Biting the bullet of IT modernisation: Transforming Australian governments for the future

In 2023, the Federal Government announced it was scaling back its failed GovERP project; a costly and ambitious yet ultimately unsuccessful attempt at a whole-of-government SAP implementation.

It would be a mistake to consider this a case of one or two projects gone awry, as this was far from the only major government tech program to be bulleted in the past several years.

It reflects deeper issues within public-sector IT: the persistence of using outdated, monolithic legacy systems that often prove mismatched to the diverse needs of individual agencies or community requirements, like a square peg forced into a round hole.

Perhaps not coincidentally, these projects have been lucrative for major consultancies.

How the Australian Government technology landscape is changing

The Australian government technology landscape is changing, opening the door wider to local vendors willing to do things differently.

Digital transformation projects are also undergoing a revolution with the introduction of "consumption-based" commercial models supporting a new generation of technologies. These innovative pricing approaches promise to curb costs and timing overruns.

These changes are reshaping the relationship between government agencies and technology providers, fostering a more collaborative and strategic approach to technology adoption.

As agencies navigate this evolving landscape, they are increasingly seeking partners who can deliver solutions that not only meet their immediate needs but also align with long-term strategic objectives.

Necessity for modernisation

The urgency of Australian Government agencies replacing and upgrading their current solutions with modern systems cannot be overstated. Relying on outdated, manual processes and costly implementations that frequently exceed timelines and budgets hampers operational efficiency and undermines the delivery of essential services to the community.

Modernisation of systems offers abundant opportunities, especially in enhancing the Australian Government's data and digital infrastructure. These improvements can refine decision-making processes and service delivery, ultimately resulting in better outcomes for individuals and organisations alike.

Embracing modern systems offers a pathway to streamline workflows, reduce manual processes and enhance cost-effectiveness, delivering a step-change reduction in the cost of government.

By adopting efficient, automated processes, governments can optimise resource allocation, improve service delivery, and ultimately enhance the lives of its citizens.

Transitioning to SaaS ERP solutions

A shift towards software-as-a-service Enterprise Resource Planning (SaaS ERP) solutions is the way of the future. However, despite SaaS’s increasing importance for seamless user experiences and mission-critical functionalities, the traditional method of relying on third-party consulting and implementation partners has become a hindrance, wasting the industry billions of dollars each year.

According to Technology Evaluation Centers, most ERP implementations end up costing three to four times the original budget. The traditional model complicates ERP implementation by involving separate parties to sell, implement, maintain and support the software. It favours the implementors by encouraging scope creep and the chance of risky, drawn-out implementations.

Moving away from consultant-heavy, legacy solutions to comprehensive SaaS providers allows governments to achieve cost savings, improve efficiency, foster innovation, reduce the risk of failure and enhance the overall experience for citizens and government employees alike.

Navigating the risks of change

While upgrading existing IT systems may seem simpler and carry less risk, it often limits the potential for the significant technological advancements and long-term benefits that new, modern systems can provide.

Many ageing legacy IT systems run by large international providers are not purpose-built for governments and due to chronic underinvestment, are unable to support critical services. They often fail to meet specific regulatory and operational requirements, leading to inefficiencies and compliance issues.

The systems can be difficult to customise, resulting in costly adaptations and integration challenges, and may lack the security and scalability needed to handle sensitive government data.

Adopting new government IT technology isn’t without its risks. However, there are many locally developed SaaS ERP solutions tailored to meet the specific needs of Australian government agencies.

These Australian providers understand the complexities of the industry and the challenges and risks associated with implementing new government IT solutions.

Modern, purpose-built systems also offer improved data security and privacy protections, crucial for handling government data, and make sure agencies meet the unique regulatory requirements, ensuring compliance with national standards and policies.

TechnologyOne’s role in IT modernisation

TechnologyOne’s proudly Australian solutions are used by more than 230 Federal, State, and central government departments and agencies across Australia and New Zealand. They address the key obstacles of time, value, cost, and complexity that often impede government investments in digital infrastructure.

TechnologyOne has transformed the ERP implementation process, reducing risk and cost and rapidly accelerating customers' time to value with Solution as a Service (SaaS+).

SaaS+ is a unique all-inclusive offering specifically tailored for Australian governments that replaces traditional upfront costs with a single annual fee containing all costs required to implement, run, support and upgrade the solution.

Key benefits of SaaS+

SaaS+ can quickly deliver tangible benefits, such as:

• Cost certainty
• Superior 24/7 support
• Access your ERP anywhere, any time, on any device through TechnologyOne’s CiA platform.
• Reduced risk
• Faster time to value
• Continuous innovation and more.

Learn more about these benefits here.