Integrated Software Systems are High Risk

As Watchdog reported in June and July, the city is embarking on purchasing and installing a cloud based integrated software system that will tie all the city functions together. They call it an Enterprise Resource Planning system, or ERP. Georgetown plans to spend $6M to $12M over the next 10 years for ERP.

The risks associated with buying and installing such a system are evident by observing the difficulties encountered just down the road by the University of Texas. Statesman

A key part of a major University of Texas technology upgrade that was already running behind schedule and over its $106 million budget has been delayed indefinitely, UT officials announced Tuesday.

The project to shift UT’s payroll, human resources and finances from a mainframe computer system to cloud-based operations was originally scheduled to be implemented, or “go live,” on July 10. Officials said in January that they would introduce it in phases starting sometime later, without specifying exactly when.

UT is only converting payroll and human resources to a cloud based system and they are $20M to $25M over budget and over 1 year behind in schedule after spending $89M of the $106M budget.

They have no idea of the cost and schedule to convert and integrate the financial system into the overall cloud based software system. 

Gerogetown's management and city council better be closely watching Georgetown's much smaller, but, more inclusive effort. The city staff should be in regular communications with other organizations, like UT, that have or are in the process of buying and installing similar systems to take full advantage of their experience.

The risk is high that there will be major cost or schedule impacts before ERP is completed.