BAE Systems' Military, Air and Operations (MAI) division is launching a business transformation programme in a bid to streamline its core business processes.
The goal is to boost performance in the delivery of major programmes, such as the Eurofighter Typhoon and F35 Joint Strike Fighter.
MAI has contracted business application software firm Infor's Infor10 solution, which integrates Enterprise Resource Planning (ERP), Business Intelligence, bar-coding, and a supplier commerce portal.
The project began on Monday this week and will run for approximately four months.
To avoid user errors with the new system and to increase adoption among staff, the system will also include a training tool. BAE hopes to save money through reduced licensing and IT support costs as a result of the programme.
It also expects to collect and analyse data more quickly as a result of the contextual and near real-time management reporting information provided.
Bar-coding will improve inventory processes with goods scanned as they are received and the information stored centrally.
SAP and IFS were also considered as suppliers for the deal, before Infor were chosen.
Adrian Fallows, head of strategic business systems, BAE Systems' MAI, explained that the business transformation programme has been driven by the harsh economic climate.
"With tighter budgets and greater demands from defence customers around the world, our business is facing significant challenges," said Fallows.
A spokesman for BAE said: "The Infor middleware supplied as part of the deal will connect business systems that until now have not spoken to each other," he said.
Meanwhile, BAE Systems awarded a three-year managed service contract to application logistics firm Camwood.
The deal is to provide managed application certification services across the company's UK desktop environment.
Over the past year Camwood has provided expertise to BAE Systems around the deployment of ‘software as a service'.
Allan Leggetter, director of enterprise IT services for BAE Systems, explained that the deal hopes to improve business agility.
"We recognise that undertaking a 'software as a service' transformation will enable the business to be more agile in the deployment and management of applications across the enterprise," he said.
Camwood will design, implement, operate and manage the service, providing governance and controls using best practise methodologies that conform to ITIL standards.