Mapping and Data Base Modeling for Public Sector Strategic Enterprise Resource Planning

Mapping and Data Base Modeling for Public Sector Strategic Enterprise Resource Planning

J.D. Thomson (RMIT University, Australia)
DOI: 10.4018/978-1-61520-789-3.ch025
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This Enterprise Resource Planning database model provides a systematic, logical and regular basis for the collection, collation, dissemination and mapping of strategic Enterprise Resource Planning data. Selective access to this accurate and timely data will improve public sector strategic Enterprise Resource Planning performance, accountability and administration. It will assist the public sector to be more effective and efficient in resource allocation and investment outcomes measurement, is transparent, and will encourage the development of trust, networks and social capital amongst public sector employees and their suppliers. The model has been successfully demonstrated through the establishment and analysis of an Enterprise Resource Planning data base with the Australian Department of Defence (ADoD). The Australian ADoD is a Federal Government Department with a FY 2008/9 spend of AU$9.3bn on products (goods and services), their support and maintenance, from almost every industry sector, on a global basis. While the implementation of Enterprise Resource Planning is usually viewed as a means of reducing transaction costs, in practice such implementation often increases transaction costs. Public sector bureaucratic hierarchies and their governance systems contribute to transaction costs. This research provides an Enterprise Resource Planning database model so that the public sector can achieve improved field mapping and strategic Enterprise Resource Planning using existing data and resources at lowest transaction cost.
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Literature Review. There is much organizational information associated with the Enterprise Resource Planning function. Each year, Enterprise Resource Planning represents around 50% to 60% of public sector spend. Thus the innovative conversion of Enterprise Resource Planning data to intellectual capital using electronic technology is invaluable for the management of public sector’s Enterprise Resource Planning and strategic sourcing activities. For the public sector to use its existing Enterprise Resource Planning information to create knowledge of value, it needs to access with ease and minimum transaction cost, an Enterprise Resource Planning data base. Enterprise Resource Planning data useful for knowledge management is often spread throughout different public sector functions such as accounting, project management and supply logistics. Wittman & Cullen (2000) predicted that such content may become a key value driver. It is a ‘core’ business of public sector. Because of the ability of e-technology to collect, correlate, track and aggregate e-transactions quickly and easily, this content has the potential to become a valuable source of strategic and operational knowledge. Enterprise Resource Planning enables such masses of information, previously dispersed and fragmented, difficult and expensive to bring together manually in a timely way, to now be brought together and interrogated in seconds. This contributes to improved efficiency and effectiveness, and to a lowering of transactions costs.

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