Defense IRM: Business Strategy Needed for Electronic Data Interchange Program
Abstract
Defense, realizing that EDI technology could save the Department hundreds of millions of dollars, initiated the EDI program in an effort to standardize electronic business operations and provide a common approach for vendors to conduct business with Defense. These goals, while laudable, are not being realized because of alack of leadership and ineffective, splintered management. Defense estimated that it could save $254 million by 1996 in initial savings by automating routine business forms and standardizing them across the Department. However, Defense is not meeting these goals for electronic business because of management disagreements on the best strategy for implementing the technology. Moreover, without adequate direction toward a standard approach for applying EDI, Defense components continue to use nonstandard EDI procedures that, while proving beneficial for local operations, will not advance and may undermine Defenses broader EDITS and .Furthermore, Defense adopted the CIM initiative to simplify and improve its business operations by introducing standard systems based on departmentwide goals and objectives. Defense also recognizes that EDI is an enabling technology that could improve its business operations and provide even larger savings through reengineered business processes. However, it has only recently begun to link EDI implementation and CTM. Such linkage is essential if Defense is to realize the considerable potential benefits that EDI offers through reengineering.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1993
- Accession Number
- AD1150603
Entities
People
- Donald H. Chapin
Organizations
- United States Government Accountability Office