A billion dollar ERP failure

This year, the United States Air Force finally decided to scrap their ERP implementation project that has been in the works since Oracle won the contract bid in 2005.  After already throwing $1 billion in the bucket, top Air Force brass ended the project that would have integrated 240 different systems in one solution.

The project was most recently projected to be completed in 2020, three years after the Air Force’s  2017 Financial Improvement and Audit Readiness statutory requirement.  And an estimated $1.1 billion would still be needed to complete the project.  So, they will stick with their existing modified systems for the sake of complying with audit readiness.

If a 15-year ERP implementation sounds like a head-scratcher to you, you are probably not alone.

According to Panorama Consulting, the project was done-in by a serious lack of communication, as high-ranking officials in the Department of Defense apparently do not receive bad news graciously.  If everybody is afraid to communicate with the person above them on the food change, no ERP implementation will go well.

This is a great example of why executives need to be brought in on the implimentation to encourage of culture of change as any new ERP solution is being adopted on any scale.

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