Enterprise Resource Planning (ERP) systems are prime examples of IT systems being pursued by the Department of Defense to enable transformation and improve efficiency and effectiveness. Successful implementation generally entails significant business change because ERP systems typically affect a large number of organizational departments and processes. RAND Project AIR FORCE identified the key conditions that must be achieved to facilitate the success of ERP-enabled business transformation, the challenges the Air Force must address to achieve those conditions, and some options for overcoming these challenges. Recommendations include, among other things, fully developing and articulating the business case, analyzing and documenting both the AS-IS and TO-BE environments, establishing clear governance of the project, developing criteria to determine whether changing the updated business processes or customizing the system is more appropriate, and delivering transformation, via increased capability, in manageable increments. The report clarifies how the decisions and activities inform each other and must be jointly orchestrated to ensure successful transformation.

Introduction -- Business case -- Governance -- Business process reengineering -- Organizational change management -- IT acquisition -- Summary and recommendations.