SAP SuccessFactors

SAP SuccessFactors provides a cloud-based Human Experience Management (HXM) suite, operating on a software-as-a-service (SaaS) model. The company was established in 2001 by Lars Dalgaard and Aaron Au with an initial focus on performance management software before broadening its scope. Dalgaard, born in Denmark, had a global background working at Novartis and Unilever before founding SuccessFactors. His experience in large, metric-driven corporations shaped the data-centric approach of the company.

A significant milestone occurred in November 2007 when the company went public on the NASDAQ. On December 3, 2011, SAP announced its agreement to acquire SuccessFactors for approximately $3.4 billion, a move designed to significantly boost SAP's cloud strategy. The acquisition was finalized on February 16, 2012, after which the company was rebranded as SAP SuccessFactors. This strategic purchase provided SAP with established cloud expertise and a comprehensive, cloud-native Human Capital Management (HCM) suite to offer its extensive customer base. Following the acquisition, founder Lars Dalgaard took charge of SAP's overall cloud business and joined its executive board.

The business model is subscription-based, with customers paying a recurring fee for access to the software and services. This model serves a wide range of clients, from small and medium-sized businesses to large global enterprises across more than 200 countries. The company's core business is providing a comprehensive suite of tools that cover the entire employee lifecycle. The suite, now termed Human Experience Management (HXM), signals a shift from traditional HCM by focusing on creating engaging and personalized employee experiences. Revenue is generated through these subscriptions, which include standard maintenance and two major software updates per year.

The SAP SuccessFactors HXM Suite is a modular platform designed to manage and develop a workforce. Its main product categories include Core HR and Payroll (Employee Central, Payroll, Time Tracking), Talent Management (Recruiting, Onboarding, Learning, Performance & Compensation), and Employee Experience Management, which uses tools like Qualtrics to gather sentiment data. A key feature is Employee Central, which acts as the central hub for employee master data. The platform also offers powerful people analytics and workforce planning capabilities, enabling data-driven decisions through scenario modeling and AI-powered predictions. By integrating these functions, the suite aims to align employee goals with business objectives, streamline HR processes, and foster a culture of continuous development.

Keywords: Human Experience Management, HXM, Human Capital Management, HCM, SaaS, cloud HR software, Core HR, Payroll, Talent Management, Employee Experience, recruiting software, onboarding tools, learning management system, LMS, performance management, compensation management, workforce planning, people analytics, Lars Dalgaard, SAP, enterprise software, employee lifecycle management, HRIS, subscription model, business execution software, employee engagement, skills development, HR analytics