Transcribed image text: IT's About Business 10.1 The Army Transitions from Legacy Systems to Enterprise ResourceHuman Computer Interaction Planning Tools MIS ACCT Almost every organization that is more than 20 years old has some type of legacy information system-an outdated IT system that was usually developed with a specific focus and designed without con- sidering future needs. In essence, legacy systems were developed as silos. (Silos refer to functional area information systems that do not communicate with other FAIS or organizational information systems.) Furthermore, each legacy system was typically created with its own data in a specific format. Unfortunately, these formats are often incompatible within the same organization. In these sce- narios, one legacy system cannot use the data from other systems. The U.S. Army (www.army.mil) is one of the oldest national organizations in our country. Information technology plays a criti- cal role in all of the Army's processes. It is no surprise that the Army has numerous lega information systems that, while successfully supporting various operations over the years, nonetheless do not share data efficiently or effectively. Today, however, the Army must pass audits as part of a fed- erally mandated Department of Defense (www.dod.gov; DOD) fi- nancial audit scheduled for 2017. The Army's legacy systems, while proficient within their specific areas, could not produce the docu- mentation required by the DOD. Many organizations, when they retire their separate legacy systems, merge the relevant functions into one enterprise resource planning (ERP) system. The migration to an ERP is very difficult, however, often taking several years and costing large amounts of money. Large organizations such as the Army cannot simply turn off one or more legacy systems until they have assurance that the new ERP system will work and that employees are trained on how to use the new system. Other branches of the military have transitioned to ERP sys- tems. Some of the implementations failed, and some succeeded. In 2012, for example, the Air Force canceled an ERP system implemen- tation (the Expeditionary Combat Support System) after spending more than $1 billion on the project. In that same year, a Navy ERP system was deemed a “qualified” success because it did work, but it was one-third over budget and more than two years late. In 2005, the Army began working with Accenture (www .accenture.com) to develop a SAP-based (www.sap.com) ERP sys- tem called the General Fund Enterprise Business System (GFEBS). By 2012 (seven years later!), the Army had begun phasing in the new system. As of late 2016, the Army was still phasing out its legacy systems, some of which had been in use for more than four decades. The ERP rollout is scheduled to be completed in 2018. The GFEBS is designed to create paper trails so that the Ar- my's business operations are accountable and auditable. It is a web-based tool, meaning it is accessible anywhere with Internet access. The GFEBS standardizes, streamlines, and shares critical data across all Army divisions. This will help decision makers ana- lyze business processes, cost structures, and inventories. It will also help implement the DOD's greater transparency initiative. As of late 2016, the Army had been subjected to several audits by indepen- dent auditing firms, which found no major causes for concern. This is a sign that the implementation is moving the right direction. Sources: Compiled from M. Hoffman, “Army Taps 10 Small Businesses for $846M ERP Services Contract,” Govcon Wire, January 8, 2016; H. Kenyon, “Army ERP System Enables Financial Transparency,” Information Week, April 15, 2014; H. Kenyon, “DOD Pushes Toward Joint Information Environment,” Information Week, March 26, 2014; D. Perera, “ERP Implementation Con- tinues to Challenge the Military,” fiercegovermentit.com, March 31, 2013; D. Perera, “Air Force Cancels ECSS,” fiercegovernmentit.com, November 29, 2012; D. Perera, “Navy ERP a 'Qualified Success,'” fiercegovernmentit. com, September 9, 2012; T. Weiss, “Accenture wins $537M Army Financial Services Contract,” Computerworld, June 28, 2005; www.army.mil, accessed November 21, 2016. Questions 1. Why do you think the U.S. Army's legacy systems were not as useful today as they were when they were developed? 2. How does this military example parallel large businesses like Sears and Walmart that have had to maintain their own legacy systems?

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