CTG TMO: SAP Cloud Portfolio Takes the HR3.0 Initiative from Concept to Reality
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1 2015 SAP SE or an SAP affiliate company. All rights reserved. CTG TMO: SAP Cloud Portfolio Takes the HR3.0 Initiative from Concept to Reality
2 Beijing CTG TMO Management Consultants Limited (CTG TMO) Industry Professional services HR outsourcing Products and Services Personnel services, payroll services, labor dispatch, business process outsourcing, recruitment, benefits and insurance, labor relations management, training, and consulting Web Site SAP s SAP Cloud portfolio, SAP Mobile Platform As one of China s most professional HR outsourcing services providers, Beijing CTG TMO Management Consultants Limited (CTG TMO) aspired to break through its existing operation model to provide even more comprehensive business management services, with the cloud as the essential element. General Manager Li Hao decided to divide the project into three phases: HR1.0, basic HR services; HR2.0, e-hr; and HR3.0, taking HR management to the next level supported by the SAP Cloud portfolio and SAP Mobile Platform. 2 / SAP SE or an SAP affiliate company. All rights reserved.
3 An internationally recognized HR outsourcing services provider CTG TMO was established in 2007 and currently has branches and offices in nearly 100 key cities in China. The group s business activities span over 300 cities across China, and it has also established branches in Hong Kong and the United States. Supporting more than 680,000 employees at 20,000 enterprises, and employing 2,000 person - nel, CTG TMO is one of the largest private HR outsourcing enterprises in China. In 2010 and 2011, the group was the only representative HR enterprise from China to be included on the International Association of Outsourcing Professionals Global Outsourcing 100 list. CTG TMO also has the largest global service network in China. Aiming to humanize and refine HR management, CTG TMO believes in the concept of integrating human resource services with technology. The group is committed to transforming the HR outsourcing industry and environment with innovative technology. CTG TMO received ISO27001 information security certification in 2011, becoming the first enterprise in China s HR industry to do so. The company also received certificates from the United Kingdom Accreditation Service and the China National Accreditation Service. As the first Chinese company in the industry to go public overseas, CTG TMO possesses over 30% of the market. Both profits and scale of operations continue to grow. With outstanding innovative abilities, an international team, and first-rate strategic and operational management, CTG TMO has come to occupy a respected position in society. It has earned the trust of its customers and become a globally competitive benchmark company that its employees are proud to be a part of. 3 / SAP SE or an SAP affiliate company. All rights reserved.
4 Putting the cloud into practice for human resources at CTG TMO In terms of cloud applications, CTG TMO possesses a natural advantage as a service-oriented enterprise that manages massive amounts of client data. This is why it was so simple for CTG TMO to form a cloud model. According to government sources, labor costs in China are increasing at a rate of 15% 20% annually. Chinese enterprises are currently undergoing a shift by pursuing high labor efficiency, giving way to a trend of HR outsourcing. As enterprises rapidly expand in scale, and the types of businesses served continue to diversify, CTG TMO is eager to provide HR services for its clients. More and more enterprises are beginning to focus on talent management and retention of outstanding personnel. With the enactment of new government labor laws, enterprises are recognizing the essential role that talent plays in today s competitive environment. With the approach of the Web 2.0 era, international enterprises are adopting innovative approaches to HR management with HR outsourcing (HRO) services supported by cloud technology. In contrast to traditional management models, this new model not only reduces HR costs, but it also improves the efficiency of HR departments. In fact, CTG TMO s service model was built on the cloud, which enables rapid promotion of current applications, expands market share, and improves service quality. Li Hao says, Today, frontline sales are the most competitive battleground for enterprises, but most local enterprises lack systemized, real-time management and control over sales. Based on our decade of experience in this area, we have developed the integrated time and attendance system, or ITAS, based on SAP Mobile Platform to help our customers meet these challenges. 4 / SAP SE or an SAP affiliate company. All rights reserved.
