Software AG > Case Studies > Subsidiary of Norwegian Department of Finance Achieves 65 Percent Reduction in IT Operating Expenses

Subsidiary of Norwegian Department of Finance Achieves 65 Percent Reduction in IT Operating Expenses

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Customer Company Size
Large Corporate
Region
  • Europe
Country
  • Norway
Product
  • webMethods ESB Platform
Tech Stack
  • webMethods ESB
  • Informatica’s PowerCenter
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
Technology Category
  • Application Infrastructure & Middleware - API Integration & Management
Applicable Industries
  • Finance & Insurance
Applicable Functions
  • Business Operation
Use Cases
  • Process Control & Optimization
Services
  • System Integration
About The Customer
Statens Innkrevingssentral is an executing subsidiary of the Norwegian Department of Finance. The main function of Statens Innkrevingssentral is to collect money for fines, damages and debts, mainly for state and government agencies. As a last attempt, fines and debts can be collected through an automatic monthly deduction from the income of Norwegian civilians. The organization interacts with most Norwegian State Departments such as the tax collection office and banks. The institution was struggling with a legacy mainframe solution that was functionally fine, but did not measure up to modern solutions and was too costly to operate.
The Challenge
Statens Innkrevingssentral, a subsidiary of the Norwegian Department of Finance, was struggling with a legacy mainframe solution that was functionally fine, but did not measure up to modern solutions and was too costly to operate. The institution was exposed to risk at a time when it was asked to dramatically lower operating expenses. The legacy mainframe solution was responsible for a loss in competitiveness. The institution called upon its own organization and partners to carry out an analysis to outline the requirements in detail. This analysis was the basis on which all parties involved designed the final solution, a new collection and ledger system. This new system would provide Statens Innkrevingssentral with the desired reduction in operating expenses and ensure the implementation of new claim types without further development.
The Solution
Statens Innkrevingssentral partnered with Norwegian-based companies Component Software and Bouvet to develop a new component-based, best-of-breed system. The development of the new system, called “SIRI system,” was split into three parts: SIRI accounts receivable and ledger, a new system developed from scratch to replace the Bull-based mainframe system; Letter module, the development of a module to handle large-scale automated series of letters and invoices; Integration and development using the webMethods product suite. The new SIRI system ensures that a number of business processes within Statens Innkrevingssentral now run fully automated. Now claims entered in the front-end source system as flat files are integrated into interface tables in the SIRI ledger system. And the process of printing numerous standard invoices and letters is fully integrated and automated as well. Finally, fines and penalty processing are transferred automatically to the Fine and Penalty Management System, a database for the Norwegian Police.
Operational Impact
  • The new solution saves Statens Innkrevingssentral 10-12% of total costs and allows for the implementation of new claim types without any further development.
  • The new SIRI system ensures that a number of business processes within Statens Innkrevingssentral now run fully automated.
  • The system was delivered five months ahead of schedule, within budget and with the expected quality.
Quantitative Benefit
  • 65% reduction in IT operating expenses
  • 10-12% savings of total costs

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