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HR Trends in TELCO

SuccessFactors Integration CenterBusiness Analysts can build integrations with the click of a mouseCreateIntegrationfrom TemplateCreate NewIntegrationEditIntegrationScheduleand RunIntegrationMonitorIntegrationThis tool is planned for release in Q3 2015 2015 SAP SE or an SAP affiliate company. All rights reserved.Public2

Companies with high employee engagement and enablementcan have net profit margins 4 times greater than companieswith low engagement and enablement.Source: Towers Watson, The Power of Three: Taking Engagement to New Heights

Dynamics in the telecommunications industryaffecting HRUndergoing massive transformation with pressure to invest in newbusiness models and become more customer centricChange in Buying BehaviorReal-Time Requirements Facilitate the online buying journey Fleeting customer loyalty Create transparency in all channelsfor customers Support mobile device proliferation Enable Big Data driven businessopportunities Compete with new market entrants Become more customer-centric Fight customer churnIncreased Cost PressuresDeclining Revenues Enable new business models,including cloud, mobile commerceand machine-to-machine Enable new sales channels Maximize revenues withintelligent bundlingLower customer acquisition costsDrive to reduce cost of saleFocus on reducing TCOShift towards flexible, fully configurable softwareGet rid of rigid, legacy IT systems built andmanaged in silo’s 2015 SAP SE or an SAP affiliate company. All rights reserved.4

Workforce Trends d.66

Change is in the air for HRFivegenerationsSimplify eand impact ofmillennials createnew workforcedynamicto increase HRflexibilitystill a top 3 CEOprioritypools of talentwith 33%contingents 2015 SAP SE or an SAP affiliate company. All rights reserved.Public7

78% of employees say it is very important to work for adigitally enabled company or a digital leader.Source: MIT Sloan Management Review, Is Your Business Ready for a Digital Future?

Global 27-country Twin Surveys5,400 People; 2,700 executives and 2,700 employeesconducted by Oxford EconomicsOxford Economics, The 2020 Workforce, 2014SuccessFactors An SAP Company 2015 SAP SE or an SAP affiliate company. All rights reserved.Confidential 2015 SAP SE or an SAP affiliate company. All rights reserved.99

The Looming Talent Crisis in TelecommunicationsThe 2020 workforce will be increasingly flexible, as alternatives to the traditional relationship betweenemployer and employee grow in popularity. A hefty 80% of executives say they are increasingly usingconsultants, intermittent employees, or contingent workers. These new relationships will require theTelecommunications Industry to operate in new ways.In addition, labour market shifts are predicted to have an impact on two key areas:Impact on workforce strategy*Obstacles meeting workforce goals51%Globalization of labor supply35%Lack of employee longevity/loyalty51%Millennials entering the workforce34%Lack of adequate technology48%Difficulty recruiting employees with base-levelskills34%Lack of adequate leadershipIncreasing number of intermittent/seasonalemployees28%Lack of skilled talent43%23%Lack of internal resources (e.g.,competitive pay)21%Lack of available employees13%Lack of engaged employees42%Increasing number of contingent employees41%Employee expectations are changing41%Aging workforce40%Changing work models (e.g., telecommuting, flextime)39%Increasing number of consultant employees32%Difficulty recruiting specialized employees 2015 SAP SE or an SAP affiliate company. All rights reserved.Public10

The Future of Work Conducted by Wharton The following document includes insights from the “Future Of Work” survey conducted onKnowledge @ Wharton’s 2 million online subscribers In all 692 respondents participated in the survey. The participation was spread across agood mix of industries & revenue clusters. For this specific aggregate insights presentation, we focused on responses from Small andMedium Enterprises*, of which there were 433*Small and Medium Enterprises are defined as companies whose revenues are less than USD 1 Billion 2015 SAP SE or an SAP affiliate company. All rights reserved.Public12

