An analysis of Department of Defense Business Systems modernization efforts and recommendations for improving the process

Abstract

The Department of Defense (DOD) is in the midst of a transformation effort under the leadership of Secretary of Defense Donald Rumsfeld. A large portion of military transformation is focused on DOD business practices. It has been estimated that up to five percent of the annual DOD budget could be saved by improving and streamlining defense business operations. This initiative is critical given the large numbers of legacy business systems and the steady increases in annual maintenance costs associated with these outdated systems. This report explores the legislative history leading to the development of the Business Management Modernization Program (BMMP). The current state of DOD business systems is examined, as well as case studies on specific system modernization initiatives conducted proceeding and immediately following the implementation of BMMP. Our recommendations for successful business systems modernization efforts include senior leadership supporting the need for change, understanding the implications of using commercial off-the-shelf (COTS) products, properly structuring the acquisition process and emphasizing the importance of systems integration.