Banco Pastor slashes costs and boosts efficiency with SAP and IBM

Published on 20-May-2011

Validated on 18 Jul 2013

"The employee portal has been particularly successful as it is much easier for staff to process requests for vacations and training, and for HR to manage these requests. It allows employees to manage their vacations more easily, reducing bureaucratic processes by between 30 to 70 percent." - Montserrat Torres Torres, Computer Systems Manager, Banco Pastor

Customer:
Banco Pastor

Industry:
Banking

Deployment country:
Spain

Solution:
Enterprise Resource Planning, System z Software, Optimizing IT

IBM Business Partner:
SAP, OESIA

Overview

Banco Pastor was founded in 1776 and is the second oldest banking institution in Spain. It is among the top ten banking groups in the country with 4,500 employees and 650 branch offices, of which 10 are elsewhere in Europe, the US and Latin America. The bank’s main activities revolve around commercial and corporate banking, internet and telephone banking, and treasury and capital markets.

Business need:
Banco Pastor was using heavily customized and modular software for its HR functions including its payroll, benefits administration, HR management information system, recruitment, career and training systems and employee Self-Service systems.This highly tailored system required a significant maintenance effort, representing a substantial cost in upkeep. Introducing changes required by new Spanish or EU labor regulations was costly and slow. Banco Pastor wanted to reduce operational costs and cut the time taken to respond to new business regulations.

Solution:
Banco Pastor implemented SAP ERP Human Capital Management, with SAP NetWeaver Portal providing simple browser-based access for employee self-service. The system runs on two IBM System z10 servers, supporting Linux operating system partitions and IBM DB2 running natively on z/OS.

Benefits:
A hugely complex and modular HR system has been consolidated and simplified using the SAP ERP Human Capital Management solution. The new system has cut administrative processes, reduced complexities and minimized the workload for both the IT and HR departments by 30 percent respectively, translating to significant savings and labor efficiencies. The newly introduced IBM and SAP solution also enables staff to process personnel issues through a web portal quickly and easily, reducing bureaucratic processes by between 30 to 70 percent.

Case Study

Banco Pastor was founded in 1776 and is the second oldest banking institution in Spain. It is among the top ten banking groups in the country with 4,500 employees and 650 branch offices, of which 10 are elsewhere in Europe, the US and Latin America. The bank’s main activities revolve around commercial and corporate banking, internet and telephone banking, and treasury and capital markets.

Historically, Banco Pastor’s human resources solutions were heavily customized, with multiple separate modules for each functional area, such as payroll, vacations and training. Each tailored module required a significant amount of maintenance and management, resulting in high operational costs. Furthermore, in the regulated financial services environment, complying with new Spanish and EU regulations required significant extra effort from both personnel and IT departments. Changes required to be made by specific deadlines were hard to implement on time, risking breaches of compliance and fines.

Montserrat Torres Torres, Computer Systems Manager notes, “We had major problems with our previous system. It was slow, hard to maintain, costly and seriously limited in terms of growth. We needed a solution that would provide a centralized platform that was scalable, simple and would reduce our ever-growing overheads.”

“We performed a 360-degree evaluation looking for a strategic answer. We did not just want to fix the problem, we wanted an optimal solution in terms of costs and management, and wanted a system that was fast, robust and scalable.”

“Both IBM and SAP offer strong guarantees as stable business partners, which was important in terms of our future growth. What’s more, the SAP and IBM combined solution is consolidated, easy to manage and easy to use, and it has created significant efficiencies in both our HR and IT departments.”

Reducing costs and increasing efficiency
Banco Pastor selected SAP ERP Human Capital Management (HCM) as its corporate human resources solution, implementing the full range of components to cover its Human Resources activities. Additionally, Banco Pastor implemented SAP NetWeaver Portal to allow employees to access and update their own records, inspect their payroll data, and manage and log holidays.

“The SAP solution provides additional functionality without the need for extensive customization,” says Montserrat Torres Torres. “The bank appreciated that the SAP ERP Human Capital Management offered an excellent fit for Banco Pastor and contains the change management and business workflow processes that we need.”

Having chosen SAP ERP HCM, the Banco Pastor team looked at possible implementation options. The bank was very satisfied with its IBM System z platform, and particularly wanted to make use of its existing highly reliable and secure DB2 information management software on z/OS.

Banco Pastor’s previous solution required 21 physical servers. Reducing the number of servers would deliver immediate savings in floorspace, energy and cooling, as well as reducing complexity and simplifying administration. Banco Pastor, advised by IBM, realized that by creating Linux partitions, it was possible to host DB2 and SAP ERP HCM on just two dedicated IBM System z10 servers. The z10 servers also host IBM Lotus Domino and IBM Lotus Notes services in additional logical partitions.

Montserrat Torres Torres says, “With the IBM z10 System servers, we resolved our issues of scalability, speed and cost. We have reduced our footprint by ten times, and minimized our overall business risks. The z10 servers are based in two separate sites and provide us with the utmost security by ensuring that even if there is a natural disaster we can maintain high availability.”

“Furthermore, IBM DB2 for z/OS database software offered major cost savings on our license fees. The IBM z10 servers enabled us to reduce our hardware footprint and cut costs, while offering speed, availability, ease of use and scalability. Combined with the physical consolidation savings, running SAP ERP HCM on z10 has significantly reduced Banco Pastor’s costs of operation. This was a big win for us.”

A consolidated solution
The fragmented nature of Banco Pastor’s previous system meant that there were a large number of small applications that ran human resources processes, and each application required separate user logins and client software.

Banco Pastor implemented SAP NetWeaver Portal, providing users with access to human resources data using nothing more than a web browser. For day-to-day administration tasks such as requesting vacations, checking on remaining days and updating personal address details, users can self-serve via the portal. Employee enquiries to the human resources department have reduced dramatically, and routine administration workload has been cut.

Says Montserrat Torres Torres, “SAP has provided us with a standardized solution that benefits both the HR and IT departments as it has reduced the workload of each department by a massive 30 percent with all the efficiencies, optimization and costs savings that this entails.”

“For example, if an employee moved from office A with job position X, to office B with position Y, in the past this required changes to each application. With SAP ERP HCM, the whole process flows from centralized and integrated applications, with only one change rippling automatically through the system.”

“The employee portal has been particularly successful as it is much easier for staff to process requests for vacations and training, and for HR to manage these requests. It allows employees to manage their vacations more easily, reducing bureaucratic processes by between 30 to 70 percent.”

Montserrat Torres Torres concludes, “The support from both IBM and OESIA, an IBM Business Partner, for the implementation of our platform was excellent. Thanks to their advice, we were able to get the solution off the ground. Advice and support are fundamental to our relationship.”

“We are planning to extend the platform by adding purchase and logistics modules for SAP, as well as continuing to develop the human resources capabilities.”

“The combined IBM and SAP solution means that we have reduced the workload for two departments and simplified administrative tasks for our employees. We have made significant savings in our IT infrastructure, and the solution provides us with a highly scalable and robust environment that reduces our overall business risks. We are very happy with the results.”

Products and services used

IBM products and services that were used in this case study.

Hardware:
System z: System z10

Software:
DB2 for z/OS, Lotus Domino, Lotus Notes, z/OS

Service:
IBM-SAP Alliance

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