Why This Council Costly Innovative Plan Showed Early Failings
Illawarra Mercury
Wednesday May 22, 2002
It was a massive project designed to put Wollongong City Council on the information technology map.
Eighteen staff were seconded from departments including library and cultural services, engineering, finance and information technology.
A headquarters was established in the old Integral Energy building in Burelli St.
Their mission? To work with a software provider and a top-line accounting firm to develop the ultimate local government IT system.
The people who became known as the eProvement team were highly optimistic.
Their newsletters to other council staff spoke of ``an exciting challenge, resulting in greater benefits for the whole of council".
The project was sanctioned by general manager Rod Oxley.
In April 2001, six months after the HQ was established, he issued a status report which said: ``The blueprinting phase of this project has identified many real and positive benefits to be gained using this solution.
``What has been most gratifying is the positive and energetic contribution that personnel have exhibited during this most dynamic period."
Yet there had been clear warnings that the system might not, after all, be right for Wollongong.
According to a council report tendered to Monday night's meeting, eProvement team members reported concerns about the project in the same month Mr Oxley wrote his encouraging memo.
In the previous month, an internal council report warned there were ``significant gaps between the system and council's requirements". The internal report said: ``Our assessment concludes that the proposed solution would not significantly surpass the overall functionality of existing systems and would fall well short of the marketplace leaders."
The report identified 16 problems with the proposed system, including ``high on-going training costs" and the fact that it was ``unlikely to be marketable to other councils".
Even as early as May 2000 there was an internal report which noted concerns about ``the ultimate viability and the timeliness" of the project.
Finally, in August last year, it all came to an end.
Mr Oxley issued a memo to councillors which said staff would conduct ``a further assessment of the product together with other local government products that are available in the market place".
``This decision has not been taken lightly but has been made in the best interests of council's future IT needs and its ability to implement new systems in a cost effective and acceptable manner," the memo said.
Yesterday, Mr Oxley said the council had tried to be innovative, and failed.
In such cases, people sometimes looked to blame someone, he said.
``I accept we are talking about public monies and you've got to be careful but sometimes if you don't take a risk you don't move forward," he said.
Crisis Countdown
October 1998 - council's computer system supplier goes into receivership.
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September 1999 - council's computer policy committee starts discussing future IT systems.
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October-November 1999 - council asks eight potential IT suppliers to show their wares and outline costs.
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February-March 2000 - six council staff inspect IT systems at three Victorian councils, a bank, an accounting firm, and a Melbourne university.
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May 2000 - council staff recommend an IT supplier at a cost of between $2 million and $3 million.
.......................................................... September 2000 - after a series of workshops, council's executives report the recommended system has ``a high level of fit to all requirements". In the same month, four council staff including then deputy general manager Tony Roach inspect the system at New Zealand's Christchurch Council.
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October 2000 - 18 council staff seconded to IT project. Headquarters set up in old Integral Energy building in Burelli St.
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October 2000-January 2001 - 60 monthly payments of $33,967.23 agreed (total $2,038,033.80) and contract signed.
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April 2001 - project stopped after ``poor performance by consultants".
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May 2001 - total cost of implementation now put at $10,274,086.
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August 2001 - general Rod Oxley issues memo to councillors advising project has been abandoned.
.......................................................... September 2001 - five council staff travel to New Zealand to inspect the system at three councils.
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February 2002 - councillors told total cost of aborted project was $3.2 million.
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May 2002 - cost of project confirmed at $4.2 million.
© 2002 Illawarra Mercury
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