This document summarizes how companies can leverage SuccessFactors' performance and talent management software to optimize their human capital investment and gain a competitive advantage. The software extends existing SAP HR systems to provide strategic functionality for goal management, performance reviews, learning and development, succession planning, and analytics. It seamlessly integrates with SAP while offering enhanced usability, flexibility, and faster return on investment compared to traditional ERP systems.

1. Enterprise Insight Series
Unlock the Value:
Gain the competitive edge by fully leveraging
your company’s investment in human capital
and legacy HR software.
Copyright © 2008 SuccessFactors, Inc.

2. Unlock the Value Enterprise Insight Series
Implement a robust Performance & Talent Management
solution that extends your SAP HR technology
For years, organizations like yours have relied on Enterprise Resource Planning (ERP) software to help
manage employee transactions across the enterprise. It was during this time that SAP earned its
well-deserved reputation as one of today’s most robust and stable back-end HR systems.
The SAP Human Resource Information System (HRIS) was originally built to help administrators
automate transaction-based processes such as payroll and benefits enrollment. While such administrative
transactions remain necessary, most are now commodities which are unlikely to generate game-changing
business impact.
To stay competitive in today’s marketplace, organizations need to focus on more strategic initiatives
such as leveraging and optimizing the talent of their employees. Addressing this challenge is a new
breed of Strategic Human Capital Management (HCM) applications that support the “best practices” for
managing the performance of people in the workplace.
This whitepaper will explain the critical need for enhanced performance management for today’s
businesses, plus outline how you can seamlessly deploy the best-of-breed performance and talent
management solutions.
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3. Unlock the Value Enterprise Insight Series
Formulating a more powerful strategy for maximizing
human capital
People make up the single largest investment for most businesses, comprising nearly 70% of total
operating costs. Unfortunately, most companies struggle to optimize their workforces, squandering the
true value of this critical investment.
To get the most out of their people, leading organizations leverage software and best practices to energize
their people, increase workforce productivity, and drive better financial results. These businesses think
strategically about their workforces and recognize the importance of investing in solutions that optimize
employee performance that’s aligned with both individual and organizational goals.
Utilizing powerful Strategic HCM software solutions, these organizations:
• Focus employees on critical tasks
• Increase overall employee productivity
• Identify and reward top performers
• Invest in ongoing employee development
• Place the right person in the right job to be successful
• Ensure readiness to execute on changing business strategies
While transactional HR applications have reached a relative parity in the market, the chasm is getting
wider between best-of-breed strategic HCM applications and functionality available from ERP vendors.
This difference between vendor offerings is not a mere set of feature-function benefits. It translates
into change management and quantifiable financial impact for your business. Evidence suggests that
best-of-breed Performance & Talent Management processes bring about better financial results,
including faster top-line and profitability growth relative to industry peers.
“ ompanies that deploy On-demand Performance and
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Talent Management solutions appear to achieve on
average 2 percent higher annual revenue growth within
three years of deployment relative to the industry
norm, with some achieving up to 3 or even 4 percent.”
Saugatuck Technology Inc.*
*Source: “Strategic Talent Management Solutions and Superior Topline Growth” Saugatuck Technology Inc., March 31, 2008
http://www.successfactors.com/research/financial-advantages/
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4. Unlock the Value Enterprise Insight Series
SuccessFactors: the leader in Performance
Talent Management
SuccessFactors is the leading provider of Performance Talent Management solutions with more than
4 million end users in 185 countries. With SuccessFactors, your company can directly align every
executive, manager and employee with the mission of your organization. You’ll cover more ground,
faster, with the same resources — achieving the kind of success that moves markets.
An integrated solution
The SuccessFactors Performance and Talent Management Suite is the industry’s first complete suite of HCM
applications delivered as a service, enabling organizations to rapidly source, align, develop, motivate, and
maintain a high-performance workforce. With seamless integration across each module, SuccessFactors
gives you the visibility to optimize the performance of your people to drive business results.
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5. Unlock the Value Enterprise Insight Series
Among its many capabilities, the SuccessFactors Performance Talent Management Suite seamlessly
extends your existing SAP investment with best-of-breed functionality. The functionality that is either not
available or not widely deployed by ERP vendors, includes:
• oal Management. Automates the process of creating, cascading, monitoring and assessing the
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progress of company-wide goal completion.
