03 April 2024

Don Valentine, commercial director, Absoft

Digital transformation deadline
Local authorities are facing growing pressure to accelerate digital transformation programmes. Budgetary demands are making it imperative to explore the power of technology to automate processes, improve efficiency, and enable effective service delivery. Local authorities also require far more insight into both the value of budgetary spending and their progress towards net zero targets. Many organisations must upgrade or change their existing on-premise ERP solutions before the software falls out of support.

Cloud-based ERP solutions will automate and streamline processes, enabling local authorities to be more effective. A single source of accurate and up-to-date information, combined with intuitive analytics, will mean that the public sector organisation can model changes in business rates, council tax rates, headcount, or inflation into budget planning and forecasting. Trusted information will support confident projections for up to five years, enabling a local authority to demonstrate a longer-term outlook.

Different implementation approach
Early adopters of cloud-based ERP solutions have led the way – and in the process created growing awareness not only about the tangible benefits that can be achieved, but the need to adopt the right approach. There is a fast-growing understanding of the value of the ‘adopt not adapt’ model. Avoiding the cost, risk, and delay associated with custom development and adopting best practices processes built into cloud ERP is now recognised as a key factor in achieving a successful implementation.

To maximise the value of the public cloud, local authorities need to opt for a clean build and best practice processes. This approach, however, is a change from traditional public sector procurement practices, and some local authorities are still prone to issuing tenders based on extensive lists of user requirements.

Rather than creating an exhaustive list of often irrelevant requirements, local authorities should be assessing the best practice models offered by ERP vendors. They should consider the implementation models and tools that have been developed to ease the process and support organisational change management. Tools such as a Cloud Mindset Assessment or a Readiness Assessment should be deployed in support of the procurement process. A Cloud Mindset Assessment highlights the diverse levels of digital maturity between individual departments and functions, a vital insight in supporting the necessary operational Change Management required to make the implementation a success. The Readiness Assessment highlights the differences between current processes and best practices. Additionally, the procurement process needs to focus on looking for an implementation partner with the experience and understanding to support a successful migration to the cloud, and very importantly will be a cultural fit with the organisation implementing the ERP.

Local authorities should recognise that the day-to-day implementation process is now inherently different. In the new world, a local authority is inherently involved in the process, working side by side with an implementation partner from the outset and using tools such as SAP’s Activate project methodology which provides clear deliverables and instructions for both end-user organisations and partners throughout the six-phase project.

The shift to self-enablement is one of the most significant changes associated with cloud projects compared to on-premise. With cloud-based deployments, there is an expectation that the user base will log into and play around with a ‘starter system’ very early in the project.

As a result, when they join Fit to Standard workshops with an implementation partner, they already have a feel for the system and can contribute to the discussion meaningfully based on experience of using the system.

Conclusion
The benefits of digital transformation are clear. Not only are the cloud-based ERP systems incredibly functionally rich and intuitive, but the supporting tools are designed to ensure a local authority can get the best out of the system from day one – if the mindset and implementation model are correct.

Taking the time to get a feel for the new cloud-based ERP technologies will help clarify the requirements for a successful implementation. This understanding will also inform the skills needed internally to support the process and highlight any additional resources that will be required.

Local authorities that understand the cloud technology concept first, before looking at operational requirements, can be far more focused and insight-driven about what can be achieved with digital transformation, before even considering a specific technology or partner. And that is a vital step in achieving a successful cloud-based ERP deployment.