Introducing SAP SuccessFactors Managed Payroll
by EPI-USE Labs
Now, SAP on-premise Payroll customers have the option of a subscription-based, hosted and managed Payroll in the cloud. All of this under a single contract with SAP and delivered by EPI-USE Labs.
The best news? You don’t need to re-implement your Payroll. You can keep your customisations, your time implementation and enjoy the functional richness of your existing system.
Our Managed Payroll offering brings fresh intelligence to the field of on-premise hosting in the cloud. The outcome is greater efficiency, incredible agility and genuine ease-of-use.
The SAP SuccessFactors Managed Payroll offering, announced in August 2016, is an initiative for companies using SAP HCM on-premise Payroll who wish to migrate to SuccessFactors Employee Central and keep their existing SAP on-premise Payroll without a re-implementation. The migration uses a "lift-and-shift" process that results in hosting and management in the cloud. In this way Managed Payroll allows you to continue leveraging your investment in SAP Payroll and lowers the risks inherent in a Payroll re-implementation.
Managed Payroll includes subscription-based licensing, hosting and application management, all delivered under a single contract with SAP. The net effect is a Software-as-a-Service-like experience based on the Payroll you already use and trust. In addition, Managed Payroll combines the best of both SAP and SAP SuccessFactors solutions.
1. SAP SuccessFactors Employee Central Payroll
SuccessFactors does not offer a new Payroll solution, rather leverages the world-class, multinational SAP Payroll in a cloud environment hosted by SuccessFactors called Employee Central Payroll. To move to this model, customers are required to do five things:
- Choose from two options for deployment: Customer-Managed or Partner-Managed
- Purchase a SuccessFactors Employee Central licence
- Purchase a SuccessFactors Employee Central Payroll licence
- Re-implement and simplify (remove customisations) in their existing SAP Payroll
- Build integrations (as needed) to partner for Time and or Benefits processing
2. SAP SuccessFactors Managed Payroll
Your SAP Payroll is hosted in the cloud environment by EPI-USE Labs and called SuccessFactors Managed Payroll. To move to this model, customers are required to do three things:
- Sign up for Managed Payroll through SAP
- Commit to subscribe to Employee Central (EPI-USE Labs will then lift-and-shift your existing Payroll to the EPI-USE Labs Unified Platform)
- Testing and Go-live
PAYROLL OPTIONS COMPARISON
SAP SUCCESSFACTORS EMPLOYEE CENTRAL PAYROLL
SAP SUCCESSFACTORS MANAGED PAYROLL
|1. Cloud Payroll solution hosted by SAP||1. Cloud Payroll solution hosted by EPI-USE Labs|
|2. Requires a simplification and re-implementation of Payroll||2. No simplification or re-implementation of Payroll required|
|3. Standardised Payroll (reduces Payroll complexity)||3. Allows for complex Payroll|
|4. Replaces SAP Time with third party integration solution||4. Keeps SAP Time functionality|
|5. Replaces SAP Benefits with third party integration||5. Keeps SAP Benefits solution|
|6. One vendor for subscription, licences, service and support||6. One vendor for subscription licences, service and support|
|7. SAP or Partner provide application management, hosting and support services||7. Partner provides application management, hosting and support services|
|8. Can be on SAP's paper (large organisations) or partner-managed (small and mid-sized organisations)||8. On SAP paper|
|9. Combines best of SuccessFactors and third party||9. Combines best of SAP and SAP SuccessFactors solutions|
|10. Integrates with SuccessFactors Employee Central|
|11. Low risk option|
Migration in six steps:
- Create the target system using DSM System Builder.
- Copy the customising from current production to new HCM production using DSM Client Sync.
- Copy individual master data objects and selected tables for the HCM system using DSM Object Sync.
- Apply and test support packs for the new HCM system, as well as subsequent OSS notes, corrections and configuration.
- Set up inter-system links to enable the now-separated HCM and FI systems to communicate via ALE.
- Set up the user masters with the appropriate roles and unlock the user masters.
The key business capabilities and benefits of Managed Payroll are:
|Current Payroll moved to EPI-USE Labs' cloud||Move to a subscription-based model sold on SAP paper|
|Payroll hosted and operated in the EPI-USE Labs' cloud||No re-implementation of Payroll|
|Managed services for legal change, support and maintenance||Free up internal resources tied up with Payroll system management|
|Reduced risk of noncompliance penalties|
|Move from capital expenses to operating expenses|
Client reputation and global presence
EPI-USE, the world's largest, independent SAP HCM and Payroll specialist is able to leverage thousands of global consultants to assist in this specialised service. In our 35-year history, we have implemented more than 500 SAP HCM-based solutions around the world. Our range of add-on software products enable EPI-USE Labs' clients to access exceptional productivity tools and thereby enhance their existing or planned implementations of SAP HCM. With a presence covering 22 countries, EPI-USE is the premier global independent purveyor of SAP payroll country versions for regions in which SAP does not offer a standard solution.
