AI News, U.S. Air Force Blows $1 Billion on Failed ERP Project

U.S. Air Force Blows $1 Billion on Failed ERP Project

The U.S. Department of Defense latest strategy for putting lipstick on a pig, when faced with a major project debacle, has been to say, “Well, it’s not a total waste because the effort creates an opportunity to harvest technologies and lessons learned.” I expect to see the same lipstick strategy, maybe in a new shade, from the U.S. Air Force regarding its Expeditionary Combat Support System (ECSS), which it finally decided to scrap after blowing through a billion dollars over seven years of development to produce a system which it admits as having no “significant military capability,” Defense World reported late last week.

The ECSS project (pdf) began in 2004 as an ambitious and risky effort to replace 240 outdated Air Force computer systems with a single integrated system so that the Air Force could finally come up with an auditable set of financial records, something I don’t think it has been ever able to do since its creation as a separate branch of the military in 1947.

Avantor alleges that IBM, which was retained by Avantor to upgrade its global computer systems to an SAP platform,' fraudulently misrepresented the capabilities of its proprietary software solution and engaged in other misconduct leading to a failed implementation in Avantor’s U.S. locations.'

A Reuters story says that IBM was surprised by the lawsuit, and that the complaints “are exaggerated and misguided.” It went on to say that IBM claimed that it had “met its contractual obligations and delivered a solution that Avantor continued to use in its operations,” a claim that the Avantor press release seems to contradict.

The scariest software project horror stories of 2012

Sure, plenty of enterprise software projects go just fine and end up giving customers all the things vendors promise: lower operating costs, streamlined operations and happier users.

U.S. Air Force pulls plug on ERP project after blowing through $1 billion In November, reports emerged that the U.S. Air Force had decided to scrap a major ERP (enterprise resource planning) software project called the Expeditionary Combat Support System after it racked up US$1 billion in expenses but failed to create 'any significant military capability.'

The project dated to 2005 and used Oracle software, but its ballooning costs clearly suggest that Air Force officials and systems contractor CSC conducted an overwhelming amount of additional custom coding and integration work.

Watchdog agency's report suggests ongoing U.S. military ERP projects are failures in motion The U.S. Government Accountability Office released a report in March that found many ongoing ERP projects by the nation's military are drastically behind schedule and over budget.

Another ERP project at the Navy was begun in 2003 and planned for completion in fiscal 2011, but that schedule has slipped to August 2013, with costs expected to be $2.7 billion instead of $1.9 billion.

'It's so bad that maybe the government should give up the ghost on trying to do anything and simply accept that multibillion failures are a permanent part of the landscape,' said analyst Michael Krigsman, CEO of consulting firm Asuret and an expert on IT project failures, in a recent interview.

project that was intended to modernize case management for California's court system was scrapped in March, despite the fact that officials deemed the software developed so far was viable.

Manufacturer sues IBM over SAP project 'disaster' Also in November, chemical products maker Avantor Performance Materials lodged a suit against IBM, alleging that Big Blue officials lied about the suitability of an SAP-based software package it sells in order to land Avantor as a client.

While analysts on average had predicted $0.60 per share and roughly $491 million in revenue, profit instead was $0.40 per share in the quarter and revenue totated $460 million, according to Woodward's announcement at the time.

Beverage distributor's lawsuit claims two-year effort resulted in 'absolutely useless' ERP software Epicor found itself in court in January after its customer, beverage distributor Major Brands, sued the vendor on grounds it had delivered 'absolutely useless' software after years of effort.

The Epicor software continued to suffer from severe latency problems and Epicor eventually told Major Brands that it would need to make 'numerous changes and upgrades,' with the project's go-live date pushed out significantly, according to the suit.

'Antiquated' software leaves city out of millions in uncollected parking fines Some parking violators in Long Beach, California, haven't had to cough up their fines due to an 'antiquated' software system used by the city's government, according to a report released in March by Long Beach Auditor Laura Doud.

Construction company can't file annual report on time due to ERP woes In May, Pennsylvania construction firm New Enterprise Stone and Lime said it would have to hold off filing its fiscal 2012 annual report because of problems with an Oracle JD Edwards system rollout.

Oracle software glitch leads to financial aid frenzy Issues with an Oracle PeopleSoft system at Washington State University resulted in a wild startto the semester in August, causing widespread delays in financial aid disbursements.

Air Force Life Cycle Management Center

The Air Force Life Cycle Management Center (AFLCMC), headquartered at Wright-Patterson AFB, is one of five centers reporting to the Air Force Materiel Command.[1] Led by a Lieutenant General, AFLCMC is charged with life cycle management of Air Force weapon systems from their inception to retirement.

AFLCMC was designed to provide a single face and voice to customers, holistic management of weapon systems across their life cycles, and to simplify and consolidate staff functions and processes to curtail redundancy and enhance efficiency.

In addition AFLCMC's operating structure provides an integrated framework for decision making and process optimization across the weapon system life cycle.

AFLCMC execution directorates provide direct program support such as engineering, technical order management, developmental planning, contracting, and source selection assistance.