DOC confirms $16.8M more needed to 'embed' SAP S/4 HANA

DOC confirms $16.8M more needed to 'embed' SAP S/4 HANA

A shift to S/4HANA was not fully delivered at scheduled go-live date.

Credit: Department of Conservation

Decision time looms as the Department of Conservation (DOC) finalises a business case for a further $16.8 million of funding for its SAP ERP rollout.

Richard Kay, chief Information officer at DOC, told Reseller News this week a business case had not yet been approved. 

"Key scope decisions were made at governance on the 12 July 2023," he said. "This now allows us to finalise the business case, with the final decision expected to be made by governance at the end of July 2023."

The "Embedding SAP Programme" was established to complete what Kay described as the "partial technical SAP S/4HANA implementation" and to embed the use of new all-of-government common process models for finance, enterprise asset management and procurement across DOC.  This will be subject to the approval of the business case.

This was required because the shift to S/4HANA was not fully delivered at the scheduled go-live date.

"Several issues arose during the shift from SAP to S/4HANA which became clear post-implementation," Kay said. "These issues primarily related to the lack of change readiness and training provided to departmental staff."

In addition, the project lacked appropriate governance oversight and user acceptance testing was not performed, although unit testing and system integration testing were conducted.

Key said it was important to note that the system itself was functioning as expected. Also included in the $16.8M was a provision for investment in the SAP ERP product for the next three years.

Last year, DOC "paused" 14 ICT projects to enable completion of its SAP-based finance and asset management upgrade. 

The projects, which were all part of the department's Te Pae Tawhiti Whaia Kia Tata - Navigating to New Horizons digital strategy, were to be rescheduled for years three and four of the programme, according to disclosures to Parliament's environment select committee.

Only three of the 14 projects had actually started: a website front-end upgrade, a critical risk application and a remote monitoring project.

PricewaterhouseCoopers (PwC) was known to have worked on the development of DOC's digital strategy while Tenzing and Zag provided SAP-related services.

From 2016, DOC also undertook a significant migration of systems to AWS.

Just before the pandemic, the department also partnered with Fujitsu to make a timely investment in remote working, for which Fujitsu developed an AWS workspace. 

The arrival of COVID-19 brought new urgency to that effort, with 1700 workspaces rolled out for staff in just five days.

Meanwhile, NZ Transport Agency - Waka Kotahi is seeking help investigating the options available to replace its SAP ERP environment, consisting of ECC6 plus other modules, which will reach end of life in 2027. 

"The investigation will consider the current and future state requirements and a review of the options available to meet those future needs," a request for information lodged earlier this week said. "The investigation will consider the design, build, implementation, change management and ongoing support implications."

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Tags enterprise resource planningERPSAPFujitsuDOCdepartment of conservationZaggovernmentWaka Kotahi NZ Transport Agency


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