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DFS joins NSW clusters rationalising ERP platforms

by Sam Murphy •
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The NSW Department of Finance and Services (DFS) is following other NSW service clusters by consolidating its array of disparate Finance and Human Resource systems into a single platform.

DFS was created by bringing together the Department of Services, Technology & Administration (DSTA), Land & Property Information (LPI), and the Office of State Revenue (OSR), which left it with three SAP systems for both finance and HR as well as OSR’s Masterpiece system for Finance and Chris21 platform for HR.

DFS has issued a Request for Information (RFI) on software-as-a-service solutions to service 5,400 of its staff organised into 11 divisions within the Cluster.

According to RFI documents, “DFS is looking for a new system to improve the financial planning, budgeting and forecasting processes and which would deliver a single repository of real‐time enterprise wide information allowing the department and its divisions to accurately drive its businesses based on real‐time information.”

The system has been described by DFS as a “one-stop-shop for budgeting and forecasting” that must have full integration with the Department’s Enterprise Resource Planning (ERP) systems. All data must be able to be imported into the new system from the existing SAP, Masterpiece and Chris21 systems.

The migration of these systems to a cloud, as-a-service platform is in line with NSW’s ICT Strategy which states that DFS must continue to “migrate agency environments to trusted government private cloud”. It also indicates that from Q1 of 2014 DFS must start to “Identify scope for software rationalisation with relevant technical standards”.

The RFI comes after the NSW Commission of Audit in 2012 observed that, “Generally [NSW] clusters continue to operate with multiple systems, inconsistent processes and disparate standards… Most clusters are not yet integrated in a practical sense”.

NSW Trade & Investment led the consolidation of ERP systems in NSW Government by moving 16 agencies into one SAP cloud platform. Currently in its second stage, the NSW Government has acknowledged stage one’s success which saw a consolidated payroll system rolled out to all agencies within the cluster, serving 8,500 people. 

In January 2014, Transport for NSW (TfNSW) signed a $70.4 million contract with Deloitte for a cluster-wide overhaul of its Enterprise Resource Planning (ERP) systems. $151.3 million was allocated to TfNSW in the 2012-13 State Budget for Business Systems Improvement, which includes consolidating the ERP systems of its several agencies into a common integrated solution.

In November 2013, the NSW Justice Cluster requested Expressions of Interest (EOI) for a cluster wide software-as-a-service ERP solution. The EOI followed a business case which recommended transferring the thirteen Justice Cluster agencies to a standard ERP solution based on SAP and involving no more than two physical instances. The DFS RFI will assist in determining the software-as-a-service solutions available in the market. A selected group of vendors will then be issued a Request for Tender (RFT). The RFI closes on 21 February 2014. 

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  • NSW
  • Software
  • Finance & Services
  • as a service
  • Cloud Computing
  • Enterprise Resource Planning (ERP)
  • NSW Department of Finance and Services (DFS)
  • NSW Justice Cluster
  • NSW Trade & Investment
  • RFI
  • SAP solution
  • Transport for NSW (TfNSW)