News: 1720440131

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Brit council gives Oracle another £10M for professional services amid ERP fallout

(2024/07/08)


Troubled Birmingham City Council, which was declared effectively bankrupt last year owing in part to a disastrous Oracle implementation, has awarded the tech giant £10 million ($12.8 million) for additional professional services.

In [1]a contract award notice published late last week, the council said the deal - worth £9.987 million - started on June 4 and is set to end on September 3, 2026.

Birmingham City Council, Europe's largest local authority, [2]failed to enter the new financial year in April with auditable accounting software after a disastrous implementation of Oracle Fusion, which went live nearly two years late and pushed the budget from £20 million ($26 million) to £40 million ($51 million).

[3]

The total cost of the project could now be as high as £131 million ($163 million) as it plans to completely reimplement the software "out-of-the-box" after efforts to build a customized solution hit the buffers.

[4]

[5]

The council initially [6]failed to implement security and audit features in the software , meaning that it has no way of telling if fraud took place between April 2022 and September 2023.

[7]Brit council fumbles Oracle Fusion launch, leaving SAP to die another day

[8]Oracle Fusion rollout costs 15 times council's estimates in SAP rip-'n-replace

[9]City council audit trail is an audit fail after disastrous Oracle ERP rollout

[10]Mega city council's Oracle ERP system still not legally safe, compliant... 2 years after rollout

A number of companies have benefited from advisory roles in helping the council recover the project. They include Oracle Consulting, Gartner, PwC, and KPMG, as well as original partners Insight Direct and Evosys.

In addition to the new Oracle Professional Services award, there is more work on the way for the tech sector as the council prepares to reimplement Oracle while it also struggles to get the current system fit for purpose.

The council is [11]set to launch a procurement for a new Oracle delivery partner to "scale, deploy and work with the Council to implement the initial solution by March 2026 and run the service for a further three to five years."

[12]

In May, [13]the council's Finance and Resources committee heard the plan to reimplement Oracle would require significant business change. The committee was assured the council would use "stage gates" to control the rollout and that "there was a tighter governance process in place this time." ®

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[1] https://www.contractsfinder.service.gov.uk/notice/d18adcfe-aa49-4f03-ac85-a984e2678d0d

[2] https://www.theregister.com/2023/04/26/ellisons_exemplar_oracle_win_over/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZowNGbTqwGWlz2Salg4TGQAAANU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZowNGbTqwGWlz2Salg4TGQAAANU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZowNGbTqwGWlz2Salg4TGQAAANU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://www.theregister.com/2024/04/25/birmingham_oracle_audit_trail/

[7] https://www.theregister.com/2024/05/23/east_sussex_oracle/

[8] https://www.theregister.com/2024/04/30/uk_council_sees_cost_of/

[9] https://www.theregister.com/2024/04/25/birmingham_oracle_audit_trail/

[10] https://www.theregister.com/2024/04/17/birmingham_city_councils_oracle_erp/

[11] https://www.theregister.com/2024/05/14/birmingham_city_council_oracle/

[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZowNGbTqwGWlz2Salg4TGQAAANU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[13] https://birmingham.cmis.uk.com/Birmingham/Document.ashx?czJKcaeAi5tUFL1DTL2UE4zNRBcoShgo=5Orb%2fgYmpcq%2bFo7Twst%2f1kdIAZtcyco%2bMUMi5z2VsWgCY3f2%2fIsOdA%3d%3d&rUzwRPf%2bZ3zd4E7Ikn8Lyw%3d%3d=pwRE6AGJFLDNlh225F5QMaQWCtPHwdhUfCZ%2fLUQzgA2uL5jNRG4jdQ%3d%3d&mCTIbCubSFfXsDGW9IXnlg%3d%3d=hFflUdN3100%3d&kCx1AnS9%2fpWZQ40DXFvdEw%3d%3d=hFflUdN3100%3d&uJovDxwdjMPoYv%2bAJvYtyA%3d%3d=ctNJFf55vVA%3d&FgPlIEJYlotS%2bYGoBi5olA%3d%3d=NHdURQburHA%3d&d9Qjj0ag1Pd993jsyOJqFvmyB7X0CSQK=ctNJFf55vVA%3d&WGewmoAfeNR9xqBux0r1Q8Za60lavYmz=ctNJFf55vVA%3d&WGewmoAfeNQ16B2MHuCpMRKZMwaG1PaO=ctNJFf55vVA%3d

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



perkele

And the sanctions for the mass of council employees and politicos who approved this mess from day one... ?

