How Nottinghamshire County Council saved loads of money on SAP

Nottinghamshire County Council has prolonged its third-party SAP help contract with Rimini Street because it continues to handle the associated fee of its ERP Core Components (ECC) system.

The council’s enterprise useful resource planning (ERP) system, which went reside in November 2011, supplies help for back-office features comparable to payroll and accounts receivable.

Describing the journey to swapping SAP upkeep and help for a 3rd get together, Sarah Stevenson, group supervisor of the enterprise companies centre at Nottinghamshire County Council, says austerity measures meant it wanted to determine areas the place it may cut back prices.

“We have had to look to deliver savings, and started with the low-hanging fruit,” she says. “We were looking to deliver savings and came across big-ticket items, support and maintenance. Our journey with third-party support began in 2015.”

At that point, says Stevenson, the organisation had not reached a excessive sufficient stage of maturity in phrases of data to help ECC throughout the council, so it continued with its implementation companion, CGI, and a direct relationship with SAP.

By 2017, Stevenson and the staff at Nottinghamshire County Council have been assured sufficient in their very own SAP capabilities to make it possible to maneuver off the SAP upkeep and help contract. The council revisited the choice of third-party help. Patching the SAP system was costing £100,000 per 12 months.

“I had a savings target,” says Stevenson. “We have our own centre of excellence for first-line support, and when looking at capabilities and savings, third-party support was the right thing to do. It has enabled us to deliver the savings we required,” she says.

Rimini Street was invited to tender for the SAP help contract. The council needed to retain CGI for second-line help and was eager that Rimini Street and CGI would have the ability to work collectively successfully to repair any points that will come up in Nottinghamshire County Council’s SAP ECC and Business Objects methods. The council subsequently signed a two-year contract with Rimini Street, which has now been renewed.

Justification for HANA, or not?

Standard help for SAP ECC has been prolonged to 2027. Extended help is offered till 2030, however the ERP firm is eager emigrate current clients to its S/4HANA cloud-enabled, in-memory platform.

With an ageing SAP system, Stevenson’s staff checked out S/4HANA, however the associated fee made it unviable. “It was one of the options for us, but there was no viable business case,” she says. “Our existing system does the job it needs to do, and financially, S/4HANA is expensive.”

Stevenson discovered that in dialogue with SAP, the S/4HANA gross sales representatives tended to current use instances from different nations which weren’t sensible for a neighborhood authority. She says one instance SAP gave was the drainage system in San Paolo, Brazil, however “we don’t have those kinds of issues here”.

“S/4HANA was one of the options for us, but there was no viable business case. Our existing system does the job it needs to do, and financially, S/4HANA is expensive”
Sarah Stevenson, Nottinghamshire County Council

According to Stevenson, there isn’t a actual drive emigrate off the SAP ECC ERP platform. “I have a duty of care as a public servant,” she says. “When you have a system that does the job, the investment needs to be on the front line. How do you get a return on investment? It didn’t stack up.”

Another issue is that as a result of Covid-19 pandemic, many organisations are reconsidering what they do subsequent from an IT technique perspective. Over the previous 10 years, IT would sometimes have embarked on a large-scale transformation programme, centred round a totally built-in ERP. But the enterprise software program market has moved and there are different choices obtainable to IT departments, comparable to the power to combine and loosely couple totally different enterprise methods collectively to help inside processes.

Stevenson says one of the advantages of Rimini Street is that it provides a 15-year help assure, which suggests Nottinghamshire County Council can proceed to run SAP ECC and have it supported for a lot of extra years. “We now have support guarantees [so] the council can look at other cost-cutting programmes,” she provides.

When requested how Rimini Street works alongside CGI and the in-house help staff, Stevenson says the three events have come collectively properly, and the way in which help is split between in-house, CGI and Rimini Street is an effective mixture. Along with help, she stated the council additionally receives recommendation from Rimini Street. 

Nottinghamshire County Council now not has a provider relationship with SAP. Stevenson had an open dialogue with the administration and the IT staff on the council to guage the dangers, the advantages of third-party help and total financial savings. “I think more people should take the plunge,” she concludes.

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