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NSW Trade & Investment begins three-year ERP consolidation

New South Wales Trade & Investment has embarked on a three-year enterprise resource planning (ERP) consolidation project designed to save the government department up to $12.5 million per annum in IT service costs.

The $14.5 million contract, signed with SAP, also means the state government organisation will begin implementing a range of Cloud computing offerings including Business ByDesign and SAP Payroll.

NSW Trade and Investment chief information officer, David Kennedy, said that the project will consolidate four existing SAP ERP systems and multiple Aurion ERP systems into one integrated ERP system.

"Consolidating onto one platform and one corporate shared services processing centre in Orange, NSW, will also result in reduced payments to other service providers for transactional shared corporate services."

The existing ERP systems are spread across the 16 agencies that make up the organisation. These agencies include the NSW Office of Water, Gaming and Racing, Office of Liquor, Crown Lands, NSW Art Gallery, NSW State Library, Australian Museum and the Powerhouse Museum.

Kennedy added that the transition and consolidation project is already underway and will be completed in two parts.

"Initial consolidation of the core agencies including the Office of Water, Marine Parks Authority, Crown Lands, Arts NSW, Destination NSW, Food Authority, Office of Liquor, Gaming and Racing, Independent Liquor Gaming and Racing Authority onto the [ERP] platform will be complete by the end of 2012," he said.

According to Kennedy, the remaining NSW Trade & Investment agencies, including the NSW Art Gallery, NSW State Library, Australian Museum and Powerhouse Museum, will be using the ERP system by June 2013.

Follow Hamish Barwick on Twitter: @HamishBarwick

Follow CIO Australia on Twitter: @CIO_Australia

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