SESSION CODE: HM1566. SuccessFactors Talent Management Solutions - Strategy, Recent Innovations, and Future Direction

SuccessFactors Talent Management Solutions - Strategy, Recent Innovations, and Future Direction Mark Brandau, VP HCM Solutions SuccessFactors, an SAP Company SESSION CODE: HM1566

Legal disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has 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's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP 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. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross negligence. 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. 2015 SAP SE or an SAP affiliate company. All rights reserved.

Agenda Commitment to Innovation and Key Focus Areas The Simple Truth to Talent Management and Recent Innovations Vision, Direction, and Talent Management Roadmap 2014 SAP SE or an SAP affiliate company. All rights reserved. 6

Commitment to innovation 29 years of HCM experience 2011 + 1986 SAP HR is launched 2001 ESS/MSS E-learning E-Recruiting 2001-2009: Goal & Performance Management 2010 2012: Team Rater Calibration Goal Execution Employee Central Core HRIS JAM Collaboration Learning Management Mobile Headlines 2013 Onboarding Global Payroll Recruiting Marketing Time Off Management Skills Library 2014 Presentations Employee Central Service Center Employee Central Global Benefits Compensation Management & Variable Pay Succession Management Development Planning Recruiting Management Workforce Planning & Analytics SuccessFactors delivers releases 4x per year to ensure customers have fast access to innovations More than 4,200 customers in more than 177 countries use SuccessFactors across 37 languages More than 28 million SuccessFactors subscribers 2014 SAP SE or an SAP affiliate company. All rights reserved. 7

HCM key themes and investment areas Comprehensive HCM Global and deep across the entire HCM spectrum Simple to Use Consumer-grade user experience, integrated content, embedded predictive Simple to Run Lowest TCO to operate, manage, and optimize 2014 SAP SE or an SAP affiliate company. All rights reserved. 8

SAP SuccessFactors HCM Suite Mobile and Social Modern user experience Analytics Recruiting Onboarding Learning Performance & Goals Compensation Talent Foundation Presentations SAP Jam Skills and Competencies Talent Insights Job Profile Builder Org Chart Employee Profile Succession & Development Most comprehensive Cloud solution Core HR: Employee Central Employee Record Organizational Management Payroll Shared Services Time Sheet Absence Management Global Benefits SAP HANA In-memory Computing Platform State-of-the-art technology 2014 SAP SE or an SAP affiliate company. All rights reserved. 9

Talent Solutions Investment strategy SAP provides both cloud and on-premise solutions for talent management; SuccessFactors cloud solutions will receive the majority of innovation investments The talent solutions in SAP HCM are supported but receive only minimal improvements 2014 SAP SE or an SAP affiliate company. All rights reserved. 10

The Simple Truth to Talent Management and Recent Innovations

What makes a business successful? 1 Setting Strategy: Figuring out what needs to be done 2 Allocating Resources: Securing what s needed to achieve it 3 Engaging Talent: Creating action to get it done (Execution)

SAP-SuccessFactors Transforming business strategies into business outcomes Business Strategies Organic Growth M&A Customer Intimacy Global Expansion Renewal HR-led Execution Hiring Retention Compliance Planning & Analysis Alignment Compensation Leadership Development Succession Planning Feedback & Coaching Business Results Top line growth Revenue per employee Profit Shareholder value Customer loyalty

The Simple Truth of Talent Management Communication Compliance & Risk Reduction Attract the right people, for the right role, at the right time Develop continuous focus, feedback, and relevant learning experiences Retain recognize, grow and reward top talent based on facts

SuccessFactors Talent Management Data-driven insight & action across the employee lifecycle Onboarding Performance & Goals Recruiting Skills and Competencies Learning Compensation & Rewards Succession & Development

Talent Foundation Easier Actions and Clearer Communication Recent Innovations Following our initial release of Action Search in November 2014 now includes links to reports, dashboards, quick action cards and administrator actions Presentations for easier, faster, more relevant talent review meetings 2014 SAP SE or an SAP affiliate company. All rights reserved. 16

Recruiting More Clarity and Better Communication Recent Innovations Marketing Central now included source intel to more easily assess source effectiveness Apply with SEEK Profile simplify application experience for candidates in Australia and New Zealand Mobile Recruiting support for text messaging (SMS) to keep candidate up to data and connected 2014 SAP SE or an SAP affiliate company. All rights reserved. 17

SuccessFactors Onboarding Simplified, Easier Experiences Recent Innovations Productized integration with SAP ERP HCM/ Hybrid deployment New Onboarding Hiring Manager Experience: make hiring managers onboarding experience easier 2014 SAP SE or an SAP affiliate company. All rights reserved. 18

