• Appendix H: Consolidated list of insights

    Table 30: Consolidated list of Insights
    InsightDescription
    H2R1For an agency that has a large IT support team, ongoing management and upgrade of this solution would be achievable. For smaller entities, closer consideration would need to be given to maintenance implications.
    H2R2The whole of government GovERP template has not been updated for the new whole of government common conditions.
    H2R3A number of the WRICEF enhancements that were implemented were required to make the system suitable for public sector use.
    H2R4While the solution offers comprehensive HR management capabilities, and a lot of reporting capability out-of-the-box, in-depth analytics and reporting is not fully provisioned.
    H2R5To enable shared services, data separation on the same tenant would need to be built and tested.
    H2R6For ongoing use, application regression testing, and any resolution of defects, or resolution of custom or enhanced codes, will be the responsibility of the customer to manage, not the vendor. There will be at least two application upgrades a year.
    H2R7There are 18 H2R WRICEF's, most of which will require effort to maintain.
    H2R8Advice has been provided from Services Australia, that 'Manage APSED Report' is the only sub-component within Employee Management outstanding in the build. Similarly, within Payroll Services, only 'Manage Salary Recall' has not passed functional testing.
    H2R9The existence of WRICEF components highlights the importance of considering the maintenance overhead associated with these customisations when assessing the reusability of H2R capabilities in GovERP.
    H2R10If entities only want to use specific capabilities, or any part of the solution stack, then an appropriate commercial construct would likely be required at a whole of government level.
    H2R11MVP1.1 with AGD enhancements already sits on top of MVP1.1. The solution is now ageing. Further delays of how to use this platform will put the re-use agenda further out of reach for ERP.
    H2R12A whole of government standard could be set on how vendors need to operate with the APS in order to deliver on ERP services. This would greatly increase the chance of interoperability and re-use in the sector.
    FIN1S/4HANA will need to be upgraded from FPS01 (2021) to at least the October 2023 build to reduce ongoing out of year maintenance, and to remain on the upgrade path, noting that the underlying technical stack (ABAP/T) has had a version change between 2021 and 2023.
    FIN238% of the processes within Finance were not agreed to by the BPMC and have not been ratified.
    FIN3IRAP assessment of the FMIS relied heavily on security settings in Microsoft Azure.
    FIN4There are 89 Finance WRICEF's (63 in B2R and 26 in R2B), most of which will require effort to maintain.
    FIN5S/4HANA is the on-prem version, tenanted on the Service Australia private Microsoft Azure cloud. This version could be installed locally by another agency.
    FIN6Note the number of customisations and enhancements in the solution, it is likely that unless an entity has a large existing SAP workforce, that ongoing maintenance and upgrade of the solution will be difficult. Equally, for a large agency with complex ERP needs, the solution could be used as an accelerator.
    FIN7Consideration should be given to the integration layer that has been built during the project, it is likely the ability to integrate and pass data between other core systems and GovERP exists, and could be considered for initial data standards / integration standards.
    P2P1There are 37 P2P WRICEF's, most of which will require effort to maintain.
    TEMS1Expense8 has had several functionality uplifts prior to the handover of GovERP to Services Australia, and as a configurable SaaS product, is able to be immediately reused by other entities.
    TEMS2None of the WRICEFs built into the TEMS solution (Expense8 and GovComply) are anticipated to have a high complexity of ongoing maintenance. As a SaaS solution, the vendor is responsible for the ongoing management of these WRICEFs.
    TEMS3There are 10 TEMS WRICEFs, all of which will require a low effort to maintain.
    TEMS4Despite the build status of the GovERP template for TEMS, Expense8 can be operated independently of GovERP as a standalone product, which can be integrated into another entity's environment.

  • Appendix I: Agreed chronology for Shared Services

    The below table was provided by the Department of Finance. 
    Note, in addition to the below table, AGD advised in January 2024 that it would not onboard to GovERP.

