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US Air Force Scraps ERP Project After $1 Billion Spent
angry tapir writes "The U.S. Air Force has decided to scrap a major ERP (enterprise resource planning) software project after spending $1 billion, concluding that finishing it would cost far too much more money for too little gain. Dubbed the Expeditionary Combat Support System (ECSS), the project has racked up $1.03 billion in costs since 2005, 'and has not yielded any significant military capability,' an Air Force spokesman said in a statement. 'We estimate it would require an additional $1.1B for about a quarter of the original scope to continue and fielding would not be until 2020. The Air Force has concluded the ECSS program is no longer a viable option for meeting the FY17 Financial Improvement and Audit Readiness (FIAR) statutory requirement. Therefore, we are canceling the program and moving forward with other options in order to meet both requirements.'"
From my observations, I've concluded that no organizational group works toward reducing its size, reducing the amount of its discretionary budget, or increasing its accountability for the preceding.
Any exceptions?
ERP is a bunch of disparate functions mashed together then held in place with a metric assload of duck tape. It's only natural that if you try to tacle the whole thing at once the result will be a sort of dynamic paralysis where you run back and forth in a nearly random pattern burning money all the way.
Just as well, if you ever manage to build the thing, you'll create paralysis across the entire company if you suddenly drop this chimera on people's desks.
Note, I am NOT claiming that the individual functions aren't necessary nor am I claiming that they shouldn't support common data formats.I am claiming that trying to build the whole thing at once and as a single 'solution' is wrong headed and doomed to failure.
"Those" billions? It's one billion, singular.
The US government spends 19% on defense, 19% on social security, and 20% on healthcare. The last two items are expected to grow much faster than the first.
Useless? Do you know what a "contested sea zone" is and how it affects commerce? No? Yeah, that's what I thought, and the reason why is overwhelming dominance. Assuming, of course, you like imported coffee at the hip indie coffeeshop and hipster fruits like the Durian instead of that crap domestically made junk.
Shutting down free speech with violence isn't fighting fascism. It IS fascism!
Don't worry, such gifts are remembered for many generations - the Buckwhupistanis will likely return the gifts at some point... That's just the cost of being so generous.
Bullshit. I have been involved in dozens of ERP implementations over the years. The software works. When implementations fail it is always, in my experience, because of the people (i.e. management) making the decisions on how to implement the product.
Me: "Let me show you how Product X handles Accounts Payable"
Client: "That's not how we do it"
Me: "This might be a good opportunity to take a look at your current business practices and see if they can be done in a more efficient way"
Client: "But we've always done it this way"
Me: "Why?"
Client "Dunno...just always have. And I doubt that the team is willing to change"
Me: "Ok, we can customize the product to make it work the way you want but it's going to take more time and money. And when you do an upgrade later on there will be implications as well"
Client: "Fine. Just make it work the way we do it now"
And so it goes. Time and again I see clients go out and buy an expensive ERP system only to customize the bejezus out of it to make it look exactly like the systems they are retiring. They are not open to better business practices. Too many political headwinds.
What does this say about these clowns in the Air Force? It takes them 10 years and $1.03B to realize that the project is going to fail? On an original budget of $88M? One of the big problems with trying to shoehorn a best practice ERP system into a large government institution is that often they employ worst practices. They won't, or can't, change them so you have to end up rewriting the product to fit their ass backwards ways. The whole purpose of implementing an ERP system is to replace aging, stove-piped systems with modern integrated systems. It can work well if it's implemented properly and the right decisions are made along the way. But it's not a magic pill.