Turning Human Resources into a strategic business partner within an organization can be a challenge. Human resource business processes are often regarded as purely administrative. In many companies the strategic value of HCM (human capital management) is often underestimated and potentially overlooked. While SAP® offers clear value in aligning the HR function and workforce with business values and in integrating the HCM function with consolidated business processes, it is sometimes perceived as not adding enough strategic value to HCM processes.
As IDC stated in its recent Vendor Spotlight : "[...] HR doesn't build a convincing business case around the technology, opting to emphasize efficiency gains rather than the strategic advantage such [integrated HR] systems can deliver." (quoted from: Making the Business Case for HR Investments During Economic Crisis, IDC Vendor Spotlight, March 2009, www.idc.com).
Elevating HCM from being viewed as a pure cost factor to becoming a strategic element in an organization, helping the organization's bottom line is a major challenge in many companies. The key to overcoming this challenge lies in identifying HR related business processes in an organization with strategic value to the corporation like talent management, employee satisfaction, and analytic capabilities.
xft products and solutions like the xft personnel file extend SAP's data management capabilities to gain the needed strategic value by combining external data and documents with transactional information within the SAP ERP HCM system and integrating documents with business processes.
Ultimately, automated HR systems can contribute to improved customer service, increased sales, and higher profits by providing accurate information that then can help business managers to maintain a well motivated and experienced workforce with a vested interest in the organization.