‘Selling’ ERP to Defence

Capital procurement in defence has probably changed more in the past 10 years than in the previous five decades. It is no coincidence that these changes have probably been part of the fallout from the end of the Cold War, and nations’ focus less on mass equipment programs, and more on “capability-based” acquisitions. The problem however is, that no matter what latest jargon you want to use “capability-based planning,” “scenario-based planning,” or “spiral capability development, the truth of the matter is, politicians and citizens alike are looking for big, new, shiny equipment (ships, tanks, and aircraft) if they are spending billions of their hard-earned tax dollars. Typically, the layperson is less interested in the “capability” and more interested, in the “equipment.”

Thus, the challenge for all of us who is putting forward an initiative to acquire and implement an ERP solution is to appeal to both the “capability planner” to get the project through the approval hurdles while, at the same time, appealing to the lay person (politician or citizen) as to why it is as important as the “big, shiny equipment.” We need to “sell” ERP in the context that all defence “capabilities” are developed. That is to say that, in the defence environment, a capability includes not only the equipment or materiel piece (the big shiny stuff), but also the personnel component, the infrastructure to support it, the R&D to get us there, the IT component, the supply and spares, the training piece, etc. All of those “enablers” need to be managed effectively if we want to put the maximum percentage of the investment into the equipment and optimize our expenses on the supporting “tail.” Enter ERP……

We need to stop looking at any ERP as an “equipment procurement” and consider it as a capability multiplier. And that’s easier said than done. Without looking at any specific ERP product, we need to look at how the right ERP solution will not only enhance the equipment that we have bought (keep it “shinier” longer), but also look at how the ERP solution will enhance the capability for which we acquired the equipment originally. Look at it this way – buying and implementing an ERP won’t deliver anything that we can touch or feel. It won’t look good in the air, at sea, or in battle. However, if we do it right, a properly selected, configured, and implemented ERP will help us keep those ships, tanks, and aircraft, operationally ready, more often and for a longer life. It will ensure that we are investing in the right supporting and sustaining elements, at the right time, to maintain and enhance the capability that we strove for initially. If implemented correctly, we should be able to drive down the cost of ownership of our major equipments and therefore allow us to either buy more, or invest in other capabilities that may be important to our nations.

So let’s start trying to convince ourselves and our seniors that we need to use a different approach to acquiring ERPs – let’s “sell” them as part of the capability package in which we are investing – the ERP will help us to optimize the weapons system that we are procuring – all we need is a means to measure the return on investment or develop the business case that will show that the ERP investment will more than pay for itself through better operational readiness of the equipment that we are supporting. Less “tail,” more “tooth” and higher operational effectiveness. Can an ERP get us there?