MADRID — SAP SE (NYSE: SAP) today announced that SAP Spain is collaborating with the Madrid City Council on the comprehensive modernization of its internal management through SAP software.
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The objective of this collaboration is to digitalize procedures, improve efficiency and deliver better services to municipal employees and citizens in the areas of finance, revenue management and human resources.
The Madrid City Council has been working with SAP software for two decades. It began in 2004 with the implementation of the first solutions in the areas of finance and HR, and in 2020 launched its public administration modernization project with the migration to the private cloud. This process is now advancing further with the adoption of the RISE with SAP journey and SAP Business Technology Platform (SAP BTP). The former is a comprehensive journey that combines the elements needed to migrate to the private cloud under a single contract: SAP S/4HANA, infrastructure and managed services. The latter is the platform for integration, extension and application development.
A New Public Management Model
The adoption of these technologies represents a true revolution in the way municipal procedures are managed, from budgeting, execution and control of revenues and expenditures to the comprehensive management of human resources. This approach makes it possible to move beyond traditional models based on fragmented systems toward unified management with real-time information and digitalized processes.
The transformation has a particularly significant impact in the tax domain, as part of the project includes the integration of tax and revenue management solutions from SAP into the city’s financial platform. This enables municipal revenues to be managed as a natural extension of the financial system, eliminating isolated developments and facilitating an end-to-end view of the full cycle, from taxpayer registration and assessment to collection and inspection. As a result, operational efficiency is improved while strengthening financial control and budget planning capabilities.
Currently, two-thirds of the City Council’s tax revenues are already managed within this environment, including Property Tax (IBI), the Urban Waste Tax for Business Activities (TRUA), Capital Gains Tax (IIVTNU) and the Terrace Tax (T2 2023). The next step will be to incorporate the Motor Vehicle Tax (IVTM) and the Economic Activities Tax (IAE).
The project has been developed using a phased methodology. During the first year, the City Council carried out a cleansing and harmonization of master data from its previous management systems (GIIM and +TIL), cross-checking identities with police databases, tax addresses with the Spanish Tax Agency (AEAT) and addresses with the municipal street registry. This process generated taxpayer “Golden Records” and enabled, for example, an efficiency rate of 98.02% for Property Tax (IBI) in 2024. Data quality continues to be maintained for all new registrations.
According to Juan Corro, IT Manager of Madrid City Council (IAM), “SAP technology offers us an extraordinary opportunity to accelerate our digital transformation and make the vision of a more efficient, innovative and citizen-centric local government a tangible reality. This project marks a paradigm shift: we are moving from managing paper files and isolated systems to managing information and processes in an integrated and intelligent way, with a 360-degree view. As a major capital city, Madrid has both the responsibility and the opportunity to position itself at the forefront of administrative modernization, serving as a benchmark for other municipalities.”
Carlos Lacerda, Senior Vice President and Managing Director of SAP Southern Europe, stated: “SAP remains firmly committed to the Spanish public sector, which we have supported in its modernization processes for decades. This project is a benchmark for advanced digital administration and demonstrates how technology can act as a strategic enabler to simplify processes, integrate information and strengthen real-time data-driven decision-making, laying the foundation for a more agile, innovative and service-oriented public administration.”
Benefits for the Administration and Citizens
The project is delivering benefits both in terms of internal efficiency and management, as well as citizen services:
- End-to-end process digitalization and a “paperless” administration: The “paperless” administration model has been consolidated, enabling the full digitalization of HR processes from start to finish. Requests are managed entirely through the municipal intranet. Internally, public employees can review and approve procedures with full traceability and in just a few steps, reducing processing times and errors caused by duplicate data. The result is a more agile, efficient and nearly 24/7 service that improves both the employee experience and citizen services.
- Operational efficiency and improved decision-making: Automation and AI capabilities integrated into the ERP system allow the City Council to significantly improve efficiency and productivity. Routine processes such as bank reconciliations and budget allocations are automated through rules and machine learning. In addition, the use of robotic process automation and services on SAP BTP facilitates the automatic execution of repetitive tasks across systems. This reduces manual workload, minimizes errors and frees up time. Real-time analytics improve decision-making and, together with mobile and remote access to applications, enable more agile and flexible management.
- A more sustainable and efficient model: The implementation of RISE with SAP enables the City Council to move toward a more sustainable and economically efficient IT model, based on subscription and pay-per-use principles. This approach reduces upfront investments, provides greater budget predictability and optimizes total cost of ownership. By scaling deployments according to municipal needs and paying only for required resources, the city improves responsible management of public funds while generating potential long-term savings.
- Greater adaptability and evolution: The City Council now has a flexible platform ready to evolve alongside technological, regulatory and social changes. The municipality will be able to align with national and European digital agendas, incorporate AI and advanced analytics capabilities, and evolve toward a smart administration model where data becomes a strategic enabler of better public policies.
- Continuous innovation: SAP BTP is the innovation platform that integrates internal systems and third-party solutions, eliminating information silos. It also enables the rapid adoption of new technologies and responsiveness to changing needs and supports the City Council not only in modernizing processes but also in continuously evolving and launching innovative public administration initiatives.
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Media Contact:
Belén Martinez Millán, SAP Spain, +34 91 4567220, belen.martinez@sap.com, CET
SAP Press Room; press@sap.com
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