KONE and SAP SuccessFactors Partnership for HR · PDF fileExecutive Summary KONE is launching...

KONE and SAP SuccessFactors

Partnership for HR Renewal

May 2016

SAP Point of View

Executive Summary 3

Our Understanding 4

The SAP SuccessFactors Solution 6

Business Benefits 19

Why SAP SuccessFactors? 21

A Strategic Partnership 22

KONE and SAP proprietary and confidential | 2

Table of Contents

Executive Summary

KONE is launching an HR Renewal program to enable

the creation of a Winning Team of True Professionals

where all employees will be able to perform at their best,

the systematic development of field competences to be

enhanced and the attraction of the right talent to be

secured.

A customer centric focus, a strong business performance

and a great employee experience will guide KONE into

the future. To meet tomorrow’s requirements HR is

determined to transform and renew its value added

delivery to the business. The priorities for KONE’s HR

renewal is identified to be in the areas of:

HR operating model and organization

Simplification of HR processes

Modernization of IT tools

The SAP SuccessFactors Solution

In order to address KONE’s HR priorities,

SuccessFactors brings the leading best-of-breed HR and

talent management cloud solution. It combines the

innovation of the cloud with SAP’s enterprise experience

to provide a truly enterprise-ready cloud solution.

Executive Summary


“SAP SuccessFactors will enable KONE HR to support desired business performance, providing a

great employee experience and make KONE workforce fit for future challenges and opportunities -

creating Winning Teams of True Professionals”

We believe that only SuccessFactors can provide KONE

with end-to-end, next-generation HR capabilities that

deliver:

A future-proof HRIS solution enabling transformation

and renewal of HR

Integrated solution for leveraging Intelligent Services

and process automation

A seamless solution for mobility and unified user

experience

Business Benefits

The potential business benefits of moving to a single,

integrated platform are significant. An estimated 38

MEUR in annual recurring benefits will provide for a

dramatic ROI and payback.

Why SAP and SuccessFactors?

SAP and SuccessFactors can support KONE in achieving

these benefits with:

The most comprehensive, end-to-end, integrated HR

cloud platform

The fastest time to value at the lowest TCO

The experience of 35 million+ users worldwide

A strong leadership position across all strategic HR

functions

A Strategic Partnership

SAP and SuccessFactors are committed to enabling a

successful transformation program for KONE. We are

looking forward to growing the relationship and assisting

KONE in achieving its corporate and business strategy

objectives.

84%Of executives agree that analytics/dashboards measuring HR investment impact help improve business

performance

Source: SAP workforce analytics best practice and value assessment survey 2014

KONE - Guiding Business

Strategies

• Customer Centricity

• Business Performance

• Great employee experience

HR Strategic Priorities

Our Understanding of KONE’s HR Priorities and rationales

for driving an HR Renewal agenda

Our Understanding


• Centralization and optimization of HR admin delivery

• Efficient and flexible use of HR resources

• Efficient, scalable support for Recruiting and Onboarding

Tasks

• Direct Access for managers to take action and get

insights

• More efficient Recruiting & Onboarding to fuel growth

• Enhanced Succession and Career Development

Planning

• User friendly and mobile HR solution for managing

employee data

• Dashboards for managers and HR analytics

• Direct Access to take action for managers and

employees

• Administrative processes and advanced reporting needs

supported by SSC

HR Operating

Model and

Organization

Simplification

of HR

processes

Modernization

of HR IT tools

Improvement principles:

Simplicity and user friendliness

Integrated tools & mobility

How Can SAP Help KONE Deliver on its

HR Priorities?


2

Strong integration with SAP ERP

3

4

1

One Integrated e2e Platform

supporting all HR processes in a

shared service structure with

consistent user experience for end-

users on any device

SuccessFactors’ recognized capabilities align beautifully with KONE’s

critical business priorities.


HR Operating

Model and

Organization

Simplification

of HR

processes

Modernization

of HR IT tools5

Dedicated admin center for Admin and

Process Owners

Secure local compliance to

accommodate a global workforce

Content delivered to accelerated best

practice adoption

Intelligent services enabling process

automation, simplification and

enhanced user experience

6

SAP SuccessFactors provides one modern platform covering all aspects of the HR lifecycle. It provides the main

following characteristics.

