People Power for Small and Midsize Businesses

Doug Reed, Vice President of HCM, SAP America

Dave Hapner, IS Business Analyst, PGT Industries

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Agenda

HCM Overview

n What is it?

n What are the current trends?

n Why do companies need it?

The SAP Offerings

n mySAP HR: A proven solution

n Delivery Options for SMBs

SMB Customer Success: PGT Industries

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SAP and Small and Midsize Businesses

Total: 53,148July 2003

1000 - 2500

500 - 1000

0 - 500

> 2500 21.8 %

9.8 %

9.3 %

Company Revenue in $M US

56.6%

Nearly Two- Thirds (57%) of SAP Installations Worldwide

Are In Companies with less than$500M (USD) In Revenue!

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What is HCM?

Human Capital Management is

The acquisition, deployment, development, retention, motivation, and

empowerment

of

The skills, abilities, experience, and knowledge of the enterprise’s workforce

and includes

A strategy that measures the contribution of human capital to the

success of the enterprise

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Rise of Knowledge Economyn Bricks & Mortar è Intellectual Capital

Labor Shortagen After a 30 year low, unemployment has risen for the past two years

n Median tenure of employee 3.6 years

n Aging workforce

Increased Employee Mobilityn By 2004, 137m employees worldwide will engage in at least part time telecommuting

Global Workforcen Overseas employment by US Companies is growing by 4% per year

New Measurements of Corporate Successn Bottom Line è Balanced Score card

New Technologies Connect Service Consumers to Service Providersn Interfacing è Integration and Collaboration

The HCM Market: Current Trends

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SMBs need to implement Integrated HRMS solutions

“..companies rely primarily on manual employee files and payroll records to keep track of employees. This situation is indicative of a weak HR function and potentially places a company at risk of non-compliance with government regulations. We recommend that all companies with more than 50 employees deploy an HRMS solution (internally or outsourced) in order to effectively manage their workforce.” (Source: Paul Hammerman, Giga Information

Group “Market Overview 2002: Human Resources Management Systems – Breaking Away from the Back Office” August 2002)

Why do Small and Midsize Businesses need it?

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WHAT IS SAP’S OFFERING?mySAP HR: A COMPLETE, GLOBAL HCM SOLUTION

Workforce Analyticsn SEM Measure Catalogue

n 91 KPI’s

n BW HR Infocube

n 30 Process Data Sources

Relationship Managementn Expert Finder

n Manager Self-Service

n Employee Self-Service

Workforce Planningn Organizational Management

n Workforce Cost Planning & Simulation

n Employee Succession Planning

n Balanced Scorecard Integration

Lifecycle Managementn Organizational Management

n Workforce Cost Planning & Simulation

n Career Succession Planning

n eRecruiting

n Shift Planning

n Performance Management

n Compensation Management

n E-Learning

n Training & Events Management

Transaction Managementn Payroll

n Benefits

n Time Management

n Ad Hoc Query

n HR Administration

n Outsourcing

n Concurrent Employment

n Global Employee Management

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mySAP HR: Where it fits

SCM

PLM

SRM CRM

SAP NetWeaver

HumanResources

Admin & Operations

Financials

mySAP ERP

mySAP Business Suite

New Collaborative Processes SAP xApps

mySAP ERP is part of mySAP Business Suite

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SAP: A Proven Partner with Proven Solutions

n 8,500 HR customers worldwide with 320 million records

n More than 11 million ESS usersn 450 HR developers in 5 development

centers

n Across all industries

n A Global Solution: 60 standard and add-on country versions

n Integrated solution within HR and across the Enterprise

n HCM for the Business... non-HR users get access to HR information for better, faster decision making

n Existing SAP customers leverage talent, infrastructure, and existing SAP configuration for lower TCO

n Commitment to HCM for 20+Years

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Best Practices for mySAP HR: Value for SMBs

n Supports the business processes that SMBs need

n Provides US Specific pre configuration that is fully integrated to the relevant R/3 functions

n Allows faster implementation timeline

n Reduces implementation risk

n Enables the expansion of an HCM strategy in line with business growth

n Delivers all the processes of mySAP HR to enable an SMB customer to grow with their business

Best Practices for mySAP® HR provides a set of best business processes that are most commonly requested by our customers. These delivered, pre-configured processes allow customers to quickly implement integrated HCM business activities.

