AGL lifts lid on planned ERP replacement

AGL is about to begin a cost-benefit analysis and high-level design works for a major enterprise resource planning (ERP) consolidation, touted as one of its largest undertakings this decade.

The project was largely overshadowed in last month’s annual results presentation by the announcement of a $300m digital transformation.

“[An] investment decision to upgrade [the] core IT ERP operational system [is] expected to be made in [the] second half of FY17,” AGL said briefly in its full-year capex disclosures.

However, scoping works are expected to begin shortly, and AGL is already appointing a director ahead of the investment decision “to ensure that the program is successfully delivered and business objectives are met".

“AGL is now moving into implementation by launching an ERP replacement program, starting with a blueprint phase to confirm costs, benefits, high-level solution design and implementation plans,” the firm said this week.

“This blueprint work is currently being mobilised and is expected to run until December 2016, with program completion by the end of 2018 or shortly after.”

Like many companies, a trail of acquisitions have saddled AGL with multiple systems that it now hopes to migrate to one new platform.

“AGL recognises that there are significant benefits to be obtained through implementing a standard ERP solution across [our] generation and corporate businesses,” the utility said.

“Currently AGL uses a variety of partially consolidated aging ERP solutions obtained through acquisition of a number of generation plants.

“[Through the ERP replacement program] we expect to make major improvements in maintenance and asset management, procurement effectiveness, and in how we manage our financials and our people."

AGL has described the effort as “one of the largest programs run within the AGL business this decade".

Comment was being sought by iTnews at the time of publication on whether AGL had chosen its underpinning ERP technology.