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Systems Integrator wanted for Transport-wide ERP overhaul

by Pallavi Singhal •
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Transport for NSW is preparing to approach the market in the first quarter of the 2013-14 to appoint a systems integrator able to carry out a cluster-wide overhaul of its Enterprise Resource Planning (ERP) systems.

The peak transport agency has signed a $5 million deal with PriceWaterhouseCoopers to prepare revised cost estimates and a blueprint for the project prior to the approach to market. The consultancy firm has been tasked with developing business process designs, technical architectures and strategies for go-live by June 2013.

The Transport Enterprise Resource Program aims to “improve services for common back office transactional services across the entire NSW Transport cluster,” a Transport for NSW spokesperson told Intermedium.

The program commenced in 2012 as part of the wider NSW Corporate and Shared Services Reform Program that aims to standardise the corporate and shared services framework and service delivery across NSW Government agencies.

As one of the larger NSW clusters, Transport is responsible for providing its ICT infrastructure in-house under the State’s operating model for shared services.

According to Transport for NSW’s most recent annual report, a standard ICT platform based on SAP software will be rolled-out to administer human resources management, payroll and finance, and procurement functions.

The project is being funded through Transport for NSW’s 2012-13 budget allocation, which included $151.3 million for business system improvements.

Transport for NSW is the integrated transport authority responsible for policy, planning and coordination functions applying across:

  • RailCorp;
  • Roads and Maritime Authority;
  • State Transit Authority
  • Transport Management Centre; and
  • Private bus, ferry and light rail operators.

As well as the agencies listed above the cluster also consists of Transport for NSW, Port Corporations, the Office of Transport Safety Investigations and the Independent Transport Safety Regulator. The cluster had a total of 29,546 full-time equivalent employees in 2012, comprising almost nine per cent of the entire NSW public sector workforce.

Kerry Schott’s interim NSW Commission of Audit report (the Schott Report) suggested in January 2012 that a significant business systems consolidation within the cluster, reducing 130 separate corporate systems down to as few as 12, could generate savings of $100 million per annum. A Transport for NSW spokesperson confirmed to Intermediumlast July that the agency did intend to pursue this plan, but that the ERP program and associated budget allocations pre-date the report.

Following the successful roll-out of a fully cloud hosted ERP platform at fellow NSW Government cluster, Trade and Investment, it will be interesting to see how Transport weighs up its software-as-a-service option.

The NSW Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS) has recently completed a $14 million project to procure its consolidated ERP system on a software-as-a-service basis. However the total size of DTIRIS is equivalent to just 15 per cent of the NSW transport cluster. 

NSW Businesslink is also undertaking a similar consolidation of ERP systems for the Department of Family and Community Services, in a project that is due to be completed by mid-2013.

A move towards the rationalisation of ERP systems has also begun at the Federal level, with a $2.8 million allocation in the most recent budget for the Department of Finance and Deregulation to investigate the potential benefits of a whole-of-government consolidation.

The budget also included $2.2 million in funding for AusAID to develop a business case for an ERP platform.

Related Articles:

ICT Strategy: Transport’s cloud champion to join NSW Strategy team

ICT consultation unveils the NSW Government’s priorities for 2013-14

Overhaul of financial systems on the horizon for AusAID

For more information, please contact the Editor (02) 9955 9896.

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Jurisdiction
  • NSW
Category
  • IT Services
Sector
  • Transport
Tags
  • AusAid
  • Department of Family and Community Services
  • Department of Finance and Deregulation
  • Enterprise Resource Planning (ERP)
  • Federal Budget 2013-14
  • Independent Transport Safety Regulator
  • Kerry Schott
  • NSW Businesslink
  • NSW Commission of Audit
  • NSW Corporate and Shared Services Reform Program
  • NSW Department of Trade and Investment
  • Department of Trade and Investment
  • Regional Infrastructure and Services
  • NSW Office of Transport Safety Investigations
  • NSW Roads and Maritime
  • PriceWaterhouseCoopers
  • RailCorp
  • SAP
  • Schott Report
  • Software-as-a-Service
  • State Transit Authority
  • Transport Enterprise Resource Program
  • Transport for NSW
  • Transport Management Centre