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Functionality supported in Best Practices for mySAP HR

ALL mySAP HR solution areas supported

Get more info at the SAP Service Marketplace:q http://service.sap.com/bp-hrq http://service.sap.com/accelhrq http://service.sap.com/BESTPRACTICES

§ Personnel Administration§ Organization Management § Recruitment § Time Management§ US Payroll processing

§ Benefits Administration§ Compensation Management § Training & Event Management§ Personnel Cost Planning§ Standard/Adhoc Reporting

Human resources actions delivered with Best Practices for mySAP HR:§ New Hire § Quick Hire§ Transfer/Relocation§ Change in Position§ Change in Pay§ Termination§ Rehire§ Retirement

§ Leave of Absence – Active Status § Leave of Absence – Inactive Status § Return to Work from Active Status § Return to Work from Inactive Status§ Reduction in Work Force§ Hire Applicant§ Country Reassignment

§ Personnel Administration§ Organization Management § Recruitment § Time Management/Evaluation§ US Payroll processing

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Making Best Practices for mySAP HR a reality

Emeritis LLCn Proven Business Experience: SAP Certified Services Partner since 1998

dedicated to SAP HCM implementation and support

HCM Express Packaged mySAP HR Offeringn Based on Best Practices for mySAP HRn Flexible and scalable to accommodate future growth

Fast and Inexpensive R/3 Implementationn 100-day fixed scope, turn-key implementation for as little as 100Kn Customized accelerators simplify the implementation processn Accelerated project methodology keeps you on-time and on-budget

Extensive, Integrated Solution to meet core SMB HCM needsn Personnel Administration, Organization Management, Benefits, Time

Management, and Payroll Processing (Net or Interface)n Fully integrated with mySAP Financials and Controllingn Extensive Reporting Capabilities

HCM Express by Emeritis A Qualified mySAP™ All-in-One Solution

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SAP Services Partner focused exclusively on mySAP HR

Fixed Fee, 11 week implementation based on packaged solution foras little as $60K - $134K, depending on scopen Complimentary fit assessment available to validate business requirements with

the prepackaged solutionn Flexible options for covering incremental requirements

Solution covers core mySAP HR business processes including:n Personnel Administration and Organizational Managementn Benefits Administrationn Time Management and Time Evaluationn Gross Payroll

Reduced implementation risk with implementation accelerators, documentation and end user training

Available for SAP R/3 Enterprise and lower releases

Fully integrated with existing SAP modules or as stand-alone HRIS

Contact: beau.ross@premierhr.com (512) 458-9240 www.premierHR.com

Rapid HR from Premier HR

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The value of mySAP HR for SMB

PGT Industries:Maximizing Return on Human Capital

Dave Hapner

IS Business Analyst, PGT Industries

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Overview of PGT Industries

n Founded in 1980

n Leading manufacturer of custom windows, doors & porch enclosures

n Over 1900 employees in Florida and North Carolinan Outputting an average of 17,000 units per weekn 2002 annual revenue was 185 millionn Double-digit growth over the past 4 years

n Anticipated 2003 revenues top 220 million

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Key Business Drivers

• Create an electronic workflow for HR/Payroll/Time & Attendance information

• Full integration of Human Resources & Payroll business processes & data

Why did PGT Industries need an HCM solution?

n Searching for a “best of breed” product that could take us into the future with stability & scalability

n Comprehensive functionality

Why did we choose mySAP HR?

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SAP Solution Implemented

§ HR & Payroll w/Master Data & Clock Events§ Org Mgmt§ Recruitment§ Personnel Development§ ESS / MSS

mySAP HR Implemented

n Accelerated SAP implementation of payroll with clock events in 5months

n Subsequent implementation of recruitment, PD & ESS/MSS

Implementation

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Key Benefits and Lessons Learned

n Complete integration of HR Master Data and payrolln Consolidation of disparate systems allowing for the abandonment of

archaic processes and systems

n Fostered the re-engineering of HR business processesn Electronic cradle to grave data flow, i.e., paperless

Benefits

n Keep your HR implementation projects in manageable phases

n Properly resourcing an HR implementation is absolutely critical

n Work with a trusted implementation partner

Lessons Learned:

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Moving Forward

Next Steps

n Addition of SAP CRM product

n Expanded use of portal for eMRP and customer servicen Expanded use of FI/CO

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Best Practices for mySAP HR: Value for SMBs

n Supports the business processes that SMBs need

n Provides US Specific pre configuration that is fully integrated to the relevant R/3 functions

n Allows faster implementation timeline

n Reduces implementation risk

n Enables the expansion of an HCM strategy in line with business growth

n Delivers all the processes of mySAP HR to enable an SMB customer to grow with their business

Best Practices for mySAP HR provides a set of best business processes that are most commonly requested by our customers. These delivered, pre-configured processes allow customers to quickly implement integrated HCM business activities.

Questions?

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Upcoming Webinars for Small and Midsize Businesses

Customer Relationship Management for Small and Midsize Businesses: Turning Best Practices into Profitable Growth (Featuring mySAP CRM) Wednesday, October 29, 12PM - 12:30 ET.

Business Intelligence for Small and Midsize Businesses:Using Your Information Wisely (Featuring mySAP BI) Wednesday, November 5, 12PM - 12:30 ET.

Upgrade Strategies for Small and Midsize Businesses: Getting Ready for the Next Level of Integration (Featuring mySAP ERP) Wednesday, November 12, 12PM - 12:30 ET.

To register for any of these webinars, visit www.sap.com/fm/smb_fall

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