Summary
This article seeks to provide guidance on deciding the most suitable target application architecture to support Talent Management (incl. processes for Recruiting / Talent Management / Learning / Rewarding) needs of an organization in the Business Domain of Human Resources.
With SAP SuccessFactors and SAP S/4HANA both delivering solution capabilities around Talent Management, enterprises now have multiple applications to choose from and need to make their selection by comparing their organization’s business capability requirements to the solution capabilities SAP applications offer.
Licensing aspects of the solution components discussed should be considered during target architecture design and is beyond the scope of this evaluation.
Business Requirements
Typical variety of business capabilities constituting Talent Management (incl. processes for Recruiting / Talent Management / Learning / Rewarding) can be seen in the illustration below:

Solution Options
Typical deployment choices for Talent Management are the following:
- SAP SuccessFactors Talent Management is SAP’s strategic Public Cloud HR solution operated as Software as a Service (SaaS). With the solutions of the Talent Management suite you can adapt quickly to address any skill gaps with powerful software for talent intelligence, recruiting, onboarding, performance, compensation, learning, succession, and development.
- HCM Talent Management SAP S/4HANA Private Cloud or RISE is the successor of HCM in SAP ERP 6 with all advantages of a private cloud environment and the flexibility and extensibility known from the classical HCM solution. It can either be run in an integrated ERP scenario together with Finance and Logistics or separated in a stand-alone HCM scenario. Important: As per SAP Note 3091160 SAP S/4HANA Private Cloud or RISE does NOT support Talent Management (incl. processes for Recruiting / Talent Management / Learning / Rewarding) in the standard editions and SAP strongly encourages using SAP SuccessFactors for this scope instead. In certain cases it is possible to include Talent Management modules in the SAP S/4HANA Cloud, Private Edition, Tailored Option. Overall, it has to be considered that there had been changes in the availability of certain modules and processes with HCM for S/4HANA (H4S4). Please see again SAP Note 3091160 for details.
- Further option is to keep the existing SAP ERP 6 (not lower than Enhancement Pack 6) until 2027 (with mainstream maintenance) or 2030 (with extended maintenance option at additional cost), then migrate to SAP S/4HANA Release 2023 or higher and activate the business function for HCM for S/4HANA (H4S4). Please see SAP Note 3091160 for further details.
Criteria to determine the most suitable target solution
The following questions are seen to be crucial to determine the most suitable target solution and to define the course:
- Do you want to keep your existing HCM solution by SAP for longer?
- Do you have any policies or regulations preventing you from using a public cloud solution?
- Do you require fast innovation?
- Do you require a high degree of process customization?
- Do you need to separate your HCM from the transactional ERP?
Decision Tree

Conclusion
- SAP SuccessFactors solutions are proven to be the best choice in case you need to adopt SAP HCM innovation at maximum speed. If SAP RISE is used for core operations, SuccessFactors is the first choice to cover the Talent Management processes as they are not included in the standard edition of RISE and can only be included in certain cases in the SAP S/4HANA Cloud, Private Edition, Tailored Option.
- Deployment choice SAP S/4HANA Private Cloud Edition offers the highest degree of flexibility with highly complex and customized process flows. In addition, it is the alternative for Public Cloud solutions, if there are regulations or policies in your organization preventing to store employee data in public cloud solutions.
- Depending on corporate policies and business requirements SAP S/4HANA Private Cloud or RISE can either co-host HCM functionality in the integrated S/4HANA scenario or a standalone HCM instance, as required.
- ERP version 6 is guaranteed to be under extended maintenance for HCM solutions through 2030 after which you must migrate to one of the options listed above. Most commonly, transition from ERP HCM to HCM for S/4HANA is being conducted by a system conversion (known as “Brownfield” transition approach)
Look out to similar decision accelerators in other HR scenarios (e.g., Payroll, Time Management etc.) in the adjacent articles in this community.
Should you need subject matter expertise from SAP with regards to this or other architecture decisions, please feel free to ask your Technical Quality Manager or your Account Executive at SAP.