Espoo starts reform of its management and financial management information systems

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2020-04-24 14:44

Espoo needs to develop the implementation of the Espoo Story and operative management. At the same time, Espoo’s financial information systems have become obsolete and need to be replaced. In addition to replacing the existing financial information systems, the procurement of an integrated management and financial management information system includes applications that will support goal-setting and operational and financial planning, monitoring and analysis.

The City of Espoo has selected a consortium formed by Attido Oy and Oracle Finland Oy as the supplier of the integrated management and financial management information system. The procurement decision was made on 24 April 2020. The decision will become final on 9 May 2020, after the appeal period has ended. The criterion was to select the most economically advantageous tender. The tender that was considered the most affordable from the overall perspective was the one that offered the best value for money for the contracting entity.

The estimated value of the procurement for four years is approximately EUR 12 million. The procurement covers the implementation and deployment of the system, continuous software service and the related user rights, continuous system support and maintenance, and further development of the system. 

The aim is to deploy the integrated information system in the beginning of 2022 at the latest. At that point, all basic financial administration systems will be replaced and the first stage of the planning, analytics and reporting systems will be deployed. The development of the systems will continue after the project, in the areas of operational reporting and knowledge-based management in particular.

The City of Espoo will keep using the majority of its current financial information systems until spring 2022.

The project has received a discretionary government transfer of EUR 2 million through an incentive arrangement of the Ministry of Finance for digitalisation in local government. The discretionary government transfer was granted to the municipality for the improvement of knowledge-based management and the use of data, and the development of knowledge management and operational processes related to these two. The condition for the discretionary government transfer is Espoo’s participation in cooperation whose aim is to ensure the general applicability of the results and their communication across the municipal sector.

“The City of Espoo is developing its operations to make them increasingly sustainable, cost-effective and productive. All systems must support these operational and economic goals set in the Espoo Story and their management in the best possible way. Procurement plays a major role in this,” says Mayor Jukka Mäkelä.

Competitive tendering preceded by a market survey

The procurement was prepared according to a preparation plan approved by the City Board in December 2018. In the spring of 2019, when the procurement was at the preparation stage, a system requirement specification was drawn up. The City of Espoo also investigated the market availability of service providers and systems that would meet the city’s requirements. The goal was to investigate the potential suppliers’ ability to meet Espoo’s requirements. Based on the market survey, a comparison was drawn up. On the basis of this comparison, the City Board decided on 17 June 2019 to launch a competitive tendering procedure.

A press release of the matter from June 2019: Espoo calls for tenders for an integrated management and financial management information system (in Finnish)

Espoo and Tiera end ERP cooperation with a settlement agreement

In 2014, Espoo conducted a preliminary investigation into the suitability of Kuntien Tiera Oy’s Tiera ERP service. In 2015, Espoo and Tiera entered into an agreement on preparation procedures for the deployment of the ERP service in the areas of basic financial administration and payroll administration. On 17 June 2019, the City Board decided to initiate measures to rescind the agreement with Kuntien Tiera Oy on the preparations for the implementation of the Tiera ERP service and payment for usage rights.

On 12 March 2020, the City of Espoo and Tiera signed a settlement agreement that officially ends the ERP project that has been on hold since 2016.

Read more: Tiera’s press release on 24 April 2020 (in Finnish)

Further information

Pia Ojavuo, Financial Planning Director, tel. 043 826 9139
Maarit Waskilampi-Kuikka, Chief Information Officer, tel. 0400 737 833