    Table 31: Agreed chronology for Shared Services
    Decision OriginType Technical Funding PolicyDecision Detail
    November 2023Policy
    • Government announced the new APS Enterprise Resource Planning (ERP) approach, replacing the Shared Services Transformation Program.
      • GovERP has been repurposed (and renamed the Services Australia ERP) for use by Services Australia, and any entities that choose to use it.
    • The APS ERP approach sets the strategic direction for how the APS will manage its ERP corporate systems and is underpinned by the principles of choice, market competition, and affordability.
    August 2023Policy
    • Secretaries Digital and Data Committee (SDDC) discussed the update on the future of shared services (SDDC Communique).
    June 2023Policy
    • SDDC noted various updates on the Shared Services Transformation Program and agreed to return to the next SDDC meeting with a proposition of the way forward (SDDC Communique).
    November and December 2022Policy
    • SDDC holds deep dives into the Shared Services program.
    August 2022Policy
    • SDDC agree that entities to onboard directly to GovERP (rather than to a hub).
    August 2022Technical
    • SDDC notes that DESE has withdrawn as the first agency to onboard as it is subject to a Machinery of Government to become Department of Education and Department of Employment and Workplace Relations.
    • AGD becomes the pilot agency for onboarding to GovERP.
    March 2022Technical
    • Services Australia advises GovERP Programme Board that DESE is to be the first agency to onboard to the GovERP platform using the SAP template.
    2021-22 Budget (May 2021)Funding
    • Government endorses forward work program (First Pass Business Case) to transform the operation of the Australian Public Service.
    • Funding over 2 years (recorded as not for publication) to Services Australia and Finance to:
      • build and deliver the GovERP platform, and
      • onboard the first provider hub (SDO) and its client entities.
    • Funding was also provided to the Australian Taxation Office, Finance, and the then Department of Industry, Science, Energy and Resources to develop Second-Pass Business Cases for further adoption of GovERP and the design of suitable standardised technologies for small and medium entities.
    • Of the total $273.5 million, the allocation was:
      • Services Australia $246.1 million
      • Department of Industry, Science, Energy and Resources (DISER) $2.0 million
      • Australian Taxation Office $3.3 million
      • Finance $22.1 million
    Technical
    • In July 2021, the Australian Taxation Office advised Finance that it would be withdrawing its offer to host a shared services hub as it believed it would be better placed to support the program as a consumer agency rather than a provider hub.
    February 2021Technical
    • Secretaries Board agrees the Operating Model, phased approach, funding required used in the joint first and second pass business case.
    2020-21 Budget (October 2020)Funding
    • $35.6 million provided to Finance in 2020-21 to develop the GovERP model and Whole of Government Business Case.
    July 2020Technical
    • Bureau of Meteorology executive decline to onboard. SDO and its 14 client entities are to be the first use case.
    December 2019Technical
    • The then Minister for Finance (Mathias Cormann) notifies the reallocation of the remainder of the $31.5m from the Modernisation Fund moneys to progress the GovERP SAP prototype and discovery work for small entities and PROTECTED solutions.
    December 2019Policy
    • The Thodey Review recommendation that the APS 'Adopt common enabling tools and services to support efficiency, mobility and collaboration' with the introduction of a lead agency. The APS Transformation Leader and Finance, with investment provided by Secretaries Board in accordance with government-agreed criteria.
    Technical
    • Secretaries agree that the Bureau of Meteorology and their hub, SDO proceed with detailed design for first onboarding to GovERP, subject to final agreement from BoM executive.
    • Secretaries agree the program continue rapid discovery work with the NDIA and a client entity of the ATO together with their provider hubs to inform viability of inclusion and their sequencing in the first tranche of onboarding.
    October 2019Technical
    • Secretaries agree the GovERP prototype (if endorsed by Government) will be delivered through tranches to provide the opportunity to test and refine the technical and business processes.
    September 2019TechnicalShared Services Steering Committee agrees that the forward work program should aspire to deliver a minimum viable product of GovERP covering the core and at least 2 edge products trialed by one of more entities.
