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SuccessFactors- Next Generation HCM Technology

SuccessFactors- Next Generation HCM Technology

Who Is This Vendor Assessment For?
NelsonHall's HCM Technolog Vendor Assessment for SucessFactors is a comprehensive assessment of SuccessFactors HCM platform offerings and capabilities desgned for:
- Sourcing managers monitoring the capabilities of existing suppliers of HCM technology and identifying vendor suitability for HCM technology RFPs
- Vendor marketing, sales, and business managers looking to benchmark themsselves agaisnt their peers
- Financial analysts and investors specializing in the HR Technology sector
- HR and payroll decision makers.

Scope of the Report
The report provides a comprehensive and objective analysis of SuccessFactors Next Generation HCM Technology offering, capabilities, and market and financial strength, including:
- Identificationn of the company's strategy, emphasis, and new developments
- Analysis of the company's strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
- Analysis of the company's offerings and key service components
- Analysis of the company's delivery organizaation incluing the location of delivery locations

Key Findings & Highlights
SuccessFactors, (an SAP company), headquartered in San Francisco, CA, is a global provider of cloud-based HCM software.

Founded in 2001, SuccessFactors was acquired by SAP America in February 2012 specifically for its cloud-based talent management capabilities, with SuccessFactors remaining an independent company and subsidiary of SAP America, Inc. Prior to the SAP acquisition, SuccessFactors made several acquisitions to extend its capabilities.

Following the acquiisiton by SAP, SuccessFactors expanded its focus on talent management software by developing its core HR capability, and in 2010 launched Employee Central as its HR system of record for the platform. Since acquiring SuccessFactors, SAP has invested in the expansionn of its capability, both through organic development as well as key acquisitons

Today, SuccessFactors has ~6.8k clients across ~60 industries, supporting ~125m users in >200 countries and territories.

SuccessFactors cloud-based HCM platform offering provides the following modules and high-level features:
- Core HR
-Employee Central
-Payroll
-Global Benefits
-Service Center
-Visa and Permits Management
- TIme and attendance
- Talent management
-Recruiting
-Onboarding
-Learning
-Succession and development
-SAP Enablement Now (knowledge transfer solution - integrated with SuccessFactors)
-Performance management
-Compensation
- Analytics:
-Workforce analytics
-Workforce planning
- SAP Qualtrics solutions for SuccessFactors
-Other platform features
-Intelligent services
-SAP Jam Collaboration

SuccessFactors consider its platform's key capabilities to be as follows:
- End to end functional coverage across all key areas of cor KR, including payroll, benefits, organizational management, shared services, and all areas of time and attendance including time sheets
- Modern, consistent user experience across multiple interaction channels (web, mobile, bots) tailored to use-case and end-user preferences
- Ability to quickly deloy new capabilities form partners or internal ideas or needs
- Embedded AI and machine learning technology for intelligent recommendations, guidance, and prediction
- Deep localization for global capability
- Capability to support all worker typees, providing a consolidated workforce view
- Embedded capabilities that drive collaboration
- Ability to intelligently surface talent processes and information to every user.

SuccessFactors offer multiple licensing options; iits HCM software modules for purchase on a standalone basis or as bundles. Buyers of SuccessFactors generallyb purchase talent management modules, with demand increasing for Employee Central plus one moduale. ~85% of its clients have the performance and goals moules (which was successfactors first moduel offering)

Updates to SuccessFactors' software are delivered four times per year in February, May, August and Novemebr. Mandatory updates are communicated to clients, and 30 days later, they are delivered in a test enviornment, and then antoher 30 days later are moved into a production environment. Discretionary/functional updates are released in an 'off' position. SuccessFactors conduct webinars on the updates and its partners provided additonal support as post-development/AMS offerings.

As of December 2018, SuccessFactors hav ~1k employees dedicated to the sales, support, and delivery of its HCM platform. Addionally, SuccessFactors leverages employees form SAP in the following areas: infrastructure; Ui/UX design; and analytics.

SuccessFactors' maintians sales and delivery location in all mojor geographies; including 14 Datacenters housing the technology across eight countries and five continentss. Recent data centers added in includes: Dubai, UAE; and Riyadh, Saudi Arabia.

SuccessFactors support its client base through multiple channels, including user groups and communities; client support teams; account managers; and communication channels including, email, chat, in platform tools, etc.

Implementation of SuccessFacotrs are mixed btween system integration partners and SuccessFactor resources. Implementation of the end to end is rolled out in phases and can range from several weeks to 12-months, depending on the complexity of the client's enviroment. Employee Central (Core HR) takes the longest to implement.

SuccessFactors offers and maintains an open platfrom approach, allowing third-parties and client to cconnect and offer API integrated, services and solutions that extend the capabilities of the SuccessFactors platform. It currently has ~180 applications available in its SAP App Center from its partners.

Example apps include Concur (travel and expense), Virgin Pulse (employee well-being), IBM CloudPay (Global Payroll)

SuccessFactors maintians three partner types, including:
- Channel parters (resellers of SuccessFactors, ~450), examples include Atos; NGA HR; IBM Zalaris; THe Hackett Group; TCS; Tieto; Wipro, etc.

- Seervices partners (system integrators and implementation partners), examples include Deloitte, Infosys; Sopra Steria; SD WOrx; ROC system; PWC, Neeyamo; Wipro; etc.

- Software and technology parters (add-on application though integration wth SuccessFactors), examples include Benefitfoucs; Worksoft; IBM enexa; Kronos; etc.

As of April 2019, SuccessFactors had ~6.8k clients with at least one of its modules deloyed: ~3k have Employee Central (core HR) and supports >125 users in >200 countries and territories.

While SuccessFactors does not target specific industries with unique solutions, it platform is configured to support varying industries (currently >60) and has specific functionality to support the common requirements for most industries.


1. Background
2. Revenue Summary
3. Key Offerings
4. Delivery Capability and Partnerships
5. Target Markets
6. Strategy
7. Strengths & Challenges
7.1 Strengths
7.2 Challenges
8. Outlook

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