HR/IT Target Vision for Rohde & Schwarz: Harmonizing and Future-Proofing the HR Systems Landscape
Development of a Roadmap for HR/IT Transformation
Company / Industry
Rohde & Schwarz GmbH & Co. KG, Munich / Electrical Engineering
Service Portfolio
For almost 80 years, the leading solution provider for measurement engineering, secure radiocommunication, broadcasting, surveillance, and location tracking, Rohde & Schwarz, stands for quality, precision, and innovation in all fields of wireless communication technology. Today, the electronics group is established with development centers and a close-meshed service network in over 70 countries worldwide. Most recently, its approximately 8,700 employees generated sales of EUR 1.6 billion - a growth rate of more than 20 percent.
Website
www.rohde-schwarz.de
Rohde & Schwarz is undergoing a major transformation in its HR/IT landscape. The company currently uses a mix of on-premise SAP ERP HCM and cloud-based SAP SuccessFactors, alongside various standalone solutions across different HR departments and countries. The challenge now is to strategically integrate this diverse system environment. To tackle this, Rohde & Schwarz teamed up with p78 to create an HR/IT roadmap focused on streamlining and future-proofing the system architecture, while incorporating the latest HR/IT trends and innovations.
In the past, the complex and costly integration of new systems stemmed from the highly fragmented setup, where nearly every location operated with its own distinct HR processes. The new strategy aims to build a modern, future-ready HR landscape by improving efficiency, strengthening HR/IT governance, and optimizing processes. This transformation has become even more urgent as the support for SAP ERP HCM will end in 2027, offering an ideal opportunity to adopt next-generation HR technologies.
Seeking a comprehensive solution, Rohde & Schwarz partnered with HR/IT service and consulting firm p78 to develop a detailed, long-term HR/IT roadmap, strategically designed to meet both current and future needs.
Best-Practice Approach for Developing the HR Process & IT Roadmap
As part of this collaboration, existing processes were analyzed, uncovering up to 15 different variations for the same tasks, such as absence requests and overtime applications. This level of diversity made integrating new solutions difficult, resulting in duplicate entries and high costs for maintenance and development.
The HR/IT architecture at Rohde & Schwarz consists of various systems, including SAP ERP HCM for core functions like master data management, payroll, and time management, SAP SuccessFactors for learning and performance management, and third-party solutions for recruiting, digital personnel files, correspondence, and template management. Some systems are well-integrated, while others are less so.
Regularly assessing the usage and potential of existing systems is essential.
Together with p78, Rohde & Schwarz tackled the challenge of reviewing current processes, aiming for greater harmonization and standardization. The project also sought to define the steps needed in HR/IT over the next few years to ensure the company remains future-proof.
New process standards and best practices were evaluated and compared against existing processes at Rohde & Schwarz. Trends and innovations, particularly in artificial intelligence, were crucial considerations. Additionally, SAP’s roadmap features, such as the Talent Intelligence Hub, Skills Management, and Opportunity Marketplace, were integrated into the strategic vision.
Rohde & Schwarz’s project tender for developing an HR/IT roadmap attracted three potential consulting partners, with p78 ultimately being selected. Having successfully collaborated on previous projects in e-recruiting, learning solutions, organizational management, and ESS/MSS scenarios like overtime and absence requests, p78 was well-positioned to leverage its best-practice approach, which had been successfully applied at other companies.
The project ran from January 2023 to November 2023 and was divided into two main phases: the As-Is analysis and the To-Be scenarios. Every process within the employee life cycle across the entire HR department was reviewed.
As part of the As-Is analysis, the project team conducted a detailed assessment of the current state at Rohde & Schwarz (see Diagram 1). This process was divided into three phases. First, the team analyzed the corporate, HR, and IT strategies, reviewing existing strategic documents, values, and top management goals to ensure alignment and identify potential synergies. Additionally, guiding principles were defined to serve as guardrails for the project and beyond.
In the second phase, the team set goals and established design, IT, and prioritization criteria. The As-Is analysis included surveys, workshops, and interviews with stakeholders. Third, the team performed a thorough analysis of the existing HR processes and systems, resulting in the creation of a heatmap to visualize the process house components.
In developing the To-Be scenarios, potential solutions and scenarios were identified and evaluated in so-called Solution Workshops (see Diagram 2). This marked the continuation of the As-Is analysis into phases four through six. In the fourth phase, the project team developed an understanding of possible solutions. In the fifth phase, the key processes and potential solutions were assessed. This culminated in the sixth phase, where solution and implementation scenarios were created, serving as the foundation for decision-making.
