The Department of Finance of Australia had chosen the SAP S/4HANA platform for its GovERP, a new common enterprise resource planning (ERP) system, February this year.
Now, the government is seeking a panel of ERP software-as-a-service (SaaS) suppliers to back up GovERP’s need for complementary capabilities.
The SAP S/4 HANA platform GovERP is designed to consolidate, standardise, and automate core transactional corporate services delivery across non-corporate Commonwealth entities through designated hubs. The platform is also intended to introduce common and coordinated investments in ERP systems across the hubs.
According to the Department of Finance of Australia, a hub provides one or more services to about 30 organisations. To date, the six hubs for payroll, accounts payable, accounts receivable, credit card management, and ledger management deliver services through the existing ERP systems. Of the six hubs located in Services Australia, the Australian Taxation Office and the departments of Treasury, Finance, Industry and Foreign Affairs, only one currently relies on the non-SAP system.
The government foresees that each hub will eventually need to coordinate its investment that would result in a reduction in the number of separately managed and maintained ERP systems. In cooperation with the hubs, Finance is undertaking discovery work on the feasibility of moving the multiple SAP-based hubs to a common ERP system. It said:
“The current contractor management processes across the Australian Public Service (APS) are manual and cumbersome. Finance is seeking to resolve these operational inefficiencies by delivering responsive, reliable, and efficient outcomes for all contractor engagements.”
From the request for tender (RFT), the Finance department will form a panel of one or more qualified suppliers that would fulfill the need for a Contractor Management System as the first GovERP complementary capability. RFT explained:
“In order to leverage each hub’s existing investment, discovery work will be based on the GovERP Core Software Product. It is anticipated that the GovERP Core System could be complemented by a range of cloud-based products that would complete the functionality necessary to meet the Commonwealth’s needs.”
Earlier in February, Finance shared that there will be a prototype of a foundation ERP platform to be utilised for the trials across the provider hubs that are already existing users of an SAP-based ERP. It will be put into the project delivery phase that will involve the sourcing of cloud-based complementary products and services to integrate with the core SAP S/4HANA platform.
In November 2019, it was announced that there would be a total of 24 panelists in the ERP SaaS panel. The panel includes some of the world’s biggest companies namely Accenture, Capgemini, Fujitsu, PwC Consulting, SAP, Tata Consultancy Services, and TechnologyOne. These firms are all capable to provide scalable, commercial off-the-shelf ERP SaaS; planning, design, and implementation services for ERP solution delivery; and the ERP solution’s on-going maintenance and development.
GovERP is part of the federal government’s Shared Services program that started in 2016. All non-corporate Commonwealth agencies in Australia are expected to be part of the program. Currently, there are 14 agencies and six hubs that have already transitioned while 60 agencies are due to transition throughout the next four years.
The program’s initial phase of consolidation and standardisation is anticipated to continue until 2021.