October 3, 2018
SAP NEWSBYTE — SAP SE (NYSE: SAP) today announced the results of Forrester Consulting’s “Total Economic Impact™ of SAP SuccessFactors HCM Suite” study,1 which found that a typical organization2 that invests in the SAP® SuccessFactors® HCM Suite could realize potentially $11 million in total quantified benefits over a three-year period. The study, commissioned by the SAP SuccessFactors organization, also found a net present value (NPV) of potentially $5.8 million after factoring in costs, a return on investment (ROI) of 112 percent and a six-month payback for a typical organization implementing SAP SuccessFactors solutions.
According to Forrester: “Based on Forrester’s experience, the payback period and ROI numbers are strong when compared to other enterprise cloud implementations … While some HR solutions require a ‘rip and replace’ approach to implementation, interviewed customers commented on the flexibility of SAP SuccessFactors to deploy functionality on an as-needed basis. SAP SuccessFactors helped each interviewed customer pick the right starting point and path for implementation based on business needs, and implementation timing was aligned with business strategies and goals.
Customers Forrester interviewed said they selected SAP SuccessFactors solutions for their capabilities in strategy enablement, people experience, operations optimization, risk management and compliance. Top benefits that customers attributed to their investments in SAP SuccessFactors solutions include:
- Standardized HR processes across the company, establishing a single source of truth that enables achievement of strategy alignment and execution
- Access to real-time data, allowing leaders to manage virtual teams across locations, enabling improved communication and collaboration
- Introduction of employee self-service, enabling staff to manage their own personal details and benefits
- Digitalized and automated processes that freed staff from repetitive manual tasks so they can focus on value-add activities
- Enablement of HR as a strategic partner of the business
“In our view, Forrester’s holistic study shows that SAP SuccessFactors solutions can drive not only better employee experiences but also significant cost savings,” said SAP SuccessFactors President Greg Tomb. “We are proud to be helping businesses better understand and serve their employees while simultaneously streamlining business processes and reaping significant cost benefits.”
View the full Forrester Total Economic Impact™ (TEI) study here.
Similarly, a recently published “Total Economic Impact™ of SAP Jam” study reveals that ROI from SAP Jam is 625 percent overall, and also shows specific value in the areas of onboarding, learning and employee access to information.
1. The Total Economic Impact™ of SAP SuccessFactors HCM Suite, a September 2018 commissioned study conducted by Forrester Consulting on behalf of SAP SuccessFactors, objectively measures the financial benefits, costs and risks for enterprises that deploy SAP SuccessFactors solutions. The impact was evaluated through four steps, including due diligence and data gathering from SAP SuccessFactors stakeholders, customer interviews, construction of a financial model based on customer inputs and industry nuances, and finally the development of the final case study on the ROI of SAP SuccessFactors solutions related to IT investments.
2. To better understand the benefits, costs and risks associated with this investment, Forrester conducted in-depth interviews with six customers, each with between two and a half and five years of experience using various solution components of the SAP SuccessFactors HCM Suite. For this TEI study, Forrester has created a composite Organization to illustrate the quantifiable benefits and costs of investing in SAP SuccessFactors HCM Suite. Based on the characteristics of the interviewed customers, the composite Organization is a global enterprise in the products and services business. It is headquartered in the US and has 20,000 employees located in the US, Europe, South America, and Asia Pacific. It has been using SAP SuccessFactors HCM Suite for three years to integrate its people-related business process activities.
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