Learning More Open, More Relevant Recent Innovations Mobile Learning - easy, native access to the learning catalog and learning history Open Content Network - expanded with new partner, OpenSesame Peer-to-Peer Recommendations between individual employees QuickGuides - makes learning simple and fun - anyone can create and deliver a quick how to 2014 SAP SE or an SAP affiliate company. All rights reserved. 19

Performance & Goals, and Compensation Continuous Feedback, More Focused and Relevant New UX for Goal Management goal feedback and comments front and center on the review form; more dialogue and development Touchbase for more continuous talent dialogue and development Support the CFO office with easier, Compensation Forecasting 2014 SAP SE or an SAP affiliate company. All rights reserved. 20

Succession & Development Flexible Career Paths, Robust Talent Search and Suggested Roles Recent Innovations Better engage employees with flexible career paths for various career tracks New actions on talent search easier to perform and manage succession processes Smart sending of suggested roles to employees automatically 2014 SAP SE or an SAP affiliate company. All rights reserved. 21

Cloud integration/transition scenarios for SAP customers Three key approaches Talent Hybrid Full Cloud HCM Side-by-Side HCM Cloud Talent Solutions Workforce Planning & Analytics Cloud HR Core HR (Employee Central) Talent Solutions Workforce Planning & Analytics Talent Solutions Workforce Planning & Analytics Cloud Core HR Productized Integrations Core HR Core HR On-Premise SAP ERP SAP ERP SAP ERP 2014 SAP SE or an SAP affiliate company. All rights reserved. 22

Integration Approach Summary Standard Integrations Less Flexibility Custom Integrations More Flexibility 1 2 3 In-Product Integration Integration Packages Custom Integration Configure Connect Construct Leverage pre-built packages; More than ~75% OOB; connect Simple to use and maintain; 100% OOB (out of box) SF/ SAP Services or Partners; APIs; Unique solutions 2014 SAP SE or an SAP affiliate company. All rights reserved. 23

Talent Solutions SuccessFactors Positioned as a Leader In Gartner s 2014 Magic Quadrant for Talent Management Suites This updated Magic Quadrant assesses the market for talent management suites, which help enterprises manage the key processes of plan to source, acquire to onboard, perform to reward and assess to develop. Gartner Magic Quadrant for Talent Management Suites by Ron Hanscome, Jeffrey Freyermuth, Yvette Cameron, June 2014. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from SuccessFactors. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 2014 SAP SE or an SAP affiliate company. All rights reserved. 25

Talent Solutions Continuing Our Market-Leading Heritage A Leader in 2014 IDC MarketScape: Worldwide Integrated Talent Management SuccessFactors is an IDC MarketScape Leader worldwide. SuccessFactors' key strengths include market momentum, depth of the portfolio, and global reach. SuccessFactors received praise from clients in the categories of features, technology, and reporting. Source: IDC MarketScape: Worldwide Integrated Talent Management 2014 Vendor Analysis, by Lisa Rowan, October 2014, #252213, http://www.successfactors.com/en_us/lp/integrated-talentmanagement-2014.html IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor s position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the circles. Vendor year-over-year growth rate relative to the given market is indicated by a plus, neutral or minus next to the vendor name. 2014 SAP SE or an SAP affiliate company. All rights reserved. 26

Vision, Direction, and Talent Management Roadmap

Talent Management Vision & Direction Future Direction Simplify Strategic HR with Dynamic Solutions that Adapt and Respond to Changing Business Conditions Comprehensive Expand solution breadth (new capabilities), and depth (interlock of skills, competencies, jobs, and employee lifecycle). Collaborative Embed tools and technologies that connect, recommend, and build relationships across information, processes, and people. Continuous Surface talent processes, information, and intel when and where it s most relevant, so talent management is part of everyday work life.

Integrated talent management The shape of things to come Future Direction Review Review Traditional Review Calibration Set Goals Comp Successio n Effort 360 Dev Jan Feb Mar Calibration Comp Apr May Jun Jul Aug Sep Oct Nov Dec Transformed Effort Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 SAP SE or an SAP affiliate company. All rights reserved. 29

SuccessFactors Talent Foundation Smarter, More Continuous and Automated Future Direction Smarter and proactive processes; Intuitive exception handling; for example new manager gets a dossier on his team More data sources for Presentations Broader adoption of quick cards More leverage of skills and competencies thru suite; recommendations 2014 SAP SE or an SAP affiliate company. All rights reserved. 30

Recruiting More Mobile, More Intelligent Future Direction More Mobile: Give the candidate a great branded experience and enhanced capabilities on ANY device/browser Greater HCM Suite Integration: Better align to support recruiter needs; Ideas directly from community. Additional Marketing Sources and Analytics: Add more candidate / application sources; Greater reporting in Marketing Central. 2014 SAP SE or an SAP affiliate company. All rights reserved. 31

