Maximizing Social Value: SAP Delivers New Solution for Social Benefits

Efficient Allocation and Payment of Benefits With SAP® Social Services Management for Public Sector Package Helps Better Serve Both Providers and Recipients of Social Benefits

WALLDORF, GermanySAP AG (NYSE: SAP) continues its innovation for distinct industry demands with the introduction of a new solution to help improve disbursement processes for monetary social benefits. The software is designed for government agencies at the federal, state and local level that are tasked with administering and approving monetary benefits as they relate to social services. The new SAP® Social Services Management for Public Sector package streamlines administrative processes and workflows between the front and back office, increasing transparency to help staff at all levels make decisions and allocate social benefits in a more targeted manner. The solution supports multiple, diverse social benefit programs, tailored to particular legal requirements and country-specific legislative needs, including unemployment, old age, temporary and permanent disability, and survivorship or family benefits.

In spite of reduced budgets or deficits, governments around the world are responsible for delivering timely and responsive social services. At the same time, citizens expect service comparable to that of the private sector with fast reaction times, a high degree of transparency and individual attention. Demographic change, increasing life expectancy and the inadequate retirement funds of many citizens also pose a great challenge to many public budgets. The solution from SAP automates many complex resourcing and payment processes of social service collections and delivery, providing a single integrated view of the citizen and helping ensure the right intervention is delivered at the right time, cost-effectively helping each citizen to be a more active member of society.

SAP Social Services Management for Public Sector was one of many public sector industry-specific product enhancements SAP delivered in Innovations 2010. The SAP® Customer Relationship Management (SAP CRM) and SAP® Public Sector Collection and Disbursement (SAP PSCD) applications provide the core capabilities in package, part of the SAP® for Public Sector solution portfolio.

Continuous Case Management for Monetary Services
With the new software package from SAP, the business process for appropriating monetary services allows social service case workers to manage cases in a continuous, automated way. As soon as an applicant has filled out a request form – electronically at a terminal, via Web, Interactive Voice Response (IVR) or paper-based – it is automatically entered into the system then displayed in the user interface for the case worker. After automated checks, the software makes recommendations for further processing steps, requests necessary clarifications to the information provided or even suggests rejection based on user-defined parameter.

As soon as all requested information has been checked and approved, the solution generates a “service plan” that documents for the applicant the social services awarded and the underlying reasons. The software also delivers a “service overview” that details the type, amount and period for approved monetary or non-monetary services for the respective social program. Once a case worker has approved the service plan, the case is validated and payment is triggered to the applicant.

Transparency and Automation for Well-Founded Decisions
During the entire process, the SAP software supports case workers involved in handling a case via greater transparency, and in a central location they can electronically see the information about the applicant documented by the solution, the status of processes and the basis for calculations and decisions depending on the case worker’s role. Functionality from SAP CRM helps ensure comprehensive case processing, relieves the case worker of time-consuming manual processing and delivers key information to support well-founded decision-making.

Integrated functionality for “net calculations” and downstream payment processes helps ensure that possible payment obligations to the agency by the applicant or other payment reductions to the service claim from other social programs are taken into consideration. The software also conducts remittance of monetary amounts to make a corresponding entry in the financial and accounting portion of the respective budget. Because social services and the systems for social security are frequently implemented at the federal level in cooperation with local agencies, the integration capabilities of the SAP software make it possible for users from various agencies and facilities to operate using continuous, unified workflows.

SAP developed the SAP Social Services Management for Public Sector package based on feedback from long-standing customer and partner KMD. The municipal IT service provider has more than 30 years of experience as a leading software provider in the public sector in Denmark, a country that is recognized as a global leader for its efficient public services.

“Public budgets, particularly with sinking revenues and increasing demands, still have to provide the full scope of services from the social security systems to their citizens whenever they are needed,” said Jens Romaus, senior vice president, Global Public Services, SAP AG. “With our new software solution, we are continuing to help public administrations more effectively apply their budgetary resources through increased case handling efficiency, greater transparency and quicker decision-making. At the same time, more productive administrative processes open up greater room for individually shaping the care and supervision of cases for individual citizens.”

The SAP Social Services Management for Public Sector software package was released to initial ramp-up customers with SAP enhancement package 5 for the enterprise resource planning (ERP) application SAP® ERP in December 2010.

About KMD
KMD is among the largest Danish-based IT companies and has more than 35 years experience in development, operation and maintenance of some of Denmark’s largest IT systems. KMD develops and provides IT solutions for the local authority, state and corporate markets in Denmark. The IT solutions provided by KMD enable public sector employees to handle current legislation as efficiently as possible. In addition, KMD serves as one of Denmark’s main providers of IT management and application service providing (ASP), facilitating the day-to-day administration and control of resources in the public and corporate sectors. KMD also provides outsourced IT services as well as consulting services on business process development and implementation of IT systems. KMD has more than 3,200 employees in Denmark and annual revenue in excess of EUR 500 million. KMD is owned by EQT and ATP.

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 109,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit

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