Throughout the project, the entire HR/IT architecture, consisting of various systems like SAP HCM and SAP SuccessFactors, was reviewed to achieve the target vision of a harmonized and standardized process landscape. The project concluded with the final presentation of the HR Process & IT Roadmap for Rohde & Schwarz.
Successful implementation using tried-and-tested methods and approaches, coupled with thoughtful change management
The core project team for developing the HR/IT transformation roadmap included HR staff responsible for managing SAP HCM and SAP SuccessFactors systems, IT employees from Rohde & Schwarz, and consultants from p78. The extended team involved the Rohde & Schwarz Steering Committee, along with occasional participation from HR specialists and other business units.
p78 worked closely with Rohde & Schwarz to identify where specific systems made the most sense and what should serve as the main process engine in the HR/IT landscape. Given the existing use of several SAP SuccessFactors modules, implementing SAP SuccessFactors Employee Central (EC) was a natural fit for a platform-driven approach. However, many third-party HR core solutions already in use at Rohde & Schwarz are increasingly offering more functionalities, making the choice of the right HR core system—or process engine—even more critical.
A key milestone in the implementation was defining the "Ambitions," which served as the strategic framework for the project. These were well-prepared by the project team and presented to the committees. Through surveys and stakeholder interviews, the p78 team gathered valuable insights that were highly relevant to Rohde & Schwarz. The questionnaires were quickly developed and deployed globally, leading to fast results. Ultimately, the team delivered a roadmap with five options, clear decision criteria, and a cost estimate.
Rohde & Schwarz and p78 worked closely and constructively, with p78’s neutral external perspective bringing valuable insights to the table. The outcome was a precise HR/IT transformation roadmap for the coming years, with four key deliverables. These included the carve-out of the SAP HCM system from the ERP system and the migration to SAP HCM for S/4HANA (H4S4), ensuring long-term payroll and time management continuity beyond 2027. The project is currently in progress and is scheduled to go live in late July 2024. The next steps involve process improvements in payroll and time management, as well as consolidating lessons learned from the first release.
Strategic Insights: Challenges and Best Practices
The project team encountered several challenges. SAP is driving a cloud-first strategy in HR with solutions like SAP SuccessFactors, while simultaneously offering H4S4 as the on-premise successor to SAP HCM. The team had to make a convincing case for why it was better to take a holistic view of the entire HR/IT process chain, rather than opting for what seemed like the best solution for each individual process. Within Rohde & Schwarz, there were differing views on the ideal HR/IT landscape - some employees preferred the traditional SAP HCM system with the H4S4 successor, while others favored the cloud solution.
In addition to the technical debate, the team's focus was on optimizing a wide range of processes and finding the right system solutions, particularly within the SAP SuccessFactors suite.
Developing an HR/IT roadmap is a sensitive topic, as it affects organizational structures, budgets, and even employees' career paths. Proactive stakeholder management was key to identifying and addressing resistance early on. Eventually, it became clear that projects of this scale required decisions at the management level, as the various options couldn’t be pushed forward solely at the operational level.
Implementation of Release 1: H4S4 - Technical Carve-Out as a Follow-Up Project to the HR/IT Roadmap
Following the successful development of the HR/IT roadmap, another strategic project emerged, with p78 once again serving as a partner for Rohde & Schwarz. One outcome of the roadmap was the decision to carve out the HCM system from the integrated ERP system by July 2024 to avoid technical dependencies and prevent delays.
At the end of 2023, p78 presented a comprehensive plan for this project, which primarily involves a technical carve-out. The objective is to transition the HCM system, currently a module within the ERP system, to a standalone environment. Rohde & Schwarz operates a three-tier system landscape consisting of development, quality assurance, and production. The carve-out aims to isolate the HCM system and establish it as an independent HR system, reducing technical dependencies and enhancing data security.
By physically separating sensitive HR data from other corporate data, this approach not only improves data security but also simplifies the future migration of the HCM system to SAP HCM for S/4HANA (H4S4). This project, referred to internally at Rohde & Schwarz as “Lift & Shift,” is largely technical in nature.
A successful carve-out will become increasingly relevant for other H4S4 transformation projects, as many companies like Rohde & Schwarz are still using integrated HCM systems. Despite the technical complexity and the long-standing use of the HCM system (over 20 years), the project timeline is approximately six months. With the current HCM system set to be decommissioned in 2027, the carve-out and subsequent upgrade to H4S4 in a one-step approach are essential to ensure long-term operational security, particularly for payroll in Germany and the Czech Republic.
The decision to carve out the HCM system was a direct result of the HR/IT roadmap and represents a critical step in ensuring future system stability and security. p78 remains a trusted partner for Rohde & Schwarz, supporting the successful execution of both the roadmap and this ambitious project.