Economic Validation: Analyzing the Economic Benefits of Moving from SAP ERP HCM to SAP SuccessFactors Solutions Figure 2. SAP SuccessFactors Solutions Source: Enterprise Strategy Group, a division of TechTarget, Inc. Enterprise Strategy Group Economic Validation Enterprise Strategy Group (ESG) completed a quantitative economic analysis of SAP SuccessFactors. ESG’s Economic Validation process is a proven method for understanding, validating, quantifying, and modeling the economic value propositions of a product or solution. The process leverages ESG’s core competencies in market and industry analysis, forward-looking research, and technical/economic validation. ESG conducted in-depth interviews with end users and reviewed customer sentiment shared on TrustRadius to better understand and quantify how SAP SuccessFactors has impacted their organizations, particularly in comparison with previously deployed and/or experienced SAP ERP HCM on-premises solutions. The customers that ESG spoke with were organizations that had recently made a complete or partial transition to SAP SuccessFactors from their on-premises SAP solution. ESG reviewed vendor-created solution pricing analyses, leveraged existing case studies and third-party analyses, and leveraged our own expert analyst opinions and knowledge of the industry, markets, and alternative technologies. The qualitative and quantitative findings were used as the basis for a simple economic model comparing the cost and benefits of managing HR functions and providing services to employees with SAP SuccessFactors versus leveraging their existing on-premises SAP ERP HCM solution. SAP SuccessFactors Economic Overview Enterprise Strategy Group’s (ESG) economic validation revealed that SAP SuccessFactors has provided its customers with significant savings and benefits in the following categories: • Improved Experience for all Employees – SAP SuccessFactors improved the end-user experience for all employees of the organization, including end users, HR professionals, IT teams, and business decision- makers. • More Efficient HR and IT Operations – SAP SuccessFactors provided a single, unified platform that reduced complexity and provided automation, allowing HR resources to manage the entire platform with less effort and freeing resources to achieve more. 5