Controlling integration costs | KPMG | GLOBAL

Controlling integration costs

Controlling integration costs

ERP solutions are often seen as a primary method for defense organizations to achieve both operational improvement and cost containment goals.


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Defense organizations around the world are being tasked with managing risks and becoming more responsive, while cutting costs and making their operations more efficient and effective. Our discussions with CIOs and Information Technology leaders within the Five Eyes community suggest that ERP solutions and other technologies are seen as a primary method for organizations to achieve both operational improvement and cost containment goals.

“The rollout of ERPs within the US Department of Defense presented the opportunity for commanders to better understand where the real costs within their organizations were,” explains [ADD NAME AND TITLE OF KPMG PARTNER] as an example. “With the tightening of resources under sequestration, this meant that organizations could use data to optimize and improve both operational and cost effectiveness.”

The challenge is that technology implementation on a transformative scale brings with it significant risks. From choosing the right technology to managing data cleansing and systems integration, there are many opportunities for problems to arise and for integration and transition costs to skyrocket. If integration activities are not planned well from the onset, there is a high likelihood that any implementation will not be able to achieve all of the outcomes envisioned.A plan to succeed.

A plan to succeed

To get it right, defense organizations need to have an integration strategy in place right from the beginning – one that includes identifying key risks and mitigation strategies. They also need to make sure they have the right team in place to manage the integration and the subsequent execution of the technology solution. Everyone involved in the ERP transformation should be engaged early in the process in order to help foster buy-in for changes and for the corresponding process changes that will need to be followed to ensure the organization achieves the benefits it envisions.

Find out more about the key issues facing defense organizations associated with controlling integration costs, including:

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