Defense IRM: Business Strategy Needed for Electronic Data Interchange Program
AIMD-94-17
Published: Dec 09, 1993. Publicly Released: Dec 17, 1993.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) management of its Electronic Data Interchange (EDI) program, focusing on: (1) estimated cost savings and business goals; and (2) components' implementation of EDI as part of the Corporate Information Management (CIM) initiative's business process reengineering efforts.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | In order to improve EDI program management and realize the full benefits associated with EDI, the Secretary of Defense should direct Office of the Secretary of Defense principal staff assistants, in line with CIM principles, to develop business strategies for each functional business area in order to develop a standard approach for implementing EDI. These strategies should include functional objectives, policies, procedures, and managerial responsibility for linking EDI capabilities to business process improvements. |
Closed – Implemented
DOD has created the Joint Electronic Commerce Program Office, which is an Executive Agent shared by the Defense Logistics Agency and the Defense Information Systems Agency (DISA). EDI and other electronic commerce (EC) technologies are employed by three organizational elements to accomplish EC goals within each DOD business area plan. Business and Technology Integration will work with DOD components to implement EC technologies developed by DISA and integrate them into Logistics, Acquisition, Contracting, Continuous Acquisition and Life-Cycle Support, and Finance systems. Business Planning, Implementation, and Coordination will handle program management, POM/budget and administrative support. Strategic Business Development and Industry Alliances will manage the ECRC program, training, industry outreach, and the DOD World Wide Web pages.
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| Department of Defense | In order to improve EDI program management and realize the full benefits associated with EDI, the Secretary of Defense should designate the Assistant Secretary of Defense for Command, Control, Communications, and Intelligence to develop communications policies and procedures to support a standard EDI approach. These policies and procedures should include: (1) an implementation plan for telecommunications to support a common approach for electronic business between DOD and industry; and (2) guidelines to assist components in acquiring EDI software, hardware, and telecommunications services; implementing a consistent EDI approach through the use of EDI standards; and realizing crosscutting business objectives. |
Closed – Implemented
DISA has telecommunications and standards responsibilities for EDI. As such, DISA is responsible for developing the technical architecture and technical infrastructure to support DOD's EC/EDI program. DISA is working with the components to develop EC architectures for supporting EC/EDI in DOD's various business areas. Additionally, the new Joint Electronic Commerce Program Office is conducting training programs and outreach to equip components and their trading partners with the necessary skills to implement the new program.
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| Department of Defense | In order to improve EDI program management and realize the full benefits associated with EDI, the Secretary of Defense should direct the military service secretaries and DOD agency heads to defer acquisition of EDI products and services until the Assistant Secretary of Defense for Command, Control, Communications, and Intelligence determines that such acquisitions support departmentwide business objectives. |
Closed – Not Implemented
Since this recommendation, DOD has revamped its EC program by forming a new Joint Electronic Commerce Program Office headed up by both Defense Logisitics Agency (DLA) and DISA, with representatives of each military service and the Defense agencies. Implementation of the new program has been under way for just 6 months. Additionally, Congress has dropped the requirement that all agencies use the FACNET architecture and OMB is supporting a multitude of EC-based solutions being implemented in numerous agencies such as National Aeronautics and Space Administration, General Services Administration, DLA and Treasury. Accordingly, this recommendation will no longer be applicable.
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Topics
Defense cost controlDefense industryDefense procurementE-commerceElectronic data interchangeElectronic formsFederal formsInformation resources managementMilitary communicationSystems compatibilityInformation management