SAP Backs Bank Danamon Indonesia’s HR Digital Transformation


The HR digital transformation at PT Bank Danamon Indonesia is being supported by SAP SuccessFactors in order to automate the financial institution’s core processes and raise the level of productivity among management and staff.

More and more companies are now undergoing a digital transformation, which entails a complete rethinking of their operations from the ground up, in order to better serve their customers. To stay ahead of the competition in the Indonesian banking industry — which has a significant challenge of delivering an unparalleled customer experience — organizations are determined to make it their mission to provide a solution by leveraging the latest technologies.

In order to better serve its more than 70 million clients across the country, PT Bank Rakyat Indonesia collaborated with SAP Indonesia to fortify its central processes and systems. Several areas of the company’s operations have been targeted for improvement, leading to the adoption of seven different SAP modules. Another leading general banking services provider, PT Bank Danamon Indonesia, also executed digital transformation supported by SAP technologies to enhance its human resources (HR) management.

Since Bank Danamon recognizes the importance of the “People” element in a digital transformation strategy, it has tapped SAP Indonesia to help propel innovation and improve its operations through digital business process solutions. The financial institution prioritized investments in cutting-edge technologies that would empower and assist employees who are essential to the organization’s success. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)

Bank Danamon’s digital transformation is centered on improving the use of HR data and other business data in making operational decisions. As a result, the company’s HR team needed a system that can handle not just the daily tasks of capturing and maintaining HR data, but also the more complex ones of managing dynamic big data. Since 2017, Bank Danamon has relied on SAP SuccessFactors, with the goal of maximizing the benefit of these well-established digital solutions within the business.

Detailing more about how important HR digital transformation is to the company, especially now in an all-digital world, PT Bank Danamon Indonesia Tbk HR Digitalization Head Handri Yustanto shared:

“HR plays an important role in implementing digital transformation and even sees it as a business partner. Bank Danamon itself is trying to be adaptive to the situation and is committed to implementing a comprehensive transformation in the HR field. This can be seen in the HR process with more distributed control, high collaboration, centralized coordination, as well as process agility and speed.”

Furthermore, Yustanto stated that the organization has been able to reduce more than 70% of employee complaints, automate 64% of formerly manual operations, and give managers or staff decision-making control over 30% of the activities with added value as a result of the HR digital transformation.

Expediting HR Digital Transformation with SAP SuccessFactors

Solutions offered by SAP SuccessFactors are hosted in the cloud and are used to perform anything from basic HR and payroll to talent management, HR analytics, workforce planning, and even employee engagement. HCM Suite components have been rebranded as SAP SuccessFactors HXM Suite and now offer customized experiences to boost productivity and employee engagement. Since its inception in 2001 and incorporation into the SAP family in 2012, SAP SuccessFactors products have been adopted by more than 235 million users in over 200 countries and nations worldwide.

According to SAP Indonesia Managing Director Andreas Diantoro, Bank Danamon’s digital transformation using SAP SuccessFactors was a success because it optimized core processes and prepared human resources, both of which are crucial for adapting to new business conditions. He added that Bank Danamon’s digital transformation is in line with HR trends expected to grow in the next years, such as change management, which leads to improved corporate performance, and people analytics, which helps businesses better understand and motivate their employees.

“Now, HR benefits from SAP SuccessFactors as it is equipped with intelligent capabilities to empower business users to unlock potential through easy-to-use interfaces, shorten the time to set up complex system landscapes, and align data from multiple sources, enabling business users to perform analysis sophisticated in data-based HR management,” Diantoro noted.

Bank Danamon’s continuing digital transformation project is motivated by a desire to provide significant and tangible results for the business in the near future.  Yustanto stated that they are in the process of establishing the HR Strategic Initiative roadmap 2023-2024, and that one of their goals is to construct a data-driven system that makes use of rich and dynamic HR big data to power HR strategic decisions.

“SAP Indonesia will wholeheartedly continue to support Bank Danamon’s business in its digital transformation journey,” the SAP MD remarked.

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