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<p>The Department of Defense (DOD) is in the midst of a transformation effort under the leadership of Secretary of  Defense Donald Rumsfeld. A large portion of military transformation is focused on DOD business practices. It has been  estimated that up to five percent of the annual DOD budget could be saved by improving and streamlining defense business  operations. This initiative is critical given the large numbers of legacy business systems and the steady increases in annual  maintenance costs associated with these outdated systems.  This report explores the legislative history leading to the development of the Business Management Modernization  Program (BMMP). The current state of DOD business systems is examined, as well as case studies on specific system  modernization initiatives conducted proceeding and immediately following the implementation of BMMP. Our  recommendations for successful business systems modernization efforts include senior leadership supporting the need for  change, understanding the implications of using commercial off-the-shelf (COTS) products, properly structuring the acquisition  process and emphasizing the importance of systems integration.
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<br>Subjects: Leadership.; Business Systems Modernization; Business Management Modernization Program; BMMP; Standard Procurement System; SPS; Defense Logistics Agency Business System Modernization; Defense Enterprise Accounting and Management System; DEAMS; Defense Acquisition Management Information Retrieval; DAMIR; commercial off-the-shelf; COTS; leadership; change management; transformation; legacy systems</div>
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<dl><dd>Nicholas, Joseph E.</dd>
<dd>Scott, Corey L.</dd>
<dd>Guerra, Elizabeth A.</dd></dl></div>
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