Onboarding More Relevant Future Direction Improve Role-based User Experience Focus on HR professional and Hiring Managers. Plus, continued focus on new hires and mobile for all. More HCM Suite Integration Improve Offboarding integration with Employee Central and SAP HCM. Plus, more onboarding updates from Recruiting. Greater Globalization Localize the admin experience; make compliance forms self service through the Upgrade Center. Expand out of the box forms globally. Roadmap as of March 2015. Expires July 2015. This is the current state of planning and may be changed by SAP at any time. 2014 SAP SE or an SAP affiliate company. All rights reserved. 32

Performance & Goals, and Compensation Next Generation Performance Future Direction Next generation performance management - More continuous, real time check-ins, micro-reviews, peer commentary New compensation forecasting and modeling (inc., easier off-cycle planning); Enjoyable, consumer-like experience 2014 SAP SE or an SAP affiliate company. All rights reserved. 33

SuccessFactors Learning Creating a Culture of Continuous Learning Future Direction Learning Recommendations Personalized way to deliver learning nuggets HANA-powered engine will provide smart recommendations specific to every employee based on job, skills, learning preferences, etc. Mobile-first ensures convenient, easy learning Employee-centric. They take control of their learning. 2014 SAP SE or an SAP affiliate company. All rights reserved. 34

SuccessFactors Succession & Development Roadmap planning Future Direction New UI for Succession Org Chart and Matrix Grid Simplified development planning - social development plans, library of development goals, tighter integration with SAP Jam More robust mentorship tools (ie. mentor matching, new social capabilities, activity tracking) 2014 SAP SE or an SAP affiliate company. All rights reserved. 35

Key Themes and Investment Areas Comprehensive HCM Global and deep across the entire HCM spectrum Simple to Use Consumer-grade user experience, integrated content, embedded predictive Simple to Run Lowest TCO to operate, manage, and optimize 2014 SAP SE or an SAP affiliate company. All rights reserved. 36

User Experience Simple to use Future Direction Simple to use Engage 100% of your employees, not just HR professionals Role-based Designed for you, your needs and how you work Obvious and delightful Applications that are understandable and make an emotional connection Mobile Supports how and where you work, at any time Roadmap as of March 2015. Expires July 2015. This is the current state of planning and may be changed by SAP at any time. 2014 SAP SE or an SAP affiliate company. All rights reserved. 37

Key Themes and Investment Areas Comprehensive HCM Global and deep across the entire HCM spectrum Simple to Use Consumer-grade user experience, integrated content, embedded predictive Simple to Run Lowest TCO to operate, manage, and optimize 2014 SAP SE or an SAP affiliate company. All rights reserved. 38

Admin Road map themes planned and future Future Direction Next Generation Admin Performance and Usage Analytics Self-Service Provisioning One-click Deployment Tools New Admin User Experience 2014 SAP SE or an SAP affiliate company. All rights reserved. 39

Cloud Integrations Simple Integration Builder Future Direction Simple Integration for HR Analysts Template-driven Access via Admin UX Hana Cloud Integration Runtime 2014 SAP SE or an SAP affiliate company. All rights reserved. 40

Key links for more information Key links Road maps on SAP Service Marketplace SAP Community Network IT Planning Resources SuccessFactors Talent Solutions Make a Difference With SuccessFactors Video Overviews Where to go to provide product feedback and ideas SAP Idea Place Influence programs http://service.sap.com/saproadmaps http://www.sdn.sap.com/ https://service.sap.com/~sapidb/011000358700001160122012e http://go.sap.com/solution/lob/human-resources/talent-management.html https://www.youtube.com/playlist?list=plxtpwhreofxox7bdm- 9YRL_jW4M3Id1cm https://ideas.sap.com http://service.sap.com/influence SAP User Groups http://www.sapusergroups.com/ www.asug.com 2015 SAP SE or an SAP affiliate company. All rights reserved.

THANK YOU FOR PARTICIPATING! Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: HM1566 For ongoing education on this area of focus, visit www.asug.com Presenter contact information: Mark Brandau Vice President, HCM Solutions mark.brandau@sap.com +1.703.678.0307 2015 SAP SE or an SAP affiliate company. All rights reserved.

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Talent maturity curve Automation is necessary but insufficient for achieving transformation Impact Deliver insight to managers and executives Transactional (from manual) Individual talent process Unified talent processes Maturity

SuccessFactors Human Capital Analytics We Simplify the Path to Adoption Solutions for every step in an organizations transformation Get transactional and operational reporting with Embedded Intelligence Bring HR and non- HR data together and demonstrate impact with Workforce Analytics Equip central planning teams and guide tomorrow s talent decisions with Workforce Planning 2014 SAP SE or an SAP affiliate company. All rights reserved. 46

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