Blog | Canidium

SAP SuccessFactors Incentive Management Pricing For Enterprise

Written by Lizzy Wolff | Jul 31, 2023 5:31:03 PM

Pricing out sales performance management solution costs before getting too deep into the process can help you avoid surprises, wasted time, or financial loss.

By the time you get to the discovery process, when company and project details are being collected, you should know the price range in which your project will likely fall.

While coming up with a comprehensive quote involves many factors, it is possible to get a ballpark figure by looking at the top factors that impact pricing. 

At Canidium, we have been implementing commissions software since 2008 for countless industries and company sizes. We are experts in project pricing and will share the factors that impact it.

This article will demystify costs for enterprise companies. By the time you're finished reading, you will understand how to gauge the price of your enterprise-level SAP SuccessFactors Incentive Management project. This article will cover:

  • Enterprise-level companies that are a good fit for SAP SuccessFactors Incentive Management or similar software
  • The top factors that impact the cost
  • Typical costs based on these factors

Companies that would benefit from SAP SuccessFactors Incentive Management

You might be asking, does my organization need a solution like SAP SuccessFactors Incentive Management?

The answer is simple: If you spend too much time manually calculating commissions, you will benefit from commissions software. 

More precisely, the companies implementing SAP SuccessFactors Incentive Management meet these two criteria:

  1. The company has a sales team of approximately 120 payees or more
  2. Salespeople have variable components to their pay on top of their base salary

Large enterprises most likely have some "system" implemented already. In these cases, it is typical to look at the IT landscape and evaluate the effectiveness of the current solution. 

Check out this article for a full guide to assessing the need for a new Sales Performance Management software, steps outlining how to build buy-in, and an explanation of the implementation process.

Four factors impacting SAP SuccessFactors Incentive Management implementation cost 

  1. Inbound feeds: An inbound feed is a data source that needs to be drawn from. The number of transactional inbound feeds will help determine your project size. Examples of inbound feeds include commission spreadsheets, HR/employment records, sales data, and product data.
  2. Number of plans that need to be built: The more intricate the compensation structure, the bigger the project. For instance, if you require only ten plans (typically one plan per role), your project may be considered small. If you require upwards of 25, your project would be considered large.
  3. The complexity of reporting and dashboards: Depending on the intricacy of your reporting needs, the price can vary. For example, your organization may require the software to generate statements, operational reporting, accrual reports, and dashboards. It may also include outbound data to payroll.
  4. Adjustment of testing needs: The longer testing takes, the more it costs. If your project becomes more complex, internal and user acceptance testing will take longer. This may increase the number of hours needed. It may also extend the deadline of your project, adding to your operational costs.

 

Ballpark Cost of SAP SuccessFactors Incentive ManagementImplementation for Enterprise

Ultimately, the cost of a project comes down to the required implementation roles, the number of hours per role, and the rate each role is assigned. We have simplified this into general pricing for enterprise-level clients.

Many implementation partners grade implementation sizes using “t-shirt sizing”: small, medium, and large. This simple model allows customers to gain an understanding of where they fall. They can also better understand what is included in the cost.

In the table below, you will see how each level is priced and what is included in each.  

These guidelines pertain to stand-alone implementations, meaning you don't have any other integrated systems undergoing an implementation or major change concurrently. Combining an SAP SuccessFactors Incentive Management implementation with several other system updates and waves of change management and process augmentation is very common.   

 

Why hiring a software implementation (SI) partner is important

Some companies opt for out of the box solutions, which often are a downgrade in configuration and abilities. To get the most out of an incentive compensation solution, it is best to have an SI partner with expertise with that particular software.

Expertise and Experience

A software implementation partner brings a team of skilled professionals with extensive expertise in SPM implementations across various industries. Their knowledge and experience enable them to navigate complexities and potential challenges efficiently, saving valuable time and resources.

 

Reduced Disruption to Core Business Functions

SI Partners bring expertise and experience in managing complex implementation projects, reducing the inherent risks of deploying new software systems. Their deep understanding of industry best practices and their knowledge of potential pitfalls and challenges allows them to identify and mitigate risks throughout the implementation process proactively. By entrusting the implementation to an SI Partner, you can minimize disruptions to your core business functions, ensuring smooth operations while effectively managing risks and ensuring a successful software deployment.

 

Reduced Implementation Time

A software implementation partner can leverage their streamlined processes and best practices to expedite the implementation timeline. They have established methodologies and frameworks in place to ensure a smooth and timely deployment, enabling your organization to start reaping the benefits of SPM software sooner.

 

Cost Savings

A software implementation partner operates on a fixed or scalable cost model, allowing you to budget more effectively. Additionally, their expertise and experience minimize the risk of costly errors and rework, reducing implementation costs.

 

Configuration and Scalability

A software implementation partner understands the intricacies involved in configuration and can provide valuable insights to optimize your SPM software's capabilities. Moreover, they can ensure scalability, allowing your solution to grow alongside your business and adapt to evolving needs, thus maximizing your long-term return on investment.

 

Ongoing Support and Maintenance

A software implementation partner offers dedicated support and maintenance services, providing you with peace of mind and allowing your internal team to focus on core business activities. They keep abreast of the latest industry trends and updates, ensuring your SPM software remains efficient, secure, and aligned with evolving compliance requirements.

 

Software Implementation Partners: 5 Trust-Building Clues and 5 Alarm Bells You Shouldn't Ignore

 

Why is understanding cost important?

Only experienced consultancies can quickly give you a range or ballpark figure on your project. Many are simply unwilling.  

Without estimated figures, creating buy-in for software in any organization isn't easy. Companies will only get themselves invested in a project if they understand the range of costs.

At Canidium, we pride ourselves on our transparency in the pricing process. Canidium has been been implementing SAP solutions since 2008, and we have seen almost every use case imaginable. 

If you're looking into SAP SuccessFactors Incentive Management, reach out using the form below so we can help you understand your project's accurate scale and cost. 

 

If you're still learning about SAP Commissions software, you may be interested in these articles:

Top 3 Pain Points of SAP Commissions Implementation.

10 Steps to Building Buy-in and Preparing to Implement SPM Software

3 Vital Resources for SPM Implementation That You Might Not Have Considered

Photo by Karolina Grabowska