5 SAP Cloud portfolio: in sync with CTG TMO s future strategy After careful consideration, CTG TMO decided to work with SAP to integrate a professional HR management perspective and nationwide service network with advanced IT data processing technology. The intent was to provide a flexible, highly effective, multidimensional solution to support customers talent strategies and management transformation. The decision was based on several important factors. SAP products are mature; some of the largest HR management companies in the world use SAP solutions. SuccessFactors solutions and the SAP Business Process Outsourcing (SAP BPO) organization focus on HR functions and have strong localization features. SAP BPO focuses on managing one platform, which means it can truly realize a private cloud management model something that other enterprises cannot match. SAP has many successful customers, which lowers implementation and user application risk; and with many overlapping customers, CTG TMO can more easily communicate with them by implementing SAP solutions. Finally, as the core platform for ITAS, SAP Mobile Platform makes it very easy for customers to develop new mobile apps, and it offers multidatabase management support. SAP Mobile Platform can also integrate tightly with other enterprises systems. SAP s strategy in China coincides with CTG TMO s development strategy, especially in terms of cloud services. CTG TMO aspires for joint innovation of the customer service model with SAP both online and offline. SAP s approach to understanding a business is consistent with our strategy. The greatest advantage of SAP software is its ability to help managers achieve their business development goals. Li Hao, CEO, Beijing CTG TMO Management Consultants Limited 5 / SAP SE or an SAP affiliate company. All rights reserved.
6 Expanding CTG TMO s services with the cloud framework CTG TMO s partnership with SAP mainly covered two areas: a comprehensive solution for talent management services and the ITAS for sales management, which uses the latest data to help enterprises optimize their business processes. The ITAS is also the first partnership between CTG TMO and SuccessFactors, an SAP company. The core concept behind HR outsourcing is ondemand HR services, wherein users purchase services rather than software. SAP provides CTG TMO s selfbuilt private cloud, used to manage the enterprise s core HR data resources, and a public HR service cloud built by SAP. Compared with competitive offerings, SAP BPO services are unique because they integrate SAP s experience gained through long-term partnerships with other BPO service providers. SAP Mobile Platform helps enterprises shift their data and business processes to devices such as smartphones, tablets, and mobile PCs, with secure access to extensive business data. In addition, the ITAS adopts the SAP Afaria mobile device management solution. Through one management console, enterprise leadership can manage its employees mobile devices and operations directly. Employees can also optimize their mobile work environments according to their roles and personal preferences. SAP Afaria provides high-level reports on activity and usage, which helps the user engage in data mining and visualization analysis. The system also supports device-level user authentication functions and certificate-based single sign-on. The design goal of the road map for SAP BPO is to give customers better business process management quality while lowering the total cost of ownership, and decreasing BPO deployment, conversion, and operational risk. 6 / SAP SE or an SAP affiliate company. All rights reserved.
7 Implementation SAP helps CTG TMO step into the cloud-based HR3.0 phase At CTG TMO, the ITAS has lowered labor and management costs while improving sales. It helps sales employees at CTG TMO s customer enterprises optimize their work time and allocations, improving attendance rates and training effectiveness by 100% and crisis response rates by 60 times. It has increased the daily work-completion rate by nearly 100% while raising accuracy of data submission. The ITAS takes advantage of the usability and quick implementation of cloud platforms, allowing management to control every aspect of business operations. In highly competitive industries like fast-moving consumer goods, sales, supervision, and project management make or break corporate marketing strategies. Though many enterprises have wide sales coverage, personnel management can be a challenge. To deal with these issues, the ITAS incorporates scheduling management, on-site management, data acquisition, and analysis. By adopting cloud technology, the ITAS supports BPO on a per-personper-month basis, eliminating the need for a large monetary investment each time labor is outsourced. For example, during the Beijing International Garden Expo, 800 employees used the ITAS on their mobile phones; the system managed staff attendance, allocation, and the Expo s environment. Visual information was transmitted to management personnel during emergencies, allowing them to easily issue instructions to staff dispersed across a wide area. The most rewarding parts of this project were the breakthroughs from our existing model. Our business management abilities, extended beyond HR management, are now more sophisticated, and we can bring these new service concepts to our customers. Li Hao, CEO, Beijing CTG TMO Management Consultants Limited 7 / SAP SE or an SAP affiliate company. All rights reserved.
8 CTG TMO Implementation Implementing an onlineto-offline strategy In the future, CTG TMO plans to gradually implement its onlineto-offline (OTO) strategy. The core concept is to bring online consumers into real business activities, allowing them to purchase products and services online and enjoy these services while offline. Cloud and mobile applications are essential to this strategy. Goal-oriented performance management is the key issue in the development of Chinese enterprises, and this approach relies on IT support. CTG TMO has found that support in SAP and SuccessFactors solutions, which integrate many best practices. Li Hao says, SAP has technical origins, but it is also a very forwardlooking company. We hope to develop a close partnership with R&D at SAP to create the most influential cloud platform in China, tailored to China s national situation and meeting the needs of Chinese customers. Studio SAP 36634enUS (15/02) 2015 SAP SE or an SAP affiliate company. All rights reserved. 8 / 8
9 2015 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
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