Utilities –
HR Shared Service Center in Germany

Approach
SAP Shared Services Strategy focus on:
 Setup of an operating model based on SAP‘s best
HR Transformation with practice
Shared Services  End-to-End process redesign
 Vertical integration of self services, automation
(e.g. Workflows), back-end improvements, Adobe
Interactive Forms and the Employee Interaction
Center
 Realization and Go-Live: Process handbooks,
service readiness checklist, training and
transformation

Results
 Organizational Setup of the SSC
 > 100 process models, interface definitions
between SSC and customers etc.
 KPI and SLA Definition, Pricing model
 Implementation of EIC CRM 5.0

© SAP 2008 / Page 43


High Tech –
EMEA HR Operations

Approach
SAP Business Consulting IT Strategy focus
Achieve excellence in on:

execution of HR operations  Full HR and F&A Shared Service Center


Implementation
 Project Management, Change Management

Results
 Solution Design for HR and F&A processes
 Organizational Design and Integration
 Organizational Change Management
 Migration of more than 40 countries in
EMEA

© SAP 2008 / Page 44


Life Sciences –
Global HR IT and Service Delivery

Approach
SAP Business Consulting IT Strategy focus on:

Achieve operational  Analyze Shared Service Strategy,


processes, As-Is architecture and business
excellence in HR objectives
 Develop future HR IT architecture for Global
Shared Services
 Identify valid evaluation criteria
 Evaluate alternative options and constraints
 Identify and evaluate alternative roadmaps
for realization
 Justification of IT investments

Results
 Detailed evaluation of different IT
architecture alternatives
 Pros and Cons for each alternative
 Recommendation from SAP
 High Level Roadmap
 High Level TCO analysis

© SAP 2008 / Page 45


Life Sciences –
Global HR Service Delivery Program

Approach
SAP Shared Services Strategy focus on:

Achieve operational  Analyze current TCO for HR Operations


and HR IT
excellence in HR
 Design (high level) future HR Operating
Model
 Estimate and evaluate Cost, Benefits and
Risks of Shared Service Initiative

Results
 Detailed Business Case which includes
justification for IT consolidation and Shared
Service Implementation

© SAP 2008 / Page 46


High Tech –
IT Architecture Assessment for HR Global Shared Services

Approach
Leadership SAP Business Consulting IT Strategy focus on:

in productivity with defined  As-Is Analysis of HR Shared Services


Strategy, Processes and IT Architecture
quality and services
 Development of 6 alternative architecture
scenarios
 Evaluation based on 40 weighted customer
specific criteria
 Evaluation of different roadmaps
 Flexibility for future or partial BPO
Results
 Recommendation for future HR IT
Architecture
 Roadmap
 High Level costs: Implementation and
Operation
 Benefits
 Risks

© SAP 2008 / Page 47


Public Sector –
HR SSC for Governmental Ministries

Approach
SAP Business Consulting IT Strategy focus on:

Modernization of Government  Feasibility of SSC architecture: Platform


and Self-Services
with Centralized HR
 Vertical integration of self services,
automation (e.g. Workflows), back-end
improvements and Adobe Interactive Forms
 Risk Assessment for ongoing
implementation project

Results
 Optimized SSC architecture based on Self-
Services, third-party products and federated
portals
 Clear recommendations how to leverage on
enterprise SOA capabilities for end-to-end
processes
 Implementation of SAP NetWeaver
Enterprise Portal, Employee Self Services
and Adobe Interactive Forms

© SAP 2008 / Page 48


Public Sector –
Feasibility of Finance Shared Service

Approach
Felda
SAP Shared Services Strategy focus on:

Improvement of F&A  Identifying the feasibility of a Shared service


for 5 companies in the plantation group
processes
 Create a morel to-be shared service
process
 Prepare a Business Case
 Quality Assurance for process
standardization blueprint

Results
 Business Case which includes justification
for and the implementation roadmap for the
finance Shared Service Implementation

© SAP 2008 / Page 49


Public Sector –
Provincial Government plans strategic SSC

A new strategy for Approach


centralized HR Shared SAP Business Consulting Advisory Services focus
on:
Services  Collaborative strategic approach with
different ministries
 Overcome limited use of successfully
implemented SAP® ERP application
because of organizational complexity

Results
 Development of project road map
 Scoping of future business process model
 Evaluation of future shared service center
organization
 Design of future application architecture
 High-level benefit analysis and impact
analysis for change management

© SAP 2008 / Page 50


Logistic Service Provider –
HR Transformation

Approach
SAP Shared Services Strategy focus on:

Realize Vision  Introduce Service Management concept

‘One Company – One Firm’  Harmonization and Standardization of HR


Processes
 Analyze and evaluate impact on IT
consolidation project

Results
 HR Process Design supports company‘s
HR Business Objectives
 KPIs defined, which are SMART
(e.g. measurable)
 Business Blueprint for the implementation of
SAP Employee Interaction Center

© SAP 2008 / Page 51


Utilities –
HR, FI, Procurement and IT Shared Service Blueprint

Approach
SESCO
SAP Shared Services Strategy focus on:

Driving Standardization and  Identify feasibility of Shared Service in HR,


Finance, Procurement and IT
Efficiency
 Identify the services
 Define the to-be standardized process
 Identify the Change Impact
 Develop internal Change Agents

Results
 Create Blueprint for the Shared Services
Implementation
 Create Internal capability to manage the
Change

© SAP 2008 / Page 52


Appendix II
Additional Information

© SAP 2008 / Page 53


Best Run Shared Services Run SAP

SAP Asia Pacific Japan The Excellence Awards,


(APJ) Human Resources established to honor,
Shared Services recognize, and promote
Organization (HR SSO) was Shared Services
honored at the Shared Organisations (SSOs) that
Services & Outsourcing demonstrate winning
Network Excellence Awards practices, form the industry’s
2008, emerging as Asia’s benchmark in terms of best
Best New Shared Services practice and business
Organization. excellence.

