Technology is evolving faster than most organizations’ capacity to keep pace –stringent regulatory and governance requirements inhibit the ERP providers’ capacity to bring their latest technologies and innovations to the solutions that they present. The challenge for many in the Five Eyes community is that governance is becoming an impediment to the ability to achieve their desired outcomes. Poor and outdated governance models can create significant challenges to the success of ERP systems, not only during technology selection, but also during and after implementation.
For many defense organizations, governance mechanisms are counterintuitive to the types of technologies that they are procuring. Defense procurement mechanisms can often lead to overly prescriptive requirement definition and do not allow for best value or innovation to be realized because they can slow and lack agility. Ensuring that decision-making and procurement processes are appropriate for the technologies being sought is a critical first step for organizations that want to succeed.
“For the Canadian Armed Forces’ DRMIS implementation, a Board of Directors that was ultimately accountable for the outcomes of the project was established,” says [ADD KPMG PARTNER NAME]. “With the establishment of the board, existing governance and procurement mechanisms were changed, and the time that it took the Treasury Board to make decisions was dramatically reduced to between 2 days and 2 months –from 18 to 24 months for previous procurements.”
ERP systems can deliver significant cost savings, boost productivity and allow organizations to create mechanisms to drive further efficiencies – if the system selected aligns with the needs of their organization and is implemented effectively. To assist with this process, defense organizations should review, evaluate and update their governance processes so that any technology decisions can be made quickly.
In some cases, this will not align with existing public sector governance requirements, but if defense organizations – and indeed governments – are to realize maximum benefits associated with the timely implementation of these technologies, old ways of doing business must be challenged. The right processes must be complemented by clearly defined roles, responsibilities and accountabilities.