Case Study

Next-generation digital HR advancing Malaysia’s growth, powered by SAP

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  • Case Study
  • 5 minute read
  • March 04, 2025
Khazanah Nasional Berhad

Industry

Government and Public Sector

Our role

Design, implementation and change management of digital HR system

Powered by

SAP Success Factors, SAP Concur, Qualtrics

Teh Tze Young

Teh Tze Young

SAP, Partner

Khazanah Nasional Berhad (KNB), the sovereign wealth fund of Malaysia, is entrusted with enhancing the nation’s long-term wealth. Having a digital human resources (HR) system befitting the weight of this mandate was critical.

Working collaboratively with Khazanah, we created the Khazanah Integrated Talent Application — called 'KITA' — built on SAP SuccessFactors. A single source of truth for HR data, it has transformed the employee experience, enabled smarter people decisions and increased efficiency and productivity, for both the HR function and employees.

Improvements include a 90% reduction in HR time generating performance reports, with talent recruitment reduced by a third. KITA launched KNB’s progressive NexGen Digital Transformation agenda, improving workforce skills and digitising operations for better business outcomes.

Issue The Challenge

Khazanah’s existing HR systems were complex and outdated. Maintaining multiple — disjointed — platforms was onerous, inefficient and expensive. Processes too, were often manual and time-consuming.

HR staff and other employees were reliant on on-premises systems, missing out on real-time accessibility, the ability to automate or use analytics to their advantage. Moving Khazanah to a simplified, ‘connected’ cloud-based HR system was critical and as the COVID-19 pandemic progressed, we needed to do it fast.

“Our existing system was ‘transactional’, it didn’t add any extra value. We needed an HR system that would help us enhance business outcomes and preparedness for the future.”

Latifah Daud,Executive Director Head, Strategic Human Capital Management Khazanah Nasional Berhad

Solution The solution

A powerful combination of people and technology

We brought together a ‘community of solvers’ — a multidisciplinary team with a deep blend of SAP technology expertise, business domain knowledge, change management and HR — to respond to Khazanah’s specific needs. We focused on driving adoption and making sure the system was sustainable and scalable for the future.

Our three-stage process, conducted mainly remotely due to COVID-19 lockdowns, included:

  1. Setting the foundation — deep dive immersive sessions with business leaders, and groups across the business to establish ambition and align on outcomes. ‘Employee experience’ from acquisition to recognition, was the main focus.
  2. Design and build of the solution — a differentiated design and iterative build approach (hybrid-agile) rapid prototyping solutions alongside Khazanah’s project team members. Change management to transition people to embrace the new system and ways of working.
  3. Beyond implementation — future proofing of the new system by creating ‘Curators of the NextGen HR programme’. Defining stakeholder responsibilities to enable an effective transition from project to business-as-usual, ability to use the system to its full potential and take advantage of new software releases and digital innovations.

“It was important to us to have a 3rd party project manager to keep everything on track for us with SAP and stand in our corner. The individuals at PwC genuinely became a part of our team, and had our best interests at heart. I cannot overemphasise how important these individuals were to us.”

Mohammad Razip Mohammad Zin,Director, Strategic Human Capital Management Khazanah Nasional Berhad

KITA, powered by SAP

We designed and built the Khazanah Integrated Talent Application — called 'KITA' — on SAP SuccessFactors. A single source of truth for all HR data, this ‘Software as a Service’ (SaaS) solution is flexible and scalable, secure, user-friendly and accessible from anywhere on any device.

It integrates seamlessly with other products in the SAP ecosystem, SAP Concur for Travel and Expenses and SAP Qualtrics for Employee Experience.

“It’s rare to find one technology ecosystem that meets all our client’s needs. With SAP, we were able to co-design solutions for the majority, testament to the strength of our local and global relationship with SAP.”

Devan Nair,SAP Malaysia Leader, Partner, PwC Malaysia

“Their focus on mindset change and helping us all understand, use and appreciate the new system was extraordinary. Culture shift is hard, but PwC achieved it with empathy and grace, as well as firmness - which we needed!”

Mohammad Razip Mohammad Zin,Director, Strategic Human Capital Management Khazanah Nasional Berhad

Impact The impact our solution had

KITA has given Khazanah the confidence to know that they are at the forefront of modern HR practice, with the ability to attract and retain the right talent to help them achieve their ambitions.

“We can now tap the right talent at the right time - internally and externally. We can more easily nurture performance and career trajectory. Critically, we now trust the data and are confident we are making the right steps for the business. Trust in our HR function internally, too, has grown.”

Latifah Daud,Executive Director Head, Strategic Human Capital Management Khazanah Nasional Berhad

It has:

  • Simplified HR processes both internally and externally
  • Provided manager self-service and employee self-service functions, increasing their efficiency
  • Increased operational efficiency and removed duplication
  • Improved data integrity, visibility and accessibility
  • Created the ability to generate accurate HR analytics reports to support business or organisational decision-making activities
  • Reduced administrative HR, allowing them to focus on more strategic work
  • Created, streamlined and optimised business and system processes, while incorporating relevant leading practices
  • Completely eliminated physical forms and letters, a reduction of 200kg in paper waste, supporting Khazanah’s Environmental, Social, and Governance (ESG) agenda.

Metrics include:

  • Recruitment: processing time of shortlisted applicants reduced by a third
  • Organisational chart and manpower planning: decreased from 72 hours to 3 hours
  • Travel and Expenses: application and processing time reduced by a fifth
  • Performance reports: 90% estimated reduction in time spent generating performance reports for internal audits
  • Sustainability: reduction of 200 kg per year of paper waste.

“The level of empowerment felt by our staff was unexpected. With up to 30% of our time freed up, we could focus on higher-level matters. Work became more meaningful - and future- focused on supporting the business and its ambitions.”

Latifah Daud,Executive Director Head, Strategic Human Capital Management Khazanah Nasional Berhad

Aside from the more immediate improvements, we supported Khazanah to make the most of their new system for future initiatives. For example, connecting them with the Go1 learning content aggregator to help them launch a Digital Academy to upskill employees.

Khazanah also acquired the ability to continuously self-sustain, improve and enhance the solution through agreed measurements, management and Return on Experience (RoX) insights.

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