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Economic Validation: Analyzing the Economic Benefits of Moving from SAP ERP HCM to SAP SuccessFactors Solutions This helped to reduce the number of manual errors and helped to reduce both the chance and duration of potential roadblocks to getting projects completed. • Faster time to adopt innovation: Switching to SAP SuccessFactors allowed businesses to take advantage of new innovations in people management technologies and grow their capabilities quicker. Automatic releases provided by SAP continuously enhanced or added new functionality with zero risk to the organization, as features they wished to use could simply be turned on or off. The new features came pre-tested and were far easier to learn and support. Newly released features were easy to integrate with custom data and extensions. This provided organizations with faster time to new features and functionality without running into the roadblocks caused by technology, a disagreement between groups, or a lack of information that can happen with a self-managed and on-premises-developed HCM deployment. • Improved decision-making: The improved monitoring and reporting capabilities provided by “Our business team had instant visibility SAP SuccessFactors provided businesses with near- to see how things were proceeding— real-time updates on all information related to their before we had to manually send requests employees and locations in a consistent and for information and then collect and repeatable format. This helped business teams make organize the responses.” quick assessments of trends and changing situations regarding employees and allowed them to make more informed decisions. This added insight, driving timely and informed decisions around payroll, benefits, hiring, and time management that could have a positive effect on revenue, the company balance sheet, and stock price. • Avoided costs of on-premises hardware: By modernizing to the cloud, companies avoided having to make an upfront investment and ongoing payments to manage, maintain, operate, and refresh on-premises hardware and software. Even if equipment is currently owned, it is often refreshed or upgraded within a five- year window. Organizations were able to shift from a CapEx model to an easy-to-scale OpEx model and reduce reliance on IT services to power the HR systems. In addition, some organizations were able to free up and power down the infrastructure that they were previously running on, helping to lower power usage and contribute to company-wide sustainability initiatives. Unique SAP Advantages For large and established organizations, planning for and executing a move from SAP ERP HCM to a cloud-based solution can be a daunting task and a risk to their business. SAP provides the unique synergies, experience, tools, and expertise to help reduce the time, complexity, and risk of moving to a cloud-based HR platform through: • Experience and expertise of SAP technologies: When compared to alternative offerings, SAP technologies and services have a much greater understanding of SAP ERP HCM deployments and have successfully migrated more SAP HCM environments to SAP SuccessFactors than any other vendor. SAP customers choosing to modernize to SAP SuccessFactors reported that they felt that SAP expertise and technologies provided them with an opportunity to avoid potential issues in the process and reduce risk “Our organization was very familiar with to the organization. SAP products and services, and that • Faster analysis and design: Customers were able gave us great confidence that we could to leverage SAP tools and services to speed make the move in under a year. I don’t assessment and analyze and characterize the think we could have accomplished this if existing SAP ERP HCM deployment to identify we were moving from or to another reusable data and schema, categorize requirements, vendor.” and list dependencies. SAP services also helped to plan and optimize the design of the new SAP 9

Analyzing the Economic Benefits of Moving from SAP ERP HCM to SAP SuccessFactors Solutions - Page 9 Analyzing the Economic Benefits of Moving from SAP ERP HCM to SAP SuccessFactors Solutions Page 8 Page 10