Transport for London and London Underground begin major transformation project with Axon and SAP

£29 million 10-year partnership to create an integrated foundation for 20,000 employees

LondonTransport for London (TfL), the body responsible for the capital’s transport system, and London Underground Limited (LUL) have jointly embarked upon the largest organisational transformation program in their history. TfL will be responsible for planning and delivering bus, road, rail, river and other transport services to millions of people every day. Working with business transformation consultancy, Axon, and e-business solution provider, SAP, TfL and LUL are undertaking this program to deliver improved business processes and information management systems to support a world-class integrated transport system for London.

The new organisation inherits an array of more than 30 back office systems from its constituent organisations – including six HR, 20 finance and seven procurement systems. TfL and LUL have chosen to implement a single integrated business solution to replace these systems and deliver a foundation on which to support the 20,000 employees who will be integrating and coordinating the use of London’s £25bn transport infrastructure. Beyond the replacement of a multitude of existing systems, this program will also provide a foundation with which to meet 2005 eGovernment targets, improve customer service and reduce business support costs.

Procurement staff designed an intensive selection procedure which considered submissions from over 50 groups of companies and identified a partnership between SAP and Axon to be number one. Their innovative and comprehensive selection process is now the subject of some interest from other large public sector bodies embarking on similar transformation projects.

TfL, LUL, SAP and Axon have agreed a 10-year strategic partnership worth £29m. Axon will design and implement a complete integrated business system based on covering the Finance, Procurement, HR and reporting requirements of 20,000 users. SAP’s latest Portal, eBusiness and Transport components will be incorporated into the system. The rollout will begin in the first quarter of 2003 and reach more than a 100 locations including Victoria Coach Station, the London Transport Museum, the Public Carriage Office, the Docklands Light Railway and many of the capital’s tube stations.

“The introduction of the new integrated system will lead to a business change across the Transport for London organisations and that will dramatically improve our efficiencies and benefit all of London’s commuters and visitors,” said Jay Walder, Managing Director, Finance and Planning, TfL.

Bob Mason, HR director for LUL added: “We see this exciting implementation as part of the positive cultural change underway in London Underground and an investment in our people. Through continuous skills training and development for our staff and greater access to information, we aim to provide a better service to our customers.”

Axon CEO, Mark Hunter, commenting on the contract, said: “This represents one of the largest business transformation programs in the transport sector today. Through its implementation, Transport for London and the London Underground will be in a position to ensure its staff can enjoy maximum productivity and offer the highest possible standards of customer service.”

Simon Etherington, Account Manager for Service Industries SAP UK said: “This project really is the foundation upon which the transport organisation of the future can be built and will set the standard for best practice in integrated business processes within the transport sector. It is also one of the first European implementations of our most advanced product, SAP 4.7”