Meanwhile a rich man sits on one of his yachts urinating himself (not through senility) with laughter at this copper bottom incompetence and clown show that keeps on going.

It would have been cheaper to return to paper, pen and filing cabinet. Maybe harder for fraud too...

heyrick

Yeah, you would have thought "payment on completion" to concentrate their minds and not have this endless shitshow.

Ten million. That's how many teaching assistants?

A Non e-mouse

The problem was the definition of "completion" kept on changing, hence why the council had to keep handing over bundles of cash to Oracle.

Handlebars

You might imagine that both customer and supplier would have audit functions on the check list. Even if the council are daft, the supplier might want to nudge them

keithpeter

That would require either a public enquiry on the scale of the postmasters, or a police 'operation' lasting half a decade or so.

Around May 2026 could well be the date that the residents get to provide their own sanction.

It will be an interesting election!

Doctor Syntax

Depending on your point of view - money pit or cash cow.

b0llchit

Throwing good money after bad money (*) ? Or, the glass is half full, half empty (**) ?

(*) The perception of good and bad is determined by whether you are on the receiving end or a spectator.

(**) Either way, the glass was not manufactured to the correct specifications.

Doctor Syntax

I always prefer glass half empty. The reasoning is that if it's half empty it has been full and I've already drunk half of it and once I've drunk the other half it might get refilled. OTOH half full might be as good as it's going to get.

nmca

It’s not just the Brummies who are being taken for a ride. See the Rotten Boroughs current Pre-Election Special issue of Private Eye for the same malarky in West Sussex.

Ken Hagan

What do other UK councils do? They all exist in the same legal environment with the same job to do for their residents, so presumably there is at least one existing, working, solution already out there.

Separate, but related, thought: Why in heaven's name is there not a standard solution that any and every council in England and Wales can't just adopt?

perkele

Maybe the bus taking the decision makers to another "fact finding" trip, in the cold of a British winter, didn't have enough room.

Or a fact finding mission to Slough (or similar) is just not so attractive?

Just like if a lobbyist offers you a working meeting at some uber-Michelin restaurant and, oh as it is a long way away maybe you must stay over for a "presentation" versus a quick lunch at your local burger joint...

(for those who the usual rules don't apply to).

wolfetone

" Why in heaven's name is there not a standard solution that any and every council in England and Wales can't just adopt? "

Because the posh people in Surrey can't abide to know that they have the same needs as Dave. A 30-something part time labourer who lives in a council flat in Birmingham.

Then you have the councils who think they couldn't possibly be doing the same job or have the same needs as any other council in the country.

Doctor Syntax

"Why in heaven's name is there not a standard solution that any and every council in England and Wales can't just adopt?"

Because it's more profitable to pick them off one at a time.

Getting together to commission a development of a common system would probably be outside their remit and possibly, in consequence, illegal. I wonder if getting together to develop a common, properly tested specification would be OK Probably not feasible as councils of different political persuations would spend their time falling out with each other.

nijam

> ...presumably there is at least one existing, working, solution ...

Have you ever had any dealings with a UK council (other than paying tax to them)? I suspect not.

Anonymous Coward

There is a solution built for councils, the Australian company technology one has an ERP OneCouncil solution, it works, it's not cheap, but it's a lot cheaper than the others out there.

With regard to other services (i.e. not ERP, (planning, housing, benefits, elections, etc)) the big firms are already in to deep with massive data extraction fees and the threat of de-supporting should you connect to the database directly (that's if you can even work out the schema after 20+ years of badly managed mergers) there is not really any option but to keep using them... Boooo!

Anonymous Coward

I've heard of another UK public body trying to do an Oracle implementation and is about to throw it out and start again.

Out-of-the-box

Bendacious

"completely reimplement the software "out-of-the-box"... [this plan] would require significant business change"

I'll say it would require significant change. ERP software is designed to be customised to fit the organisation's existing processes. Asking each council department to change their processes to fit the out-of-the-box install is madness. It sounds like a nice solution until you realise that half of the processes were not planned but forced on them and evolved over years due to annoying reality. I have worked on a large CRM project that management were insistent was to be out-of-the-box, to get it rolled out quick time because essentially all sales departments are the same. That plan lasted until the first users got a look at it and then the project became a bit more 'agile'. I'm sure every council could benefit from reviewing their processes but throwing them all out and starting from scratch with what Oracle thinks is the baseline for all organisations is not a good plan.

What makes us so bitter against people who outwit us is that they think
themselves cleverer than we are.