Incentive compensation management (ICM) software can be an intimidating investment for SMBs. Because of this, it's essential to understand the resources it will require.
Canidium has implemented ICM software for SMBs since 2008. Our expertise allows us to offer insight into project pricing factors.
This article will help you understand the price of SAP SuccessFactors Incentive Management for SMBs by discussing the following topics:
- What SAP SuccessFactors Incentive Management is and does
- How we define SMB
- Midmarket/SMB 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
- Benefits of having an SI partner
SAP SuccessFactors Incentive Management and its capabilities
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How we define SMB
SMB stands for "Small and Medium-sized Business. SAP refers to this as "midmarket."
There is no universal definition of SMB that applies globally.
- Small businesses are typically defined as having fewer than 500 employees.
- Medium-sized businesses have no strict upper limit. They generally have more employees and revenue than small businesses.
At Canidium, we refer to businesses that fit into either of these classifications as "midmarket" or "SMB." As it relates to implementation, the complexity of an organization could be more relevant to pricing than its overall size. That is why we wrote this article offering clarity on how pricing is structured at Canidium.
Companies that would benefit from SAP SuccessFactors Incentive Management
You might be asking, does my organization need a solution like SAP SuccessFactors Incentive Management?
SMBs often have some "system" implemented already. They may be utilizing spreadsheets or an out-of-the-box solution. In these cases, vast improvements can be made with an ICM solution like SAP SuccessFactors Incentive Management.
Primary factors impacting SAP SuccessFactors Incentive Management implementation cost for midmarket/SMB organizations
The cost of implementing SAP SuccessFactors Incentive Management, or any similar software, can vary widely based on various factors.
Here's a breakdown of the potential cost components for an SAP SuccessFactors Incentive Management implementation:
Transactional Inbound Feeds
A vital step in implementation is integrating transactional data into SAP SuccessFactors Incentive Management. Cost depends on the number of systems, complexity of data mapping, and required data quality checks.
Compensation Plans
Designing and configuring compensation plans involves defining rules, conditions, and calculations that align with your organization's compensation structure. The complexity of these plans, the number of plans, and the degree of configuration will impact implementation costs.
Manager/Finance Reports
Creating custom reports and dashboards is a vital component of implementation. They allow you to track commissions, incentives, and performance metrics. The complexity can affect the implementation cost. Relevant factors include number of reports, data visualization complexity, and data analytics requirements.
Outbound Feeds
Often, organizations need to send data from SAP SuccessFactors Incentive Management to other systems for further processing or reporting. The cost of setting up and maintaining these outbound feeds are factored in. The complexity and frequency of data transfer will also affect the price.
Ballpark Cost Figures for midmarket/SMB organizations
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 midmarket/SMB 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.
The table below shows how each level is priced and what is included in each.
Disclaimer: These guidelines pertain to stand-alone implementations. This means you don't have any other integrated systems simultaneously undergoing an implementation or significant change. It is common that an SAP SuccessFactors Incentive Management implementations happen during other system updates, waves of change management, and process augmentation.
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Why hiring a software implementation (SI) partner is important
Expertise and Experience
An SI partner brings a team of skilled professionals with extensive expertise in SPM implementations. Their knowledge and experience enable them to navigate complexities and potential challenges. This will save valuable time and resources.
Reduced Disruption to Core Business Functions
SI Partners bring expertise and experience in managing complex implementation projects. This reduces the inherent risks of deploying new software systems. They have a deep understanding of best practices. Their knowledge of potential pitfalls and challenges allows them to identify and mitigate risks. By entrusting the implementation to an SI Partner, you minimize disruptions to your core business functions. This ensures smooth operations while managing risks and ensuring a successful software deployment.
Reduced Implementation Time
An SI partner can expedite the implementation timeline by leveraging their best practices. They have established methodologies and frameworks to ensure a smooth and timely deployment. This enables your organization to start reaping the benefits of SPM software sooner.
Cost Savings
An SI partner operates on a fixed or scalable cost model, allowing you to budget more effectively. Their expertise minimizes the risk of costly errors and rework, reducing implementation costs.
Configuration and Scalability
An SI partner understands the intricacies involved in configuration. They can provide valuable insights to optimize your SPM software's capabilities. Moreover, they can ensure scalability. This allows your solution to grow alongside your business and adapt to evolving needs. This maximizes your long-term return on investment.
Ongoing Support and Maintenance
An SI partner offers dedicated support and maintenance services. With this, you get peace of mind and your internal team can focus on core business activities. Your SI partner stays on top of industry trends and updates. They ensure your SPM software remains efficient, secure, and aligned with compliance requirements.
Why is understanding cost important?
Only experienced consultancies can quickly give you a range or ballpark figure on your project. Many are unwilling.
Creating buy-in for software in any organization is difficult without estimated figures. 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 doing this since 2008, and we have seen almost every use case imaginable.
If you're looking into SAP SuccessFactors Incentive Management for your SMB organization we can help you understand your project's accurate scale and cost.
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Photo by micheile henderson on Unsplash
