DSAG asserts itself in human resources

At the DSAG Annual Congress 2019, the German-speaking SAP user group DSAG and SAP announced that customers will also be able to run the SAP Human Capital Management (SAP HCM) solution integrated in S/4 Hana from 2022. This is a success that will particularly please SAP customers who do not yet want to or are not yet able to switch to SuccessFactors in the cloud in the timeframe of 2025.

"As DSAG, we accept the desire of SAP's strategic direction towards SuccessFactors. However, the cloud solution is not yet an alternative to the proven on-premises solution for all industries - especially not for the public sector.

explained Hermann-Josef Haag, DSAG Board Member for Human Resources and Public Sector, in the run-up to the event. One of DSAG's central demands at the annual congress was therefore that HCM can be operated together with S/4 Hana.

HCM solution becomes part of S/4 Hana again

This demand was underpinned by a survey on cloud use conducted among DSAG members in public administration.

"According to our survey, SAP customers were faced with the question of how they can continue to map their HR processes with SAP software in a legally secure, compliant and requirements-oriented manner against the backdrop of existing legislation and the wide range of customer-specific requirements"

Hermann-Josef Haag summarizes. For 67 percent of those surveyed, a switch to the public cloud was unthinkable.

"There is a maintenance commitment for the previous ERP solution for human resources (SAP HCM) until at least 2025.

However, in order to provide planning security for SAP customers who do not want to or are not yet able to switch to the cloud in this time frame, there will also continue to be an HCM on-premises solution in the context of S/4 Hana".

is how the DSAG Executive Board describes the current state of human resources. This solution, called SAP HCM for S/4 Hana, has been positioned to date as a "bridge solution" separated from S/4 Hana from 2023 for SAP customers.

At the DSAG annual congress, SAP has now taken a further step towards users. In future, the new solution will also be available as a component within S/4 Hana from Release S/4 Hana 2022.

The solution will be successively optimized for operation with S/4 Hana. This is SAP's response to a key DSAG request, which was voiced in particular by small and medium-sized enterprises and the public sector.

"We see the future of HR solutions in the cloud. With SAP Human Capital Management (HCM) for SAP S/4 Hana, we offer our customers who cannot migrate to SAP SuccessFactors by 2025 a reliable transition solution. The embedded operation of this transition solution in SAP S/4 Hana is designed to make migration easy for our customers"

explains Thomas Saueressig, President, SAP Product Engineering, SAP.

For customers, the new development means both planning security and greater flexibility. On the one hand, Human Capital Management and S/4 Hana can run on one instance in the future, i.e. in one integrated system. On the other hand, it is still possible for customers to separate the two systems.

"SAP's concession brings further consistency to current HR processes until cloud solutions can actually meet all user requirements"

Hermann-Josef Haag welcomes SAP's concession and adds:

"From a user perspective, it is a great success that HCM remains fully integrated technically and with the familiar range of functions. It's nice to see that the voice of the users is being heard by SAP."

Details on pricing are still pending. However, it should be possible to credit the previous licenses.

"DSAG is already in intensive talks with SAP about this."

Hermann-Josef Haag summarizes.

Another topic on the DSAG agenda is travel management. Here, DSAG is calling for a continuation of the on-premises solution beyond 2025 and also for integration in S/4 Hana.

The alternative software-as-a-service solution Concur positioned by SAP, on the other hand, does not yet come close to the on-premises product in terms of functionality, in the view of the user association at this point in time.

"Many customers also question the provision of the software. Here I demand security for the customers - and wish for an intensive dialog with SAP".

explains the DSAG board and adds:

"The latest developments show that by working together as equals, we can achieve a great deal in the interests of users."