The maintenance period for the SAP Business Suite 7 (ECC) and the previous SAP ERP HCM system as an On-Premise solution ends on 31.12.2027 (extended maintenance period until 31.12.2030 subject to corresponding fees). Human Experience Management (HXM) solutions in the Cloud, such as SAP SuccessFactors Suite, offer numerous advantages, such as reduced costs, greater flexibility, and an improved employee experience. But what about the customers who already use an SAP ERP Human Capital Management solution and wish to continue doing so, or who are not yet ready to completely move to the Cloud? Should they continue to invest in On-Premise solutions that have an expiration date, or should they plan long-term and switch to SAP SuccessFactors? Since the new release of SAP Human Capital Management for SAP S/4HANA (H4S4) many customers are facing decisions concerning the direction of their future investments.
What is SAP Human Capital Management for SAP S/4HANA?
SAP HCM for SAP S/4HANA is a successor solution for SAP ERP HCM and has been available since Q4 2022. Customers can choose between two variants of the new SAP HCM for SAP S/4HANA solution: On-Premise or Private Cloud Edition.
The On-Premise Edition supports the known solutions for human resource management, such as, for example, personnel administration, organizational management, employer benefits, corporate compensation management, personnel cost planning and simulation, MSS; solutions for talent management, such as, for example, SAP Learning Solution, SAP E-Recruiting, Talent Management, and Talent Development, solutions for time accounting, such as time management, shift planning, worktime entry (CATS), and public sector, such as, for example, budget planning and management, job management, and resource planning.
However, some of the functions are no longer part of the solution, including: in the area of human resource management: Employee Interaction Center, Shared Service Framework for HCM Integration, HCM P&F with Adobe forms, Manager’s Desktop, Workforce Viewer, cPA-CM-CP); in the area of Talent Management: Recruiting, Compensation Management (PA-CM), evaluation systems, career and successor planning, development plans, training courses, and event management.
- Private Cloud Edition
The Private Cloud Edition includes solutions for Personnel Management (incl. ESS/MSS), such as, for example, employee management, global task management, management of the organizational structure, job management, service management, work plan management, and absence management. Solutions for time entry (incl. ESS/MSS), such as: Work plan management, absence management, time entry for employees, time accounting, personnel resource planning, as well as solutions for Wage and Salary Accounting (incl. ESS).
Talent Management incl. Learning and Recruiting, as well as Travel Management (FI-TV) are not included in the solution.
All SAP HCM functions that are not named here and were previously available in the On-Premise and Private Cloud Edition are alternatively available via SAP SuccessFactors.
Why is this such an important topic right now?
According to SAP, SAP ERP HCM Suite will only be maintained until 2027. After that, system maintenance can be extended for a maximum of three years (until 2030) for an additional charge. Furthermore, all customers who have already been using an S/4HANA Compatibility Pack (HCM) for some time should make the switch by the end of 2025, as the system will no longer be supported after that. Switching to the new On-Premise transitional solution or to the Cloud is therefore unavoidable.
Facts about SAP Human Capital Management for SAP S/4HANA
- On price list / available since Q4 2022
- Maintenance until at least 31.12.2040
- Must be operated on an SAP HANA database
- Can be operated as an integrated SAP landscape with S/4HANA or as “H4S4“ stand-alone system
- Migration tools & services (ALE interface to SAP S/4HANA) are provided by SAP
- Functions from SAP ERP HCM will largely be retained (see above)
- License/contract conversion with SAP necessary
Options for your SAP HXM Landscape: Currently, most customers are within one of the four scenarios displayed on the left. The time period beyond 01.01.2028 gives rise to a system landscape consisting of an S/4HANA system (for the ERP area), SAP HCM for S/4HANA (integrated / stand-alone) and potentially SAP SuccessFactors as an enhancement, for example for a talent hybrid or even a core hybrid approach. You must migrate to “H4S4“ between now and 31.12.2027.
If you are currently faced with making a decision on how your SAP HCM landscape should look in the future, and which solution would make the best economic sense for you, please do not hesitate to contact us. We will be happy to discuss your current situation in a joint consultation and develop a made-to-measure solution approach together with you.
We look forward to you contacting us!
This article is written byTabea Reuter