Defence prepares for massive ERP overhaul
- 23 May, 2016 07:00
Image: Department of Defence
The Department of Defence has begun seeking systems integrators as it moves ahead with what it believes is the largest ERP program implementation by the Australian government.
The ERP program forms part of Defence’s efforts to implement the recommendations of the First Principles Review (FPR).
The FPR, released by the government on 1 April 2015, called for a shift to a model of ‘One Defence’ including fully implementing “an enterprise approach to the delivery of corporate and military enabling services to maximize their effectiveness and efficiency.”
Defence should “embark on a pragmatic implementation road map to standardise business and information processes and their supporting applications”, the review recommended.
“This will necessitate a move over time to a small number of standardised information and communications systems supporting enterprise-wide processes and a radically simplified application landscape through retiring legacy solutions and adopting enterprise master data,” the review stated.
The Integrated Investment Program, released alongside the government’s Defence White Paper earlier this year, earmarked $1 billion to $2 billion over 2016-225 for an ERP system or service.
“Underinvestment in information and communications technology over the last decade, coupled with the lack of a coherent enterprise-level strategy for Defence’s complex and rapidly evolving information and communications requirements, has led to serious degradation across the information and communications capabilities of Defence,” the 2016 White Paper argued.
The new ERP system will be based on SAP, including SAP’s Defense Forces and Public Security (DFPS) component and the S/4HANA platform.
The department envisages engaging two systems integrators for design, development, implementation and testing of the ERP system.
“The Program is an ERP transformation and implementation program that will deliver a near real-time integrated view of critical information, from a single trusted source, to enable all levels of Defence to make better-informed decisions on preparedness and capability management,” states an invitation to register interest in the program issued by Defence’s Chef Information Officer Group (CIOG).
“This will require a major transformation effort across Defence’s finance and logistics (including procurement, engineering and maintenance, and estate) business domains.”
“Consistent with FPR recommendations, the Program seeks to deliver a near real-time, integrated view of critical information. This will allow commanders to make better informed decisions, on through-life management and sustainment of Defence capabilities, underpinning preparedness and support to operations,” states a document issued as part of the approach to market.
Earlier this year Defence begun recruiting a range of IT executives for the CIOG as part of implementing the FPR.
Follow Rohan on Twitter: @rohan_p