If you have begun exploring SAP SuccessFactors Incentive Management (SFIM) or a similar sales performance management solution, part of your consideration should be what happens after launch. Who will run your solution? Who will field issues as they arise? Who will help implement improvements to the solution into the future?

Our clients typically choose one of two routes: Investing in an internal team to manage the solution or re-engaging with Canidium through managed service contracts when needed. Managing this system internally or through a managed service contract with a software implementation partner involves carefully considering various factors.

By the end of this article, you will understand:

• What internal management of SFIM can look like
• What managed service contracts are
• Pros of internal management
• Cons of internal management
• Pros of managed service contracts
• Cons of managed service contracts

What does the Internal Management of SFIM look like?

Internal management of SAP SuccessFactors Incentive Management refers to the organizational approach of handling the configuration, customization, and day-to-day operations of the incentive management system without relying on external service providers or software implementation partners. In this model, the organization assumes direct responsibility for planning, implementing, and maintaining the SAP SuccessFactors Incentive Management solution.

Critical components of internal management include:

• Organizations have control over the configuration and customization of SAP SuccessFactors Incentive Management according to their specific needs. This includes tailoring incentive structures, performance metrics, and other parameters to align with business objectives.

• Internal management involves training and developing in-house expertise among the organization's staff. This ensures that employees become proficient in operating and maintaining the system, allowing prompt responses to issues and changes.

• Internal management requires dedicated IT personnel or teams responsible for maintaining and monitoring SAP SuccessFactors Incentive Management. This includes ensuring the system's stability, security, and compatibility with other enterprise systems.

• Organizations manage upgrades and updates to the SAP SuccessFactors Incentive Management system. This involves staying informed about the latest releases, testing new features, and implementing changes to keep the system current.

• While internal management may involve higher initial costs, organizations have more control over budgetary considerations in the long run. This includes avoiding ongoing service fees associated with external partners.

• Decision-making processes related to system changes, enhancements, or optimizations are conducted internally. This allows organizations to align the system with their unique business processes and objectives.

Internal management gives organizations a high degree of autonomy and control over their SAP SuccessFactors Incentive Management system. It requires a commitment to developing internal expertise and allocating resources to ensure the system's effective operation and alignment with organizational goals.

What do managed service contracts to collect SFIM look like?

Managed service contracts for SAP SuccessFactors Incentive Management (SFIM) involve engaging with your SI partner to handle various aspects of the system's lifecycle. These contracts are designed to leverage the expertise and support of professionals specializing in SFIM, offering organizations a collaborative approach to managing their incentive programs. Here's an overview of what worked service contracts for SFIM typically involve:

• When you partner with your SI partner for continued service, you are working with a team intimately acquainted with your instance of SFIM. They offer support in system configuration, customization, and optimization, drawing on their experience with similar implementations across different organizations.

• SI Partners can perform day-to-day system maintenance, monitoring, and troubleshooting. This includes ensuring system stability, addressing issues promptly, and implementing updates or patches to keep the SFIM system running smoothly.

• SI Partners are dedicated to the implementation process, which can lead to potentially faster deployment times compared to internal management. This speed is crucial for organizations looking to realize the benefits of SFIM quickly.

• Managed service contracts offer scalability and flexibility. External partners can adapt the SFIM system to changes in business requirements, ensuring it remains aligned with evolving organizational needs. This adaptability is particularly valuable for businesses experiencing growth or modifying incentive structures.

• SI Partners often offer training sessions for organizational staff, facilitating knowledge transfer to ensure that internal teams can operate and maintain the SFIM system effectively. This helps build in-house expertise over time.

• External partners actively contribute to the continuous improvement of SFIM. They stay informed about updates, best practices, and industry trends, and they work collaboratively with the organization to implement enhancements that optimize the performance of the incentive management system.

• While managed service contracts may involve higher initial costs, they provide organizations with predictable and potentially more manageable expenses. This eliminates the need for in-house staffing and training, allowing the organization to focus on its core competencies.

Choosing a managed service contract for SFIM is often a strategic decision that allows organizations to benefit from external expertise, support, and a faster implementation timeline while maintaining a focus on their core business functions. The decision to opt for such a contract depends on the organization's specific needs, budget considerations, and the desire for a collaborative partnership with external experts.

Internal Management of SAP SuccessFactors Incentive Management

Pros

From customization and control to in-house expertise and long-term cost considerations, internal management offers a range of benefits catering to diverse businesses' unique needs. Let's navigate through the advantages that make internal management appealing for organizations aiming to fine-tune their incentive management processes.

• Internal management allows organizations to control the configuration and customization of SAP SuccessFactors Incentive Management. This is especially valuable for companies with unique incentive structures or complex business processes.

• Organizations that choose internal management can develop and retain in-house expertise. This ensures that staff members are well-versed in the system's intricacies and can respond promptly to any issues or changes.

• While initial implementation costs may be higher, internal management can save costs over the long run. Organizations can avoid ongoing service fees associated with external partners and have greater control over budgetary considerations.

Cons

While internal management of SAP SuccessFactors Incentive Management brings forth advantages, navigating the potential challenges and drawbacks that organizations may encounter on this journey is essential. In this section, we will explore the cons associated with internal management, shedding light on the resource intensiveness and potential delays that organizations must carefully consider.

• Managing SAP SuccessFactors Incentive Management internally requires significant time and resources. This includes training staff, dedicating IT personnel to system maintenance, and ensuring the system stays up-to-date with the latest upgrades.

• Internal management may delay implementation or upgrades, notably if the organization lacks the necessary expertise or if key personnel are unavailable due to other priorities.

Managed Service Contracts with Software Implementation Partners

Pros

A compelling alternative to internal management lies in forging partnerships with software implementation experts. In this section, we explore the advantages of managed service contracts, offering organizations a pathway to harness external expertise for optimal incentive management.

• Partnering with a software implementation partner brings the advantage of leveraging the expertise of professionals specializing in SAP SuccessFactors Incentive Management. This ensures a smooth implementation process and ongoing support.

• External partners are dedicated to the implementation process, resulting in potentially speedier deployment times than internal management. This is crucial for organizations looking to realize the system's benefits quickly.

• Managed service contracts offer scalability and flexibility. External partners can adapt to changes in business requirements and provide solutions to accommodate growth or modifications to incentive structures.

Cons

While the prospect of leveraging external expertise through managed service contracts presents a compelling case for optimizing SAP SuccessFactors Incentive Management, let's navigate the potential challenges inherent in this approach. In this section, we delve into the cons of engaging software implementation partners, highlighting the considerations organizations must weigh before embarking on this collaborative journey.

• Engaging a software implementation partner typically involves higher initial costs. This may be a barrier for smaller organizations with limited budgets.

• Organizations relying on external partners may face challenges if the partner cannot provide timely support or if there are communication gaps. Dependency on external entities can sometimes lead to delays in issue resolution.

Navigating the Decision: Internal Management vs. External Partnership for SAP SuccessFactors Incentive Management

Choosing between the internal management of SAP SuccessFactors Incentive Management and a managed service contract with a software implementation partner depends on the organization's specific needs, resources, and priorities. While internal management offers control and potential cost savings, external partners provide expertise, support, and faster implementation. Ultimately, the decision should align with the organization's strategic objectives and capacity to effectively manage the system.

Now that you understand the internal management vs. managed service contracts in SFIM management, your next step is to learn more about what an SI Partner can offer in the implementation process and beyond.

Read this article: The sherpa of business growth: The value of a strategic partner

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