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IBM will help Australian fighters track their bullets, after winning a $ 95.5m ($ 67m / £ 54m) contract to implement an enterprise resource planning (ERP) system for the Department of Australia defense.

This is only the first phase of the contract, and could be worth up to $ 1 billion; The Department of Defense has divided the project into several "sections", something that will help avoid the kind of debacle that is manifesting in the United States around the Pentagon. Joint venture defense infrastructure (JEDI) contract, a single supplier agreement with a potential value of up to $ 10 billion in 10 years.

The ERP Defense program is the largest ICT project ever undertaken by the Australian Department of Defense. The department says it will affect all members of the Defense and "will transform the way the Defense does business."

In addition to IBM, organizations that submitted bids for the contract included professional services such as Accenture.

ERP is a term used to describe software. that automates the management of business processes, from customer services to accounting, purchasing, sales and distribution. The Australian army has already chosen German software SAP SAP as its ERP software provider.

Eventually, the department will use the platform to manage its finances, human resources, logistics, engineering, maintenance and heritage.

The Australian Department of Defense plans to implement the initial capacity for financial reporting in 2020, followed by increased logistics and maintenance capacity in 2022.

As part of "Section 1," IBM will be assigned the design of the initial implementation framework and the provision of system integration services. He will also be responsible for connecting the functions of business logistics and maintenance of terrestrial material in the SAP platform.

The contract also covers the high-level design for subsequent ERP tranches, and the basic elements for the subsequent addition of human resources and finance management functionality.

The adoption of new software tools to increase efficiency is part of the Defense reform agenda, which was described in a policy document called Review of the First Principles of Defense [PDF] commissioned in 2014 and published in 2015.

In 2018, IBM signed an agreement to provide hardware, software and cloud services to the Australian federal government, worth up to $ 1 billion for five years. The agreement included the DoD as a potential client, along with the Department of Human Services (DHS), the Australian Tax Office (ATO) and the Department of Domestic Affairs (DHA).

"This agreement is a testament to our 40-year partnership with the Australian government," said David La Rose, managing director of IBM A&NZ. ®

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