SAP Announces SAP HR 4.5 With Enhanced Functionality For Competency-Based Management, SAP Employee Self Service And Advanced Payroll Operations

SAP Announces SAP HR 4.5 With Enhanced Functionality For Competency-Based Management, SAP Employee Self Service And Advanced Payroll Operations

LOS ANGELES–(BUSINESS WIRE)–Sept. 14, 1998–

Customers Such As Bechtel Corp. and Ryder System Inc. Select SAP

For Its Continuous Commitment to Delivering Innovative HR Solutions

Today at SAPPHIRE(R) ’98, SAP AG (NYSE:SAP) announced SAP(tm) Human Resources System Release 4.5 (SAP HR(tm)), with new functionality for strategic human resources and daily HR servicing, including competency-based management, employee self service and payroll.

This new functionality complements and builds on SAP HR 4.0, which represents the first core SAP R/3(tm) application solution delivered as an independent business component on a separate release cycle. SAP is delivering on its commitment to providing timely upgrades to the SAP HR component, enabling customers to deploy new HR functionality and enhancements quickly and easily. This commitment to continuous innovation along with market-leading product functionality has resulted in the success of SAP HR as a standalone product in the U.S. market with new customers such as Bechtel Corp. and Ryder System Inc. SAP HR 4.5 is scheduled for general availability in the fourth quarter of 1998.

“The enhanced functionality in SAP HR 4.5 is based on feedback we received from our HR customers and the direction in which HR strategy continues to head,” said Mike Gioja, executive vice president, global HR development and the HR strategic business unit, SAP AG. “As the leading global HRMS vendor — with 31 standard country versions for SAP HR, the largest research and development investment, and a strategic business unit in the United States focused on HR — SAP is committed to continually delivering timely, innovative solutions to help HR successfully manage the ever-changing demands of its role.”

The increased functionality for competency-based management will allow HR executives to contribute to their businesses’ bottom line by ensuring that the work force has the competencies to support corporate strategic initiatives. The enhancements for SAP Employee Self Service and advanced payroll operations offload administrative functions to free up time and resources for HR, payroll and benefits professionals, allowing them to focus on their strategic functions.

“SAP continues to develop new, innovative functionality to help companies of all sizes position their human resources function to meet the demands of the 21st century,” said Marc Miller, president of Marc S. Miller Associates, a New York City consulting firm specializing in strategic utilization of human resources information systems (HRISs) and one of the top HRIS strategists in the country. “Its increased commitment to HR is evident in the market as more companies are considering and selecting SAP HR — either as a standalone product or as part of an integrated system — over competitive solutions.”

Competency-Based Management Lets Companies Plan for Future Work Force Needs

Enhancements to SAP HR Employee Development and Compensation Management extend the SAP competency-based management solution, enabling companies to deploy their human assets to the company’s most critical initiatives and to implement programs to ensure that the company will have the appropriate competencies to meet its future needs.

Enhanced functionality includes the following:

— Employee Development

– Supports career development and succession planning, linking employee qualifications and preferences with the organization’s needs. Employers can use this functionality to counsel and develop employees for future career growth and to identify and prepare successors for potential vacancies and forecasted needs.

– Enables the creation of both general and highly tailored employee development programs, including employees’ preferences and potential positions for which they may be qualified. This functionality allows companies to design and manage short- and long-term human resources development plans by performing simulations and searches against future requirements that generate suitability results and training program recommendations.

— Appraisal Management

– Enables companies to plan, perform and analyze multiple appraisal models.

– Supports the appraisal process in a business context by offering a variety of templates, including personnel appraisal, 360-degree feedback appraisal and formal references.

— Compensation Management

– Allows for generation of salary structures based on results from salary surveys and job valuations through job pricing functionality. Salary structures and salary grades can be generated based on a variety of criteria, including percentage below or above market survey findings.

– Enables the adjustment of compensation payments according to individual requirements using various multidimensional calculation rules.

– Provides compensation planning and administration capabilities directly to the line managers via SAP HR Manager’s Desktop based on the company’s guidelines for streamlined, workflow-enabled compensation processing and authorizations.