One platform

Core, Talent, Learning, Analytics, Collaboration and Shared

Services



“We simplified the

environment. We made

all the connections, and

now we can make

better business

decisions. It just doesn’t

get much better than

that.”

Rob Arbogast, Director of

Organizational Advancement,

Timken

1 2 3 4 5

We would like to reassure KONE that our acquisition strategy for elements of the suite were strategic and have enabled us to provide a robust, highly flexible platform which is integrated at every level, process, UI/UX, data and analytics. This approach guarantees that KONE never needs to compromise its digital transformation and introduce manual workarounds which ultimately we know add cost, time, risk and complexity.

Every employee in the organization – full time, part time, contingent, contractor, manager, executive - all are potential users of HR systems and expectations of all those end users have changed: they demand that business systems behave like the consumer systems they use every day: they must know who the user is, anticipate what they need, and provide the content, data, and processes to get the job done.

Our design principles are:

Usable - Of course every design needs to be highly usable: it’s easy to learn, easy to use; it’s direct and it does

repetitive things efficiently.

Beautiful and inviting – first impressions matter. Attractive and intuitive to increase engagement

Humanization… speak to you in your language. (see: Action Search, Headlines, the design of time off).

Organize around how people naturally think. Adapts to you

Responsive – we want all our applications to be available any time, wherever you are

Make employees and managers better at your job – make the default path the right action (e.g. 1:1’s), provide

important insights right on the spot (e.g. comp adjustments)

One platform

Modern user experience



1 2 3 4 5 6

From pre-day 1 with Onboarding, the end users are offered a consistent user experience through all the modules. It allows for a faster learning curve in “how to use” the system.

The solution comes with built-in path to next steps from an HR point of view.

One platform

Consistent user experience for end-users



1 2 3 4 5

Home page Calibration

DashboardLearningCompensation

6

Performance

Each admin center is allowing Business Process Owners to manage entirely the content and the execution of their functional domains. As each functional domain may require some special functionalities, the experience can be different. This is especially true for Learning Administration. Customer experience tells us that this does not detract from the customer experience, in fact there are specific advantages to delivering the right experience for the right job.

Dedicated admin center for Admin and Process Owners



1 2 3 4 5

Home page Performance Calibration

DashboardLearningCompensation

6

While other cloud-based HCM solutions support operations within a limited number of countries, SAP

SuccessFactors solutions have unmatched, deep, local compliance coverage. We have capability to

enable KONE to think globally but act locally by meeting local compliance requirements.

• Global processes and local best practices for worldwide standardization of business processes on a single database

• Synchronization with the latest time-sensitive, mandatory legal requirements to ensure continuous global compliance

• 200+ local product managers dedicated to support continual country and regional compliance

• Close, established partnerships with local governments

• SAP’s globalization services delivered 1,500 legal changes in 2015; 600 of them were HR related

• Managing processes and transactions simultaneously for over 177 countries and documentation translated to

support 41 languages

Support Global Capabilities

Secure local compliance to accommodate a global workforce

1000+SAP SuccessFactors Employee Central

customers – 45% headquarters outside

of the United States; 90% global

1 2 3 4 5



Built-in

compliance tool

6

Content delivered to accelerated best practices adoption



In order to really drive employee engagement, the processes they touch need to be easy to use and

anticipate what the user wants to accomplish. In SAP SuccessFactors, we support over 19,500 unique

HR content elements, fully integrated with our HR processes to enable – and engage – end users.

This is what we mean about content - we've got 19,500 thousand unique HR content elements in our

applications today. Everything from job families to skills catalog to compensation benchmarking to

dashboards it's all there so when you come to deploy it you don't have to go and create it all yourself.

You can take the best practice and you can pull down what you need and deploy rapidly.

For example, regarding Core HR transactions, we deliver the below out of the box.

1 2 3 4 5 6

Content delivered to accelerated best practices adoptionSome examples across modules



1 2 3 4 5 6

Intelligent Services



Intelligent services provide a new and improved way of managing HR transactions. With intelligent

services, individual transactions that make up common workforce events but cross organizational

boundaries and software modules are consolidated into a single experience. It predicts the next step in

the change, guiding users to the right place according to existing rules based on groups, role-based

permissions, and notifications.

“”Intelligent services is going to transform the landscape of HR in the next five years.”

