Military’s struggles showcase importance of ERP implementation planning
ERP implementation has been an issue for the public sector ever since the inception of enterprise resource planning. Organizations in the private sector – whether they are small-to-midsize businesses or massive enterprises – take a relatively streamlined approach to installation and deployment. Government agencies and organizations that are funded with public money, however, must consider unique regulatory measures and compliance checks, input from numerous voices (at least more than private companies do) and several other factors exclusive to the sector.
Of all the public organizations struggling with ERP implementation, the problems encountered by the military may be the most disconcerting. Given the current state of global affairs, streamlining processes and building efficiency is a high priority in the Department of Defense. However, most branches have not been able to implement systems successfully without breaking the barriers of an established budget and timetable.
According to a review conducted by the United States Government Accountability Office, many components of the Department of Defense's technology infrastructure have a number of serious problems. Most of them, according to the review, stem from poor system management.
One of the more jarring examples was the Defense Enterprise Accounting and Management System, an ERP solution utilized by the Air Force. According to auditors, the system has not yet exceeded its budget, but a number of issues are weighing heavily on the future viability of the solution.
"The system did not perform as planned and resulted in high user dissatisfaction with the system," auditors said in the report.
The importance of proper strategic planning cannot be stressed enough. Regardless of the sector, if the implementation goes awry, the resulting consequences could be fatal for an organization. Companies installing a business management software solution would be wise to work with a professional team that can share best practices and tips to promote a successful, timely and cost-effective project.