The Durban Metropolitan Council has installed JD Edwards` WorldSoftware enterprise software solution to replace its legacy mainframe financial systems. The project, worth more than R17 million, was implemented in two phases over a three-year period.
Says Krish Kumar, Executive Director: Corporate Financial Services at Durban Metropolitan Council, "The decision to overhaul our mainframe-based system was made in 1997. However, a number of factors had to be resolved. For example, we had to obtain Council approval for the project, specifications had to be drawn up and an RFP issued, before we adjudicated the suitability of the software. In addition, we had to obtain buy-in from the relevant stakeholders and from staff. All of these were resolved within the time frame, with the JD Edwards solution implemented within budget and the go-live date achieved at the beginning of July 1999.
"I believe the success of this project can be attributed to the fact that we had an extremely professional project management team; a supportive software vendor and business partner; full support of our IT department, total commitment of all staff and a communication programme involving detailed newsletters and presentations during the implementation process."
Says Dan Gunter of GFC, the business consultants and project managers for the project, "Due to its size and complexity, the project was split into two phases. In Phase 1, which was completed in July 1999, the users of the legacy system were provided with the same functionality using the new JD Edwards system, while in Phase 2, which is on-going, additional functionality was provided and additional modules from the JD Edwards` suite were added. The new system went live as planned, providing access for about 1 150 users.
"In Phase 1, we implemented general accounting, works orders and job costing, fixed assets, inventory, purchasing, accounts payable, and supplier contracts management. The new system allows for good budget administration through proactive management and the highlighting of any major deviations from budget. Electronic order processing was introduced across the Durban Metro, and 57 stores were converted to a unified system with common item description and pricing; budgeting procedures were streamlined while manual intervention and PC uploads and downloads were eliminated; an assets register was created with more rapid updating of assets; and apportionment-basis VAT was implemented. The new systems and procedures constituting Phase 1 of the project were implemented on time and on budget.
"Phase 2 implementation includes equipment maintenance, contract management, business process re-engineering in certain departments, automation of all trust fund accounting and bar-coding of all fixed assets.
"As a result of this project, users can access documentation on the Durban Metro web site, making available a vast library of reference and training material. They can also access support information, e-mail the appropriate support staff, call up archived newsletters and key meeting minutes. In future releases of the web site, users will be able to look up training schedules and book a training course, access computer-based training and access JD Edwards` Customer Knowledge Garden."
Says Mike Evans, managing director of JD Edwards in South Africa, "JD Edwards` solution has been adopted by many local governments worldwide to manage expansion, increase efficiency of operations, and enable collaboration and communication among public departments. We have had a long association with the Durban Metro Council, dating back to 1993. I believe the key factor in the success of this project has been the fact that the users have taken complete ownership of the project. There are very few installations of this magnitude which have been so well managed."
The future? "Well", says Lunga Madlala, Director of Information Services at Durban Metropolitan Council, "our immediate plan is to migrate to JDE OneWorld Enterprise Software in order to give our users more robust functionality and features, sophisticated but easy to use GUI, flexibility to change business processes, maximum business efficiencies at all levels of the organization, e-business capabilities, and control. We also want to leverage such technologies as OneWorld Xe, Xpi, Activera Technology Activators, and so on, whilst ensuring simplicity, interoperability, scalability, flexibility, and superior performance. The next step would then be to roll-out JDEOneWorld across the Unicity."
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