Information about Enterprise Resource Planning at the City of Albuquerque.
Enterprise Resource Planning Program (ERP Program) Overview
ERP is an acronym for Enterprise Resource Planning, used to describe a specialized, integrated software package that can manage multiple business functions. ERP provides a variety of business applications to assist in the day-to-day execution of Financial and Human Resources business processes.
The City of Albuquerque's ERP Program
In 2009 the City of Albuquerque implemented Oracle’s PeopleSoft (PS) ERP application. PS is an integrated Financial Management Solution (FSM) and Human Capital Management (HCM) system. However, until recently the City did not have an integrated solution. Due to financial and resources constraints, some modules were implemented only at a surface level, while others were not implemented at all. However, recently this situation fundamentally changed as the City’s ERP Program established by the Berry Administration has made dramatic improvements to the application. An added benefit is that several legacy applications and hardware have been retired, resulting in considerable cost savings.
The ERP Program was formed under the City’s Department of Finance & Administrative Services in October, 2010. The Program’s primary mission is to leverage the Oracle PeopleSoft application to:
- Significantly improve employee productivity
- Enhance the overall level of service to City Department staff
- Increase operational efficiencies and effectiveness for citizen constituents and City employees through improved business processes.
PeopleSoft is used by most City employees to manage various financial and human resources functions, including general ledger accounting, billing, accounts receivable, accounts payable, asset accounting, treasury management, procurement, grants management, payroll, core human resources, benefits, and other. To achieve the Program’s goal, we are remediating and enhancing the system. Key to this process is fully integrating the PS modules, resulting in a more effective and efficient means of working and reporting across the enterprise
The ERP Strategic Roadmap
In 2011 the citizens of the City of Albuquerque approved a bond referendum that allocated $9.15 million to fund the ERP Remediation and Deployment Roadmap. The roadmap is divided into manageable phases, and is scheduled to run through 2015. In early 2012 the City selected CherryRoad Technologies, Inc. as its systems integrator partner to assist with achievement of the roadmap projects. The roadmap graphic below represents completed initiatives, current projects, and future undertakings. Projects are prioritized based on business need and a return on investment analysis.
Since the ERP Program’s commencement, the following initiatives have been completed:
In early 2011, ERP infrastructure was upgraded to ensure sufficient storage and data retrieval capabilities.
- In late 2011, the Oracle Hyperion Public Sector Planning & Budgeting application was implemented as the City’s operational budget preparation and tracking tool, replacing a legacy budget preparation software. Annual labor and benefits redeployment savings from the project are estimated at $38,000. Based on the implementation cost of approximately $850,000, the perpetual annual return of investment is 4.5%.
Read about the money-saving process implemented with this project.
- In December 2012 the Program completed its first project in partnership with CherryRoad, the Payroll and Time & Labor Remediation project. Goals were to stabilize the existing application and take better advantage of the timekeeping and payroll capabilities built into the PS system. Recurring annual labor redeployment and direct cost savings from this project are estimated at $615,000, which based on a project cost of $1 million yields a perpetual ROI of over 60%.
Read more about the Payroll/Time and Labor Remediation project.
- In July 2013 the latest major project – Financial Remediation & Deployment – was completed. Project goals were to optimize financial functionality, and more important, to complete the implementation of owned PS financial modules. The Fixed Assets, Grants, Contracts, Accounts Receivable, Billing, and Commitment Accounting modules were brought online. With business process improvements, system integration, and “shadow systems” elimination benefits, the annual perpetual ROI is estimated at $1.6 million, which equates to over 40% based on project costs of $3.9 million. In addition, this project permitted decommissioning of the City’s mainframe hardware that previously hosted several legacy financial applications. The direct cost savings in licensing and support fees avoidance is an additional $450,000.
Read more about the Financial Remediation and Deployment Project.
In 2013 the City determined to brand its PeopleSoft system to reflect our unique use of the application, and to reflect its adoption as our system of records for financial and human resources business. The new acronym – FAHR – stands for Financial, Accounting, and Human Resources system. The logo, shown below, incorporates the City’s ballooning theme with the concept of fitting together the many parts of our business to rise to new heights.