Modular Technology vs. a Big Bang Approach - How to Deliver an Agile Enterprise

Selecting an Enterprise Asset Management solution to provide optimal agility in A&D.

In defense today, agility and responsiveness are key to mission success – and not just for troops at the tip of spear, but for the support organizations that help form the wider capability. Warfighters on the front line will struggle to deliver without the necessary processes and technologies designed to support them – from the supply chain that ensures the right vehicle is at the right place at the right time to the aviation manufacturer developing the next piece of essential kit. In this article, Kevin Deal, Vice President Aerospace & Defense at IFS North America, takes a look at how a modular approach to implementing an Enterprise Asset Management (EAM) solution can enable defense support systems to provide an agile and responsive military.

Budgets for big IT programs always come under scrutiny – some because of cost concerns, some because of concern over size and complexity, and others because of relevance to perceived needs.

The promise of large and complex ‘big bang' Enterprise Resource Planning (ERP) programs have often not delivered on their promises. Many legacy systems have suffered from lack of funding or attention while waiting for these large replacement programs. What has been left in the wake of these failed ERP programs is a pent up demand to address and solve important issues across the enterprise. But what is the alternative? How can A&D IT departments streamline operations and gain an enterprise perspective when faced with such a tight budget?

In fact, this position is recognized by Gartner (News - Alert), who have described 2014 as the dawn of post-modern ERP, where the ERP suite is deconstructed into a more federal, 'loosely-coupled' ERP environment. In their report “Predicts 2014: The Rise of the Postmodern ERP and Enterprise Applications World”, analysts Ganly, Kyte, Rayner and Hardcastle, state that they expect hybrid ERP environments to be the norm within five years, and it is easy to see why as new situations require fast and agile re-configurations to meet changing business needs.

The situation in A&D
Aerospace & Defense (A&D) organizations – from the Navy, Army and Air Forces to supporting service providers, aviation shops and original equipment manufacturers – all need to respond quickly and effectively to whatever situation in which they find themselves. Agility, adaptability and minimal impact are paramount.

Technology is vital to achieving competitive and military advantage, and increasing efficiency – whether out in the field or back at a supplier factory. However, overly complex technology and in particular rigid solutions can just as easily create pitfalls such as costly and lengthy solution implementation, vendor lock-in, risk of obsolescence, maintenance issues, and escalating costs. And in the still sluggish global economic climate, decision-makers are looking to optimize what can often be costly strategic processes such as service and asset management, manufacturing, supply chain and projects, while avoiding these pitfalls.

Discrete functionality – want mobile? Can have!
There is now a significant ground swell for those organizations that need discrete functionality to solve their specific pain points but that also want a route to broader enterprise support as well – and that's where modular solutions come in.

Using a 'grow as you go' approach gives organizations the ability to tackle urgent IT requirements quickly as they arise, without needing to implement a broader and more rigid solution than is necessary, but still providing the opportunity to evolve to a full enterprise solution over time as the operation or business matures and develops as new and unexpected requirements appear.

Unlike the traditional monolithic and rigid ERP solutions, modular, component-based Enterprise Asset Management EAM solutions allow users to quickly and cost effectively add new functionality via ‘pick & mix’ modules to enhance and extend their existing solution infrastructure. Organizations can build new solutions that are vital to success as they evolve in markets or as military operations adapt, such as the addition of Export Compliance, support to Performance-Based Logistics or the added capabilities of a mobile solution – all with low risk, significantly reduced business disruption and entirely cost managed.

Lower your costs and minimize business disruption
Instead of deploying and paying an upfront cost for a large monolithic, often partially redundant solution, it's possible to purchase incremental capabilities with modular EAM solutions as and when required, meaning that costs are reduced, not just for licenses, but also for ongoing maintenance. Organizations only pay for and deploy the capabilities they require at that point in time.

It is widely recognized today, with the advancements made in technology and IT development that the hardest part of implementing a business critical information system is not the technical solution, rather the setting of the solution to work within the business. Key to success is having the correct engagement by the various solution stakeholders, which often places additional pressure on the business as individuals try and juggle understanding how the new solution will be used to best effect while continuing to deliver in their “day job”. Limiting the scope of an implementation to only the required capabilities will naturally have less impact upon the extent of the business disruption.

A modular EAM solution also has the additional advantage in that it is able to integrate with a wide variety of existing applications in the enterprise which, while at some stage in the future might require replacement, will serve adequately for the time being.

This technology lends itself to a situation where a large organization needs only to invest in the modules required to solve their immediate pain points, knowing that when these slivers of functionality need to eventually talk to each other or expand into an integrated enterprise without the challenges of wider system integration they will be able to do so via pre-integrated modules.

Future proof your IT investment
With IT budgets seeing minimal increases this year, it's essential that organizations get the best value for their money. A modular EAM solution provides agility, flexibility and future-proofed investment to help these organizations to deliver the capabilities required in defense today, and into the future.

This way, organizations can embrace a low risk and timely approach to solving their specific individual problems while being automatically architected for the future.

Kevin is responsible for all aspects of IFS in Aerospace and Defense within North America, and has been in the A&D IT business for over 25 years. Prior to joining IFS, Kevin held a number of roles as Director of Mid-Americas and Federal at BroadVision, as well as Director of National Sales at Cincom. Kevin was also a logistics war modeler and former Director of the DoD’s Supportability Investment Decision Analysis Center (SIDAC).