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The insideEdge (SAPinsider Vol. 7, Iss. 4)

by David Ludlow | SAPinsider

October 1, 2006

by David Ludlow, Vice President, Product Management, mySAP ERP HCM SAPinsider - 2006 (Volume 7), October (Issue 4)

The concept of better organizational performance through better people management has taken root. I see this across all industries, including public sector, manufacturing, services, and retail. No matter what the industry, the market leaders invariably are adept at strategic human capital management (HCM) activities like succession management, learning, pay-for-performance, and workforce planning.

The key to success with all these activities is the technology platform on which they run. To deliver maximum value, HCM processes must be connected to one another (as well as to other business processes) with a common, broad-reaching technology platform. Organizations with multiple, fragmented systems perpetuate functional silos, resulting in inefficient processes, high costs, and difficulties connecting the pieces — linking performance results to succession plans, for example, or integrating employee development plans with learning opportunities.

Too often multiple competency models lead to an inability to drive desired culture and behavior throughout the organization. Through a common technology platform, challenges such as these can be eliminated. Data, be it the result of a process like a performance rating or master data like a competency catalog, can be shared across all HCM processes, providing insight to plan and execute people management more effectively while lowering the costs of manually interfacing data across processes.

This is why organizations are now reexamining the platforms on which they run their HCM processes. Integration can drive value far beyond individual features and functions by effectively sharing data to deliver on the promise of better people practices. To push forward with strategic HCM, you have to consolidate your technology platform. It's crucial.

The heightened attention on HCM processes comes at a good time for SAP customers. With the momentum that surrounds the mySAP ERP 2005 release, and with so many of you planning for the upgrade, the timing is ideal to perform this consolidation. The ubiquitous SAP NetWeaver platform provides the technology base HCM processes need, the HCM feature/function set is the richest we've ever offered, and analytics are dominant with this release. You will have the performance measurements and metrics to elicit better people performance at your disposal. With this insight, you can pick the right strategy and set an appropriate course of action. There is no shortage of HCM strategies to choose from. The key is knowing which ones are most important to your organization, and recognizing that an integrated platform can help you get there faster.

David Ludlow
Vice President, Product Management,

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