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High Risk Issue


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DOD Business Systems Modernization

Problem: The Department of Defense (DoD) relies on too many independent systems to support its business functions. Many of these systems have been in place for decades and operate within a non-integrated and duplicative environment.

Goal: Further develop the infrastructure, governance, policies, standards, and procedures that will enable DoD to more expeditiously modernize and integrate its business systems, such that right the capabilities are delivered to the warfighter in a timely manner.


  • At the institutional level, the supporting component architectures need to be developed and aligned with the corporate architecture to complete the federated business enterprise architecture

    • In addition to assisting components with developing their architectures, significant progress has been made to mature the governance structure, policies and procedures for federation. Such policy guidance shapes how all Mission Areas and Components will participate in establishing a DoD-wide federation of architectures. The intent is to enable cross-departmental discovery and use of architecture artifacts to support the Department??s decision makers in evolving and maintaining the enterprise IT infrastructure in accordance with law and policy while maintaining autonomy for the owners of the architecture artifacts.
    • Specific to the Business Mission Area (BMA), the BMA Architecture Federation Strategy and Roadmap Version 2.4a was released 29 January 2008. This document details products, services, capabilities, and actions to implement architecture federation and deliver business services across the BMA and from tier to tier within the DoD. The Roadmap portion includes the BMA milestones in support of federation.
    • Several efforts are also in place to implement Service Oriented Architecture throughout the Department, including the maturation of the BMA??s Business Operating Environment and implementation of enterprise-level policy. SOA will help the Department share functions and applications across the enterprise as discrete, reusable, business-oriented services and will help to align business capabilities with the technical infrastructure in support of agile business practices.
  • Expand the Enterprise Transition Plan to include all Tier 1 and 2 systems.

    • The March 2008 Congressional Report, an update to the Enterprise Transition Plan (ETP), includes all Tier 1 and 2 systems in the BMA. This includes all Major Automated Information Systems (MAIS), Major Defense Acquisition Programs (MDAPs), and programs exceeding $10 million in total development/modernization costs that have not been designated as MAIS or MDAP.
    • The upcoming September 2008 ETP will mark three years of executing the Department??s integrated transition plan for business operations. The 2008 ETP will provide details on business transformation progress, as well as implementation progress on over 100 systems and initiatives, including 12 large enterprise resource planning (ERP) implementations. These 12 ERP systems represent more than 50 percent of the Department??s annual investment in business systems modernizations.
  • Evolve the investment process and institutionalize it at all levels of the organization. This includes ensuring that business system programs and projects are managed with integrated institutional controls.

    • Significant progress has been made in evolving the DoD??s investment management process for business systems. For Major Automated Information Systems, the Investment Review Board structure adopted by the Department in the middle of 2007 has merged investment management and acquisition oversight into a single governance structure ?? the Defense Business System Management Committee. To further codify and institutionalize this progress, the Deputy Secretary is expected to issue further formal guidance in the first quarter of FY2009. The Department??s military components have adopted similar IRB structures to ensure that the investment process fully vets proposed investments.
    • The Business Capability Lifecycle (BCL), designed to achieve faster delivery of business capabilities, and the aligned Enterprise Risk Assessment Methodology (ERAM) will help to ensure that business system investments and projects are managed through the entire lifecycle with industry best practice, integrated management controls.
    • DoD also continues to mature the Program Executive Offices within the Defense Business Systems Acquisition Executive Directorate of the Business Transformation Agency to improve portfolio management.
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