The HR Data Engine From SAP

With its new features, SAP aims to further automate HR processes and provide companies with greater transparency regarding skills, roles, and organizational structures in times of dynamic labor markets.

Intelligent HR cloud instead of HCM

SAP has been considered one of the most important providers of human capital management solutions for decades. The classic „SAP HR“ in the on-premises world was shaped by SAP HCM (Human Capital Management) for many years. With the company's cloud strategy, the focus increasingly shifted to SAP SuccessFactors, which is now considered the central platform for all HR processes in the cloud.

The platform covers core functions such as personnel management, payroll accounting, time management, and organizational management. It also integrates modules for recruiting, learning, performance management, and succession planning. The current development focus is on intelligently linking these modules via AI-supported analyses and automated process suggestions.

AI, skills, and people insights

With the release of „2H 2025 Release“ in mid-October, SAP introduced new enhancements for SuccessFactors. Under the motto „Leading HR with Confidence,“ companies should be able to gain more insight into their employees„ skills and make data-driven decisions. Key new features include an AI-powered skills framework, improved tools for performance and goals, and a redesigned interface for people analytics. Machine learning algorithms analyze qualifications and project experience to suggest personnel development measures or internal career paths. The integration of “People Insights" is designed to help managers identify personnel trends more quickly and use resources more strategically.

The intelligent assistant SAP Joule, which has already been introduced in other areas of the company, is also increasingly being integrated into SuccessFactors. Joule can support HR employees in their day-to-day work, for example in creating job profiles, responding to recurring inquiries, or evaluating employee data.

Planning and time management

In the run-up to the big October announcement, SAP had already presented new functions for operational personnel management at the SAP Connect 2025 event. The focus was on enhancements in the areas of workforce scheduling, shift planning, and time recording. The solutions are designed to help companies adapt their personnel deployment more flexibly to production and service requirements.

At the same time, SAP presented innovations in HR service delivery. Self-service portals and chat-based HR assistants will enable employees to resolve queries more quickly in the future—for example, vacation requests or payroll accounting. This shifts the focus from pure transaction processing to a more user-centered, dialogue-oriented HR interaction.

AI and data integration

The latest product announcements are part of the overarching corporate strategy that SAP presented at the beginning of October as part of „SAP Connect Business Suite.“ The company emphasized the role of AI as an integral part of all business processes—from finance and procurement to human experience management. In the future, data from SuccessFactors will be seamlessly linked with information from other SAP applications, such as S/4 Hana and SAP Analytics Cloud. The goal is to create a unified, data-driven view of the entire organization.

For users, this primarily means closer integration of HR and company data. In the future, personnel decisions can be made based on current financial, project, or supply chain information. SAP is thus positioning itself more strongly as a provider of a holistic enterprise platform in which HR processes are not viewed in isolation but as part of an integrated value-added network.

Conclusion: HCM as a driver

The announcements make it clear that SAP is consistently expanding its HR solutions in the direction of AI, automation, and skills-based personnel development. While traditional HCM still focused heavily on administrative processes, SuccessFactors is increasingly emphasizing the strategic role of the workforce.

Source: SAP