The Department of Natural

Resources and Mines (DNRM)

Journey to

SAP S/4 HANA

• What did we do and how?

• Benefits and key changes

• Business readiness

• Lessons learnt

• Next steps for DNRM

Agenda

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

“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?

✓ 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?

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

• 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

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

• 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

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

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

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

Next steps for DNRM…