ERP is not just about technology – it can fundamentally liberate Local Government

Local government today faces a range of significant challenges that affects councils’ ability to deliver services effectively and sustainably, from financial pressure and funding gaps to increasing demand for social care, devolution and the operational challenges posed by legacy IT systems.  

With the journey towards replacing two-tier systems with unitary authorities now well underway, every penny spent will be under the microscope, particularly after the highly publicised financial failures of a few councils.

To meet these challenges, councils must increasingly demonstrate that the technology and tools they are investing in are delivering real value for money. And that’s where Enterprise Resource Planning (ERP) systems can make a real difference – a modern integrated platform that can fundamentally transform how local authorities operate.

The ERP difference

ERP systems integrate core business processes across critical functions such as Finance, HR, Payroll, Procurement – but their true value lies in enabling the cross-departmental collaboration that effective public services demand.

When used as a centralised platform for managing data and streamlining operations, integrated ERP systems can liberate council staff from repetitive administration work by automating routine processes. By slashing manual workloads, councils can save hundreds of staff hours – allowing greater focus on citizen-facing priorities.

An Office Worker Survey revealed the average person spends 4.5 hours a week on repetitive tasks which could be undertaken automatically with the right technology in place. That amounts to 12 percent of their working week, every week. Furthermore, 68 percent of workers believed automation would make them more productive, and three fifths of executives agreed it would help their teams focus on more strategic work.

Decision making and data sharing

Traditionally, council services, from housing to social care, often operate with fragmented legacy systems. This isolation traps data, making collaboration and efficiency difficult. In an organisation as complex as a council, where information about the same person or household may be held across many different departments and hundreds of disparate systems, this is especially vital. Modern ERP systems unify these services, offering a single source of truth and real-time access for all teams.  

By implementing an organisation-wide ERP system, data is effectively brought together and presented in a standardised platform, giving teams one reliable source of truth.  This frees councils from inefficient, manual data verification and enables faster, more joined-up reporting and decision-making.

Ultimately, modern ERP systems give councils the agility to innovate and roll out new public-facing digital services more rapidly, so that citizens can benefit from easier interactions (digital payments, self-service portals), quicker responses, and improved transparency regarding service delivery and budget allocation. This fosters community trust and engagement, further liberating councils from outdated, bureaucratic service models.

Council collaboration and reform

Alongside being able to access data held by other functions as necessary, the implementation of ERP also allows for more effective collaboration. Rather than using applications only they have access to, teams are now using systems which are integrated with each other – paving the way for better communication, and more opportunities to work alongside each other. A Stanford study even goes as far as stating individuals are 50 percent more effective at completing tasks if they are able to work collaboratively.

Implementing ERP is not about simply replacing a system already in place; ERP acts as a strategic enabler, to allow for the kind of local authority reform that the Government is seeking.

Rather than making small, isolated improvements within individual departments – which could lead to missed opportunities for efficiency, local authorities need to adopt a ‘big picture’ approach, delivering transformation that impacts every function across the council.

The initial investment associated with the transformation project needn’t be a barrier, given there is a wealth of statistical and anecdotal evidence which showcases the long-term return on investment realised once the ERP systems are up and running.

And if there ever was a time for bold action and a new way of working, it’s right now. The kind of wholescale transformation that comes from implementing ERP gives councils a fighting chance of meeting the ambitious centrally-set targets for reform; continuing to be financially viable; and achieving the sort of return on investment needed to withstand both public and central government scrutiny.