Under phase two of its huge enterprise resource planning (ERP) revamp, the Department of Defence has given IBM Australia $42 million to build an SAP case management system. Under phase two of its huge enterprise resource planning (ERP) revamp. The government announced the 19-month agreement late last week, increasing the total amount of IBM ERP contracts inked to more than $170 million this year.
IBM has been the project’s system administrator for the last two years after outbidding Accenture in a prolonged procurement process to win a $95.5 million contract for the first tranche of work. The new ERP system will be built on SAP’s Defence Forces and Public Security solution and hosted on S/4 HANA and is expected to cost up to $1 billion when completed. It is planned to replace more than 500 existing programs, including 90 percent of ERP software, for finance, logistics, procurement, engineering, maintenance, and estate activities.
According to a Defense spokeswoman, follows a $17 million deal signed with IBM last December that ended over the week. The logistics and maintenance ability release, the more important second part of tranche one, is scheduled to achieve IOC by the end of 2022. Tranche three is still waiting for cash.
According to the spokesman, the case management capability for Defence is being delivered by IBM Australia using SAP’s S/4 HANA result in an internal management solution. When the first phase of tranche one, financed at $364 million, attained initial operating capability last December, the government approved $250 million for tranche two of the program (IOC). Defense evaluated whether the case management program could align with ERP program in July 2020 and determined that SAP’s case management product could fulfill Defense’s objectives,” according to the audit. While the Department of Defense has yet to replace any of the 500 outdated programs in the program’s scope, a spokeswoman stated the case management capabilities would allow this to happen in the future. “The technology being supplied will enable the rationalization of a range of existing Defence case, investigation, and incident management systems and capabilities,” Defense stated.