An extensive examination into the factors contributing to RTÉ's €3.6m write-down for a partially unsuccessful IT system revealed that the broadcaster lacked experience in implementing a project of such scale and complexity.

The review, conducted by business consulting firm EY and commissioned by RTÉ, highlighted that the broadcaster took a 'big bang approach' to the project.

The IT project aimed to modernize and integrate several outdated finance and HR systems, funded by a land sale in 2017.

Released in response to an FOI request from RTÉ’s This Week program, the EY review from March 22, 2023, examined the write-down disclosed by The Currency in April.

RTÉ confirmed that impairment details related to the project were included in the annual accounts for 2020 and 2021, amounting to €1,869,750 and €1,188,534 respectively.

While the ERP successfully upgraded the finance system, it fell short in delivering the planned HR overhaul.

Key Issues Identified in the EY Report:

• The original business case lacked a rationale for preferring an integrated solution over standalone systems.
• Inadequate project governance and management of contractors were noted.
• The 'big bang' approach for both HR and Finance systems rollout was criticized for not assessing complexity and risks adequately.
• Insufficient skilled personnel and missed milestones during the design phase were highlighted.
• Diligence in vendor selection and budget management were found lacking.

RTÉ acknowledged the need for better project management and governance, with reforms implemented to prevent similar issues in the future.

The broadcaster emphasized that the EY report focused on learning from the project's challenges rather than analyzing its financial aspects.

Recommendations from the report have been integrated into RTÉ's approach to managing major capital projects.

Lessons learned from this experience will be discussed at the executive board to enhance future project outcomes.