Enterprise Resource Planning Blogs by SAP
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There are multiple ways to deploy a Human Capital Management solution. One approach is to use a single cloud-based platform for all HR processes across Core-HR, talent management, and workforce planning/analytics. This approach has clear benefits by providing a single platform to manage all workforce-related processes and data.  If customers choose to go that route, SuccessFactors - An SAP Company, has the widest Human Capital Management suite in the cloud today. On the other hand, many organizations across the globe are happy with their functioning, high performing On-Premise Core HR systems. There are many reasons, from “they work” and “they work well” to their ability to support very unique and individual needs that an organization may have.


Thousands of organizations throughout the world leverage SAP HCM core HR applications such as employee recordkeeping (“Personnel Administration”), organizational management, benefits, and time management, deployed OnPremise. Hundreds among them use the SuccessFactors Business Execution Suite delivered OnDemand for their talent management needs. One reason they leverage this set up is because they want to minimize disruption in their respective organizations by keeping their, implemented, tried and tested core HR applications stable while adopting rapid innovation delivered via the SuccessFactors Business Execution Suite.

SAP Delivered Integration Delivers Unique Value

Integration is in SAP’s DNA.  When SuccessFactors became an SAP company, we established a strategy from day 1 whereby we would help customers achieve integration across SAP and SuccessFactors, especially for those wanting to leverage their current SAP HCM implementations for core HR processes but adopt SuccessFactors for their talent and analytics processes. 

The integration that SAP and SuccessFactors is providing is based on a deep understanding of each system, the processes they support, and the experiences and best practices gained from our customers who have previously integrated.  Because the integrations are developed and maintained by SAP, the SAP integration and application development teams also have the freedom to make changes to either system to simplify the integration  and extend the processes, where appropriate. This approach gives joint customers a better starting point to integrate the solutions faster and a set of software that is delivered and maintained by SAP so any changes on either side are supported without the need for customers to track them on their own. 

Loose Coupling

This integration is based on the concept of “loose coupling”.  The SuccessFactors Business Execution Suite does not have any cumbersome dependency on SAP HCM – and vice versa. It is loosely coupled with SAP HCM, enabling SAP/SuccessFactors hybrid customers to quickly drive business results from talent management, analytics, and planning solutions in the cloud with zero disruption to their running HR administration and payroll implementations.  This loose coupling also ensures that SuccessFactors applications will not have confusing dependencies on SAP Enhancement Packs or Service Packs.

Loose Coupling also enables joint SAP and SuccessFactors customers to continue to get the most out of their investments of time, money and expertise in SAP, while enabling them to take advantage of the most innovative, industry leading talent management suite in the world. Customers can get the best of both worlds without ripping and replacing existing systems or introduction of unnecessary risk, liability, and costs from switching the underlying platform. 

The Future

Business applications of the future will not be confined to just OnPremise or just OnDemand. Business processes and needs will be supported by a collection of loosely coupled systems residing either OnDemand or OnPremise delivered by one or more providers. Furthermore, the line between human capital management, work management, customer management and other areas will blur forcing customers and software providers to adopt the loosely coupled model.

In the future, systems that support a business process may not always share the same data structure or even the same user interface. SAP has recognized this trend and is investing in technologies that will embrace this future. SAP NetWeaver PI OnPremise and SAP NetWeaver Cloud Integration technologies will bolster the linking of loosely coupled yet meaningfully connected applications.