The South African subsidiary of global pharmaceutical company, Novartis, recently went live with SAP payroll as the first step in its wall-to-wall SAP Human Resources (HR) roll-out.
Novartis is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 2000, the group's businesses achieved sales of CHF 29.1 billion ($17.2 billion) and a net income of CHF 6.5 billion ($3.9 billion). The group invested approximately CHF 4.0 billion ($2.4 billion) in research and development. Headquartered in Basel, Switzerland, Novartis employs about 69000 people and operates in over 140 countries around the world.
Novartis in SA has been running the financial solution from e-business and inter-enterprise software solutions leader, SAP since 1997.
"When we decided to invest in an HR system, we opted for the SAP route because of the viability of integrating our new payroll system with our financials," says Magda Jansen, HR administrations manager of Novartis.
"Implementation began immediately in September 2000 as we wanted to start a clean tax year on the SAP system on 1 March 2001."
Key benefits of the new payroll system include transaction history records, simulated pay-slip processing, and integration with financial systems.
"Online history is a major benefit," says Jansen. "Previously, if we had a query we had to unearth reports or copies of pay-slips from files. We are now able to provide quick answers to 'what if?' queries. For example, if an employee asks what amount he would clear if he accepted a new position, we can quickly run this scenario - and give him a simulated pay-slip.
"Novartis, with the aid of SAP's Professional Services team, have now started implementing the rest of the SAP HR system.
"We are now starting to look at real HR functionality, such as performance management," says Jansen. "Particularly exciting is the fact that we plan to be 'guinea pigs' for SAP Africa's new software developed for the National Qualifications Framework (NQF)."
"Novartis is interested in piloting the first phase of SAP's new NQF functionality," says Shelley Freeman of SAP's Human Resources business unit.
"We have incorporated this into our solution to enable companies to incorporate the legislative requirements around skills development with their own strategically aligned processes regarding the development and empowerment of their employees."
Novartis expects major benefits to follow the full HR roll-out, which should be complete by year-end. These include Web-based reporting, employee self-service and the ability for more effective management of Novartis' people.
"The new system will give line managers direct access to HR information, enabling them to more effectively manage their staff," says Jansen. "We then hope that Novartis worldwide will follow suit and go the SAP HR route.
"We have worked closely with SAP's Professional Services division on this project and have been particularly impressed with the dedication, expertise and professionalism shown throughout the project," concludes Jansen.
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