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The insideEdge (SAPinsider Vol. 6, Iss. 2)

by David Ludlow | SAPinsider

April 1, 2005

by David Ludlow, Vice President, Product Management mySAP ERP — HCM SAPinsider - 2005 (Volume 6), April (Issue 2)

David Ludlow
Vice President,
Product Management

We are in the midst of an HR transformation. Thanks to technology — notably tools such as SAP Employee Self-Service and SAP Manager Self-Service — employees are managing their own data, both personal and career, while managers have access to team data. Relieved of administration, HR can now focus on the strategic role of assisting managers and executives to better manage the company's workforce, helping to assess which workforce strategies affect company performance, define and implement processes to improve upon suboptimal results, and refine those strategies as business priorities shift.

Companies now look to HR to address tough questions like "Have we identified and are we developing our next wave of leaders?" and "Do we have the necessary employee development programs in place?" This is not just about identifying a successor to the CEO, but recognizing and retaining high-potential employees who can be developed into senior leadership, and then actively managing their development. And while identifying future leaders is clearly critical to remaining competitive, equally important is providing those leaders with the right human capital. This requires benchmarking current workforce requirements against company goals and objectives so that HR can help plan staffing, training, incentive, and outsourcing initiatives that ensure preparedness. I'm seeing HR organizations being pressed for answers to the same types of "what-if" questions that a company's financial analysts have been responding to for years. Today's HR uses integrated analytical data to see how human capital investments contribute to company business performance, from reducing cycle times and costs to improving revenues.

SAP solutions have the sophistication and information to help you answer complex questions such as these. Just as HR is now viewed as an integrated part of the business, human capital management (HCM) solutions deliver the most value when integrated with the ERP business platform. At your fingertips are insights to link HCM strategies with business outcomes, such as the effectiveness of training programs, decisions whether to recruit versus groom talent from within, and how pay and incentive schemes are working to keep your workforce aligned with current and upcoming initiatives.

Just as HR is transforming, HCM solutions are transforming, and integration to the ERP business platform is more important than ever. While technology automates the processes that relieve HR of administration, it plays an even more important role in integrating the data and processes across the entire ERP platform. With access and insight to this information and these processes, HR has the basis to be a key contributor to business success.

David Ludlow
Vice President,
Product Management mySAP ERP — HCM


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