Purpose

To progress the re-procurement /extension of the current ERP arrangement as required.

Decision

RESOLVED

KEY DECISION

That the Executive:

i)   Approved the continuation of the contractual arrangements of the current Unit4 ERP system to end of its product life of 2032.

           ii)  Delegated authority to the Executive Director of Finance in consultation with the Executive Member for Finance, Efficiency and Change, acting through the Lead Board Authority (LAB) Shared Services Partnership to:

•         Progress the re-procurement of the current ERP arrangement as required;

•         Act on behalf of the authority within the Share Service partnership in agreeing the approach for ERP beyond 2032; business case to be developed by 2028 to information solution and costs.

Reasons for Recommendations:

a)     The recommendation reflects an assessment of the options available for the Council’s ERP system and is based on clear evidence of affordability, deliverability and risk.

b)     A major ERP replacement programme aligned to the 2029 milestone would require significant investment (estimated £6m–£15m+ depending on the solution chosen) and represent a complex, high-risk organisational transformation. At this stage, such a programme would introduce disproportionate risk relative to benefit.

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c)     The assessment confirms that continuing with the current ERP platform is the most viable option for the 2029 decision point, offering the lowest cost, lowest risk and most stable approach to maintaining critical services.

d)     The Lead Authority Board have confirmed a strong alignment that 2029 should be treated as a continuity and stabilisation milestone, with the strategic focus placed on the required ERP replacement required by 2032.

e)     The primary issues within the current ERP environment are operational processes, rather than limitations of the system itself. Commencing a major system replacement at this stage would not address these root causes and would risk carrying them into any future system.

f)       Deferring transformation enables the Council and its partners to:

•         Stabilise and leverage existing platform capability whilst optimising operational processes;

•         Reduce audit and operational risk;

•         Prepare a robust, evidence-based Outline Business Case for the 2032 replacement.

Alternative Options Considered:

•         No other option(s) would provide a prudent, financially responsible and risk-managed approach, ensuring service continuity in the short to medium term while enabling a controlled and successful ERP transition in the longer term.