Key Takeaways1 Need forSimplification2 Alignment ofDay-to-Day Actions3 Efforts at BusinessSimplification4 ComplexitiesInhibitingBusinesses'5 Relationshipbetween Leadership& IT6 Must HaveCapabilities forBusiness Leaders49%Senior leaders believe that businesssimplification is of significantstrategic importance today26%Believe day-to-day actions of seniorleaders are strongly aligned withstated importance of businesssimplification16%Believe efforts at businesssimplification have been veryeffective today72%Articulate business process ordecision-making complexity havestrongly inhibited their business’ability to meet goals19%Leaders access informationthrough self-service tools tosupport quicker decision-makingtoday#1Must Have capability to develop andretain leaders is more effectivetalent management & performancetools65%Senior leaders believe thatbusiness simplification is ofsignificant strategicimportance in next 3 years33%Believe day-to-day actions ofimmediate team are stronglyaligned with stated importanceof business simplification43%Believe efforts of businesssimplification will be stronglyeffective in 3 years58%Articulate technologycomplexity has stronglyinhibited their business’ abilityto meet goals47%Leaders will have access toall information through selfservice tools to supportquicker decision-making innext 3 years#2Must have capability to developand retain leaders is to havecomprehensive learning anddevelopment processesSource: Knowledge@Wharton Future of Work Study Survey 2014 - SME, N 433 2015 SAP SE or an SAP affiliate company. All rights reserved.Public13

To execute successfully, rethinking HR strategies is a mustTalent ReadinessDrive growth andsuccessSimplified ProcessesRealize HR efficiencyand ensure complianceEngaged WorkforceGain higher productivityand profitabilityTo drive engagement and productivityyou must have a single, holistic view ofthe workforce allowing for globalworkforce management and insightful,intelligent decision making. 2015 SAP SE or an SAP affiliate company. All rights reserved.Actionable InsightPredict, plan, takeaction, and measureOnly 38% of execs say theyhave enough data about theirworkforce to understand theirstrengths and weaknesses andpotential vulnerabilitiesWorkforce 2020Confidential14

73% of CEOs believe the lack of employees with keytechnical skills is a threat to their company's growth.Source: PwC, 18th Annual Global CEO Survey 2015 SAP SE or an SAP affiliate company. All rights reserved.Public15

Executive SummarySolution OverviewValue and ReferencesNext StepsSuccessFactors, an SAP companyDelivering one set of HR solutions across the entire employee lifecycleSuccessFactors deliversMobile and SocialAnalyticsRecruiting andOnboardingLearningPerformanceand GoalsComplete global solution across allHR functionsCompensationSuccession andDevelopmentBusiness applications designed for howpeople workCompetencies, Skills, Best PracticesCore HR & Payroll: Employee CentralEmployee Record Organizational Management Payroll Shared ServicesData analysis, insight, and guidanceacross the enterprise to help drivemaximum business impactTime Sheet Absence Management Global BenefitsSAP HANA In-memory Computing PlatformFlexible and extendable architecture tostart anywhere, go everywhereSuccessFactors is a “Leader” in Gartner’s Magic Quadrant and a “Leader” in Forrester’s Wave 2014 SAP SE or an SAP affiliate company. All rights reserved.17

“Generation Z is mobile first and mobile only, and they arenothing like Millennials”Source: Brian Solis, 25 Disruptive Technology Trends 2015 - 2016

2015 SAP SE or an SAP affiliate company.All rights reserved.No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or anSAP affiliate company.SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE(or an SAP affiliate company) in Germany and other countries. Please see ht/index.epx for additionaltrademark information and notices.Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.National product specifications may vary.These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE orSAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products andservices, if any. Nothing herein should be construed as constituting an additional warranty.In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliatedcompanies’ strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may bechanged by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertaintiesthat could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-lookingstatements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 2015 SAP SE or an SAP affiliate company. All rights reserved.20

SuccessFactors Integration Center Business Analysts can build integrations with the click of a mouse Create Integration from Template Create New Integration Edit Integration Schedule and Run Integration Monitor Integration This tool is planned for release in Q3 2015.