Aligning between your upcoming cloud transformation and your ongoing PFM reforms and transformations
Governments today are pursuing ambitious Public Financial Management (PFM) reforms to improve fiscal discipline, strategic allocation of resources, and effective service delivery. Simultaneously, many are replacing outdated legacy ERP systems with modern, cloud-based solutions to increase agility, scalability, and interoperability.
However, these two transformation tracks—technology transformation and institutional reform—often run in parallel without strategic alignment. At Tech&Touch, we believe that aligning cloud ERP transformation with broader PFM reform programs is a unique opportunity to accelerate government modernization and deliver measurable public value.
Challenge
Legacy on-premise ERP systems used by many governments in the MENA and GCC regions are:
- Highly customized, siloed, and difficult to scale.
- Not designed to support modern PFM reforms like Performance-Based Budgeting (PBB), Accrual Accounting, or Medium-Term Expenditure Frameworks (MTEF).
- Incapable of supporting real-time analytics, cross-entity integration, or process automation.
At the same time, governments are under pressure to:
- Improve transparency and citizen trust.
- Link budgets to policy outcomes.
- Generate forecasts for revenues and expenditures using advanced tools.
- Comply with international standards like IPSAS, GFS, and Fiscal Transparency Codes.
Solution: Cloud ERP as a Catalyst for PFM Reform
Tech&Touch worked with a Ministry of Finance undergoing a dual transformation: migrating from Oracle e-Business Suite to Oracle Fusion Cloud, while also implementing a government-wide reform program focused on accrual accounting, performance budgeting, and medium-term fiscal planning.
Our unique approach integrated both tracks into a cohesive transformation strategy, ensuring that the new cloud platform didn’t just replicate old processes—but enabled next-generation PFM capabilities.
Our Transformation Advisory Model
Strategic Alignment & Roadmapping
- Conducted a comprehensive PFM maturity assessment, identifying areas of institutional reform: accrual, PBB, MTBF, revenue forecasting, and expenditure reviews.
- Aligned these priorities with the ERP functional architecture and implementation roadmap.
- Created a PFM-aligned system blueprint, linking GRP modules (GL, Budgeting, Assets, Procurement) with reform goals.
Cloud-Native Design for Reforms
- Redesigned Chart of Accounts to enable multi-year budgeting and IPSAS-compliant financial statements.
- Embedded accrual logic across GL, assets, and commitments modules.
- Configured the cloud system to support performance-based budgeting workflows, including program structures, KPIs, and linking outputs to allocations.
- Integrated planning and forecasting capabilities to enable Medium-Term Fiscal Planning (MTEF/MTPF).
Digital Enablement for Revenue Modeling & Efficiency Programs
- Connected the cloud platform to national tax, customs, and treasury systems to consolidate historical data.
- Applied predictive analytics and machine learning tools for revenue forecasting and modeling across tax and non-tax sources.
- Enabled expenditure performance tracking to support spending review and efficiency reform programs.
Governance, Change & Capacity Building
- Created a reform governance structure to coordinate stakeholders across IT, finance, audit, and planning departments.
- Led institutional change management initiatives, including training on cloud ERP, accrual IPSAS, and performance frameworks.
- Built digital capacity within the Ministry’s transformation office and PFM reform units.
Results & Impact
Seamless Integration of Reform and Technology
The transformation avoided duplication of efforts and ensured that institutional reform requirements were embedded within system configurations, not treated as afterthoughts.
Faster Implementation of Accrual and PBB
Cloud-native automation and workflows enabled real-time reporting and control, accelerating the shift to accrual and performance-based budgeting by 18 months.
Improved Planning and Fiscal Risk Management
Medium-term budget frameworks were automated within the system, improving visibility on fiscal space, contingent liabilities, and sector allocations.
Technology-Enabled Revenue Forecasting
With centralized, cloud-based data, the Ministry could deploy AI-driven revenue models across economic sectors—improving forecast accuracy and policy responsiveness.
Why Tech&Touch?
At Tech&Touch, we understand that digital transformation in government is not only about technology—it’s about redefining how governments operate, decide, and deliver.
We specialize in:
- Designing PFM-aligned Cloud ERP transformation strategies.
- Advising on Accrual Accounting, IPSAS Implementation, and Performance Budgeting integration with Oracle and SAP cloud platforms.
- Building interoperable, cloud-native financial systems for ministries, departments, and central agencies.
- Leading the full reform journey—from CoA redesign and GFMIS migration to change management and institutional capacity development.
Our team combines decades of public sector ERP, PFM, and transformation expertise, with a strong track record in the GCC, North Africa, and global development programs.
References & Resources
IMF Fiscal Affairs Department: https://www.imf.org/en/Topics/fiscal-policies
OECD Performance Budgeting Frameworks: https://www.oecd.org/gov/budgeting/
International Public Sector Accounting Standards Board (IPSASB): https://www.ipsasb.org/
World Bank Public Finance Management Reform Strategy Guide