    August 2019PolicySecretaries Board agrees to development of a prototype GovERP template and implementation of a minimum viable product covering the core and edge products. (Build commences within Finance) Commencement of this GovERP build makes the deadline for all entities to onboard to provider hubs by 30 June 2021 superfluous as it would require entities to onboard to two different technologies at great cost to the Commonwealth - waiting and onboarding once to the GovERP platform represents more appropriate value for money.
    FundingReprioritisation of the onboarding component $31.5 million of the $89.5 million of shared services Modernisation Fund moneys to be allocated to Finance to progress the GovERP prototype.
    TechnicalDFAT is recognised as an overseas hub for service provision.
    2018-19PolicyBenchmarking ceases after the 2018-19 collection as a review finds issues in relation to the application of definitions and consistency of the data. Two approaches to the market are subsequently made (January 2022 and in 2022-23). No successful tenderer is appointed for either approach as the cross-portfolio evaluation panel determined that no tenders represented value for money to the Commonwealth.
    April 2019Technical
    • Deputy secretaries agree that the scope of the SAP template will cover core financial, procurement, and human resource functions.
    • Finance commissioned to assist in the development of a first pass business case, with 4 options to be included.
    December 2018TechnicalDeputy Secretaries agreed to continued participation in the development and testing of the SAP template core and edge products; development of a draft roadmap operating model; and development of a whole of government service offering catalogue.
    August 2018Technical
    • Deputy Secretaries agree:
      • Department of Home Affairs to become a hub.
      • Service offering moves from Managed services to Software-as-a-Service where entities can demonstrate that this represents better value for money.
      • To continue testing S4/HANA whole of government proof of concept
      • Department of Home Affairs becomes a hub to support greater standardisation of common functions within the Home Affairs portfolio.
    Mid-2018Technical
    • Treasury hub is consolidated into the Department of Industry, Science, Energy and Resources DISER hub (now the DISR hub). It becomes the only hub offering Technology One/Aurion systems.
    • Further work on:
      • a protected offering through a protected working group, and
      • small agency offerings led by Finance.
    2018-19 BudgetPolicyThe Government agrees the Minister for Finance is to require shared services provider hubs to coordinate their investment in underlying platforms and software.
    January 2018Technical
    • Investigation of common platforms for SAP hubs, incl. cloud hosting
    • Roadmap for TechnologyOne hubs (Industry and Treasury) being developed.
    • Further work occurring on a protected and small agency offering.
    2017-18 BudgetFunding
    • $89.5 million in Modernisation Fund moneys allocated to shared services initiatives across multiple portfolios to:
      • expedite and support entities to transition their core transactional corporate services and associated IT systems into a hub, and
      • develop the capability of hubs.
    July 2017TechnicalIndustry briefing, market day presentations and Request for Proposal are issued to establish an ERP procurement panel.
    April 2017Policy
    • Milestones and transition schedule agreed by Secretaries Board, subject to final decision on the Modernisation Fund.
      • Commencement of standardising business systems and processes through consolidating 85 internal service providers into six hubs
      • 14 entities (including those hosting six hubs) transitioned to a shared service hub, with an additional 60 entities to transition over the next two years (by 30 June 2021).
      • 70 entities participating in the annual benchmarking exercise.
    1 December 2016PolicyShared Services Centre transfers from the Education and Employment portfolio departments to the Department of Finance and is established as the Service Delivery Office and delivers accounts payable/ receivable/ payroll direct card and travel management services.
    November 2016PolicyAny potential outsourcing pilot is put on hold to allow hubs to onboard client entities.
    June 2016PolicyCorporate Services Investment Moratorium is issued.
    February 2016TechnicalLessons learned from establishment of the initial shared services hubs, and options for managing staff issues. ASL cap figures will move with staff consolidating in a provider hub.
    2015-16 MYEFOFunding (savings)Further savings: $40.9 million over 3 years from 2016-17 and an ongoing save of $16.8 million per annum from 2019-20 from consolidating the provision of transactional and other common services to a small number of shared services centres (provider hubs) within Government entities.
    December 2015Technical
    • Secretaries Committee on Transformation consider 3 options for the next stage of the program:
      • Consolidate delivery to a small number of public- sector hubs
