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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-10-15 Daily Xml
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HEALTH, ORACLE CORPORATE SYSTEM

Mr MARSHALL (Norwood—Leader of the Opposition) (15:00): A supplementary, sir. It is directly a supplementary, sir.

The SPEAKER: How many supplementaries have you had on this one?

Mr MARSHALL: One.

The SPEAKER: So this is your second supplementary?

Mr MARSHALL: Correct.

The SPEAKER: Good. Go ahead.

Mr MARSHALL: Thank you, sir. My supplementary is: can the minister outline to the house what the likely completion date for the rollout of the Oracle system will be—all phases as originally envisaged when it was taken to cabinet in 2009—and what the total revised budget for this implementation will be?

Members interjecting:

The SPEAKER: The member for Schubert is called to order and the member for Heysen is warned for the first time. Minister for Health.

The Hon. J.J. SNELLING (Playford—Minister for Health and Ageing, Minister for Mental Health and Substance Abuse, Minister for Defence Industries, Minister for Veterans' Affairs) (15:00): The implementation of phase 1, Oracle financials, was completed in July 2010. Phase 2 was partially deployed in December 2010 with the deployment to the Department for Health and Ageing, the SA Health Distribution Centre, Mount Barker hospital, Modbury Hospital and the Shared Services SA accounts payable team.

A number of issues were experienced subsequent to the implementation of phase 2, procurement and supply chain models, of the Oracle corporate systems project to release one site; that ceased further deployment. These issues include system defects, whereby the system configuration didn't behave as intended; data issues, where the quality of data converted from legacy systems to Oracle was poor, and subsequent data capture errors were made; and user issues resulting from insufficient training and change management.

Phase 3, approval of Oracle corporate systems, approved by cabinet on 17 December 2012, supports the completion of the procured pay and supply chain systems deployment to the remaining sites. The completion of the deployment will enable SA Health to fully realise benefits previously associated with the program, around $10 million per annum.

The program board was established to oversee the phase 3 implementation. This board involves key representation from both the local health networks and the Department for Health and Ageing. It has been focused on the development of a project plan, associated costings and cabinet submission for phase 3. The direct program costs associated specifically with phase 3 across SA Health have been determined at an additional $25.349 million.

In addition, due to the delay in the completion of the complete deployment of Oracle corporate systems, transitional staffing is required in both finance and procurement to enable continuity of support services, which is an additional cost of $15.150 million over two years.

During the period of deployment of the Oracle corporate systems project, total costing for the implementation of the Oracle corporate system is approximately $62.4 million (which I think is consistent with the figure just mentioned by the Leader of the Opposition); that includes $15.150 million in transitional and staff funding.

Phase 3 also recognises the full scope and significant scale of the deployment and addresses the areas of deficiencies experienced through phases 1 and 2. I have quite bit of extra information here that I can continue to read, but I think my four minutes might be just about to expire.

Mr MARSHALL: Supplementary, sir.

The SPEAKER: A third supplementary?

Mr MARSHALL: Well, I would like to give him some more time to answer this.

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