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The Department of Natural
Resources and Mines (DNRM)
Journey to
SAP S/4 HANA
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• What did we do and how?
• Benefits and key changes
• Business readiness
• Lessons learnt
• Next steps for DNRM
Agenda
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Implemented SAP S/4HANA
• Go Live 1 August 2016
• Replaced the aged and at risk SAP 4.6C system
• Core finance functions only and BPC (Release 2)
• Changed the service model for finance system management and
finance processing for DNRM
What did we do?...and Why?
SAP 4.6C
SAP
ECC5
SAP
ECC6
SAP S/4 HANA
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“This new suite is built on our
advanced in-memory platform,
SAP HANA, and offers a
personalized user experience with
SAP Fiori.”
What is S/4 HANA?
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✓ Using the system ‘out of the box’, following best practice processes
✓ Configuration over customisation
✓ Designing a reusable solution that can be adopted by other
government agencies
✓ Re-engineering business processes to fit the system
✓ Significant focus on business readiness
How did we do it?
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What are the benefits?
Reduce lead time and manual processes
Savings from a reduction in third party
transactional services
Avoid cost and disruption of multiple upgrades
Better decision making using timely information
and faster analytics
Reduced risk and stronger internal controls
Mobile and self service workforce
Key enabler for customer revenue and ongoing
continuous improvement
Reusable solution that can be adopted by other
agencies
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• New enterprise structure
• Electronic workflow and online approval – with single sign-on
• Looks and feels like a modern website with ‘google like’ searching
Key Changes
• Online reporting using
Fiori applications and
Analysis for Office
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Key Changes to P2P Process
Create PO
Endorse ApproveGoods Receipt
Enter and Park Invoice
3 control points, 3 officers
• 1 Purchase order data entry officer • creates orders, endorses orders (as a certified
procurement officer), goods receipts, enters and parks invoices
• 1 Financial delegate approves• 1 Invoice Officer posts parked invoices
Post parked Invoice
There are a minimum of 3 segregation of duties control points in the procure to pay process. No staff member can perform any 2 of these control points
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• Encourages compliance with procurement framework
• Establishes a contract between the department and supplier
• Greater control around spend (accurate reflection in actual, budget and commitment reporting)
• The commitment is recognised at the financial approval stage
• Expense is recognised at the time of the goods receipt
• Business areas independently manage the full procure to pay process using Purchase orders
– Including the creation of asset shells
Benefits of purchase orders
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One year later – Where are we?
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2015-16 2016-17
Documents Processed
GPEV Payments PO Payments
Decrease in payments made by GPEV
Increase in payments made by PO’s
92%
108%
Decline in retrospective PO’s
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Business readiness…Our Engagement Strategy
internal
Processing officers
Finance
ExecutivesBusiness
Improvement Network
Key Finance Contacts
external
Queensland Shared
Services
EHP Procurement
DAF ITP
DAF IT Purchasing
Queensland Audit Office
Project Board
Members QSS, CIO
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Access to sandpit to play
SAP Basic training
UAT timeframes
Complexity of procurement and
security matrix
Desktop software
packaging
Schedule, resource and
Vendor management
Lessons Learnt
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Next steps for DNRM…