ERP History

A Brief History of Navy ERP
Downsizing and shrinking budgets within the Department of Defense (DOD) have made "Reinventing Government" a high priority within the Department of Navy (DON). The Department must ensure its support infrastructure continues to support its operational forces as it works to transform its business practices. In order for it to succeed, this infrastructure transformation must remain flexible, responsive and adaptable to the forces it supports. While Enterprise Resource Planning (ERP) will not solve every problem, it offers a disciplined approach needed to effect business process change and implement industry common best practices. Here’s how the Navy embarked on its path to ERP:

In December 1997, Secretary of the Navy John H. Dalton asked Under Secretary of the Navy Jerry M. Hulton to begin work on a DON strategic business plan as a means of addressing the need for reform in the business affairs of the Department. Mr. Hulton responded by establishing the Revolution in Business Affairs (RBA).

On September 30, 1998, the RBA established working teams designed to identify the vision and goals—both short and long term—in areas of opportunity identified by the RBA. The working groups also were charged with developing plans for reaching short-term goals through existing initiatives and/or identification of new initiatives.

The Commercial Financial Practices Working Group, led by VADM John Lockard (then COMNAVAIR), was one of the first Working Groups chartered. As working group members began their research, they quickly realized that the scope of their study and analyses needed to expand beyond the financial and should encompass the broader scope of business practices. Subsequently, the Commercial Financial Practices Working Group broadened its approach and changed its name to the Commercial Business Practices (CBP) Working Group.

Next, the Working Group held a 3-week offsite in November 1998 to examine the state of the commercial sector, understand the directions of changes in business practices, and develop the way ahead for the Department. During the offsite, the group found that the commercial sector's approach to an improved enterprise-wide management system included implementation of an ERP solution. The group believed this alternative would:

The Working Group recommended six Enterprise Resource Planning (ERP) pilot programs be conducted to explore the possibility of implementing ERP solutions across the Navy. Click on the link below for further information concerning the evolution, scope and outcome of the pilot programs.