“We needed an HRMS vendor that could deliver leading-edge, flexible solutions to help us develop and maintain a competitive work force,” said Tom McKinnon, vice president, human resources and corporate services at Ryder System Inc. “The strategic HR functionality in SAP HR 4.0, including competency-based management, and the SAP commitment to continually delivering innovative functionality with new releases such as SAP HR 4.5, was critical to our decision in selecting SAP HR over alternative HR products.”

Ryder System Inc. designs, implements and manages logistics and transportation solutions for its domestic and international clients. Ryder had revenues of $4.9 billion in 1997 and employs 44,000 people worldwide. Ryder System will deploy SAP HR as its standalone HRMS system.

Increased International Capabilities for SAP Employee Self Service

Based on SAP Business Framework(tm), SAP Employee Self Service utilizes the same database, business logic, security, audit trail and workflow as core SAP enterprise applications to ensure that maintenance and workflow processes are streamlined and employee service is delivered consistently.

As a result, SAP Employee Self Service efficiently utilizes the global capabilities of the core SAP R/3 application solutions, allowing SAP to quickly develop and deliver country-specific versions to the market. SAP Employee Self Service supports all the languages that are delivered with SAP R/3 and now has three additional country-specific localized versions, for Canada, Japan and Germany. The localized versions extend beyond language capabilities to include country-specific formats, terminology and data fields.

Bechtel Corp., one of the world’s largest engineering, construction, and project management firms, with $11.3 billion in revenue in 1997, has selected SAP HR to support some 20,000 employees in over 60 countries.

“Bechtel’s engineering and project management reputation is based on our being able to go anywhere and do anything, and we need HR and payroll tools equal to those expectations,” said Bill Small, principal vice president and project manager of Bechtel’s HRMS program. “Real-time access to employee data, robust systems for managing our people, and the ability to localize systems while keeping them globally compatible are what we were looking for.”

Support for Advanced Payroll Operations

The new SAP Payroll Processing Manager will support intelligent payroll processing, error handling and unattended operations with proactive communications and notifications for payroll operations, whether they are domestic or worldwide, centralized or decentralized. Designed for use especially in a shared services environment, this new capability will lower administrative costs and streamline the payroll operations process.

The SAP Payroll Processing Manager allows for automation of various functions during a payroll run. For example, a payroll manager can configure the system so it pages him or her if there is a fatal error during the run. Or a manager can have the system flag a single employee record if there is an exception error and automatically route the error via workflow for resolution, without interrupting the payroll run.

The SAP Comprehensive Solution for HR

As a leading global HR solution provider with more than 2,500 customers worldwide, SAP offers a total human resources solution made up of SAP HR in 31 standard country versions, SAP Employee Self Service, complementary software partners, outsourcing options and TeamSAP(tm). Ease of implementation is ensured with TeamSAP implementation support and AcceleratedSAP(tm), a streamlined implementation program, or SAP Accelerated HR. (See SAP Accelerated HR release for more details.)

SAPPHIRE ’98

SAP made the announcement at SAPPHIRE ’98, the company’s 10th annual user conference for the Americas. This year’s SAPPHIRE, held in Los Angeles, will draw more than 15,000 attendees and more than 260 corporate partners to participate in a series of forums for gathering and exchanging ideas, techniques and solutions for enterprise computing and business strategies. Siemens is the official technology sponsor for SAPPHIRE ’98.

About SAP

SAP, the world’s largest enterprise software company, provides companies of all sizes with business solutions that deliver a better return on information. SAP products and services integrate an organization from financials and human resources to manufacturing and sales and distribution. This integration enables companies to optimize supply chains, strengthen customer relationships, and make more accurate management decisions. Founded in 1972, SAP today leverages a global network of people, processes and products to assure customer success. SAP is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol “SAP.”

SAP, SAPPHIRE, SAP HR, R/3, SAP Business Framework, TeamSAP, AcceleratedSAP and all SAP product and service names herein are trademarks or registered trademarks of SAP AG. Other product and company names herein may be trademarks of their respective owners. (c) Copyright 1998, SAP AG

CONTACT: For more information, press only:

Susan Bierma, Waggener Edstrom, 503/245-0905,

sbierma@wagged.com

or

Marlene Petter, SAP America, 610/355-2790,

marlene.petter@sap-ag.de

or

Narina Sippy, SAP America, 781/672-6646,

narina.sippy@sap-ag.de

or

Gerhard Rickes, SAP AG, +49 6227 74-4217,

gerhard.rickes@sap-ag.de

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