• earning and Development. Supports management, delivery, and measurement of learning
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content and activities.
• erformance Management. Streamlines the performance appraisal process and helps transform
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the often rushed and tedious once-a-year performance review into an ongoing performance
management process that ties employee performance to bottom-line business results.
• ompensation Management. Allows organizations to effectively implement pay-for-performance
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initiatives by integrating and aligning goal management, performance management, and
compensation processes with a single integrated application.
• uccession Management. Helps organizations gain greater visibility into their employees’ skills
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and background, identify and anticipate leadership gaps, and perform necessary planning and
analysis to ensure there is adequate bench strength throughout the organization to ensure
workforce continuity.
• ecruiting Management. Streamlines the process of identifying, screening, selecting, hiring,
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and on-boarding internal and external job applicants.
• mployee Profile. Gathers employee performance data and profile information, such as work
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experience and educational background, and puts it into a centralized, master data repository
that can be accessed at any time, from any place.
• usiness Analytics and Reporting. Draws data from each application module enabling
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extensive views into the performance of the entire organization, including goal achievement,
performance review ratings, and compensation.
• ontent Packs. Delivers rich libraries of goals, development advice, competencies, job
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descriptions, wage data, interview questions and other general and industry-specific best
practice tool-kits.
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6. Unlock the Value Enterprise Insight Series
Building a bridge from SAP into the future of enterprise software
SuccessFactors Performance Talent Management Suite seamlessly integrates with your current SAP installation, as well
as any future product migrations, including Oracle, PeopleSoft, or HR outsourcing. SuccessFactors’ HCM system features:
• ntuitive Operation. SuccessFactors sports an easy-to-use graphical user interface (GUI). Because of its unified
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and consistent operation across all applications, employees, managers, and executives can quickly master the
system and begin putting its incredible power to work for your company.
• eamless SAP Integration. SuccessFactors utilizes industry-standard technologies to enable frictionless system
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integration and single sign-on capabilities with SAP. Plus because SuccessFactors data is instantly shared across
all modules, the system greatly facilitates data flow, navigation and analytical reporting functions while
eliminating duplicate data entry.
SuccessFactors and SAP — The Best of Both Worlds
SuccessFactors offers a tried and tested integration that lets organizations quickly expand their investment in SAP
with the best of performance and talent management. Our in-house SAP expertise guides the integration process
and gets customers “live” quickly and cost-effectively.
SAP HRIS SuccessFactors
Full Integration • SAP Expertise • Fast Time to Value
• aximum Flexibility. Modular by design, SuccessFactors makes it easy to add new HCM functionality whenever
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you want — without negatively impacting your entire ERP system. Plus, SuccessFactors’ HCM functionality can be
configured to match your company’s specific business requirements and workflow processes.
• aster ROI. As a hosted application, SuccessFactors naturally takes much less time and effort to deploy than
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typical ERP installations. In fact, most companies can be up and running on the system in just three to six weeks.
And with no hardware or software to maintain, you also enjoy a drastic reduction in your total cost of system
ownership. The result? A much quicker return on investment (ROI) for your company.
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7. Unlock the Value Enterprise Insight Series
Web-based delivery for the 21st century and beyond
Today’s competitive business environment not only demands a new breed of strategic people
management applications, it also requires a new way of delivering these solutions—one that allows
for a continuous stream of innovation.
Hosted, web-based solutions present the ideal delivery method, offering an easy path to implementing
powerful Performance Talent Management throughout your organization. Industry analysts agree
that on-demand next-generation offerings are now the standard because they help your business align,
develop, motivate, and maintain a high-performance workforce more rapidly.
Today’s best-of-breed solutions, like SuccessFactors, have been natively designed for the web and can
be easily integrated into existing HRIS applications or payroll systems. Because these solutions are
delivered as “Software as a Service,” up-front costs are not only straightforward, they are also very
predictable. Plus, shorter implementation times mean quicker time-to-value for your company.
Software as a Service is now the standard choice
for Strategic HCM Applications
Old Model New Model
ERP SuccessFactors
Big upfront costs including Lower cost, paid as value
Purchase ongoing maintenance is received
Implementation Slow and expensive via Fast time to value
Upgrades significant IT resources
Risk Customer owns risk SuccessFactors owns risk
Customer success as
Incentives Maximize upfront deal size evidenced by renewals
The new Software as a Service model for delivering Software reduces implementation adoption
risks and ensures full alignment between customer and vendors.