Martin Prinz, vice president


SAP’s newly-built service and head of HR Operations
model, which commenced in SAP APJ, said, “In the
operations in May 2007, product world, one could
impressed the panel of refer to the approach that
Shared Services experts and characterized our first two
leaders with its design, start- years of planning, migrating
up strategy, implementation and operating as ‘rapid
initiatives, and future prototyping’. We are now in
development plans. the stabilization and
optimization stage.”
2008 / Page 54
© SAP 2009
SAP Runs SAP for Global Shared Services

SAP: shared services


2004 (FTE)

APJ
 Runs SAP ERP 6.0
F&A global process1) 30  With one chart of accounts
 One profit-center structure
HR global process F&A  Common workflows

SAP: shared services  Global purchasing with global


standardized processes
2007 (FTE)
 On one instance
 Global FI processes
NA LAA EMEA APJ
 Global facility
F&A global process1) tbd 36 228 50  Global HR
 Global IT
HR global process 74 3) 2) 85 3) 15 3)
1) F&A processes to be aligned on detail level
2) HR shared services for LAA from Newtown Square
3) Service center–based employees only
© SAP 2008 / Page 55
Shared Services Solution Map Combines Best
Practices from Customers with Solutions from SAP

Reference model for best practices in shared services organizations

Mobilization Project management

Services and cost Product and service


Services Process landscape Service delivery model
baseline definition

Continuous improvement
People, organization Roles and service Skill Staff Change
Location Facilities Recruiting Training
and location delivery model profiles transition management

Governance and Corporate Analytics, KPI and


Legal entity Governance model Sla Pricing
legal considerations policies benchmarking

IT system and
Information Self-services and System migration IT operation and
application Interaction centers
technology portal strategy and consolidation support (ITIL)
landscape
Customer selection and negotiation
Customers (for whom the services Billing Inbound activities Outbound activities
are delivered)
Value identification Business case Risk assessment

© SAP 2008 / Page 56


SAP Software Solutions for Shared Services

Shared services Financial HCM Procurement


Corporate services
process mgmt. shared services shared services shared services

 Shared Service Framework  Accounting interaction  Employee interaction  Procurement interaction  Travel management
 Process flow analytics center center center  Real estate management
Service level mgmt. cockpit  General ledger  Payroll and legal  Requisitioning  Enterprise asset mgmt.,
OCR inbound doc
 Accounts payable reporting  Purchase request processing spec. IT help desk
handling Invoice management  Time and attendance  Purchase order processing  Environment, health, and
Outbound doc. handling  Supplier enabling  HCM processes and forms  Trading contract management safety compliance
(biller direct pay-side)  Benefits management management
SAP Interactive Forms  Receiving
 Accounts receivable  Employee administration  Global trade services
Duet (information worker)  Financial settlement
 Credit management
 SAP NetWeaver Master  Recruiting  Manage catalog content
 Collections management
Data Management.  Enterprise learning  Managing compliance
 Dispute management
 SAP NetWeaver Exchange  SAP Employee Self-Service  Supplier collaboration
Infrastructure
 Customer enabling
and SAP Manager
(biller direct sell-side)  SSC dashboard analytics
 Bus. comm. mgmt. Self-Service
 Intercompany reconciliation
(CTI and WICOM)  Kiosk Systems
 Document mgmt.
 Intercompany processing  SSC dashboard analytics
Shared Services
Process Management
 In-house cash
SAP Productivity Pack by Shared Service Framework
RWD
 Inventory accounting
Product Catalogue; Multi-functional back-end capability; IT-Architecture; …
 Fixed asset accounting Communication
Portal Solutions; additional Self Services; Processes and Forms ;…
Governance
 SAP NW Identity Mgt Aggregation
 Tax accounting SLA cockpit; track performance and enable compliant operations
 SAP Business Workflow
 Treasury
 Resource mgmt.
 Financial Closing cockpit Real-
 Financial statements F&A HR IT Procure- Estate /
ment Facility
 Tax management
 SSC dashboard analytics Enablers
Enablers
Supplier connectivity Enablers

SAP product available Partner product available Sxx, Vxx, Bxx SAP product and service
Pxx Partner product
SAP product available with future releases Partner product available with future releases
Future focus Collaborative business map available For more information see: http://www.sap.com

© SAP 2008 / Page 57


Strategy for Establishing Employee Interaction
Centers

SAP ERP as the application platform SAP Shared Services Framework


for the employee interaction center (SSF) as the application platform for
(EIC) only a multi-functional shared service
 Overall company (group) strategy is to center
establish an employee interaction center only,  Overall company (group) strategy is to
no further interaction centers planned. establish also other shared services functions
 Single, central HR system exists on ERP 6.0 beyond HR (accounting interaction center, for
example)
 Multiple back-end support

LOCAL AND SMALL IMPLEMENTATIONS SOLUTION FOR GROWTH

Recommendation
When the strategy is to run multi-functional shared services, SAP recommends an EIC
implementation based on SAP CRM.

Note (see also SAP note 1256691)


With the functions as of SAP Enhancement Package 4, the ERP based solution will be no
further developed. No migration path for your EIC exists from SAP ERP to SAP SSF
© SAP 2008 / Page 58