Experience doing customer HCM carve-outs
EPI-USE Labs has successfully completed these types of HCM carve-outs for numerous clients with a 100% success rate for on-time and on-budget delivery. Customers leverage our existing platform, EPI-USE Unified Platform (UP), for this service. Check out the AFGRI success story.
Existing tools and or accelerators to assist in the lift-and-shift of the Payroll
EPI-USE Labs, the software division of EPI-USE, has a proprietary suite of software products for data and landscape management and hosting and migration services to accelerate the move of clients from on-premise implementations to Managed Payroll. The costs and risks of adopting Managed Payroll are significantly reduced through these measures. These tools include Cloud Conveyer, Data Sync Manager, System Landscape Optimization services and Query Manager which are designed to increase the speed and accuracy of the lift-and-shift transition to the Managed Payroll offering.
FAQs: SAP SuccessFactors Managed Payroll
You can keep using your existing investment in on-premise SAP Payroll. This solution doesn't require a Payroll re-implementation, as it would with Employee Central Payroll.
It's lower risk than a complete re-implementation as it leverages your existing and proven Payroll implementation.
It gives you a way to move your on-premise SAP HCM into the cloud at a managed pace.
You don't have to manage the SAP/EC licensing, hosting, basis or functional support with different vendors, as it is all under one SAP contract, backed by strict Service Level Agreements (SLAs).
The cost of Managed Payroll replaces the costs of maintenance, hosting, AMS and other related IT costs (integration, audits, analytics, etc). The business case is different per client but SAP and EPI-USE Labs work together with you to build your specific business case.
Subscription-based licensing for SuccessFactors Employee Central and the existing on-premise HCM software. This model replaces existing HCM maintenance fees.
Strict, contractual Service Level Agreements (SLAs) for system availability, stability, security, issue resolution and response times.
Hosting of existing SAP HCM systems. This includes the data centre, computing, operating system, storage, networking, backups and disaster recovery.
Application Management of existing SAP Payroll system.
There are two main distinctions:
Managed Payroll is ideal if you want to migrate your on-premise HCM/ Payroll solution to a subscription-based model, without making any functional changes to your existing solution. Employee Central Payroll requires re-implementation based on SAP standard functionality.
Managed Payroll provides full HCM, Payroll, Time and Benefits functionality, which is not intrinsically supported in Employee Central Payroll.
EPI-USE Labs has a unique HCM carve-out offering. For most clients SAP HCM is only a small part of a bigger SAP implementation that includes FI/CO, logistics, etc. In many cases HCM runs on the same servers as the rest of the SAP system. To move clients to Managed Payroll, we remove or carve out HCM from the rest of the SAP systems, so that HCM can live on its own servers with interfaces back to the other SAP systems.
Fortunately, EPI-USE Labs has System Landscape Optimisation (SLO) services that were designed to do exactly this. We have performed these HCM carve-outs for numerous clients before. Using our proprietary SAP data management suite of products, Data Sync Manager, the cut-overs are much quicker than traditional data-loading methods and are also more reliable and predictable than custom ABAP programming methods. Our methodology ensures easily repeatable test and validation cycles, which means that test cut-overs can be executed and re-executed with minimal effort. Data Sync Manager was originally created to enable users to quickly re-create the exact employee data from the production system in a test system. It has been available as an SAP add-on since 1996. Over the years, ongoing enhancement and the addition of various specialised components, has resulted in DSM being used for Production Data Migrations on many occasions around the world.
More information about HCM carve-outs, including a case study, can be found at the SLO page on EPI-USE Labs web site.
Cloud Conveyer is an EPI-USE offering to help existing HCM on-premise clients to move directly to SuccessFactors EC and Employee Central Payroll. Cloud Conveyer includes various solutions and accelerators to make the migration faster and more predictable. It's a combination of methodology, project plan, templates and products, that accelerate on-premise to cloud implementations. For more information, please visit: www.cloudconveyer.com
Once the HCM carve-out has been completed and the HCM system moved to Managed Payroll, clients can work with us to receive a clear roadmap for moving functionality over from the carved-out HCM system to SuccessFactors EC and Employee Central Payroll.