Big four bank Absa has completed a SAP Enterprise Core Components (ECC) implementation that will unlock savings of R371 million over the next five years, the bank says.
The R111 million project will provide over 3 000 end-users with processes across the bank`s finance, human resources, sourcing and real estate asset-management functions, the bank says.
Strategic programme manager for SAP at Absa Johan Woest says this implementation is the first major milestone in a larger infrastructure renewal programme, which seeks to create a standardised IT platform across the group`s heterogeneous and complex IT environment.
Approval for the renewal was given in August 2004 and the first stage has just gone live. The entire project is expected to take about 18 months and, towards the end of this month, the bank will implement Basel II Credit Risk Reporting to handle the regulatory requirements, says Woest.
Implementation partner Accenture assisted Absa with the ECC project, which also included supplier relationship management and business warehousing, which aimed at increasing the bank`s sourcing and reporting capabilities.
Woest says cost savings will occur in three main areas. The first is in replacement of older, discontinued, systems, which will allow the bank to realise cost of ownership savings.
Secondly, the bank will be able to streamline its procurement process, as it will no longer have thousands of vendors on its supplier list.
The smallest saving, however, will arise as a result of the automation of the system, meaning that some staff will be redeployed in other vacant positions throughout the company.
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