Economic Validation: Analyzing the Economic Benefits of SAP SuccessFactors Solutions Introduction This Economic Validation from TechTarget’s Enterprise Strategy Group (ESG) focused on the quantitative and qualitative benefits organizations can expect by using SAP SuccessFactors Human Experience Management (HXM) solutions rather than continuing to use SAP ERP human capital management (HCM) on premises or an alternative SaaS-based HCM/HXM suite. This report will consider unique differentiators that SAP SuccessFactors provides for existing customers as part of the consideration. Challenges As organizational leaders launch digital transformation initiatives aimed at modernizing their HR operations, it is crucial that they consider the changing nature of the workforce, its composition, and evolving expectations. Today’s workforce includes a greater diversity of workers with differing needs (five generations in the workforce, a mix of permanent and temporary workers, desk-based and deskless staff, etc.) along with increasing social and governance responsibilities. This goes beyond systems or processes and is about helping organizations’ most important resource—their people—and the new ways in which they work. As organizations look to reskill and shift people into new jobs, roles, and teams, 84% of those involved in HR and talent acquisition technologies are planning new investments, with top deployment priorities relating to employee 1 onboarding, learning management and skill development, and knowledge management. Figure 1. Top Priorities for Deploying HR and Talent Acquisition/Development Technologies Which of the following HR and talent acquisition/development business applications does your organization plan to deploy in the next 12 months? (Percent of respondents, N=486, multiple responses accepted) Employee onboarding 30% Learning management and skill development 30% Knowledge management 26% Project management 23% Automation 23% Employee experience management 23% Employee performance management 22% Employee self-service 21% Workforce management 20% Employee wellness 20% Talent acquisition and recruitment 19% Core HR software/HCM 19% Diversity and inclusion 16% People analytics 15% Source: Enterprise Strategy Group, a division of TechTarget, Inc. 1 Source: TechTarget, 2023 IT Priorities Study, April 2023. © 2023 TechTarget, Inc. All Rights Reserved. 3