Background
The Isle of Wight Council implemented SAP ERP Central Component (ECC) in 2009 and currently uses this system for their core finance, procurement, human resources (HR) and payroll processes.
SAP will end standard support for ECC in December 2027. The council will then be dependent on a third-party supplier to provide maintenance and support, but that support agreement doesn’t extend to providing system upgrades.
The council’s existing solution has been heavily customised since 2009 and its processes aren’t aligned to current best practice. Plus, the outdated system limits the council’s ability to develop integrated digital solutions.
Our brief and goals
The council asked Civiteq to develop a recommendation on the potential replacement of its existing SAP ERP system in a three-phase project:
1 – A discovery phase to:
- Explore the user experience of the existing processes
- Understand the current systems landscape
- Review the current application support operating model
2 – An options appraisal to:
- Identify potential options to replace the system
- Agree the criteria against which the long list of options should be assessed
- Recommend a preferred option
3 – A draft outline business case to:
- Present the findings of the discovery phase and options appraisal
- Provide the foundation for the council’s formal business case for system change
Our approach
Our work included:
- Development of a set of strategic drivers
- Talking to service function staff and customers to gauge their views on the current system and services
- SWOT workshops with core functional teams to identify strengths, weaknesses, opportunities and threats
- Workshops and strategy sessions with senior council stakeholders to agree viable system replacement options
“The project was incredibly well managed by Civiteq. I’ve had comments from other strategic managers that this has been one of, if not the best project they’ve worked on with a consulting company. It definitely felt like a partner relationship, rather than a customer-supplier one, with Civiteq providing the Isle of Wight Council clear guidance and support through a complex project.”
Roger Brown, Strategic Manager ICT & Digital Services, Isle of Wight Council
The biggest challenges
The focus of our discovery exercise and options appraisal was the replacement of the current SAP ERP solution. But our early findings highlighted the need for the council to undergo a full change programme centred on the adoption of a replacement system and new ways of working. We included this in our final report.
But the most significant challenge is the uncertainty surrounding the Government’s proposals for local government reorganisation (LGR) that could see the Isle of Wight Council replaced by a merger with other council areas. We factored this issue into our outline business case, stressing that while upgrading the SAP ERP system should be done as soon as is practicable, the project has now been paused until the outcome of the LGR is known.
Outcomes and benefits
We presented our outline business case to the client based on the Five Case Model, covering the strategic, economic, commercial, financial and management aspects of the system replacement project. As part of this, we recommended the council should replace their existing solution with a new single ERP system.
The council now has the foundations from which to progress with its chosen option once the outcome of the LGR is known.
“We’ve given them confidence they’re going in the right direction and have opened their eyes about having a business change mindset for adopting, not adapting the technology.”
Barry Snow, Principal Consultant, Civiteq
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