Asks KPMG to mitigate risks.
Queensland Health expects to have its new SAP ERP system up and running by August this year, but will spend several months transitioning staff across to mitigate potential risks.
The $105 million financial system renewal project (FSR), which the agency has been working on since December 2016, will replace a heavily customised, 20-year-old SAP R/3 4.6B ERP suite known as the finance and materials management information system (FAMMIS).
FAMMIS has been out of support for a decade, forcing the agency to “put in place mitigating action to maintain system performance and stability until the financial system is replaced”, according to a recent financial audit by the Queensland Audit Office [pdf].
The project will see Health and all hospital and health services across the state move to a new on-premise version of SAP’s S/4HANA solution, which will interface into the agency’s now-stable SAP payroll system.
It is the second time the agency has attempted to replace the system, after aborting a $36 million upgrade effort in 2014-15.
Queensland Health began building a prototype in early 2017 to fast track the project and build user confidence before embarking on the rest of the project.
It also went looking for a partner at the same time, noting the “potential risk from an unsuccessful transition”.
The agency is undoubtedly keen to avoid a repeat of the infamous payroll project with IBM that saw thousands of nurses wrongly paid and which ended up costing an estimated $1.2 billion to fix.
The FSR project has now moved to configuration of the full business, finance and logistics solution, with a spokesperson revealing the agency is on track to introduce the platform before the end of this year.
“The solution is currently being configured and is expected to be ready by August 2018, following a period of multi-stage testing involving user acceptance and integration testing,” they said.
“The technical go-live will be followed by a comprehensive support and training program to enable staff to transition to the new system.
“Staff will then commence operating in the new system towards the end of the year.”
It follows the completion and delivery of the prototype solution in March last year.
KPMG engaged to mitigate risks
Queensland Health identified the need for a change management partner to ensure the transition was a successful one early on in the project.
It revealed to iTnews that it has chosen KMPG to take on that role and deliver change management as well as an “innovative support and training approach”.
“This is a major … initiative, with enormous positive potential for one of Queensland’s largest, highest profile and service-critical organisations,” the department said at the time.