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City of London ditches Oracle for SAP in search of ERP enlightenment

(2024/02/19)


The City of London is searching for a systems integrator to help it make the leap to the cloud after selecting SAP to replace a predominantly Oracle enterprise application portfolio.

The UK public authority, which encompasses the "Square Mile" financial district at the center of the city, has [1]published a tender notice to find an SI to "lead and … deliver the implementation of the new system as a comprehensive, fully integrated, cloud based, SAP ERP solution from an established industry-leading solution supplier."

The notice comes about three and a half years after the City of London, which received its first recorded Royal Charter shortly after the Norman conquest in 1066, [2]began the search for a new ERP system . At the time it used an Oracle E-business Suite 12 system for finance and property management, while other vendors provided the remaining ERP functions including HR and payroll.

[3]

The procurement notice for an SI said City of London Corporation recently selected SAP as its Enterprise Resource Planning (ERP) software solution and "now seeks an experienced Service Integrator (SI) to deliver the implementation of its ERP, for finance, HR, payroll, and procurement."

[4]

[5]

In a statement, a City of London spokesperson said: "We are looking for a service integration partner to support our ERP transformation, following the selection of our software provider.

"As a complex, multi-faceted organisation we have thoroughly reviewed our requirements and look forward to working with an SI partner to implement an end-to-end ERP system that covers all essential business functions and seamlessly integrates them to support our organisation's strategic objectives and operational efficiency."

[6]

The authority has so far refused to say excactly when it awarded the German software vendor the contract, or how much the deal was worth.

However, the length of the procurement process may well have already caused some costs. In November last year, it awarded Oracle a contract £233,147 (c $294k) for "the purchase of additional licenses (which come with 12 months of technical support) and the ongoing technical support for the existing licences" until March 31, 2026.

A [7]report from the Finance Committee [PDF] said that it wants to have SI in place by June 2024.

[8]Unit4 software's budget bungle leaves schools counting the cost

[9]SAP makes last-minute change to replacement of 80-year-old co-founder

[10]When red flags are just office decoration: Edinburgh Uni's Oracle IT disaster

[11]India probes SAP and IBM over ancient Air India ERP tender

"The City Corporation has used the same core back-office systems for finance, HR, payroll and procurement for over 20 years. The systems are now either out of support (Oracle) or an unsupported platform (City People) which causes the City of Corporation the need to procure third-party support and invest staff time in prolonging their life to deliver critical services," it said.

The finance report said a "Restricted Procedure" took place to select an SaaS ERP solution, with the "Court of Common Council approving the award to the preferred bidder in November 2023." That meeting restricted public access.

[12]

The report promised the system "will support increased self-service for all staff, giving access to real-time data … enabling the streamlining of back-office and optimising resources through efficiencies."

It says it will go for a "fit to standard" principle by which it will "embrace modern technologies, methodologies, and changes rather than merely modifying the solution to fit with their current ways of working."

The City of London is going against the grain when it comes to UK public body decision making around ERP. Birmingham City Council, East Sussex County Council, [13]West Sussex County Council , and Surrey County Council have all decided to move off SAP.

Birmingham decided to move to Oracle and Surrey moved to Unit4, although both took a similar approach to the "fit to standard" principle preferred by the City of London, only to find they met significant challenges going live with the software. Birmingham has been [14]unable to file audited accounts , while Surrey [15]has struggled to pay school staff on time or the right amount .

The City of London will hope it fares better with its ERP vendor decision. ®

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[1] https://www.find-tender.service.gov.uk/Notice/004760-2024

[2] https://www.theregister.com/2020/06/12/city_of_london_corporation_breaks/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZdOJN8PRXf4mTLB9h6tc5AAAAIo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZdOJN8PRXf4mTLB9h6tc5AAAAIo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZdOJN8PRXf4mTLB9h6tc5AAAAIo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZdOJN8PRXf4mTLB9h6tc5AAAAIo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://democracy.cityoflondon.gov.uk/documents/g23897/Public%20reports%20pack%2020th-Feb-2024%2012.45%20Finance%20Committee.pdf?T=10

[8] https://www.theregister.com/2024/02/13/unit4_surrey_county_council/

[9] https://www.theregister.com/2024/02/12/sap_plattner_replacement_switch/

[10] https://www.theregister.com/2024/02/08/edinburgh_university_oracle_report/

[11] https://www.theregister.com/2024/02/07/air_india_sap_ibm_investigation/

[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZdOJN8PRXf4mTLB9h6tc5AAAAIo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[13] https://www.theregister.com/2021/12/14/west_sussex_county_council_faces/

[14] https://www.theregister.com/2023/10/16/birmingham_set_to_miss_deadline/

[15] https://www.theregister.com/2024/01/30/surrey_county_council_new_unit4/

[16] https://whitepapers.theregister.com/



It says it will go for a "fit to standard" principle

Anonymous Coward

Good luck with that. Big ERP systems are designed for large commercial corporations, not for the public sector. And even in the private sector, ERP changes are widely recognised as likely to result in massive operation al problems and huge overspends.

How long before CoL are in the new again over their troubled SAP implementation?

Re: It says it will go for a "fit to standard" principle

fb2k

right, that's why they have a specific public-sector module

https://help.sap.com/docs/SAP_S4HANA_CLOUD/93bd0b1e72ca4cbcbfb942d4497529f7/39258e361aa8474a89da8f57fc9fd3a4.html

Re: It says it will go for a "fit to standard" principle

Anonymous Coward

To be fair I think the public sector are quite capable of screwing anything up, it's by no means limited to ERP.

Also worth noting is that their systems are "out of support"... so they couldn't even manage to plan to replace things before they went out of support despite several years notice that this was going to happen...

What a choice!

DJV

Ugh, Oracle or SAP. It's like deciding which of your own hands you'd prefer to cut off.

Re: What a choice!

Steve Button

Out of the frying pan, into the fire?

Re: What a choice!

b0llchit

That would be a "quick" death.

A better comparison would be: thrown in the middle of the sea or dropped in the middle of hot wet jungle. You can "swim" for a while before you drown or the bugs get you. Either way, you think you can survive until you don't.

Re: What a choice!

Yet Another Anonymous coward

replace a predatory Oracle implementation

The City of London will hope it fares better

Howard Sway

Ah, they must have read that industry standard ERP textbook, "The Triumph Of Hope Over Experience".

Stitch up

elsergiovolador

from an established industry-leading solution supplier.

So I presume the winner is already pre-determined?

Is putting such prejudice in a tender even legal?

Re: Stitch up

Doctor Syntax

I wonder if putting "Must actually work" in the requirements might be considered illegal.

"Our ERP project is going really well"

trevorde

Said no one ever!

Shinier than a silver bullet

Khaptain

Nothing oozes false hope more than an ERP, promising to hand you the world on plate made of silver bullets but delivering nothing more than a half empty wet bag containing old flatulent air at it's best..

Isn't it odd

Yet Another Anonymous coward

That say Birmingham's need for council tax software is so different from Sheffield's that both need to spend millions on a custom Oracle/SAP/IBM system rather than every council getting together and developing a common standard.

Re: Isn't it odd

RSW

Must be a different language pack

Danie

You may "leap into the cloud" but you won't be leaping out as easily...

Thank god!! ... It's HENNY YOUNGMAN!!