Mike Ettling, President, HR Line of Business, SAP

Solution Capabilities Benefits

• Predictive and expansive suite that provides end users

more control over end-to-end events

• Integration of a core HR system with all other impacted

modules to create an end-to-end, complete process

• Intuitive software fills the gaps instead of HR, shared

services, or business process outsourcers, reducing

time and expense spent on tasks that don’t drive value

to the business

• Intelligent response to the smallest changes that

happen in any module of HR

• Linkage to external systems can be made to enable

seamless integration with third-party applications

• Remove complexity from HR-related events

• Enable more efficient delivery of HR services

across the organization

• Reduce employees’ dependency on HR or

shared services

• Save valuable manager and employee time

• Reduce overall cost and complexity

1 2 3 4 5 6

Intelligent Services



Intelligent services provide also for us the opportunity to have a “service orientated architecture”

internally but also externally. This gives customers enormous agility to leverage our solution as the

single source of truth for Employee Data. It allows us to streamline operation and data management in

and out of the solutions.

1 2 3 4 5 6



With intelligent services, managed in the new SAP SuccessFactors event center, we’re taking self-

services to a new level. Instead of end users having to predict all the tasks they may need to complete

when they start an HR process, intelligent software does it for them. Intelligent services provides a more

personalized and consistent service delivery for employees, managers, and HR – all while improving

efficiencies across business processes.

Your employees’ out-of-office status is indicated on their

profile and throughout SAP Jam

To-dos delivered via intelligent services

Recommended community for your employees’ global

relocation

Intelligent ServicesFuture-state vision

1 2 3 4 5 6

Strong Integration with the ERP

1 2 3 4



Cloud payroll

Why SAP’s integration is the safest choice

HR systems continue to evolve toward the cloud, but KONE’s cloud path will be unique to its business

drivers and goals and its own IT landscape. Our solutions are modular, supporting your transition to the

cloud at your pace instead of forcing a “rip and replace.”

• Flexible deployment – Start anywhere to solve an immediate pain point (e.g., learning). Move all HCM to the cloud to

support strategic agility. Leverage on-premise HCM investments

• Get up and running 6-10 weeks – Leverage accelerated deployment services with fixed scope fees. Benefit from best

practice methodologies and online learning

• Lower TCO and risk of integration – Productized integrations packages, templates, and an integration platform for faster

deployment and lower risk. Integration with SAP on-premise HCM and ERP based on our deep expertise and the fact that

we own both ends of the integration (and actually the middle too!).

SAP ERP

Cloud solutions

Flexible road map for deployment – Full cloud HCM option for the future, according to your organization’s needs

Subsidiaries'

on-premise

payroll

Subsidiaries'

on-premise

core HR

Hybrid Full cloud HCM

SAP ERP

Talent solutions,

workforce planning,

workforce analytics

Global cloud core HR SAP

SuccessFactors

Employee Central

Cloud core HR – payroll, talent

management solutions,

workforce planning, workforce

analytics

Subsidiaries

On-premise solutions Delivered and

maintained

integration

5 6


SAP Integration is a Product!

1 2 3 4



The initial design of the Business Suite developed over 190 integration points between HCM and ERP.

In order to enable the technical decoupling of HCM from ERP and third party integrations SAP enables

some of these points to be accessed through the HR “mini-master”. SAP has kept this interface

consistent.

Employee Central integration with SAP ERP by far outreaches the scope of the existing ERP

integration points and exceeds the level of integration that can be achieved by any third party HR

solutions. We have enriched the mini-master integration to cover more than 50 country versions, and

include automatic handling of HR events such as hire/re-hire, terminate, transfer, and global

assignment. Integration scope also includes SAP organizational management hierarchy, cost center

and departmental hierarchy, and competencies. All integrations support real time.

SAP ERP integration with Employee Central uses standard software components that comply with the

SAP standard maintenance policy. Thorough quality assurance assures they are compatible with

recent and future ERP versions for Employee Central customers without additional cost. This is

important when managing change for the ERP enterprise system and the cloud-based Employee

Central.

