Push-Button Payroll Processing

For municipalities, handling payroll is now as easy as clicking a mouse (image: fotolia)
For municipalities, handling payroll is now as easy as clicking a mouse (image: fotolia)

They often work behind the scenes, but without the employees who work at city halls, maintenance depots, water treatment plants, and other municipal facilities, everything would grind to a halt. To ensure that their workers receive their salaries on time, communities can use the services of Kommunale Datenverarbeitung Region Stuttgart (KDRS) and its partner data center, RZRS.

This IT service provider specializes in the public sector, offering communities comprehensive support for all of their data processing and data center needs. KDRS also focuses in particular on payroll processing.

Automated payroll management for public administrations

Right now, KDRS is replacing its customers’ previous payroll system, PWES, with an SAP-based human resource management system referred to internally as dvv.Personal. In 2009, 74 administrations – including a total of 13,500 payroll instances – already completed the transition to dvv.Personal.

Another 150 administrations are scheduled to following in 2010-11. “We’re offering our customers comprehensive payroll accounting as a service,” explains Bernd Muth, head of the department that carries out these implementations at KDRS. “In switching to dvv.Personal, our goal has been to implement centralized and automated payroll management for all of our clients in public administration.”

Next page: Adjusting Schedule Manager to SAP ERP HCM

Adjusting Schedule Manager to SAP ERP HCM

With its ability to simplify and automate the definition, scheduling, execution, and monitoring of periodically recurring tasks, Schedule Manager presented a suitable solution for KDRS’s plans. Though a component of SAP ERP, it had never before been used in connection with SAP ERP Human Capital Management (SAP ERP HCM).
However, the employees at KDRS were undaunted. “We contacted SAP and asked if Schedule Manager could be customized to our needs,” recalls Muth, who took over the management of the project. “SAP immediately gave us the green light, and before long, we had our first meeting with one of the company’s developers.” The two companies then worked together on making the necessary adjustments to Schedule Manager.

A high-performance system for 150 administrations

The project proved complex: Within KDRS, payroll processing affects employees in areas such as customer support, process implementation, and production management. This required close coordination and cooperation, all while coming up with a corresponding solution as quickly as possible.

After several meetings, KDRS had found the right approach and customized Schedule Manager to work with SAP ERP HCM. “The entire payroll process for around 13,500 cases is now full automated,” says a pleased Bernd Muth. “The remaining cases are to follow in increments. Since handling payroll for 150 administrations will put us at our limit in terms of performance, we’re going to have to assemble additional systems. As such, we expect SAP to make the overall system even faster and more powerful.”

Next page: Payroll processing in two days

Payroll processing in two days

Thanks to the success of this project, German communities such as Ludwigsburg, Böblingen, and Göppingen – as well as many of the country’s district offices – are now handling their payroll processing in two days in most cases. The employees involved have seen the effort required reduced to a minimum.

“They look over the automatically generated payroll statements and click once to approve them all the way through to the printing of payroll slips,” explains Hans-Peter Reischl, who is responsible for conversion projects at KDRS. “Thanks to our new solution, payroll support requires significantly less effort, which enables us to invest the time we save into other areas.” Other administrations’ transitions to dvv.Personal will demand particular attention. “The state capital of Stuttgart will be one of our biggest challenges,” Reischl confirms.

Providing worthwhile IT investments

Frank Wondrak, executive chairman of KDRS, stresses the importance of sound cooperation as the basis for success in business. Communities are under increased cost pressure in times of economic hardship, and there are few funds left over for IT investments. “We have to offer just the right balance of price and performance to find customers for our new products and services,” Wondrak says.

Meanwhile, the KDRS association and the limited-liability company RZRS are setting their common sights on growth. “We’re evolving from an administration union to a proactive service provider,” Wondrak states. “Until now, the members of our association – that is, communities around the city of Stuttgart – made up the majority of our customer base. We want to use our competence and innovative ability to attract the interest of clients outside of this region, as well.”

Next page: “Innovation days” for solutions and technologies

“Innovation days” for solutions and technologies

KDRS is currently placing advertisements in cross-regional newspapers for the first time. The Stuttgart IT service provider is also working with various partners on holding “innovation days” – events where communities can get to know new solutions and technologies.

Frank Wondrak knows what he wants to achieve: “We want to use process- and organization-oriented IT to help our customers work even more efficiently.” Bernd Muth’s project has shown how this can be accomplished.


Kommunalen Datenverarbeitung Region Stuttgart (KDRS) is an IT service provider that specializes in the public sector, maintaining a market share of nearly 100% in the Stuttgart region. Its partner data center (RZRS) serves communities that are home to over six million citizens in the German state of Baden-Württemberg.

In its business with customers outside of Baden-Württemberg, KDRS/RZRS specializes in ASP solutions on IBM mainframes, as well as in operations and services related to high- and maximum-uptime SAP systems. A competence center for Java applications based on professional SOA technologies rounds out its portfolio.