Organizations often encounter a challenge with their Enterprise Resource Planning (ERP) systems due to their static processing approach. This rigidity slows down business agility and impedes an organization's ability to react quickly to fastmoving, dynamic markets.
98%
reduction in processing time
350
man hours saved per controller per annum
75%
reduction in operator handling times
The CHALLENGE
Inflexible Systems
ERP systems are known for being monolithic and have been designed to handle specific business processes in a tightly integrated manner. This approach makes it difficult for these systems to quickly adapt to changes in the business process. In contrast, more flexible systems allow organizations to be nimble and quickly respond to changing circumstances, giving them a competitive edge in a rapidly evolving market and society. By embracing adaptable and dynamic systems, organizations can increase their agility and responsiveness to market changes, which is essential for success in today’s fast-paced business environment.
The end-of-life announcement for SAP’s older products poses a significant challenge for organizations. While SAP cannot mandate migration to S/4HANA or updates, the pressure is on to prepare for this transition. The challenge is to bridge the gap between current SAP systems and S/4HANA requirements by enabling existing systems with necessary flexibility to adapt to new business processes. Adopting overlaying platforms like Pega may be necessary to keep up with the rapid pace of change and stay ahead.
Key Requirements
- Overcome monolithic ERP system limitations
- Enable agility to respond to dynamic markets
- Integrate flexible layer without replacing ERP
- Prepare systems for transition requirements
- Support incremental business process changes
- Maintain ERP as core system of record
THE CHALLENGE
Key Challenge Areas
Paper based compensation; high risk of error; manual approval of salary and offer letters; and, incomplete work, all contribute to holding up the onboarding process.
Adhering to and knowing all applicable labor laws requires a lot of manual attention. The larger your organization and the more geographic regions you operate in, the more regulations you must comply with.
Hiring managers need to collect information about new employees (bank, tax, personal details), as well as contact and health-related information. They must also collect referencing from previous employers. This can be a largely manual process with a high risk of human error.
At the end of an employment contract, outstanding holiday and financial calculations must be made and collated to send to a ‘leaver’ this often involves several processes and multiple involved parties. Access to sensitive company information must be revoked as well as any hardware collected.
Once an employee has been onboarded it can be time consuming to track disciplinary issues and employee progress (bonus pay outs etc.) usually involving data stored in different places and then manually collated. Late bonus payments or missed bonus payments can dent employee morale. Equally, if disciplinary records are not kept up to date, an accurate view of employee performance over time may become difficult to maintain.
A rushed, unstructured onboarding process can result in vital steps being skipped, leading to operational knowledge gaps and uncertainty. The effect of an unstructured onboarding process directly links to retention of employees.
OUR SOLUTION
Establishing a Solution
Together with our client, we have devised an architecture that integrates their ERP systems, one of which is SAP, with Pega as the agile processing layer. By utilizing Pega as an agility layer, we have effectively enabled the creation of a flexible and dynamic processing system, while still ensuring that the ERP systems act as the platform of record.
DELIVERY
A Phased Approach
We created a standardized onboarding process that was consistent across all geographies, departments, and roles. The process included digital forms, checklists, and workflows that guided new hires and stakeholders through each step of the onboarding process.
Using Pega, we provided a personalized onboarding experience to new hires based on their role, location, and preferences. This personalization increased engagement, satisfaction, and retention of new hires.
Our solution enabled the company to automate many of the manual and repetitive tasks associated with onboarding and HR, such as data entry, document generation, and approval workflows. This automation reduced the risk of errors, increased speed, and allowed HR teams to focus on higher-value tasks.
Pega's platform provided real-time analytics and reporting on the onboarding process, enabling stakeholders to identify and address bottlenecks, exceptions, and compliance issues in real-time. This visibility enabled the company to optimize its onboarding process continuously and improve its overall HR strategy
WORKING TOGETHER TO FIND A SOLUTION
Identifying the challenge
Initial considerations
- Manual operational processes
- Limited system integration
- Fragmented data architecture
- Constrained scalability
Delivered results
- Automated intelligent workflows
- Integrated enterprise systems
- Unified data platform
- Scaleable automation framework
Results achieved
Real Results Delivered
98%
reduction in processing time
350
man hours saved per controller per annum
75%
reduction in operator handling times
Organizations must embrace adaptable and dynamic systems to increase agility and responsiveness to market changes. By wrapping ERP systems with Pega as the agility layer, businesses can create a flexible and adaptable system, avoiding the need to force business processes into technology processes. With structured team efforts, organizations can expect significant savings in man-hours and successful implementation of critical business processes.
The result is a highly flexible and adaptable system that avoids the need to force business processes into a technology process. By taking advantage of Pega’s modular reusable design approach, we can introduce small degrees of business change at a time, without disrupting the total process. By using this approach, we focus on singular business challenges starting with critical business processes.
With a structured team of consultants, in six months, we were able to develop:
- A North America wide order management system which has reduced operator handling times by 75%, with 50% of orders now becoming zero touch.
- Western region digital sales process handling 1 million transaction rows per month from over 16 feeds/partners.
- These applications are now saving over 350-man hours per controller per annum.
As we continue to onboard variants of the existing processes, we will focus on designing and categorizing components for effective reuse, and expect the next processes to be completed within 6 weeks.
“Leading with integrity and openness, powered by AI”
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John Smith
CEO, De Volksbank
“Leading with integrity and openness, powered by AI”
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John Smith
CEO, De Volksbank