5

Online catalog of prepackaged integration

6


Real customer example and savings

1 2 3 4



5

Benefits to HR

Ready access to reliable employee data

Better protection of intellectual property

Faster decision making

The details

$1M+ implementation savings with SAP

delivered integrations and co-innovation

145 SAP and 3rd-party integrations

Data Migration tools for legacy HR system

Co-innovation for over 30 SAP-to-3rd-party

integrations

6

Room for Improvement

Employee Engagement

Source: SAP Benchmarking Program. Peergroup: Global Discrete Manufacturing Companies

* Alternative Peergroup: All companies in the benchmark population used due to not sufficient number of specific peer group responses

Top

25%

AverageBottom

25%

Voluntary Turnover (%)

Top

25

%

AverageBottom

25%

Employee Loyalty

(years)

Top

25%

AverageBottom

25%

Time to Hire (days)

Top

25%

AverageBottom

25%

Time to Full Productivity

of New Hires (days)*

Top

25

%

AverageBottom

25%

Bad Hires (in %)*

Top

25

%

AverageBottom

25%

Positions with

Succession Plan (%)

Top

25%

AverageBottom

25%

Internal Mgr.

Promotions

Top

25

%

AverageBottom

25%

Transactions via

Direct Access (%)

Top

25

%

AverageBottom

25%

Looking at benchmark data confirms that there is room for improvement. Generally, the gap

between current performance and the best in class performers of KONE’s industry peers

represents a starting point of the value that is uncoverable by improving best practice adoption and

using an efficient HRIS solution to enable transformation and renewal.

Business Benefits


HR Renewal Value Potential

HR Renewal

Value Potential

Faster Time to Fill (Speed)

Reduction in Bad Hires (Quality)

Faster Time to Productivity

Reduction of external spend

Onboarding &

induction

Resource

planning &

recruiting

Direct Benefits

A

Reduction of administrative effort

for managers

Reduction of administrative and

transactional effort for HR

Economies of Scale and Labor

Arbitrage from Shared Services

AnalyticsPeople Data

Calculative Benefits* Indirect Benefits

BPerformance &

Reward

Talent

Management

C

Increased engagement

Reduction in voluntary attrition

*Calculative benefits are time savings for managers, employees or HR. Because these time savings are distributed amongst a large group of employees, a direct bottom-line realization of

these benefits (e.g. FTE reduction) is often not possible and also not desired at KONE.

However, such “freed time” is available for additional productive work, allowing to do “more with the same”, which is an actual monetary benefit for our further growth

VA

LU

ED

RIV

ER

HR

DE

LIV

ER

Y

AR

EA

BE

NE

FIT

TY

PE

Up to 18,6m € / year Up to 3,26m € / year Up to 16,1m € / year

The suggested solutions from SAP SuccessFactors offer major value potential to KONE. To

further detail a full scope business case and ROI analysis, taking aspects of implementation,

roadmap and ramp-up into account, we offer KONE as part of our partnership support to work

on this.

Business Benefits


Why SAP SuccessFactors?

We believe SAP and SuccessFactors are uniquely positioned to

partner with KONE on its HR transformation journey for the

following reasons.



Most comprehensive, state-of-the-art

HR cloud platform

Fastest time to value and lower TCO

Support global capabilities

Leading companies trust us

Leading analysts recommend us

Compelling and modern user experience

At SAP, we believe in a strategic approach to the challenges

you face, and we propose to continue partnering with KONE to help. SAP is a

company of innovation that shares your customer-oriented values. Nothing is

more important to writing the ending you want, having the right talent today,

and gaining insight into the skills needed to succeed in the days to come.

SAP SuccessFactors solutions provide end-to-end, next-generation functionality to

enable your human resources operations.

• Obtain current and future workforce insights with powerful analytics

• Improve visibility into the current talent in your organization

• Use insights to build talent for the future

• Align employees across the enterprise to deliver on corporate strategy

• Foster a collaborative learning environment and facilitate innovation

SAP is committed to enabling a successful transformation

program for KONE. SAP is looking forward to growing the

relationship and assisting KONE in achieving its corporate and

business strategy objectives.

KONE and SAP SuccessFactors:

A Strategic Partnership



“We are focused on the success of our customers, and our own

success is testament to our strategic direction, customer orientation,

and world-class employees.”

Bill McDermott, CEO, SAP

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KONE and SAP SuccessFactors Partnership for HR · PDF fileExecutive Summary KONE is launching...

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