Improving the state of technology

KPMG helped a U.S. State government transition to Oracle cloud-based enterprise resource planning software for ease of use, cost savings and compliance.

A U.S. state
Cloud-based Oracle ERP implementation
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

Our client’s chief information officer (CIO) manages systems that ensure law-enforcement officers, social workers, clerks, educators, and myriad others responsible for protecting and enhancing the lives of millions of state residents get paid properly and are able to manage their benefits well. The CIO’s department faced a perfect storm.

The on-premises enterprise resource planning (ERP) system the state government relied on to handle HR and payroll functions was out of date and was increasingly costly to maintain and support. IT professionals were attracted by jobs at organizations that used more cutting-edge technology, so hiring and retaining employees with the necessary skills was difficult. The state’s existing system couldn’t handle reporting requirements put in place by the Affordable Care Act.

Finally—and unexpectedly—the budget for the project was cut in half at the last minute, requiring the team to find creative ways to implement the new cloud Human Capital Management (HCM) system and realize its many benefits.

Benefits to client

It often takes courage and vision to go where others haven’t yet gone, and when the solution is fully implemented, our client will be the first state-level CIO to transition from an Oracle on-premises to an Oracle Cloud-based enterprise resource planning system.

Expected results from its Oracle Cloud solution include:

  • improved ease of use for employees and HR professionals
  • enhanced security capabilities
  • increased flexibility for updating changes to state and federal pay and benefit policies
  • leading practices that will be used consistently throughout state agencies 
  • reduced ongoing maintenance and operations costs
  • access to more accurate and timely data, which enable better decisions.


At the time this story was written, the project had received the necessary, comprehensive reviews and approvals by state officials, and the transformation was being managed by an executive-level steering committee chaired by the CIO and the administrator of HCM. KPMG's involvement in the project included:

  • kickoff sessions with project leaders and key stakeholders to review the plan and create a broad understanding of the transformation
  • adoption of KPMG Powered Enterprise,  a methodology for efficiently transforming business functions leveraging cloud technology
  • a midproject adjustment when the budget was reduced that provided mentoring and guidance by the KPMG team so that state employees could implement several of the software modules
  • change-management processes to help state employees understand and be prepared to use the new system
  • providing guidance and strategic insight about what resources the state would need to maintain the new system
  • transitioning the state’s on-premises Oracle system to a cloud-based Oracle solution.

KPMG insights

Get creative

When the unexpected happens—the budget is cut or another roadblock appears—have open, honest conversations about what is possible and what isn’t possible. Get creative, review the options, adjust the scope of the project, and move forward.

Team up

Broad, multidisciplinary teams provide the deep experience and expertise necessary to undertake a major software change. Recruit team members who can provide insights on strategy, change management, technology, configuration, recruiting, and other important aspects of complex projects.

Empower leaders

Get the right people on your team and empower them to make decisions. Even talented people can encounter bottlenecks when all the decisions have to be made by one person.

Communicate, communicate, communicate

Communicate deliberately and often to stay on track and work through problems that arise. When team members work in different locations, embrace technology tools that enable collaboration. 

It takes courage and vision to go where others haven’t yet gone.