      • Fully outsource to the private sector
      • Consolidate in hubs and pursue opportunities to outsource where opportunities for better value are demonstrated.
    October 2015TechnicalEarly market engagement to understand where the private sector could contribute to the program.
    July 2015Technical
    • Service Catalogue of shared and common services is agreed.
    • A Costing and Pricing methodology is agreed with a focus on costings transparency and identification of direct and indirect costs.
    • Principles to govern implementation are established.
    • Benchmarking commences with all providers required to participate.
    2015-16 BudgetFunding (savings)
    • Initial savings: $31.4m over 2 years from 2017-18 to reform back-office IT systems and applications, consolidate ERP systems and deliver more common business processes
    May 2015Policy
    • Secretaries Committee on Transformation agrees that all entities will subscribe to the shared and common services strategy and will begin the transition to shared and common services by focusing on low complexity, low risk and high-volume services across government.
    • Initial maturity target is established.
    February 2015Technical
    • Initial feasibility study for an agency ERP concludes that existing methods of implementation and operation are inefficient and unsustainable. It recommends consolidating software support staff, standardising policies and systems across the APS and benchmarking service delivery costs to drive efficiency and facilitate contestability. This reform is then driven by Secretaries Board to deliver a smaller, more agile, and better integrated public sector.
    November 2014Policy
    • Secretaries Board agrees to establish the Shared and Common Services project which is later renamed to the Shared Services Program. The desired end state would include:
      • greater consolidation of corporate functions (transactional and some tactical) with a few entities providing services for many.
      • greater consolidation of standard systems and processes for common non-transactional processes.
      • supporting a larger range of common services with minimal customisation, through fewer ERP systems procured centrally to drive down costs.
    • Explore the scope for expansion of the two Public Sector shared service centre (SSC) initiatives:
      • SSC – Employment/Education for medium-sized entities.
      • SSC – Treasury for central and smaller entities.
    • Propose a sequenced approach to consolidating corporate services with possible savings identified, before the private sector is approached through a Request for Information (RFI) process to gauge interest, capabilities, and preparedness to:
      • provide competitive offerings for the provision of transactional services to the Public Sector; and/or
      • partner with the Public Sector in implementing the preferred strategy and realising the efficiencies and benefits identified.
    • The Department of Finance to establish a unit to work with all entities to establish detailed roadmaps to progress toward the agreed end state over the next 3-5 years.

  • GovERP Technical Assessment Overview

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  • GovERP Technical Assessment Summary of Delivered Product

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  • GovERP Technical Assessment What can be reused and how?

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  • Appendix B: Value stream and technology mapping

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  • Appendix C: Business function catalogue

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  • Minister's foreword

    The Australian Government is committed to a modern public service that puts people and business at the centre of its data and digital transformation.

    In 2023, it is difficult to think of aspects of our life that aren’t touched in some way by digital technologies. 

    As Australians increasingly take up technology to do everything from banking to accessing support payments to seeing a doctor, it is clear that the Australian Government has the opportunity to use data and digital technologies to improve our service delivery and decision-making, with a goal of better outcomes for all people and business. 

    This is why we have developed the Data and Digital Government Strategy (the Strategy), the first combined data and digital strategy for the Australian Government, as a blueprint for the use and management of data and digital technologies through to 2030.
     

    Read the full statement from Minister Gallagher (Opens in a new tab/window)

  • Appendix D: WRICEF details

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  • ""

    Minister's foreword

    The Australian Government is committed to a modern public service that puts people and business at the centre of its data and digital transformation. In 2023

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