Nottinghamshire County Council has approved a major overhaul of its Business Management System (BMS), allocating a substantial £12.1 million investment to transition its finance, procurement, HR, and payroll functions to a new cloud-based platform.
The decision, made at a cabinet meeting on 6 February 2025, follows extensive analysis of the council’s existing SAP system, which has been in place since 2011.
The council’s current BMS, introduced as part of a broader improvement programme in 2010, has played a crucial role in integrating key services and generating efficiencies.
Over the past decade, it has facilitated major operational improvements, including a 61.5% reduction in the budget of the Business Services Centre and annual savings exceeding £5 million. However, with its core components nearing the end of their lifespan, the existing SAP system faces mounting compliance and security risks, prompting urgent action. Without an upgrade, the system could become unstable, limiting the council’s ability to process payments, manage staff payroll, and procure essential services.
To illustrate the scale of reliance on the current BMS, data from the 2023/24 financial year revealed that over one million payments amounting to £1.9 billion were processed, with 145,000 debtor sales invoices issued and 470,000 creditor invoice transactions handled.
Additionally, the system executed 285,000 BACS payments and direct debits, facilitated payroll for 722,000 payments across 66 different payrolls, managed 150,000 income transactions, and processed around 24,000 procurement orders. With such a high volume of transactions, maintaining an efficient and secure system is critical for the council’s financial management and service delivery.
The council’s digital strategy aligns with the shift to a cloud-based BMS, which is expected to provide higher levels of automation through AI and machine learning, enable real-time, data-driven decision-making for improved financial forecasting, and enhance security measures to mitigate cyber threats. The system will also offer increased scalability to accommodate future organisational changes and greater accessibility through mobile-enabled self-service for staff.
Several options were evaluated before finalising the SAP Cloud transition. The possibility of maintaining the current system was ruled out due to its obsolescence risks and compliance concerns. Moving to another ERP provider was considered but ultimately rejected due to higher costs, longer implementation time, and retraining requirements. Similarly, the idea of switching to multiple standalone systems was dismissed due to integration challenges, and proposals to share an ERP with another council or outsource to a managed service provider were deemed unfeasible due to operational risks and reduced flexibility. Consequently, migrating to SAP Cloud was selected as the most cost-effective and least disruptive approach, leveraging existing SAP expertise within the council.
The transition to the new BMS will follow a phased approach. The discovery phase began in October 2024, followed by procurement planning and partner selection in early 2025. The implementation phase, set to begin in mid-2025 and conclude by the end of 2026, will include system design, testing, deployment, and post-launch optimisation. The final phase will focus on continuous improvements and software updates to keep the system aligned with emerging technologies.
The total £12.1 million investment will be spread over two financial years, covering SAP licensing, implementation partner services, internal team costs, and miscellaneous expenses. A 20% contingency fund is also earmarked to manage unforeseen costs. While the transition is expected to deliver long-term efficiencies and cost savings, the council acknowledges potential challenges, including operational disruption during migration, organisational capacity and staff training requirements, and ongoing alignment with local government reorganisation plans. Despite these risks, the council remains committed to ensuring a seamless implementation.
For residents and local businesses, the new system promises improved financial transparency, faster payment processing, and a more resilient council infrastructure. The integration of AI and automation will reduce administrative overheads, freeing up resources for frontline services. As Nottinghamshire County Council embarks on this ambitious digital transformation, regular updates will be provided to ensure transparency and stakeholder engagement throughout the process. The first significant milestones in procurement and implementation are expected in the coming months, marking the start of a new era in the council’s financial and business management strategy.
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