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8. Unlock the Value Enterprise Insight Series
ERP software: Past its prime
As your company has probably already discovered, legacy enterprise applications such as SAP, Oracle (PeopleSoft,
E-Business, Siebel, JD Edwards) and Lawson are not only limited in functionality, but must also support an out-dated,
architecturally-constrained software model.
ERP software, originally built in the 1980s, inherited many built-in deficiencies and hidden costs, including:
• sability Shortfalls. Designed for administrators performing specific transactional processes, most ERP
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applications feature unintuitive user interfaces, complex functionality, and steep learning curves.
• nflexible Workflow. As business needs change, your company must be able to react quickly to create and
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rollout new workflow processes. But with their static workflow rules, most ERP systems cost your company
precious time and capital to implement all but the most minor of changes.
• nwieldy Reporting. Your senior management requires ready access to Performance Talent Management data
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if they are to make quick decisions that could affect the long-term health and wellbeing of your business. But with
most ERP systems, managers and executives must first submit a request to a system administrator, and then wait
for a report to be generated.
• ustomization Snafus. Customizing an off-the-shelf ERP system to meet your specific needs can be a
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time-consuming and expensive process. Therefore, any customization your company undertakes will likely delay
the rollout and return on investment (ROI) of your Performance Talent Management solution.
• ncompatible Upgrades. Adding a new application such as Performance Talent Management to your existing
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ERP system often means upgrading to an entirely new release of the product.
• ardware and IT Expense. ERP solutions, by definition, come with the ongoing expense of maintaining the Web
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servers and other required hardware. Compare that to a hosted solution that requires no additional hardware
investment and prevents hidden costs.
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9. Unlock the Value Enterprise Insight Series
Summary
Most ERP solutions began their lives as transactional payroll systems built solely for administrators.
While these systems may excel at administrative process automation, a new breed of best-in-class
solutions addresses more strategic initiatives such as Performance Talent Management and
productivity. As HR organizations move beyond tactical functions and begin aligning their workforce with
their corporate goals, they require a more strategic set of HCM applications. SAP customers can optimize
their current ERP system by integrating the SuccessFactors Performance Talent Management
Application Suite, a best-in-class solution that delivers greater functionality, usability, and flexibility for
deployment across the enterprise.
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10. Unlock the Value Enterprise Insight Series
Alex Shevelenko
Director, Business Transformation Solutions
Alex Shevelenko is Director of Business Transformation Solutions at SuccessFactors where he oversees
the development and implementation of technology-enabled talent management solutions to maximize
business results.
Mr. Shevelenko has over a decade of experience in providing strategic advice and delivering
transformational technology solutions to Global 2,000 corporations.
Prior to joining SuccessFactors, Mr. Shevelenko held positions at technology providers Salesforce.com
and Microsoft and a leading strategy consulting firm, Mercer Management Consulting / Oliver Wyman.
Mr. Shevelenko worked with a variety of industries including retail, healthcare, private equity,
manufacturing, information technology, finance, and public sector organizations.
Mr. Shevelenko holds an MBA from Stanford Graduate School of Business and dual-degree from the
University of Pennsylvania cum laude: B.S. in Economics from the Wharton School of Business and B.A.
in International Relations from the College of Arts Sciences. Mr. Shevelenko is the U.S.A. recipient of
2004 Award from the Association of Management Consulting Firms Foundation for Excellence in
Management Consulting.
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11. Unlock the Value Enterprise Insight Series
About SuccessFactors
SuccessFactors delivers easy-to-use technology that helps businesses of all sizes align, develop and
motivate employees. With a suite that includes solutions for goal alignment, performance management,
compensation, ­ uccession planning, learning, recruiting, and workforce analytics, SuccessFactors
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offers the most innovative HR technology available today. Visit www.successfactors.com to learn more.
The Enterprise Insight Series
This ongoing set of guides is designed to provide HR professionals in large companies with insights
and solutions that can be applied in everyday efforts. Contributing authors include HR experts, as well
as leading companies that have improved business results by using the latest HR technologies.
Visit www.successfactors.com to download more of the Enterprise Insight Series:
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12. Copyright © 2008 SuccessFactors, Inc.