Tauranga City Council - Best Tech Awards 2025 Intelligent ERP

Tauranga City Council: Powering faster, smarter city services with next-gen ERP Download the Document

SAP Australia and NewZealand Best Tech Awards2025
Best Tech SAPIndustry WebsiteProduct and Services Featured SAP SolutionsGovernment https://www.tauranga.govt.nzCity administration SAP S/4HANA Cloud, Private EditionTauranga City Council delivers essential services to more than 160,000 citizens across one of New Zealand’s fastest-growing regions. With over 40 diverse business units, theCouncil faced growing pressure to operate more efficiently, share information more easily, and make faster, better-informed decisions.At the heart of the challenge was a legacy, 25-year-old ERP system fragmented, inflexible, and costly to maintain. To modernise operations, the Council is moving to SAPS/4HANA Cloud Private Edition as a next-generation ERP foundation. The shift is replacing manual workarounds with integrated, automated processes that improve dataaccuracy, reduce duplication, and enable real-time insights.Starting with core revenue functions like rates and land management, the new platform has already delivered measurable gains in productivity and transparency. With ascalable ERP backbone now in place, Tauranga City Council is building momentum for further innovation improving outcomes for staff, stakeholders, and the widercommunity.Tauranga City Council: Powering faster, smartercity services with next-gen ERPIntelligent ERP
ChallengesTauranga City Council recognised that its existing ERP system had become an obstacle to effective service delivery and organisational growth, prompting thedecision to modernise its core systems. The legacy platform, developed over twenty years ago, was no longer suitable. Its design and performance failed to meetthe demands of a rapidly growing council, with excessive manual workarounds hindering productivity and efficiency.Instead of merely addressing system failures, the council shifted its focus to a broader question: how could it better serve its community, streamline operations, andestablish a foundation for a more agile, future-proof organisation?Primary factors driving the change included: Non-scalable architectureOriginally built for smaller councils, the ERP system could not accommodate Tauranga City’s expansion and future requirements. Fragmented systems and processesOver 40 business units operated with their own tools, data models, and workflows, limiting cross-council visibility and lacking a unified source of truth. Data and reporting reliability issuesInconsistent processes and unintegrated systems meant even basic reporting required extensive reconciliation, often involving multiple personnel andspreadsheets. Manual interventions in critical revenue functionsEssential operations like rates and land management relied heavily on manual processes, leading to inefficiencies, inconsistencies, and increased risk of error. Key person dependency and system vulnerabilityOnly a few individuals understood how to maintain or interpret the outdated system, posing threats to business continuity and impeding organisational change.Rather than simply transferring existing issues to a new platform, the Council leveraged this transformation to rethink its operations, aiming to simplify, standardise,and enhance service delivery effectively.
SolutionTo streamline operations and support long-term growth, Tauranga City Council embarked on modernising its outdated, fragmented and inflexible ERP system.After successfully migrating finance, leasing, and core master data such as customer and property information, the council progressed to migrating its revenueand collection processes, beginning with rates and land management, which represent over 50% of its total revenue.Managing ratings within a council presents unique challenges, addressed by leveraging S/4 Hana Public Sector Collections and Distributions (PSCD), realestate, and business partner capabilities to effectively oversee the city’s rateable properties while ensuring compliance with legislation and accurate billing ofratepayers. Additionally, PSCD facilitated bulk billing and collections automation, significantly enhancing process efficiency. The project also introduced a shiftto cashless payments and the development of a BTP-based over-the-counter payment solution to complement the new billing and collections system.SAP S/4Hana Cloud Private Edition provided the necessary flexibility, security, and performance to replace antiquated rating and land management workflows,substantially reducing manual effort.Close collaboration between Gravity IT, Tuffery Migration & Cutover, and an internal project team comprising members from Digital, Finance, Rating, LandManagement, and Customer Services teams ensured the platform met real operational requirements. Given the critical nature of accuracy, a parallel ratesassessment alongside a robust data migration process validated data integrity and safeguarded revenue prior to go-live. With business leaders activelyinvolved throughout the project, change management was embedded into delivery rather than treated as an afterthought.Key solution highlights Out-of-the-box automation and reengineered processes utilising SAP best practices to simplify complexity and minimise custom development Phased implementation beginning with finance, leasing, and master data before progressing to the more intricate rates system, reducing risk and enablingearly validation Embedded business ownership fostering adoption and building internal expertise from the outset Clean data migration aligned with SAP structures to enhance accuracy and mitigate legacy issues Scalable foundation designed for future integrations with GIS, licensing, asset management, and additional systemsTauranga City Council now benefits from a modern, reliable platform that supports innovation, enhances service delivery, and underpins the city’s ongoinggrowth.
Impact99.99% accuracyMatch rate between legacyand new system during dual-rates testing95% time savingDirect debit recalculationsreduced from 5 days to just2.5 hours87% satisfactionCouncil rating expertsreported high satisfactionusing the new systemBy adopting SAP S/4HANA Cloud Private Edition, Tauranga City Council has revolutionised its management of essential revenue and collection processes. The team has replacedlaborious manual tasks with faster, more precise, and streamlined workflows, enhancing everyday operations and community service delivery.Key outcomes:Faster, more efficient processesTasks that once took hours or days are now completed in minutes. For example, rates assessments have been reduced from 2.5 hours to just 25 minutes, while direct debitrecalculations, which previously occupied staff for five days, now take only 2.5 hours. This shift has significantly decreased administrative burdens, allowing staff to concentrate onhigher-value activities. A dramatic improvement was also observed in handling Notices of Change; what was once a heavily manual process taking 7 to 15 minutes per request hasbeen automated to process 60 requests per minute. The most substantial, albeit harder to quantify, enhancement is in Collections and debt management, which is now fullyautomated, freeing staff to focus on genuine ratepayer inquiries.Enhanced employee satisfactionStaff morale has improved considerably, with 90% of those involved in testing expressing high satisfaction with the new system. Employees feel more confident, productive, andsupported, especially regarding rates assessments and invoicing.Improved data accuracy and reliabilityTransitioning to SAP uncovered previously unnoticed data quality issues, particularly with geographical information. Correcting these errors ensured accurate billing, safeguardedcritical revenue streams, and strengthened community trust. This is exemplified by the increase in banking payment matching accuracy, from around 80% under the prior system to96%, resulting in faster allocation of payments with reduced manual intervention.With these smarter, simplified processes now established, Tauranga City Council is well-positioned to continue advancing. By eliminating inefficiencies and ensuring data integrity, thecouncil can confidently enhance services, respond more swiftly to community needs, and reinvest savings back into the city.96% banking automatchingAuto matching of paymentsreceived sinceimplementation has increasedfrom 80% to 96%Property Notice ofownership ChangeNormal processing time took7-15 minutes per request; SAPis 1 minute to load 60. Onaverage there are 3000+ p.a.
“”"As we transition to the SAP S/4HANA Cloud Private Edition, we are not just modernizing our ERP system; weare fundamentally transforming the way we operate. This new platform allows us to streamline ourprocesses, enhance data accuracy, and improve transparency. The measurable gains in productivity and theability to make faster, better-informed decisions are already evident. We are excited about the future and thecontinued innovation this system will enable, ultimately benefiting our staff, stakeholders, and the widercommunity.“Tauranga City CouncilChief Financial Officer