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Project

VTB gets rid of the old HRM systems of Oracle and SAP with start of a new solution

Customers: VTB - Vneshtorgbank

Contractors: MOLGA Consulting
Product: SAP ERP HCM
Second product: SAP SuccessFactors HCM

Project date: 2019/04
Project's budget: 356.9 million руб.

Content

2020: Start of a new personnel management system based on SAP

On August 3, 2020 VTB announced that it started payroll for more than 50 thousand employees in a new personnel management system on the SAP HANA platform. In it in-memory technologies for processing of large volumes of data in real time and fall forwards of calculations are used. The bank says that it allowed to accelerate processes of calculations by 5 times.

By the beginning of August in bank the first stage within which IT system modules of payroll, personnel administration, planning and time recording are implemented was implemented.

It is until the end of the year going to implement the second stage which includes full automation of services of self-service for employees of the bank that will allow them to use all personnel services without the need for the appeal to operating units of bank and without paper use.

Implementation of a new system will allow to take out of service two historical IT systems of personnel records with different processes
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The digital solution for payroll on the SAP HANA platform allows to lower significantly load of personnel due to automation of obligatory routine processes. Besides, a new system increases the accuracy and correctness of calculations. It allows to perform operational calculations on the basis of primary data from the automated modules and also simplifies procedures for collecting and data processing for payroll and preparation of the obligatory reporting. As a result implementation of this solution allows us to reduce costs, operational risks and to optimize labor costs, and our specialists will have time for the solution of more difficult tasks, - the chief accountant of VTB Mikhail Kovalenko noted.
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The bank says that implementation of a new system will allow to take out of service two historical IT systems of personnel records with different processes. The representative of VTB specified TAdviser that after consolidation of VTB and VTB24 in 2018 personnel administration and payroll of divisions of VTB united bank was conducted in two systems. One of them - the information personnel system (IPS) - is internal development of VTB bank based on Oracle. And the second - the personnel SAP HR system - development of SAP company on the ERP platform which was implemented in VTB 24 bank in 2008 and is inherited at consolidation of banks.

VTB calls implementation of a new system one of the largest projects of control automation by personnel in Russia. And Andrey Filatov, the CEO of SAP CIS, says that it is the most large-scale project of implementation of similar functionality on the SAP HANA platform in Russia.

2019: Choice of the contractor

On April 17, 2019 the VTB Bank summed up the request for proposals results on creation of a personnel management system (EASUP) which is implemented within transformation and business process optimization of the united bank. The project is a part of the program for implementation of the target solution ERP 2.0: a common information space of head office and regional network of VTB united bank regarding processes of management of internal resources.

VTB creates a new HR system based on SAP

The initial cost of the agreement was 479.2 million rubles.[1] Applications for participation in the tender were submitted by three companies - Molga Consulting, IBS Examination and Technoserv Consulting. Based on estimates of their offers the greatest number of points was received by Molga Consulting, it also became the winner. The total price of the agreement was reduced to 356.9 million rubles.

The purpose of creation of a system is standardization, optimization and quality improvement of personnel management processes for professional users and internal clients of bank due to implementation of services of self-service and process automation of HR based on a single technology platform of SAP HCM.

Within creation of a system the solution providing implementation of basic functionality of SAP HCM and SAP SuccessFactors (recruiting) and also formation of legislatively required and operational reporting within personnel management processes should be developed, approved and implemented.

The business process model created in a new system should consider possible options of development of the program of SAP implementation of ERP. Besides, the possibility of expansion of an organizational scope on connection of other legal entities within VTB Group should be provided.

Organizational scope of the project by the functional directions

Functional direction Organizational scope
Organizational managementVTB Bank (public joint stock company)
Personnel records
Planning and time recording, Tabelirovaniye
Selection and adaptation of personnel
Remuneration of personnel
Payroll
Services of employees
Services of heads
Analytical reportingVTB Group

During the project data from the historical SAP HR systems and "E-Staff the Recruiter" should be transferred to new SAP HCM and SAP SuccessFactors. Depth of the historical data which are subject to migration will be determined within a design stage.

In the drawing the description of architecture of the uniform automated control system for personnel within the ERP 2.0 program is given below.

Description of architecture of the uniform automated control system for personnel

As a subsystem the providing secure access of users to an information system terminal solutions should be used. The client software should be published on terminal servers and provide complete functionality to users of a system without work decline in quality. The subsystem of terminal access should implement the centralized model of access to a system.

According to documentation of the customer, a system needs to be implemented in the mode of high availability, having provided deniability of the main node and switching to work with a reserve node in the automatic mode without degradation of performance. The created solution should meet the following requirements:

  • the class of criticality of a system is Business Critical;
  • system availability coefficient - 99.9%;
  • high availability means creation of redundancy in all components of a system. Failure of one element, should not cause failure in system operation.

Project implementation is planned for the period from the date of signing of the contract until the end of March, 2021. At the same time transition of a system to trial operation should take place in April – December, 2020.

Notes