SAP Introduces Human Capital Management Application for U.S. Federal Civilian Agencies

SAP to Improve Service Delivery, Accountability and Talent Management for U.S. Federal Agencies to Meet the President’s Management Agenda

WASHINGTON, D.C. - May 02, 2006 - SAP Public Services, Inc., a subsidiary of SAP America, Inc., today introduced a new solution designed to help federal agencies leverage best practices and processes for human capital management (HCM) amid increasing legislative requirements, policy changes and a growing percentage of the federal workforce moving into retirement. The new application, SAP® HCM for U.S. Federal Government Organizations, streamlines and automates human resource (HR) job functions—such as benefits administration, workforce planning, talent management and personnel action requests—to help HR line of business professionals more effectively manage their core processes within federal civilian agencies. The announcement was made at the SAP Public Services Business Forum, being held today in Washington, D.C.

To comply with the President’s Management Agenda, federal civilian agencies must modernize HCM functions and create a more efficient government. At the same time, with roughly 70 percent of the federal government’s more than 2.5 million employees nearing retirement, HR professionals face the statistical certainty of the loss of valuable skills and institutional knowledge coupled with increased competition for talent. By standardizing and automating best practices, improving transparency, communications and information flow, the SAP application provides chief human capital officers and their teams with a strategic, open and integrated platform to help flexibly address changing HCM demands.

“Government is the embodiment of People, Process and Technology but often lags in its ability to adapt by depending on legacy processes that have outlived their shelf-life,” said John Kost, managing vice president, Gartner. “Federal agencies require, and should embrace, solutions that offer a means to transform process and capabilities while meeting stringent requirements for performance, interoperability, security and affordability.”

SAP HCM for U.S. Federal Government Organizations brings to bear SAP’s more than 20 years experience implementing HR and enterprise resource planning (ERP) packages at federal governments around the world. The comprehensive, easy-to-implement application is designed to help HR professionals address challenges in three key areas:

* Service delivery -- The comprehensive software features an easy-to-use interface that makes self-service capabilities more intuitive, helps reduce agency training costs and allows information workers to more simply interact with office productivity tools and backend ERP applications.
* Talent management -- The software provides integrated tools such as learning management, performance appraisal and succession planning to help HR professionals reward, retain and promote current employees. Additionally, it is the premier application that provides HR managers with a single view of each employee throughout the employment life cycle—from hiring to retirement. The application lists the current status and any changes applied to employee information such as skills, retirement estimates, promotions and salary. This integrated view allows HR managers to make more informed decisions about the status of their talent pool, forecast future skill needs and proactively design recruiting and retention strategies to mitigate risks associated with a retiring workforce.
* Improved decision making -- The application links critical, actionable analytics to the business processes they support to enable more informed decision making. For example, when processing a new hire, HR managers can view prescriptive information regarding past hires from the same talent source to determine expected length of employment.

United States Postal Service Delivers Human Resources Innovation
With more than 700,000 employees, the U.S. Postal Service (USPS) employs one-third of the civilian workforce of the federal government and is one of the world’s largest employers. For an organization of this size—one whose people are the core of its ability to do business—having an accurate view of employees and employee-related information is key. USPS turned to SAP to help modernize and centralize its human resource functions, improve information access and deliver self-service capabilities to its employees. By consolidating 28 systems onto a single integrated platform, USPS will be able to make employee profiles more accessible, provide staff with more control over personal benefits information, and provide HR managers with increased visibility across the entire organization, resulting in improved planning and decision making.

“SAP understands the key to a successful federal government is its people —talented, motivated employees produce results and make a difference,” said Rand Blazer, president, SAP Public Services, Inc.” SAP HCM for U.S. Federal Government Organizations delivers business process functionality gleaned from SAP’s more than 20 years of public sector experience—combined into a single application designed to help HR professionals align people, processes and organizational mission to help our customers become best-run.”

SAP Human Capital Management for U.S. Federal Government Organizations will be rolled out in a phased approach planned beginning in Q3 2006 and will be showcased at SAPPHIRE® ’06.

Next Major Events: SAPPHIRE® ’06 Orlando and SAPPHIRE® ’06 Paris
Join SAP and its growing ecosystem of partners to discover how co-innovation and open technologies are enabling customers to improve business processes, go to market faster and outthink and out-execute the competition. Learn first-hand how organizations of all sizes and industries around the world are using SAP® applications to accelerate innovation and energize growth at SAPPHIRE® ’06, SAP’s international customer conference, being held in Orlando, Florida, May 16-18, and in Paris, France, May 30-June 1. For more information, please visit www.sap.com/sapphire.

This year, SAP and the Americas’ SAP Users’ Group (ASUG) are co-locating their premier events in Orlando, where the 2006 ASUG Annual Conference takes place May 14-17.

About SAP for Public Sector
SAP for Public Sector provides comprehensive solutions to help governments and public organizations improve economic viability and increase process efficiency and transparency while better serving the needs of the public. With more than 1,320 customers in 70 countries, SAP is the leading provider of enterprise business solutions to the public sector. (Additional information at www.sap.com/solutions/industry/publicsector/)

About SAP
SAP is the world’s leading provider of business software*. Today, more than 33,200 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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