The City currently uses a patchwork of antiquated software/hardware and stand alone programs to operate the City. It is very labor intensive, requires manual input of data and is not interconnected across all City organizations. There is a definite, uncontested need for a modern, secure system to facilitate City operations.
Staff will be presenting their plan for defining, purchasing and installing a so called Enterprise Resource Planning (ERP) system to the Council on Tuesday, June 13 at 3pm in Council chambers. Georgetown is preparing to spend $6.5M to $12.3M on ERP over the next 10 years.
What is an ERP?
Consider a municipal government. It has departments for
finance, human resources, purchasing, and information technology as well as
other departments that operate like their counterparts in private
organizations, providing internal services to the rest of the organization. Other
departments exist that oversee essential services that are provided to the
community they serve to include utilities, public works, parks, engineering,
building, and public safety (police and fire) to name a few. Each department
performs a series of common, repetitive tasks: issuing permits, performing
inspections, making zoning determinations, among many others. And, of course,
there are ongoing, administrative responsibilities: writing checks, accepting
and processing payments, processing payroll, hiring staff, and others.
The
management of the business functions and processes within these departments
requires software that serves their unique needs: financial software for
accounting purposes; HR software for personnel management; and police software for
coordinating dispatch and records. However, when organizations operate with a
“silo” mentality, not sharing information across departments, the amount of
complexities and inefficiencies increases. Redundancies become commonplace
through the proliferation of “shadow systems” (i.e., offline spreadsheets and
databases separate from the primary system), with data entry duplicated and
then synchronized across multiple departments to ensure accuracy.
Over the last few
years, cloud-based ERP solutions have emerged, a centralized system of
management, where applications and data are accessed via the Internet. Vendors
will tout this model as a seamless process that eliminates the need for
individual computers to become bogged down with expensive software and documents
while delivering:
Quicker, more efficient deployments. Tapping resources
remotely speeds time-to-market and reduces the costs associated with
implementations that are performed on-site.
Additionally, cloud service vendors
are committed to security, lessening government IT burdens and providing other
cost savings.
Innovation is enhanced with software stored in the cloud, product
enhancements can be shared across a user group, leveraging the capabilities of
advanced technologies quickly and at minimal cost.
Scalability, Cloud-based ERP
software enables governments to add or subtract components as needed,
customizing functionality (within the constraints of the software package) to
suit current needs.
One model of cloud-based computing, Software as a Service (SaaS),
is a subscription model whereby applications do not reside on end user
computers but rather “in the cloud,” whereby the same instance of that software
is shared with all of the other entities using that software.
Within the
governmental setting, there has been some level of resistance in adopting this
model as concerns related to the security, ownership of data, the ability for
unique local customizations, the disentanglement of services, and others have
resulted in a slow adoption of this computing model. CIOs will need to read
through the rhetoric when conversing with providers of cloud-based ERP
solutions and understand the trade-offs and benefits when considering such a
solution as compared to more traditional software models.
However, experience has shown that design and implementation
of new hardware and software systems cost much more and take much longer than
originally estimated.
Given this background, several questions arise.
1.
Does the city staff have the knowledge and
experience to manage and implement such a complex system?
2. Is the City prepared to hire certified cloud sercuity experts that fetch a salary up to $140K annually to assure the contractors/vendors are providing the security the City expects?
3.
There are serious and far-reaching issues to be
addressed with a cloud based ERP. What is the EXIT strategy if vendors are
changed in the future? Who owns the data? What are the security protocols? And many more.
4.
Can the City cope with the cloud vendor updating
hardware and software on the vendor’s schedule, not the city’s schedule? How is
the training accomplished when the vendor changes the system? Does this affect
employee productivity?
8.
Should the City set up a citizen’s steering
committee whose members have extensive experience with cloud based systems to
guide this project?
9.
City staff should provide a list of cities to
Council that have implemented a cloud based ERP along with contact information
to allow Council to get first-hand feed-back.