Birmingham City Council postpones Oracle Fusion system relaunch to ensure staff adaptation to standardized processes, following catastrophic 2022 implementation failures that contributed to bankruptcy.
Birmingham City Council has postponed the relaunch of its Oracle Fusion ERP system to allow additional preparation time for staff adapting to standardized processes. The delay marks another setback for Europe's largest local authority, which continues grappling with fallout from its disastrous 2022 Oracle implementation that prevented auditable financial reporting and contributed to effective bankruptcy.
The council's migration from a legacy SAP system to Oracle Fusion began in 2020 with an initial budget of £19 million. However, extensive customizations—particularly a failed Bank Reconciliation System—derailed the project. After being unable to produce legally compliant accounts, the council reversed course, opting for a standardized Oracle implementation supplemented by third-party Income Management software for reconciliation.
Officials confirmed the relaunch, originally scheduled for April 2024, will now occur no earlier than summer 2024. Council documents cite unacceptable operational risks identified during end-to-end testing as the primary reason for delay. Ensuring accurate staff payroll processing emerged as a critical concern driving the timeline adjustment.
"Focusing on an April go-live date would increase risk," stated council officers in internal briefings. "We've listened to colleagues championing process changes during system testing and reviewed readiness evidence." The council emphasized this represents a risk-reduction measure rather than a program reset, with no scope changes or immediate cost increases beyond the project's current £131 million budget.
Opposition leader Councillor Robert Alden criticized the delay, noting: "This administration lacks leadership and seems unable to get anything right. The council will enter May's local elections without a functioning finance system."
A council spokesperson confirmed services continue operating on the existing system, with no disruption to supplier or staff payments. Independent assurance reviews will evaluate readiness before the new launch date. The council maintains a staged implementation approach with contingency provisions, stating: "We prioritise readiness and stability over fixed dates, recognising the importance of getting this right."
The original April 2022 Oracle implementation proceeded against explicit warnings in the Financial Impact Assessment, which predicted "major problems transacting leading to late payment or collection of debt." Auditors later identified £216.5 million in unrealized savings from the failed project.
Further governance decisions regarding the relaunch timeline are scheduled for late January 2024, with ongoing testing milestones determining the final implementation date.
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