The Social Insurance Institution of Finland, KANSANELAKELAITOS (known as KELA), is responsible for most social security and benefits in Finland. KELA handles over 10 million customer contacts every year at its more than 300 customer service locations.

Business Challenges

KELA decided to replace all of its systems with a single SAP-based standard ERP system. The system must:

• Be based on a standard ERP solution

• Integrate data sources and processes into a unified system

• Cover all behind-the-scenes information activity, including human resources, logistics and financial management

• Enable all 300 Finnish offices to co-operate more efficiently and share resources

Solution

The solution adopted was a SAP XI ERP project to be implemented in three phases:

• Phase 1 in 2006 – finance, controlling, logistics, materials management and supplier relationship management including master data

• Phase 2 in 2007 – human resources, reporting, project management, real estate, business information warehouse, exchange infrastructure and payroll

• Phase 3 in 2008 – completion of project with enhancements to previous modules. This last phase went live in November of 2008.

Benefits

• Consistent workflow, integrated authorization and control of all functions

• Precise real time financial information

• Optimized and streamlined administration

• Cost savings through increased service provision with fewer employees, reduced manual effort and increased use of IT in daily work

• Simpler cost controlling of projects and cost of service

• Improved data quality, no redundant data

• Change of processes to fit application, no major modification to IT system necessary

• Best practice processes and complete functionality through use of SAP standard application

• Efficient use of project management techniques and workflow processes

• All processes under control of one system – fewer IT staff needed

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