Menu
Auckland Council: Claims no budget blowout for IT project, applies lessons from Novopay

Auckland Council: Claims no budget blowout for IT project, applies lessons from Novopay

Chief operating officer Dean Kimpton and information services head Mike Foley say governance of $155 million NewCore project includes ongoing independent review from EY.

Chief operating officer Dean Kimpton and head of information services Mike Foley of the Auckland Council say appropriate governance and management structures are in place for the $155 million NewCore project.

The project aims to consolidate core customer facing systems and processes for customer, interaction, regulatory services and rates for the former eight councils that now comprise the Auckland's ‘Supercity’.

The original business case for the project was $71 million, but this projection was revised to include, among others, $60 million in “uncovered complexity” following a due diligence and $13 million in “extended testing”, according to the IS Transformation Programme Update released by the Council.

“In terms of overall budget, there is no blowout,” says Kimpton at a press conference to explain media reports on a budget 'blowout' on the IT project. “We are sitting well within the budget itself. We understand where the cost of NewCore sits, we understand what it is going to deliver in the context of the overall IS program.”

At a high level, NewCore is focused simplifying our current systems, on standardising them and on enabling that customer experience, says Kimpton. "There is a range of things people in Auckland need to do online and we need to have a system up and running that the legacy systems won’t provide for."

Kimpton says the council also looked at the lessons from other IT projects that have “struggled” including Novopay and Queensland Health.

Kimpton says there is in place a project management and project governance structure to support a complex IT project like this. He points to the appointment of Paul Mahan, who leads the EY New Zealand IT Advisory practice, to the project.

“We are independently challenging how things are put together in the reset phase, looking at governance and making sure management and governance of it is appropriate and robust,” says Mahan, who joined Kimpton and Foley at the press conference.

Mahan says the Novopay incident has heightened the importance of his role. “We are acting on the interest of the ratepayer.”

CIO review group

Foley says in 2011 to 2012, he had a CIO review group look at the strategy and plans for the merger. The CIOs came from different industries including banking and transport, and from two organisations that were doing "large scale corporate mergers".

“I asked them to come in and review on behalf of the Auckland Council our strategy and plans to go forward,” he says, just to verify what they are doing is correct and logical for the size and scale of the council.

Read more: Three reasons government tech projects fail

He says some members of this "reference group" have since changed roles, but he will bring them back in for another review, "when and as required".

“All we are doing is rephasing and reprioritising our expenditures,” says Foley. “Overall, the budget envelope stays the same. We are just bringing aspects that we would have done downstream and accelerate them into the program... There is no budget blowout, there never has been.”

Send news tips and comments to divina_paredes@idg.co.nz

Follow Divina Paredes on Twitter: @divinap

Read more: Novopay and Queensland Health: One-offs or symptomatic of a deeper problem in the IT industry?

Follow CIO New Zealand on Twitter:@cio_nz

Sign up for CIO newsletters for regular updates on CIO news, views and events.

Join us on Facebook.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Auckland CouncilCIOproject managementcost overrunsupercity

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments